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Overview of PotashCorp and Its Industry

Fertilizer 101

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To better understand our company — and our opportunity — we believe it is important to begin with the basic drivers of fertilizer demand. Our story is one of global development: millions of people with rising incomes want to feed their families better diets with high-quality fruits and vegetables and protein from meat. With pressure on global crop supplies mounting, the need to sustainably increase production is clear. We believe that fertilizer will play a key role in achieving this, and that the agronomic and economic opportunities which exist today — and are expected in the years ahead — will encourage farmers to apply more fertilizer, especially potash.

Fertilizer 101


Overview of PotashCorp and Its Industry

Global Development Story

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World Population Shift to Urban Areas in Developing Countries Global population is currently rising by about 75 million every year. Almost 800 million people — more than twice the number living in North America today — are expected to be added to the current population by 2020. More food must be produced to feed us all. This growth is occurring at the same time the composition of the world population is changing. Most growth is occurring in developing countries, particularly in urban areas. Today, one of every two people lives in a metropolitan area; by 2050, that figure is expected to rise to more than two-thirds of the global population. This is an important shift, as urban consumers tend to eat more and better balanced diets. In China, those in an urban population consume nearly 75 percent more meat and almost 25 percent more fruits and vegetables. Source: United Nations Last updated: Jun 4, 2013

Fertilizer 101

Global Development Story

World Population


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Global Development Story

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World GDP per Capita Economic Growth Led by Large Developing Countries Many countries with rapidly rising populations are also leaders in global economic growth. Although short-term fluctuations will occur, the economies of China, India and other developing countries are expected to continue to expand, enhancing global economic growth for decades. As economies grow and individual incomes rise, history tells us that people in emerging nations will choose to improve their diets. Ongoing economic growth is expected to continue to increase the affordability of and desire for more and better food.

Source: IMF, United Nations, PotashC orp Last updated: Jun 4, 2013

Fertilizer 101

Global Development Story

World GDP per Capita


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Global Development Story

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Daily Caloric Intake per Capita Food Consumption Increasing, Diets Better Balanced Many people in developing countries are adopting better diets as their incomes improve. Brazil, China and Indonesia have experienced significant increases in the daily intake of fruits, vegetables and protein from meat, eggs and fish as people move away from starch-based diets. The shift to better diets is just beginning in other parts of the developing world, including India, where fruits and vegetables are becoming a bigger component of the daily diet and protein consumption has slowly started to increase. This dietary change — couple with population growth — is expected to be a key driver of global food demand.

* Includes m eat, eggs, fish and anim al fats ** Includes vegetable oils *** Includes starches, sugar, pulses, beverages Source: FAO , PotashC orp Last updated: Jun 4, 2013

Fertilizer 101

Global Development Story

Daily Caloric Intake per Capita


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Global Development Story

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World Grain and Oilseed Demand Global Food Demand Shows No Sign of Abating While rising global demand for food is significant, it is not a new development. Demand for grain and oilseeds has been growing for many years. Oilseed demand has nearly tripled and grain demand is up 50 percent over the past two decades. Even during periods of economic difficulty, the demand for grain and oilseeds has been resilient.

Source: USDA, PotashC orp Last updated: Jun 4, 2013

Fertilizer 101

Global Development Story

World Grain and Oilseed Demand


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Global Development Story

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Arable Land per Capita Rising Population Strains Available Farmland Less arable land per person is available for agriculture as populations rise and urban areas expand. With a finite land base and an expanding population, this decades-long trend is expected to continue. The strain on arable land is most pronounced in developing countries, where less than 0.2 hectares per person is available for crop and animal production. These are the countries with the greatest need to raise food production, which highlights the importance of increasing long-term crop productivity.

Source: FAO , United Nations Last updated: Jun 4, 2013

Fertilizer 101

Global Development Story

Arable Land per Capita


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Global Development Story

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Renewable Water Profile Water Availability an Increasing Concern Water availability is a growing concern in many countries. Over the last four decades, renewable water resources per capita have declined by nearly 50 percent in the developing world, straining water supply even as demand for agriculture and industrial purposes has risen. The competition for water in developing countries is unlikely to slow as populations rise and economies grow. We believe agriculture will have to use its share of water efficiently, and fertilizer — especially potash, which helps plants retain water — is expected to play an important role in enabling this efficient use.

