As the twenty-first century gets under way the human and animal populations that live on our planet continue to expand. Although the rate of growth has declined markedly in recent years the momentum of increasing numbers continues to expand. The value of potash stock must be seen in the context of a human population seven times greater than it was at the beginning of the nineteenth century.
Agricultural commodities are becoming ever more valuable as the demand for food rises inexorably. Wonderful advances in agricultural science have kept famine at bay until now but signs are beginning to appear that developments in agriculture may be nearing the limits of sustainability. Many new practices such as hormone treatment for animals and genetic modification of plants are becoming suspect.
Pot Stock
Certain methods such as using growth hormones on sheep, cattle and chickens have cast doubt on the health of these food sources. Genetic modification of plants has aroused similar fears. As these avenues of increasing food production are closed off attention turns back to organic methods but there can be little doubt that yields of organic foods will not be as great as when artificial methods are used.
Potassium is a perfectly natural plant food. It occurs in many forms in nature and is one of the essential elements that plants need, together with carbon, phosphorous and nitrogen. As the world demand for plants materials rise, so too does the demand for potassium. Methods of producing potassium suitable for fertilizer cannot reasonably be attacked as being 'unnatural' or environmentally adverse. Sustainable development needs this element to be used responsibly.
Potassium is taken up into plants in its ionic form. It helps plants to use water and remain healthy. As such they become healthier food sources for human beings and animals. Important crops such as beet, beans and broccoli have strong needs for potash that is balanced with other elements in the soil. Countries such as China and India that have fast growing populations are concerned to secure supplies because they understand its vital importance for sustainable development.
The name potash probably derives from the preindustrial practice of mixing ash and water in a pot in order to obtain chemical substances that were used for various purposes. Now it is used to name the various manufactured or mined salts that are used as fertilizer.
As far as mineral deposits are concerned this mineral is not widely distributed in the world. Most reserves are in Belarus, with Brazil and Canada also having large reserves. Exports from these countries go to countries with dense populations such as China and India.
Companies with expertise in mining benefit from globalization in that they can secure mining rights in other countries through investment contracts. Some large reserves in Africa are currently being exploited by Canadian firms. Since the price on world markets has risen from 0 per ton in 2000 to approximately 0 per ton in 2011 a potash stock could be a good investment for the future, particularly if adequate reserves have been secured.