The fertilizer market - Italy (2024)

1.2 The world market is growing strongly

The global fertilizer market size was about USD ***.** billion in **** and is expected to grow to about USD ***.** billion by ****, with a compound annual growth rate (***) of about *.** percent between **** and ****.

Market value of organic fertilizers in the world World, ****-****, in billions of USD Source: ****

Analyzing the data on world fertilizer consumption by type from **** to ****, we see a diversified evolution depending on the type of fertilizer. For nitrogen fertilizer (***), consumption increased over the period from ***,***.** thousand tons in **** to ***,***.** thousand tons in ****, registering an overall increase of *.* percent. This increase was particularly noticeable between **** and ****, a period during which consumption increased significantly, and then declined slightly in ****. For phosphate (***), consumption started at **.*** thousand tons in **** and decreased slightly to **.***.** thousand tons in ****. However, it showed a recovery in **** and peaked in **** at **.***.** thousand tons, before declining to **.***.* thousand tons in ****. Overall, there was a *.* percent increase from **** to ****. Finally, potash (***) consumption started at **.***.** thousand tons in ****, decreasing slightly until ****, followed by a significant increase in ****, reaching **.***.** thousand tons. However, in ****, consumption decreased to **.***.** thousand tons, resulting in an overall increase of only *.* percent from **** to ****.

Fertilizer consumption by type World, ****-****, '*** tons Ifastat

The East Asia region has ...

1.3 The domestic fertilizer market

Fertilizers are a very important part of a country's agriculture; Italy is a producer and marketer of these products, in the country and around the world. For this reason there are two Ateco Codes to consider, as there are two important markets. These are:

Chemicals trade: **.** Manufacture of fertilizers: **.**

Fertilizer market turnover Italy, ****-****, in billion euros Source: ****

From the graph above, it can be seen that there are two distinct markets of different sizes. The fertilizer manufacturing market is worth *.** billion euros in ****, while the chemical trading market is worth **.** billion euros in ****, with a major increase for both categories compared to ****.

To give a more precise view of the anadment of the sector, let's also analyze the trend in the value production of fertilizers, mineral or chemical, containing the three fertilizer elements Nitrogen, Phosphorus and Potassium (***).

This showed a fluctuating trend during the period ****-****. From **** to **** there is a sharp increase from €***.** million to €***.** million, followed by a decrease in **** to €***.** million and a further decrease in **** to €***.** million. Subsequently, in ****, there was a significant recovery, reaching ***.** million €. The lowest value was recorded in **** with only €***.** million, but an upward trend followed from there, with a temporary decline ...

1.4 Fertilizer trade flows

In ****, Italian fertilizer imports exceeded the * billion euro mark for the first time, reaching USD *.* billion. Exports, on the other hand, are still well below that, with the value in **** being USD *** million.

Between **** and ****, imports grew from ***.* million to ****.* million, representing a ***.* percent increase. At the same time, exports increased from ***.* million in **** to ***.* million in ****, an increase of **.* percent.

Value of ferilizer trade Italy, ****-****, in millions of USD Source: ****

Major trading partners:

In ****, Egypt emerges as the main country of origin of Italian fertilizer imports, accounting for **.** percent of the total. It is followed by Algeria and the Russian Federation with *.**% and *.**% respectively, indicating a strong dependence on North African and Russian sources for these products. Germany and Canada round out the top five suppliers, with *.** percent and *.** percent of imports.

European countries such as Spain, Belgium and Germany also show a significant role, along with Asian and African suppliers such as China and Morocco. This landscape reflects a geographic diversification of import sources, with more than a third of imports (***) coming from other countries.

Main countries of origin of fertilizer imports Italy, ****, % UNComtrade

Also in ****, Italy distributed its fertilizer exports relatively evenly among several countries, with an ...

1.5 The influence of the Russo-Ukrainian War

The ongoing war (***) between the two countries, and which began in February ****, significantly affects the Italian fertilizer market. As seen in the previous part, *.*, regarding Italy's trade partners, the country is highly dependent on Russia and Ukraine. In addition, several European and global countries depend on exports from these two countries.

The latest data published by the Italian Telematic Commodity Exchange (***), the price of the main fertilizers increased sharply:

Urea: +*.*% Ammonium nitrate: +*.*%

Percentage increase in fertilizer prices Italy, ****-****, in % Source: ****

The graph below shows the increase of the main fertilizers in a single year, and it can be immediately deduced that such high prices do not follow the normal market trend, but that there is an external shock influencing it. These increases are caused by blockades of Ukrainian goods to different countries around the world, but also by European embargoes on Russian goods.

The factors that have most influenced this price increase are[***]:

increased domestic demand from some major commodity-producing countries (***), which, even before the conflict began, had reduced the amount of fertilizer exported. the increase in energy costs, as about ** percent of the fertilizer used by farmers comes from energy-intensive farms. the increase in the price of natural gas, ...