Source: FAO AquaStat, UN, World Bank, PotashC orp Last updated: Jun 4, 2013

Fertilizer 101

Global Development Story

Renewable Water Profile


Overview of PotashCorp and Its Industry

Agriculture

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World Grain Production and Consumption Demand for Grain Has Outstripped Production Crop production has struggled to keep pace with rising grain consumption for the last few decades. The pressure on global grain supply has been magnified in recent years due to adverse weather in many growing regions and a limited inventory cushion. This led to significant demand rationing through the 2012/13 crop year. While weather will continue to play a significant role in determining the yield potential of each year's crop, the current strain on global grain supply highlights the importance of proper soil fertility for improving yields, especially under difficult growing conditions.

Based on crop year data. For exam ple, 12F refers to the 2012/13 crop year. Light bars reflect years when consum ption exceeds production. Source: USDA Last updated: Jun 4, 2013

Fertilizer 101

Agriculture

World Grain Production and Consumption


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Agriculture

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World Grain Stock-to-Use Ratios Grain Inventories Expected to Remain Tight Repeated grain production deficits have reduced global inventories over the last decade, leaving them well below their historical levels and with little margin for error to meet the challenge of rising demand. When grain stocks are low, a production deficit in one year is not easily overcome and multiple years of above-average yields are typically required to make a positive impact on supplies. With land and water use already constrained, we believe a renewed commitment to high-yield farming, including proper fertilization, will be needed to replenish global grain inventories.

Based on crop year data. For exam ple, 12F refers to the 2012/13 crop year. Source: USDA Last updated: Jun 4, 2013

Fertilizer 101

Agriculture

World Grain Stock-to-Use Ratios


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Agriculture

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Selected Crop Commodity Prices Broad Strength in Global Crop Prices With supply tight for many agricultural commodities, prices remain well above historical levels. Although prices have been volatile in recent years, we believe they are strong economic signals to farmers around the world to focus on improving production. Since production increases must be sustained to remedy low grain inventories, elevated crop commodity prices are expected to remain for the coming years. Higher food costs generally encourage countries seeking self-sufficiency in agricultural production to adopt improved farming practices — including balanced fertility. See current crop commodity prices

Source: World Bank, PotashC orp Last updated: Jun 4, 2013

Fertilizer 101

Agriculture

Selected Crop Commodity Prices


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Value of Fertilizer

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Effect of Crop Production Factors on Yield Gains Half of Food Production Attributable to Fertilizer Use Research indicates that about half of world food production is a direct result of fertilizer application. Irrigation, seed varieties and technology, cultivation practices, weed and pest control, and planting density contribute the rest. However, fertilizers do far more than boost yields; they strengthen plants and speed growth and maturity. Potash, in particular, improves the physical quality and taste of many crops.

Source: IPNI Last updated: Jun 4, 2013

Fertilizer 101

Value of Fertilizer

Effect of Crop Production Factors on Yield Gains


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Value of Fertilizer

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World Cereal Yields Opportunity to Increase Yields in Developing Countries The Food and Agriculture Organization of the United Nations (FAO) projects that approximately 90 percent of the increase in global crop production by 2050 will come from improving yields and increasing cropping intensity. The greatest opportunities are expected to occur in developing countries where yields currently lag far behind those in the developed world. While this process will not occur overnight, we expect the adoption of best management practices in these countries will lead to significant yield improvements over time. These practices include the use of balanced fertilizer applications, improved seed technology, greater mechanization and more efficient irrigation systems. Source: World Bank, FAO , PotashC orp Last updated: Jun 4, 2013

Fertilizer 101

Value of Fertilizer

World Cereal Yields


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Value of Fertilizer

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Select Markets Nitrogen to Potash Consumption Ratio Opportunity to Improve Yields Through Balanced Fertility The disparity between crop yields in developed nations and those in the developing world highlights the importance of best management practices. In most developed countries the use of balanced fertilizer application and other best practices has contributed to significant yield growth. Since all three nutrients provide unique benefits to plants and work in synergy with each other, no nutrient can replace another. Obtaining proper balance among nitrogen, phosphate and potash is key to ensuring that a plant achieves its full potential. Many developing countries that currently under-apply potash could make significant improvements in yields for many of their crops by correcting this imbalance.

Source: Fertecon, PotashC orp Last updated: Jun 4, 2013

Fertilizer 101

Value of Fertilizer

Select Markets Nitrogen to Potash Consumption Ratio


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Value of Fertilizer

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Fertilizer Impact on Crop Yield and Return Balanced Fertilization Can Provide a Significant Economic Return As farmers seek to improve yields, fertilizer is poised to play a significant role. Based on long-term yield trials, farmers across all areas of the globe have the potential to capitalize on great yields from the proper use of fertilizer. Today, the economic incentive for utilizing proper fertility is significant, whether that be for nutrient-intensive crops like oil palm in Malaysia or rice in China.

