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Phosphate supply security for importing countries: Developments and the current situation.

Bernhard Geissler1, Michael C Mew2, Gerald Steiner3

  • 1Danube-University Krems, Transdisciplinary Laboratory for Sustainable Mineral Resources, Dr. Karl-Dorrek-Straße 30, 3500 Krems, Austria; Technical University Bergakademie Freiberg, Interdisciplinary Environmental Research Centre, Brennhausgasse 14 6, 09599 Freiberg, Germany.

The Science of the Total Environment
|May 8, 2019
PubMed
Summary
This summary is machine-generated.

Global phosphorus supply chains are concentrated, impacting food security. While markets for phosphate rock and fertilizers show increasing concentration, export markets have become less concentrated, easing concerns for import-dependent nations.

Keywords:
Cadmium regulationHirschman-Herfindahl IndexIndustrial mineral marketsMarket concentrationPhosphate rockPhosphate tradeReserve–consumption ratioTrade statistic

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Area of Science:

  • Geosciences
  • Agricultural Science
  • Economics

Background:

  • Phosphorus is a vital macronutrient essential for global food security, primarily sourced from finite phosphate rock deposits.
  • Europe has limited phosphate rock reserves, making it heavily reliant on imports.
  • Phosphate trade is based on bilateral agreements, raising concerns about supply security for import-dependent nations.

Purpose of the Study:

  • To analyze the concentration and dynamics of the global phosphorus supply chain, from phosphate rock to fertilizers.
  • To evaluate market concentration using the Hirschman-Herfindahl Index (HHI) and assess reserve-to-production ratios over time.
  • To address supply security concerns for import-dependent countries by examining market dynamics.

Main Methods:

  • Application of the Hirschman-Herfindahl Index (HHI) to quantify market concentrations.
  • Analysis of reserve-to-production ratios to evaluate long-term supply chain developments.
  • Comprehensive analysis of the entire phosphorus supply chain, including phosphate rock, phosphoric acid, and phosphate fertilizers (MAP, DAP).

Main Results:

  • Markets for phosphate rock, phosphoric acid, and phosphate fertilizers (MAP, DAP) are characterized by medium to high concentration.
  • Trends indicate increasing market concentration throughout the phosphorus supply chain.
  • Export market concentrations for phosphate fertilizers have significantly decreased since the early 1980s.

Conclusions:

  • While overall supply chain concentration is increasing, the decreasing concentration in export markets for phosphate fertilizers mitigates immediate concerns for import-dependent regions.
  • Understanding market dynamics and reserve-resource situations is crucial for ensuring global food security.
  • Phosphorus recycling can supplement but not replace imports, highlighting the need for strategic resource management.