Fertilizer Demand Forecast in Pakistan

In: Business and Management

Submitted By madihasheikh
Words 1816
Pages 8
ABSTRACT

This report provide overview of the information on the Pakistan fertilizer situation from 1990-91 to 2008-09. Pakistan rank 46th in the world in terms of fertilizer consumption and its fertilizer usage per hector is 115kgs.This study has been conducted to find out the factors which have been affecting demand for fertilizer as specified equations for nitrogen, phosphorus and potash, are estimated by using the static models. The results are acceptable from both an economic and statistical point of view. Using a linear regression analysis the result indicated that the demand function equation i.e. Y = 2.9723 + 0.0597 (x) can forecast the future demand of the fertilizer.

Key Words: Demand; Fertilizer; Pakistan; Regression Analysis; demand function equation; future demand of fertilizer.

INTRODUCTION

Fertilizers constitute a key component of the modern farm technology for achieving increased production through improving soil fertility. In this modern agricultural era, fertilizer is basic important input to boost yield. Contribution of balanced fertilization towards increased yield is from 30 to 60 percent in different crop production regions of the country. One kg of fertilizer nutrient produces about 8 kg of cereals (wheat, maize and rice), 2.5 kg of cotton and 114 kg of stripped sugarcane. All of our soils are deficient in nitrogen (N), 80-90 percent are deficient in phosphorus (P) and 30 percent in potassium (K), Wide spread deficiency of micronutrients are also appearing in different areas. Soil fertility is continuously depleting due to mining of the essential plant nutrients from the soils under intensive cultivation. The introduction of the high yielding cereal varieties in 1966-67 having higher nutrient requirements, ushered in the ‘fertilizer era’ in Pakistan and set the stage for ‘green revolution’. Prior to this, the use of fertilizer…...

Similar Documents

International Fertilizer Industry Analysis

...I. Introduction Driven largely by a growing population and rising incomes around the world, agricultural demand is expected to continue rising in order to ensure abundant quantities of high-quality food, feed, fibre, energy and even industrial products. The foundation of sustainable agriculture is soil fertility , a term that encompasses the soil’s nutrient content, the amount of soil organic matter, the soil structure, its PH balance and the presence of microorganisms(IFA,2012). Most soils lack at least some plant nutrients , and growing crops remove nutrients from the soil. Soil nutrients must be replenished when removed and supplied when deficient. It takes years and sometimes decades for natural processes to restore nutrients in the soil, which means that they no longer suffice to support global agricultural production. Traditional methods for restoring soil fertility, which entail long fallow periods and shifting agriculture into new areas, may contribute to deforestation, given current pressures on land use. Although historically sustainable, these practices no longer suffice to meet the needs of the current and future population levels and density. Organic sources of nutrients provide fewer nutrients than most people think, but they are usually excellent for improving other aspects of soil fertility. Inorganic sources contain only plant-available nutrients and therefore have no direct influence on soil structure or the presence of microorganisms. This is why......

Words: 2696 - Pages: 11

Demand

...DEMAND Two important forces of market are Demand & Supply Demand Can be defined as the desire for a good for whose fulfillment, a person has sufficient resources & willingness to buy the good. Desire – without money income, is a mere desire Potential demand - Desire with resources but without willingness to spend Effective demand - Desire accompanied by ability & willingness to pay Individual Demand – Quantity of a commodity that a person is willing buy at a given price over a specified period of time, say per day, per week, per month etc. Market Demand Total quantity that all the users of a commodity are prepared to buy at a given price over a specified period of time. Market demand is the sum of individual demand Law of Demand All other things remaining constant, the quantity demanded of a commodity increases when its price decreases & decreases when its price increases Other things - Consumer’s income - Price of related goods - Consumer’s taste & preferences - Advertisement Demand Curve Graphical representation of Law of demand. Demand curve concentrates on the price – quantity relationship Q = f(P) | | | | | | | | | | | | | | | | | | | | | | | ...

