Fields of action from megatrends

Emerging Markets

The demand for fertilizers is considerably influenced by economic growth as well as economic trends and the associated improving living standards in the relevant markets. In emerging market countries such as China and India more and more people are becoming prosperous, eating habits are changing and the consumption of calories per capita is increasing. Demand for higher-quality food is increasing, in particular for meat and milk products. The more of these products are on the menu, the more feed has to be produced for the animals on the limited amount of land available for cultivation. That is why the coming years should see a further increase in demand for our fertilizers both in Europe and on overseas markets. The growth rates of the overseas markets of Latin America and South-East Asia should increase more sharply over the medium to long term. We assume that in future we will sell a good third of our fertilizers in these regions.
Transfer of know-how

The consumption of industrial salt and salt for chemical use will also be driven by economic growth and industrialisation in the emerging market countries. Since 2006, thanks to our Chilean salt subsidiary SPL, we have been profiting from the growth rates in South America and are in a good position to expand our sales activities in the direction of the Asian markets too.

Population growth

The United Nations estimates that, in the mid-21st century, more than nine billion people will be living on our planet. This offers suppliers of fertilizers great opportunities, since according to the latest estimates agricultural production will have to increase by 70% by 2050, so that a further 2.3 billion people can be fed. Our mineral fertilizers make a necessary contribution to efficient and high-yield cultivation, providing the world's population with more and better food.

Demographic change

Demographic change in Europe and North America poses a special challenge for K+S too. While human life expectancy is happily rising, the birth rate, however, is stagnating. Already now, it is more difficult to fill some of our training places and vacancies. In future, even fewer young people will be available for working life.

This means that, in contrast to previous practice in relation to early retirement arrangements and semi-retirement models, particularly in Germany, on average the workforces will be older in the future world of work. People have to, can and also want to work for longer.

In 2010, we began the preparations for a detailed analysis of the site-specific age structures of our workforces and the respective demographic challenges. A tool was developed for investigating the differentiated age structure, which is to be made available throughout the Group. In 2011, a site in Germany was the first to be analysed. We are using the knowledge gained from this to further develop the tool. The analysis will then gradually be started at the other German sites, and then extended across the Group.

Shortage of water

The efficient use of water is a key issue in sustainable development. If deserts and steppes continue to expand as a result of climate change, by 2025, almost two billion people could be living in regions with an absolute shortage of water, according to estimates published by the United Nations. This could also have a considerable impact on agriculture there, because most of the water (about 70% of global consumption) is used for the cultivation of food. If the current trend persists, water will become the most important bottleneck factor for agriculture during the next 50 years.

K+S is carrying out intensive research in order improve the efficient use of water by plants and soil. The initial findings demonstrate that a regular application of potash and magnesium fertilizers has a positive impact on the water supply of plants and makes possible better exploitation of the water available.

Under dry conditions, the application of liquid and leaf fertilizers gains in importance, because the plant can barely absorb nutrients if the soil has dried out. On the other hand, if fertilizers and water are combined (fertigation), the nutrients are better available to the plants. This is why we see new opportunities for our business in this product segment.
Climate change 
Reduction in land available for cultivation

Climate change

The United Nations Food and Agriculture Organisation has found that the forecast increase in the average temperature - depending on the model used, between 1 and 2.5 °C by 2030 - will have adverse effects on cultivation conditions worldwide. If this turns out to be true, in the northern hemisphere, for example, in Scandinavia or Siberia, with rising temperatures the opportunities may increase to grow agricultural crops, which could previously only be cultivated in more southerly regions. In the southern hemisphere, on the other hand, changes to the climate like higher temperatures, a rising sea level, drought and the associated increasing salt content of the soil would have a negative impact on cultivation conditions for agriculture and reduce the land available for cultivation as the result of erosion and floods. All in all, however, we assess the associated opportunities and risks for our Group as small.
Reduction in land available for cultivation

According to the FAO, it is to be expected that the number of days with temperatures around freezing point will increase, while the number of days with a sharp frost will decrease. De-icing salt is in greatest demand when temperatures are around freezing point. We therefore assume that the predicted changes in the climate will not have any negative effect on our de-icing salt business in the medium term.

German industry will continue to make substantial contributions to climate protection. As a partner to the self-obligation to climate protection agreed between the German Federal Government and German industry, in 2008, we set ourselves the goal of cutting our specific CO₂ emissions to 28 kg per tonne by 2012 and reducing our absolute CO₂ emissions to 1.1 million tonnes per year.
Energy efficiency