*Based on long-term yield trials Source: IPNI, Bloom berg, Industry Publications, PotashC orp Last updated: Jun 4, 2013

Fertilizer 101

Value of Fertilizer

Fertilizer Impact on Crop Yield and Return


Overview of PotashCorp and Its Industry

Major Crops

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Annual Global Corn Product ion (By Crop Year) 800k

Fertilizer plays an essential role in the production of healthy and

T onnes

600k

400k

abundant crops. In our business, the crops shown above represent those which consume the majority of fertilizer use globally. This interactive tool allows you to drill down into each major crop type

200k

and explore who are the major producing, consuming, importing and exporting regions around the world.

Source: USDA

Production

Consumption

Exports

Brazil

EU-27

3F

2

1

20

12

/1

/1

20

11

0 20

10

/1

/1 09

20

20

08

/0

9

8

7

/0 07

20

6

China

/0

06

20

20

05

/0

/0 04

20

United States

Imports

5

4

3 20

03

/0

/0

2 20

02

/0 01

20

20

00

/0

1

0k

Other


Fertilizer 101

Major Crops


Overview of PotashCorp and Its Industry

Major Crops - Corn Annual Global Corn Production (By Crop Year) 800M

Tonnes

600M

400M

200M

Fertilizer 101

Major Crops

Production

2

/1 12 20

11

/1

1 10

Other

20

/1

0 20

09

/1

9

EU-27

20

08

/0

8

Brazil

20

07

/0

7 06

China

20

/0

6 20

05

/0

5 04

Corn

20

/0

4 20

03

/0

3 20

02

/0

2 20

01

/0

1 20

/0 00 20

United States

3F

0M


Overview of PotashCorp and Its Industry

Major Crops - Corn Annual Global Corn Consumption (By Crop Year) 800M

Tonnes

600M

400M

200M

Fertilizer 101

Major Crops

Consumption

2

/1 12 20

11

/1

1 10

Other

20

/1

0 20

09

/1

9

Brazil

20

08

/0

8

EU-27

20

07

/0

7 06

China

20

/0

6 20

05

/0

5 04

Corn

20

/0

4 20

03

/0

3 20

02

/0

2 20

01

/0

1 20

/0 00 20

United States

3F

0M


Overview of PotashCorp and Its Industry

Major Crops - Corn Annual Global Corn Imports (By Crop Year) 80M

Tonnes

60M

40M

20M

Fertilizer 101

Major Crops

Corn

Imports

Korea, South

3F

2

/1 12 20

11 20

/1 10 20

Other

/1

1

0 /1 09 20

/0 08 20

07

/0

9

8

7

Mexico

20

06 20

/0 05

EU-27

/0

6

5

Japan

20

20

03 20

04

/0

/0

4

3 /0 02 20

01 20

20

00

/0

/0

2

1

0M


Overview of PotashCorp and Its Industry

Major Crops - Corn Annual Global Corn Exports (By Crop Year) 125M

Tonnes

100M

75M

50M

25M

Fertilizer 101

Major Crops

Exports

2

/1 12 20

11

/1

1

Other

20

10

/1

0 09

Ukraine

20

/1

9 20

08

/0

8

Argentina

20

07

/0

7 20

06

/0

6

Brazil

20

05

/0

5 04

Corn

20

/0

4 20

03

/0

3 20

02

/0

2 20

01

/0

1 20

/0 00 20

United States

3F

0M


Overview of PotashCorp and Its Industry

Major Crops - Wheat Annual Global Wheat Production (By Crop Year) 700M

600M

Tonnes

500M

400M

300M

200M

100M

Fertilizer 101

Major Crops

India

Production

2

/1 12 20

11

/1

1 10

Other

20

/1

0 20

09

/1

9

United States

20

08

/0

8 20

07

/0

7 06 20

05

China

20

/0

6 /0

5

Wheat

20

04

/0

4 20

03

/0

3 20

02

/0

2 20

01

/0

1 20

/0 00 20

EU-27

3F

0M


Overview of PotashCorp and Its Industry

Major Crops - Wheat Annual Global Wheat Consumption (By Crop Year) 600M