Words: 4978 - Pages: 20

Inflation in Pakistan

...DEFINE INFLATION. EXPLAIN VARIOUS CAUSES FOR INFLATION IN PAKISTAN (a) DEMAND SIDE (b) SUPPLY SIDE INTODUCTION: Moderate inflation is associated with economic growth, while high inflation can signal an overheated economy. As an economy grows, business and consumers spend more money on goods and services. In the growth stage of an economic cycle, demand typically outstrips the supply of goods, and producers can raise their prices. As a result, the rate of inflation increases. If economic growth accelerates very rapidly, demand grows even faster and producers raise prices continually. An upward price spiral, sometimes called “runway inflation” or “hyperinflation”, can result. The inflation syndrome is sometimes described as “too many dollars chasing too few goods:” in other words, as spending outpaces the production of goods and services, the supply of dollars in an economy exceeds the amount needed for financial transactions. The result is that the purchasing power of a dollar declines. In general, when economic growth begins to slow, demand eases and the supply of goods relative to demand. At this point, the rate of inflation usually drops. Such a period of falling is known as disinflation. DEFINITION: True inflation begins when the elasticity of supply of output in response to increase in money supply has fallen to zero or when output is unresponsive to changes in money supply. When there exists a state of full unemployment, the conditions will be clearly......

Words: 3613 - Pages: 15

Inflation in Pakistan

...Problem Statement Rising rate of inflation in Pakistan in last decade, factors that impact this rise in inflation. The factors are monetary i.e. money supply, exchange rate and real GDP and other factors are banking and non-banking borrowings. Research attempts to give solutions for problem that how, why, and when these factors affect the rate of inflation. Research is aimed to identify reasons due to which inflation is rising in Pakistan and give solution for this problem. Review of Literature Inflation & Importance The general movement of a country's overall price level is of primary concern to all and more so if the movement is upward. The problem of inflation has virtually become a major concern for all economies - over the last few decades, Inflation has been accelerating at an alarming rate in most of developing countries. (Mohammed Sabihuddin Butt and Haroon Jamal: A MONETARIST APPROACH TO INFLATION FOR PAKISTAN: Pakistan Economic and Social Review Vol.X XVI No.2 (Winter1988) pp 69-87) Inflation adversely affects the overall growth, the financial sector development and the vulnerable poor segment of the population. There is clear consensus that even moderate levels of inflation damage real growth. Inflation decreases the real income and also induces uncertainty. Considering such adverse impacts of inflation on the economy, there is a consensus among the worlds' leading central banks that the price stability is the prime objective of monetary policy......

Words: 3002 - Pages: 13

Fertilizers

...What are organic and inorganic fertilizers? A fertilizer is any material, organic or inorganic, natural or synthetic that is added to soil to help the growth of plants. Farmers use various kinds of fertilizers to produce abundant crops. Organic fertilizers are made from a variety of substances, including manure, plant matter, sewage water and household wastes. These fertilizers contain a smaller percentage of nutrients than inorganic fertilizers do. Therefore they must be used in larger quantities to obtain the same results. Inorganic fertilizers also known as mineral fertilizers are the most widely used fertilizers. They are mined from mineral deposits with little processing e.g.: [lime, potash or phosphate rock] or industrially manufactured through chemical process e.g.: [urea]. They vary in appearance depending on the process of manufacture. They supply 3 main elements 1.) Nitrogen 2.) Phosphorus 3.) Potassium. They are manufactured mainly for commercial purposes. The differences between organic and inorganic fertilizers in terms of their use Organic fertilizers are entirely dependant on locally available resources. Cattle manure, woodland litter, cereal and legume etc. are the commonly used organic fertilizers. But these are rarely applied in sufficient quantity to impact on crop yields. The uses of high quality organic fertilizers are rarely practiced. They are usually available on or near farms at very little or no cost other than labour costs of transportation......

