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Potash: a typical price war

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  • Yves Jégourel

Abstract

Along with phosphorus and nitrogen, potash constitutes one of the three nutrients used in the production of fertilizers. Although the factors that influence its demand are mostly common to other fertilizers and in large part determined by the agricultural market conditions, its supply depends on specific factors. Long known to be controlled by two production and export cartels, the potash market experienced a major change in 2013 with the end of the RussianBelarusian agreement. In a difficult economic climate, this rupture has resulted in the start of a price war, similar to what has been observed for other commodities such as iron ore.

Suggested Citation

  • Yves Jégourel, 2016. "Potash: a typical price war," Policy briefs on Economic Trends and Policies 1603, Policy Center for the New South.
    • Handle: RePEc:ocp:pbecon:pb-1609
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    References listed on IDEAS

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    1. Rawashdeh, Rami Al & Xavier-Oliveira, Emanuel & Maxwell, Philip, 2016. "The potash market and its future prospects," Resources Policy, Elsevier, vol. 47(C), pages 154-163.
    2. Valerie J. Picketts & Andrew Schmitz & Troy G. Schmitz, 1991. "Rent Seeking: The Potash Dispute between Canada and the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 255-265.
    3. Samuel P. Hayes, 1942. "Potash Prices and Competition," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 57(1), pages 31-68.
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