500M

Tonnes

400M

300M

200M

100M

Fertilizer 101

Major Crops

Consumption

2

/1 12 20

11

/1

1 10

Other

20

/1

0 20

09

/1

9

United States

20

08

/0

8 20

07

/0

7

India

20

06

/0

6 05

China

20

/0

5

Wheat

20

04

/0

4 20

03

/0

3 20

02

/0

2 20

01

/0

1 20

/0 00 20

EU-27

3F

0M


Overview of PotashCorp and Its Industry

Major Crops - Wheat Annual Global Wheat Imports (By Crop Year) 80M

Tonnes

60M

40M

20M

Fertilizer 101

Major Crops

Wheat

Imports

Indonesia

Other

3F

2

/1 12 20

11 20

/1 10 20

/1

1

0 /1 09 20

/0 08 20

07

/0

9

8

7

EU-27

20

06 20

/0 05

Brazil

/0

6

5

Egypt

20

20

03 20

04

/0

/0

4

3 /0 02 20

01 20

20

00

/0

/0

2

1

0M


Overview of PotashCorp and Its Industry

Major Crops - Wheat Annual Global Wheat Exports (By Crop Year) 175M

150M

Tonnes

125M

100M

75M

50M

25M

Fertilizer 101

Major Crops

Exports

2

/1 12 20

11

/1

1

Other

20

10

/1

0 09

Australia

20

/1

9 20

08

/0

8

Canada

20

07

/0

7 20

06

/0

6

EU-27

20

05

/0

5

Wheat

20

04

/0

4 20

03

/0

3 20

02

/0

2 20

01

/0

1 20

/0 00 20

United States

3F

0M


Overview of PotashCorp and Its Industry

Major Crops - Oil Palm Annual Global Palm Oil Production (By Crop Year) 60M

50M

Tonnes

40M

30M

20M

10M

Fertilizer 101

Major Crops

Oil Palm

Colombia

3F

2

/1 12 20

11 20

/1 10 20

Other

/1

1

0 /1 09 20

20

08

/0

/0 07

Thailand

Production

9

8

7 20

06 20

/0 05

Malaysia

/0

6

5

Indonesia

20

04 20

/0 03 20

/0

4

3 /0 02 20

01 20

20

00

/0

/0

2

1

0M


Overview of PotashCorp and Its Industry

Major Crops - Oil Palm Annual Global Palm Oil Consumption (By Crop Year) 50M

Tonnes

40M

30M

20M

10M

Fertilizer 101

Major Crops

Oil Palm

Nigeria

3F

2

/1 12 20

11 20

/1 10 20

Other

/1

1

0 /1 09 20

20

08

/0

/0 07 20

Thailand

Consumption

9

8

7 06 20

/0 05

Egypt

/0

6

5

United States

20

04 20

/0 03 20

/0

4

3 /0 02 20

01 20

20

00

/0

/0

2

1

0M


Overview of PotashCorp and Its Industry

Major Crops - Oil Palm annual Global Palm Oil Imports 40M

Tonnes

30M

20M

10M

Fertilizer 101

Major Crops

Oil Palm

Imports

Pakistan

Other

3F

2

/1 12 20

11 20

/1 10 20

/1

1

0 /1 09 20

/0 08 20

07

/0

9

8

7

EU-27

20

06 20

/0 05

China

/0

6

5

India

20

20

03 20

04

/0

/0

4

3 /0 02 20

01 20

20

00

/0

/0

2

1

0M


Overview of PotashCorp and Its Industry

Major Crops - Oil Palm Annual Global Palm Oil Exports (By Crop Year) 50M

Tonnes

40M

30M

20M

10M

Fertilizer 101

Major Crops

Oil Palm

Papua New Guinea

Exports

Thailand

3F

2

Other

/1 12 20

11 20

20

10

/1

/1

1

0 /1 09 20

20

08

07

/0

/0

9

8

7 20

20

06

/0 05 20

Malaysia

/0

6

5 04 20

/0 03 20

Indonesia

/0

4

3 /0 02 20

01 20

20

00

/0

/0

2

1

0M


Overview of PotashCorp and Its Industry

Major Crops - Soybeans Annual Global Soybean Production (By Crop Year) 300M

250M

Tonnes

200M

150M

100M

50M

Fertilizer 101

Major Crops

Soybeans

Production

2

/1 12 20

11

/1

1

Other

20

10

/1

0 20

09

/1

9

China

20

08

/0

8

Argentina

20

07

/0

7 20

06

/0

6

United States

20

05

/0

5 20

04

/0

4 20

20

02

03

/0

3 /0

2 20

01

/0

1 20

/0 00 20

Brazil

3F

0M


