INTERVIEW: Europe 'not yet a lost continent' for specialty fertilizer production: Van Iperen director

Relatively strong demand growth in the specialty segment of the fertilizer market presents producers of water soluble and controlled-release products with a valuable opportunity. But specialty producers in Europe looking to maximize the opportunity face uniquely high costs and regulatory constraints.

Erik van den Bergh, managing director of Van Iperen International, shared his thoughts on what European specialty fertilizer producers need to do to survive and flourish in an intensely competitive global market.

When asked about how the specialty fertilizer market is looking in 2025, Erik van den Bergh said that "Last year was positive for most specialty product groups, though as we get into 2025, we see that European producers are still grappling with high energy and labor costs. But in my view Europe is not yet a 'lost continent' -- I think we're strong enough to come out of this period even stronger in the end. And not only the fertilizer industry, but also the car industry and the other industries that everybody is concerned about.""

He added that he believes innovation is the only way out, saying that "We can all hope that energy costs will go down, but labor costs won't, and regulation will probably stay as it is."

"We already see good examples of innovation in our sector, for example Cinis' sulfate of potash (SOP) project in Sweden that uses less than half the energy of traditional Mannheim production. It's the same in the relatively new field of biostimulants. Once you look beyond the commonly used seaweed extracts or humic acids, innovations are making the difference between beating competition from overseas or not. Our 100% plant-based biostimulants are an example of a product that has been developed as an EU Life project. This kind of innovation is essential for the survival of European production. I remain optimistic that Europe can emerge stronger from these challenges," van den Bergh also said.

Energy efficiency

When asked about what steps Van Iperen is taking to enhance energy efficiency in production, van den Bergh said that "we already have our GreenSwitch nitrate, a product we make by turning ammonium into nitrates in a biogas installation and then purifying the output for use in greenhouses. In phosphates, there is a lot of effort not only by us but also by others to find a way to extract phosphates from waste to reuse it and make phosphoric acid, or at least purified phosphor fertilizers. We have two such projects in the pipeline that we expect to yield commercially viable products within the next few years. This could be a significant breakthrough, as there is a vast amount of phosphate waste that can be recycled into fertilizers, potentially competing with imports from countries like Morocco and Russia."

He added that sustainable fertilizers must be priced competitively against traditional fertilizers or people "simply won't buy them."

"The future of sustainable fertilizers therefore lies in circular projects that can produce competitively priced products. While charging a small premium may be feasible, the willingness to pay premiums is more evident among large retailers and growers that produce their own branded food products (who need to maintain their green credentials), than it is among end-consumers. Ultimately, our focus is on developing products that compete on price rather than just sustainability," van den Bergh said.

Growth and expectations

van den Bergh said, when asked about the changes in growth he saw in 2024 compared to 2023, that according to the International Fertilizer Association, specialty fertilizers experienced growth of around 3%-4% last year.

"This growth is being driven by trends in precision agriculture and the increasing use of technologies like drip irrigation. We also see a lot of potential in emerging markets such as India, where there is clearly scope to implement new technologies at scale. Foliar application is gaining traction there because it allows for small volumes of fertilizer to be applied easily. The challenge in India is convincing farmers to make the initial investment in these technologies, but the benefits are clear. India is an important growth market for us," van den Bergh said. "What happens with China is also very significant for us, as it's a major exporter of specialty fertilizers. At the moment the Chinese government is restricting exports, for example of SOP, which is mainly coming out in small bags that only a few countries can take."

He added that technical-grade mono ammonium phosphate (MAP) exports from China are also more limited than they used to be, because Chinese companies are using it in their battery manufacturing. and that it matters for Europe because the MAP they're using to make batteries is a crucial ingredient in water-soluble NPK fertilizers and is widely used in open-field fertigation.

Lastly, when asked about his growth expectations for 2025,van den Bergh said that he expects growth to continue at a similar pace.

"Nitrate fertilizers, particularly, are likely to see increased demand due to their advantages in precision agriculture. The overall trend toward precision agriculture and high-tech agriculture is clear and being driven by a lack of available land and the need for more quality food. Water scarcity is also leading to more drip irrigation, and even AI is now contributing to the development of precision agriculture that requires specialty fertilizers," he said. "There is also growing trend towards nitrate and ammonium-based fertilizers due to their greater efficiency, especially in hot climates where urea-based fertilizers are prone to evaporation."