As the world’s population pushes inexorably towards the 11 billion mark, implementing the United Nations Sustainable Development Goal of Zero Hunger has never been more urgent. Top fertilizer companies are playing a vital role in delivering food security. They also provide exciting opportunities for investors who want to choose companies that make a practical difference!
We All Depend on Fertilizers
Fertilizer companies, while often overlooked in the world of corporate prestige, play a key role in sustaining global agriculture. While tech giants like Amazon, Apple, Google, and Zoom frequently dominate headlines with their innovative technology, the contributions of fertilizer manufacturers are quietly revolutionizing farming practices, and helping to feed the world.
Without innovative – and highly profitable – fertilizer companies like ICL Group, Nutrien, and Yara most of us in the developed world would quickly begin to go hungry and society would face unprecedented chaos and upheaval. The best fertilizer companies provide the crop nutrients that deliver reliable harvests. Fertilizer products are one of the basic foundations of food security. Our future existence and quality of life depend on the groundbreaking scientific research of leading fertilizer companies.
The Scale of the Food Security Challenge
The UN is predicting that the global population will reach 9.8 billion in 2050 and 11.2 billion in 2100. In addition to sustained population growth, we are seeing increasing urbanization. Rural populations are deserting the land and moving to the cities in search of better economic opportunities. A diminishing agricultural workforce is expected to feed an expanding urban population.
According to the United Nations 600 million people worldwide will be facing hunger in 2030. A total of 16 countries are judged to have “very high levels of hunger”. Some countries like Syria, Afghanistan, and the Democratic Republic of Congo face genuine food emergencies and risk famine. There’s nothing new about food insecurity – the issue is as old as the human race itself. The problem is that existing threats are being compounded by climate change.
In the US alone, there were 28 weather and climate disasters in 2023, with a financial impact of at least $92 billion. The US has a sophisticated modern infrastructure, an advanced economy, and (in theory) a high level of resilience. Nonetheless, the government is concerned. The effects of drought, flooding, and rising temperatures on subsistence farmers and less well resourced agricultural economies are potentially disastrous.
The Problem of Rising Fertilizer Costs
Without three key macro-nutrients; nitrogen (N), phosphorus (P), and potassium (K), and a handful of essential micronutrients like boron, zinc, molybdenum, iron, and manganese, the global food supply chain would fail. Fertilizer manufacture depends on the supply of chemicals and minerals and product prices are directly linked to commodity and energy prices.
Events like the Ukraine War, high energy costs, and the current disruption of shipping lanes in the Red Sea can send fertilizer prices soaring. The NPK Index peaked at 297.6 in April 2022. It created record YoY profits for a number of chemical and mineral suppliers and fertilizer manufacturers but raised food prices worldwide.
Fertilizers as a Strategic Industry: New Government Investment
Governments were jolted by the political implications of temporary food chain disruptions during the COVID lockdowns and commodities crisis. The US Department of Agriculture (USDA) announced its intention to support additional production of fertilizers. An initial $250 million was allocated, via a grant program, to stimulate sustainable fertilizer in the US. By March 2023, it had received $3 billion in grant applications. Fertilizer manufacture is a strategic industry that is attracting increasing government support worldwide and there is a new and favorable investment environment.
10 Best Fertilizer Companies
The current fertilizer market size is $192.56 billion. It is expected to reach $250 billion by 2030 with a CAGR of 3.85%. Companies that can deliver affordable, sustainable fertilizers potentially offer exciting opportunities for investors who want a growth market with a core product that will always be in high demand. Check out 10 of the best fertilizer companies:
1. ICL Group
Market Cap $6.07B
ICL is a leading global specialty minerals company and one of the top ten fertilizer manufacturers in the world. The company is a leading supplier of controlled release fertilizers and granulated PK and NPK fertilizers. We have chosen them #1 for their commitment to sustainable innovation. ICL produces a fertilizer with the lowest carbon footprint; that is organic and directly mined in rock form. They also offer groundbreaking a first of its kind sustainable fertilizer.
ICL’s global presence includes 38 production sites in 13 countries and 24 R&D centers worldwide.
2. The Mosaic Company
Market Cap $9.90B
Mosaic is one of the world’s largest suppliers of phosphate and potash-based crop nutrients. The Tampa-based company is responsible for the entire production cycle, from initial mineral mining, through to processing and fertilizer manufacturing, and is significantly less vulnerable to supply chain disruption.
Mosaic maintains an active global presence with production plants in 9 countries and customers in more than 40. The company has an enviable production capacity of 25 million tons of finished concentrated phosphate and potash. As of 2024, Mosaic is set to expand and increase its market share.