Overview of PotashCorp and Its Industry

Major Crops - Soybeans Annual Global Soybean Consumption (By Crop Year) 250M

Tonnes

200M

150M

100M

50M

Fertilizer 101

Major Crops

Soybeans

Consumption

2

/1 12 20

11

/1

1

Other

20

10

/1

0 20

09

/1

9

Argentina

20

08

/0

8 07

Brazil

20

/0

7 20

06

/0

6

United States

20

05

/0

5 20

04

/0

4 20

20

02

03

/0

3 /0

2 20

01

/0

1 20

/0 00 20

China

3F

0M


Overview of PotashCorp and Its Industry

Major Crops - Soybeans Annual Global Soybean Imports (By Crop Year) 100M

Tonnes

80M

60M

40M

20M

Fertilizer 101

Major Crops

Imports

2

/1 12 20

11

/1

1 20

10

/1

0

Other

20

09

/1

9

Japan

20

08

/0

8 07 20

06

Mexico

20

/0

7 /0

6

EU-27

20

05

/0

5 04

Soybeans

20

/0

4 20

03

/0

3 20

02

/0

2 20

01

/0

1 20

/0 00 20

China

3F

0M


Overview of PotashCorp and Its Industry

Major Crops - Soybeans Annual Global Soybean Exports (By Crop Year) 125M

Tonnes

100M

75M

50M

25M

Fertilizer 101

Major Crops

Soybeans

Exports

2

/1 12 20

11

/1

1

Other

20

10

/1

0

Paraguay

20

09

/1

9 20

08

/0

8

Argentina

20

07

/0

7 06

United States

20

/0

6 20

05

/0

5 20

04

/0

4 20

03

/0

3 20

02

/0

2 20

01

/0

1 20

/0 00 20

Brazil

3F

0M


Overview of PotashCorp and Its Industry

Major Crops - Rice Annual Global Rice Production (Crop By Year) 500M

Tonnes

400M

300M

200M

100M

Fertilizer 101

Major Crops

Production

2

/1 12 20

11

/1

1 10

Other

20

/1

0 20

09

/1

9

Bangladesh

20

08

/0

8 20

07

/0

7

Indonesia

20

06

/0

6 20

05

/0

5

India

20

04

/0

4

Rice

20

03

/0

3 20

02

/0

2 20

01

/0

1 20

/0 00 20

China

3F

0M


Overview of PotashCorp and Its Industry

Major Crops - Rice Annual Global Rice Consumption (By Crop Year) 500M

Tonnes

400M

300M

200M

100M

Fertilizer 101

Major Crops

Consumption

2

/1 12 20

11

/1

1 10

Other

20

/1

0 20

09

/1

9

Bangladesh

20

08

/0

8 20

07

/0

7 06

Indonesia

20

/0

6 20

05

/0

5

India

20

04

/0

4

Rice

20

03

/0

3 20

02

/0

2 20

01

/0

1 20

/0 00 20

China

3F

0M


Overview of PotashCorp and Its Industry

Major Crops - Rice Annual Global Rice Imports (By Crop Year) 20M

Tonnes

15M

10M

5M

Fertilizer 101

Major Crops

Rice

Imports

Philippines

Other

3F

2

/1 12 20

11 20

/1 10 20

/1

1

0 /1 09 20

/0 08 20

07

/0

9

8

7

Iran

20

06 20

/0 05

China

/0

6

5

Nigeria

20

20

03 20

04

/0

/0

4

3 /0 02 20

01 20

20

00

/0

/0

2

1

0M


Overview of PotashCorp and Its Industry

Major Crops - Rice Annual Global Rice Exports (By Crop Year) 40M

Tonnes

30M

20M

10M

Fertilizer 101

Major Crops

Rice

Exports

United States

3F

2

/1 12 20

11 20

/1 10 20

Other

/1

1

0 /1 20

09

/0 08 20

07

/0

9

8

7

Vietnam

20

06 20

/0 05

Thailand

/0

6

5

India

20

20

03 20

04

/0

/0

4

3 /0 02 20

01 20

20

00

/0

/0

2

1

0M


Overview of PotashCorp and Its Industry

Major Crops - Fruits Annual Global Fruits & Vegetables Production (By Crop Year) 2,000M

Tonnes

1,500M

1,000M

500M

China

Fertilizer 101

Major Crops

Fruits

India

Production

Nigeria

Brazil

Other

11 20

10 20

09 20

08 20

07 20

06 20

05 20

04 20

03 20

02 20

20

01

0M


Fertilizer 101 section