2.1 Marked decline in demand

The Italian agricultural sector consumes the entirety of fertilizer production. For this reason, the Istat database has created a special entry called fertilizers on the site. By exploring the data contained there, one can find all types of fertilizers produced in Italy. In the graph below, only the most common and used in agriculture have been shown.

There is a significant overall decrease in total fertilizer consumption in ****, from **** thousand tons in **** to **** in ****, which represents a **.* percent decrease.

Analyzing the specific categories, simple nitrogen fertilizers saw a drastic decrease, from **** in **** to *** in ****. Simple phosphate and potash fertilizers also show a decline, highlighting a possible reduction in the preference for simple fertilizers in favor of other types.

Among composite minerals, consumption fell from *** to *** thousand tons over the same period, signaling a decrease in the use of these products that combine multiple essential nutrients. In addition, organic fertilizers recorded a decrease from *** to *** thousand tons, while soil conditioners went from **** to ****, showing a slight decrease less marked than in the other categories. Consumption of correctives also decreased, from *** thousand tons in **** to *** in ****.

Overall, fertilizer consumption decreased by ** percent in these three years.

Fertilizer consumption by content and type Italy, ...

2.2 The geographical concentration of demand

The regions with the highest fertilizer consumption are Emilia-Romagna with ***,*** tons, Veneto with ***,*** tons and Lombardy with ***,*** tons.

Turning to the larger category of fertilizers, which includes manures, soil conditioners, correctives, substrates and specific action products, we note that Lombardy is just ahead of Emilia Romagna.

2.3 Arable surface area in Italy

To understand the fertilizer market well, one must also look at the cultivated areas in the country, as they directly affect and influence the market. Therefore, the map below shows the areas in Italy that are cultivated in ****.

This analysis is very interesting because it shows a very different distribution than that of fertilizer. The regions with the largest cultivated area are in fact puglia and Sicily, These two regions also show the largest total production.

Total agricultural production by region Italy, ****, thousands of quintals Istat

2.4 The use of fertilizers in organic crops

Of the **** thousand tons of fertilizers distributed in ****, about *** thousand were used in organic farming, these were mainly organic fertilizers, while considering the larger category of ferilizers, we note a large use of soil conditioners, which is greater in this type of farming than in conventional farming. Organic fertilizers totaled ***.* thousand tons, while soil conditioners reached ***.* thousand tons, indicating a strong interest in improving soil health and structure rather than just plant nutrition.

Soil conditioners are used to enrich the soil, improving its ability to retain water and nutrients and promoting biological activity. They include materials such as compost, composted manure, peat and wood ash, which contribute to sustainable and long-term management of soil fertility.

Fertilizers used in organic farming Italy, ****, thousands of tons Istat

3.1 The market structure

To analyze the structure of the fertilizer market, we refer to ateco code **.**: Manufacture of fertilizers and nitrogen compounds, through * magnitudes:

number of enterprises number of employees legal form of enterprises

Number of enterprises:

Between **** and ****, the number of enterprises active in fertilizer manufacturing in Italy decreased from *** to ***, registering an overall decrease of *.*%. After a slight increase in ****, the sector saw a significant decline through ****, followed by a slight recovery in ****.

Number of enterprises in fertilizer manufacturing Italy, ****-****, in numbers Istat

Number ofemployees:

Looking at the number of employees in the fertilizer manufacturing industry in Italy from **** to ****, there is a general upward trend. Starting with **** employees in ****, the number increased slightly in **** to ****. Although there was a small decrease in **** with **** employees, the trend became positive again in the following two years, increasing to **** in **** and further to **** in ****. This overall growth in the number of employees, showing a * percent increase between **** and ****, suggests a concentration of the sector, with a smaller number of firms, of larger average size. Number of employees in the fertilizer manufacturing sector Italy, ****-****, in number Istat Legal form:

The distribution of legal forms of enterprises shows a predominance of limited liability companies, ...

3.2 The value chain

3.3 Distribution

In ****, there were **** companies in Italy specializing in the wholesale of chemical products, of these, the largest ones specializing in fertilizers and other agricultural chemicals are:

Algio Spa: Algio was founded in **** in Reggio Emilia, turnover increased from €**.* million in **** to €***.* million in ****, has no website. Timarc Agro Italia Spa: TIMAC AGRO Italia specializes in the production and supply of fertilizers, offering advanced and sustainable solutions for plant nutrition. Part of Groupe Roullier, the company emphasizes innovation and research to develop products that improve agricultural productivity while respecting the environment. TIMAC AGRO Italia supports farmers with technical assistance and customized fertilization programs, aiming for efficient and eco-friendly agriculture. Sipcam Italia Spa: SIPCAM Italia is a leading agrochemical company dedicated to the production and distribution of plant protection and nutrition products. It offers a wide range of solutions, including agrochemicals, nutritionals for organic farming, and biostimulants, aimed at improving the health and yield of agricultural crops. The company places a strong emphasis on innovation and sustainability to meet future agricultural challenges. Pastorelli Spa: The company PASTORELLI S.P.A., is a seller of fertilizers. Established in ****, it is also present in the Agricultural Silos, and Viticulture Plants and Equipment sectors. It is ...