3. Nutrien
Market Cap $29.6B
Nutrien is a Canadian fertilizer manufacturer and is currently the third-largest producer of nitrogen fertilizers in the world. The company was formed through a merger between PotashCorp and Agrium, successfully combining both companies’ resources and expertise.
Nutrien is the second largest fertilizer company (in terms of market capitalization) and has over 2,000 retail outlets spread over three continents. The North and South American and Australian markets account for the bulk of Nutrien’s sales, but it is reportedly eyeing new markets in Asia and Europe.
4. Yara
Market Cap $7.7B
Yara is a well-established Norwegian company that was founded over a century ago. Yara is a big name in the fertilizer business whose products include high quality nitrogen-based mineral fertilizers, phosphate and potash-based mineral fertilizers and specialty fertilizers.
Although based in Oslo, Yara is active in more than 60 countries and has clients in more than 120 countries worldwide. The Norwegian government owns at least a third of Yara and the company is regarded as a stable prospect for investors.
5. CF Industries
Market Cap $14.36B
CF is an American fertilizer manufacturer that focuses on ammonia, urea, and ammonium nitrate products. The company halted operations at some of its UK plants due to high natural gas prices (gas is used in the manufacture of ammonia) and environmental taxes.
Despite its setbacks in Great Britain, CF is in good shape with nine manufacturing complexes comprising 17 ammonia plants in various countries around the world. The main caveat for investors is that the company’s profit levels depend on fossil fuels which can fluctuate considerably in value.
6. Wesfarmers
Market Cap $50.4B
Wesfarmers is an Australian giant and the world’s biggest fertilizer company by market capitalization. The conglomerate is Australia’s largest employer and has a variety of businesses. Wesfarmers Chemicals, Energy & Fertilisers (WesCEF) specializes in ammonia and ammonium nitrate production for crop nutrients.
Wesfarmers is heavily involved in research and development into the future of ammonia as a clean fuel. It is in partnership with Mitsui and the Japanese government to evaluate the possibility of exporting low-carbon ammonia to Japan, possibly via a new $1 B plant.
7. Coromandel
Market Cap $4.38B
Coromandel is an Indian agronomical company whose products include fertilizers (including especially nutrients and organic fertilizers). It is India’s largest private sector manufacturer of phosphatic fertilizers. India has a growing population that currently stands at over 1.4 billion. There is a huge domestic market for crop nutrients.
As well as focusing on the Indian market, and manufacturing over 3 million tons of phosphatic fertilizers annually, Coromandel is active in almost 80 other countries. The company is keen to secure new sources of rock phosphate and is expanding operations in Senegal to this end.
8. Fertiglobe (OCI and ADNOC)
Market Cap $5.89B
Fertiglobe was formed through a strategic partnership between Dutch group OCI and the Abu Dhabi National Oil Company, known as ADNOC. The Abu Dhabi based company is a leading nitrogen fertilizer and ammonia producer in the MENA region. Fertiglobe reports an annual production capacity of 5.1 million metric tons of urea and 1.5 million metric tons of ammonia.
The company operates plants in UAE, Egypt and Algeria, benefiting from comparatively low labor costs and access to major ports in the Mediterranean, Red Sea and Arabian Gulf. Fertiglobe is the largest seaborne distributor of ammonia fertilizers in the world and is investing strategically in new clean ammonia.
9. SABIC
Market Cap $63.9B
SABIC used to be known as the Saudi Arabian Fertilizer Company or SAFCO. It supplies a broad spectrum of crop nutrients, including urea, ammonia, phosphate, DAP & MAP, and NPK fertilizers. SABIC is believed to be able to achieve an annual production capacity of 10.8 million tons across all product types.
The Saudi manufacturer, established in 1976, has global reach and a presence in over 80 countries. It is also a major employer with 40,000 staff. SABIC is (as of 2024) the 4th largest fertilizer manufacturer by market cap.
10. Intrepid Potash
Market Cap $0.35B
Intrepid Potash is an interesting example of a small (comparatively speaking) fertilizer company that punches above its weight. Intrepid Potash is America’s largest producer of potassium chloride better known as muriate of potash. The company owns three mines in Utah and New Mexico.
Potassium chloride is used to make potash fertilizer and there is a steady market for these crop nutrients. Intrepid Potash also manufactures sulfate of potash magnesia fertilizers. The company offers innovative nutritional solutions for fruit and vegetable growers who farm magnesium-deficient soil.
In Summary
The best fertilizer companies are addressing urgent global needs and have a growth market well into the next decade and beyond. There is government backing for this vital strategic industry, and new technologies are enabling the development of sustainable fertilizers, green ammonia, and precision crop nutrition solutions. If you plan to develop your personal portfolio in 2024, fertilizer companies are definitely worth a closer look.
