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March 29, 2013 / Jeb

Shortage In Food This Decade?

Is The Junior Potash Sector Hitting Rock Bottom?

Population growth combined with potential inflationary effects could lead to increased demand for food.  Increasing populations with declining arable land per capita will force farmers to boost yield using the key ingredient potash.

Potash or potassium salts are amazing fertilizers.  They make the plant stronger and improves output.  Potash helps the physical condition of the crop boosting vitality.  It helps a plant’s immunity to withstand drought, infection and parasites.  Do not forget that potash is also used in drilling, building materials, paper, pharmaceuticals and other products.

Continuing interest especially out of Asia, India and Brazil for a secure long term supply could boost global demand to 75 million tons by 2020 and boost the need for junior potash developers.  These countries have major supply demand imbalances.

The global population increases 300-400 million people every five years.  Rising emerging economies require more well rounded diets consisting of higher meat based and crop intensive diets.

Arable land is declining per capita and this means farmers will need to boost yields.   US imports 90% of what it consumes and only produces 1 million tons a year.  Domestic agricultural giants may need to secure a domestic supply of potash.

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