4.1 The different types of products

There are two main categories of fertilizers, chemical fertilizers and natural fertilizers.

Chemical fertilizers:

Made from minerals that undergo a series of chemical transformations that allow for exact dosing of their composition, they are now the heart of the fertilizer market. They have certain advantages, such as almost immediate action on soil and plants. They also have the special feature of improving soil properties to make it more fertile, which makes them very effective products.

However, with the growing concern for the environment, products that combine a low environmental impact with a good return on investment are increasingly regarded as quality fertilizers. For this reason, the natural fertilizer segment has grown rapidly in recent years.

Chemical fertilizers are classified into several categories, the three main ones being

Nitrogenous fertilizers (***): there are three nitrogenous fertilizers, ammonium sulfate, urea and ammonium nitrate. These fertilizers promote the growth of the "green parts" of the plant, that is, the stem and leaves, and their development; Phosphorus (***)-based fertilizers: promote flower and thus seed formation, strengthening the plant's resilience capabilities; Fertilizers produced from potassium (***): increase root and tuber protection and improve flower/fruit coloration through increased disease resistance.

A second distinction is made within chemical fertilizers, ...

4.2 Fertilizer producer prices in the domestic market

Fertilizers experienced a huge price increase between **** and ****. As already analyzed in part *.* regarding the Russian-Ukrainian war, this increase in all fertilizer in all areas (***), thereafter, this increase gradually normalized.

In the following part of the research, all prices charged in the Italian fertilizer market are analyzed.

Starting from a value of ** in March ****, the index remains stable until June of the same year, and then begins an ascent leading to a peak of *** in September and October ****.

The index's significant growth from ** to *** represents a **.* percent increase in about a year and a half, underscoring a period of high inflation for producer prices of these products. This increase could be attributed to various factors, such as rising raw material costs, changes in trade policies, or fluctuations in global demand affecting prices at the national level.

After peaking in ****, the index begins to decline gradually, falling to *** by February ****.

Producer price of fertilizers and nitrogen compounds Italy, ****-****, Base ****=*** Source: ****

The trend in producer prices of fertilizers and nitrogen compounds, which we have seen rise significantly between **** and **** with a peak of *** on the index, has had a direct impact on the cost of fertilizers and soil improvers for farmers. This ...

4.3 Chemical-free fertilizers: new growing trend

Among the goals of the new green pact designed to revitalize Europe, in addition to halving the use of pesticides there is also a ** percent cut in the use of fertilizers in agriculture. Italy is already in the vanguard in this area: in fact, for several years now special fertilizers, called biostimulants, have been on the market that have a far lower environmental impact. In addition, unlike traditional fertilizers, they do not contain minerals and are not soluble, so they are considered more sustainable. Through the combination of organics, hydrolyzed proteins and amino acids, biostimulants improve crop growth without the use of chemicals. This fast-growing sector of the fertilizer market, linked to organic farming but not only, has been entering the market for a few years now as an alternative to traditional, synthetic-based fertilizers.

Globally, the value of the biostimulants market is estimated at *.* billion euros with an expected growth to more than * in the next five years. In Europe the market size is about *** million, of which *** in Italy, with a growth rate of more than ** percent per year, which could now benefit from the new direction of the Union's environmental policies.

The main drivers of this growth are:

Demand ...

5.1 European regulation

The regulations particularly affect the use and sale of mineral fertilizers because of their chemical dimension. In March ****, the European Union adopted the text of the future European regulation on placing chemical fertilizers on the market. This new text entered into force on June **, ****, and is part of European agriculture's desire to transition to circular agriculture.

The text in question is Regulation (***) ****/****.

This Regulation introduces new types of products, such as biostimulants, which are defined as: any product that stimulates plant nutritional processes regardless of its nutrient content, with the sole purpose of improving one or more of the following plant or plant rhizosphere characteristics:

nutrient use efficiency; abiotic stress tolerance; quality characteristics; availability of nutrients confined in the soil or rhizosphere.

The regulation covers seven categories of fertilizer products, namely:

Fertilizers: Inorganic fertilizers, Organic-mineral fertilizers, Organic fertilizers, Soil conditioners; Calcium and/or magnesium correctives; Crop substrates; Inhibitors; Plant biostimulants; Physical mixtures of fertilizer products.

Concentration limits for the elements N, P and K will still be in effect for all types of chemical fertilizers. One of the goals of the new regulation is to create uniform standards throughout the EU to promote equity in soil protection and other environmental issues, ...

6.1 Segmentation of Italian actors

• Biolchim
• Algio S.p.A.
• Valagro S.p.A.
• Timac Agro Italia S.P.A.
• Eurochem Agro S.p.A.
• Biopro S.r.l.
• Adriatica S.P.A.