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Auteurs principaux: Shchiptsova, Anna, Obersteiner, Michael
Format: Preprint
Publié: 2025
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Accès en ligne:https://arxiv.org/abs/2511.13123
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author Shchiptsova, Anna
Obersteiner, Michael
author_facet Shchiptsova, Anna
Obersteiner, Michael
contents The addition of phosphorus, in the form of mineral fertilizer, becomes necessary in most agricultural soils in order to achieve consistent high yield levels of intensive farming and maintain soil fertility. Recent consolidation of phosphate fertilizer industry has transformed fragmented trade into a single integrated global network, where a small group of large-scale companies dominates the international market for phosphate commodity fertilizers. To assess the impact of new trade structure on future region-level phosphorus supply, we simulate behavior of markets for ammonium phosphates in the FAO scenarios of global intensive farming evolution. Details of market microstructure are represented here by a many-to-many matching market. Current spatial distribution of global demand in ammonium phosphates is projected to strengthen by 2030. Bootstrap simulations produce similar network structures for both scenarios showing reduction in the density of the distributed market. In response to the non-uniform demand growth across regions, market concentration is expected to increase for small-scale markets, and to remain predominantly stable for large-scale markets; on the supply side, simulated equilibria point out large-scale multi-market suppliers concentrating on fewer markets than before. A high rate of import substitution by local suppliers in some markets indicate the need of additional region-level capital investment.
format Preprint
id arxiv_https___arxiv_org_abs_2511_13123
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle The Impact of Phosphate Fertilizer Industry Consolidation on Future Phosphorus Supply for World Agriculture
Shchiptsova, Anna
Obersteiner, Michael
General Economics
Economics
The addition of phosphorus, in the form of mineral fertilizer, becomes necessary in most agricultural soils in order to achieve consistent high yield levels of intensive farming and maintain soil fertility. Recent consolidation of phosphate fertilizer industry has transformed fragmented trade into a single integrated global network, where a small group of large-scale companies dominates the international market for phosphate commodity fertilizers. To assess the impact of new trade structure on future region-level phosphorus supply, we simulate behavior of markets for ammonium phosphates in the FAO scenarios of global intensive farming evolution. Details of market microstructure are represented here by a many-to-many matching market. Current spatial distribution of global demand in ammonium phosphates is projected to strengthen by 2030. Bootstrap simulations produce similar network structures for both scenarios showing reduction in the density of the distributed market. In response to the non-uniform demand growth across regions, market concentration is expected to increase for small-scale markets, and to remain predominantly stable for large-scale markets; on the supply side, simulated equilibria point out large-scale multi-market suppliers concentrating on fewer markets than before. A high rate of import substitution by local suppliers in some markets indicate the need of additional region-level capital investment.
title The Impact of Phosphate Fertilizer Industry Consolidation on Future Phosphorus Supply for World Agriculture
topic General Economics
Economics
url https://arxiv.org/abs/2511.13123