Transportation and Supply Chain Bottlenecks Affect Revenue Streams amidst COVID-19 Crisis

The COVID-19 (coronavirus) pandemic has created challenges for companies in the North America organic fertilizers market. Since agriculture is seasonal, supply disruptions act as hurdles for companies in the North America organic fertilizers market, thus impacting food supply in the upcoming months. The U.S. fertilizer manufacturers are taking cues from the ECOFI (European Consortium of the Organic-Based Fertilizer Industry) and are contacting its members to identify coronavirus-related challenges that are affecting the production and supply of organic fertilizers.

Although food chain businesses were immediately classified as essential in most countries, workforce challenges remain constant in the market. Hence, companies are providing personal protective equipment (PPE) to workers to ensure their safety. Other bottlenecks such as the lack of transporters despite a decline in fuel prices has affected the supply of organic fertilizers.

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Nutrient Recycling Practices Augment Consistent Nutrient Concentration in Organic Fertilizers

Organic fertilizer manufacturers are adopting various strategies such as nutrient recycling in order to facilitate consistent nutrient concentration in manure. The North America organic fertilizers market is expected to flourish at a CAGR of ~7%, where many companies and startups are actively pursuing potassium, phosphorous, and nitrogen as key elements to practice nutrient recycling. As such, nutrient recycling is supporting the act of sustainable agriculture practices and circular economy.

Companies in the North America organic fertilizers market are streamlining their production activities by taking cues from other manufacturing companies. For instance, ICL Fertilizers— a subsidiary of parent company Israel Chemicals, has built a strong portfolio in nutrient recycling for manure, which is replacing traditional organic fertilizers. Manufacturers are replacing mined phosphates with the phosphates that are sourced from a variety of ash materials.

Potassium Fertilizers Boost Maize Yields Due to Soil Amendment Properties

Potassium forms of organic fertilizers are being highly publicized to increase the yield of maize and other crops. As such, potassium is advantageous in effective element management strategy for maintaining favorable nitrogen uptake in the soil, which helps to bolster maize yields. Companies in the North America organic fertilizers market are increasing their R&D activities to analyze how compost aids in the management of carbon and nitrogen to deploy highly intensive agricultural production. Such trends are bolstering revenue growth for the North America organic fertilizers market.

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Farmers are becoming increasingly aware that organic fertilizers act as excellent soil amendment agents that help to maintain a balance of nutrients in the soil. Hence, manufacturers in the North America organic fertilizers market are increasing their production capacities to increase the availability of compost.

Awareness about Soil Microbiome Helps Increase Apple and Banana Yields

Farmers are adopting various soil management strategies to improve soil quality in order to achieve higher yields of bananas and sugarcane. Lime application is one of the soil management strategies that helps to increase yields of mango and cassava. However, lime is subject to decreased magnesium (Mg) concentration in soil. Hence, companies in the North America organic fertilizers market are increasing awareness about organic amendments that help to enhance soil quality and effectively ameliorate soil acidity.

The concept of soil microbiome is growing popular in the North America organic fertilizers market. Farmers and cultivators are becoming aware that organic fertilizers help to increase soluble solids in apple trees, as there is a worldwide demand for organic and premium-quality produce. Manufacturers should aim toward increasing their distribution channels and tap into incremental opportunities in China where banana is cultivated on a large scale.

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Analysts’ Viewpoint

Due to a gradual increase in the rate of retail garden centers in most cities of North America, small- and medium-scale suppliers of organic fertilizers are finding it difficult to stabilize their business amidst the COVID-19 pandemic. As such, companies in the North America organic fertilizers market are tapping into incremental opportunities with organic liquid fertilizers that are made from humic acid of plant and animal waste. However, conventional organic fertilizers are susceptible to plant deficiency problems. Hence, manufacturers should increase the availability of anti-deficiency foliar fertilizers that help to overcome issues of plant deficiencies and aid in fast growing of crops in order to achieve higher yields.

North America Organic Fertilizers Market: Overview

  • Organic fertilizers are obtained from natural sources. These are employed to increase productivity and quality of plants. Organic fertilizers may be obtained from plants, animals, or minerals. These fertilizers can be categorized into plant-based, animal-based, and mineral-based depending on the source of the raw material.
  • The choice of organic fertilizer depends on the nutritional needs of the soil. Organic fertilizers not only provide nutrition to plants, but also act as soil conditioners.
  • Organic fertilizers are extensively used as substitutes for chemical fertilizers across the world. These are widely used in agricultural activities, especially in North America. Evolution of the conventional farming method and increase in organic farming practices are driving the demand for organic fertilizers in North America.
  • The organic fertilizers market in North America is anticipated to expand at a moderate pace in the near future. Demand for organic fertilizers has been rising in North America due to the growth in demand for organic food in the region. Demand for organic food products is high in the U.S. and Canada.
  • The organic farming industry needs to expand the production capability in order to meet the increasing consumer demand for organic food products. This is expected to drive the demand for organic fertilizers in North America.

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Rise in Demand for Plant-based Organic Fertilizers in North America

  • The organic fertilizers market in North America has been segmented based on form, source, product type, crop type, and country. Based on source, the organic fertilizers market in North America has been divided into plant, animal, mineral, and others. In terms of revenue, the animal segment held major share of the organic fertilizers in the region in2019. However, the plant segment is anticipated to expand at a faster pace than any other segment during the forecast period.
  • In terms of product type, the organic fertilizers market in North America has been segregated into phosphate fertilizers, nitrogen fertilizers, potassium fertilizers, ferrous fertilizers, zinc fertilizers, and others. In terms of value and volume, the nitrogen fertilizers segment constituted significant share of the organic fertilizers in North America in
  • Based on crop type, the fruits & vegetables segment is estimated to expand at a significant pace during the forecast period. Demand for organic fertilizers has been rising significantly in the fruit and vegetable farming industry in North America.
  • Expansion in the organic food industry in North America is likely to drive the demand for organic fertilizers. Metal cans are employed to store various products such as soft drinks and alcoholic drinks. Rise in customer preference for organic foods, especially in the U.S., is driving the demand for organic fertilizers in the region.

Key Country Highlights

  • In terms of country, the organic fertilizers market in North America has been bifurcated into the U.S. and Canada. The U.S. dominated the organic fertilizers market in the region inThis trend is estimated to continue during the forecast period. The country is projected to create lucrative opportunities for the organic fertilizers market in the near future.
  • Demand for organic fertilizers in the U.S. is driven by rise in demand for organic food products in the country. The U.S. is focusing on optimizing the efficiency of raw materials, energy, and materials. The usage of biodegradable raw materials has been rising significantly in the manufacture of fertilizers in the U.S. this is boosting the production of organic fertilizers in the country.
  • Increase in awareness about the harmful effects of synthetic fertilizers and benefits of sustainable farming processes is also a key factor driving the organic fertilizers market in North America

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North America Organic Fertilizers Market: Competition Landscape

  • The organic fertilizers market in North America was dominated by major organic fertilizer manufacturers in 2019. Key players operating in the organic fertilizers market in North America include
    • Fertoz
    • Ecoson
    • California Organic Fertilizers, Inc.
    • Italpollina S.p.A.
    • True Organic Products, Inc.
    • Sigma AgriScience, LLC
    • Soda Springs Phosphate Inc
    • Suståne Natural Fertilizer, Inc
    • Midwestern BioAg Inc.
    • Westbridge Agricultural Products.