Words: 281 - Pages: 2

Demand and Forecast

...The report will be based on the independent variables such as the price of Pizza, age of the population and income per household. Population and growth are the major determinants of the area in question. The vital issue is to establish whether the city is able to maintain another Pizza delivery business at the current population to the ratio of the restaurant. The level of income per each household is relative to demand of Pizza and normally the higher the income per household, the higher the number of people who demand the product (Draper, Smith & Pownell, 2001). The levels of income are significant in the profitability and sustainability of the business entity. Regions that have high people with high income can pay extra cash for delivery of Pizza, and have more parties than in cases where friends bring food. Lastly, price is also important factor because the price is chosen as a variable. The number of Pizzas sold in the region is the defendant variable. By applying regression model, the independent variable will be equal to the value of Pizzas that are sold. On the other hand, the independent variable will be the price of Pizza, household income and population (Downing & Clark 2010). The report will analyze the summary output acquired from regression to come up with decisions whether to establish Pizza in the community. This paper considers the simple type of regression analysis where there is one dependent variable and one independent variable in the......

Words: 918 - Pages: 4

Fertilizer Industry

...ANALYSIS OF FERTILIZER INDUTRY OF PAKISTAN PHOENIX PAF KARACHI INSITITUTE OF ECNOMICS AND TECHNOLOGY, KARACHI PAKISTAN Submitted by: MARYAM NISAR (BB-3-06-3416) SIDRA JAMAL (BB-3-06-3428) Course: ANALYSIS OF PAKISTANI INDUSTRY Submitted to: Mr. QAZI SALMAN 2 PHOENIX Page Table of Contents PRODUCTS: ........................................................................................................................................6 Brands: ..............................................................................................................................................7 SIZE OF INDUSTRY...............................................................................................................................8 GEOGRAPHICAL LOCATION..................................................................................................................9 FACTORIES LOCATION ...............................................................................................................9 WAREHOUSES ..........................................................................................................................9 TOTAL PRODUCTION.........................................................................................................................10 TOTAL EMPLOYMENT .......................................................................................................................10 TOTAL EXPORT .....................................................

Words: 10409 - Pages: 42

Fertilizer

...Introduction: Pakistan is an agricultural country where about 72% of the total inhabitants not only dwell in agrarian areas but they also count on its subsistence on horticultural affairs. Agricultural subdivision is devoting a big chunk in the national frugality. A greater part of national economic target is reliant on the achievement of our agricultural sector- It devotes 24% to the country’s total Gross Domestic Product. Cotton, Wheat and Sugarcane are dominant yield having budgetary importance. The manure is an important aid, which hikes the production in agriculture. Pakistan is an agricultural country but the use of fertilizers is three times lower than that of the advanced countries of the world. We are not still self-dependent in meeting the need of our basic food grain, soil deterioration, nutrient mining. The meager use of fertilizer adds more burden to the existing problems. The Manure sector in Pakistan presently is encompassed by 10 companies, 4 of which are in the public sector (Hazara Phosphate Fertilizer (Pvt) Limited, Lyallpur Chemical & Fertilizer Limited, Pak Arab Fertilizer Limited, and Pak American Fertilizers Limited) while 6 are in the private sector (Engro Chemicals Pakistan Limited, Dawood Hercules Chemicals Limited, Fauji Fertilizer Company Limited and Fauji Fertilizer Bin Qasim Company Limited, Pak China Fertilizer and Pak Saudi Fertilizer Company Limited — now owned by FFC). Fertilizer demand in the country is met from both domestic......

Words: 927 - Pages: 4

Pakistan

...Topic: Birth of Pakistan (1947) The British Parliament passed the Indian Independence Act on July 18, 1947. The Act created two dominions, Indian Union and Pakistan. It also provided for the complete end of British control over Indian affairs from August 15, 1947. The Muslims of the Sub-continent had finally achieved their goal to have an independent state for themselves, but only after a long and relentless struggle under the single-minded guidance of the Quaid. The Muslims faced a gamut of problems immediately after independence. However, keeping true to their traditions, they overcame them after a while. Quaid-e-Azam Muhammad Ali Jinnah was appointed the first Governor General of Pakistan and Liaqat Ali Khan became its first Prime Minister. Pakistan became a dominion within the British Commonwealth of Nations. The boundaries of Pakistan emerged on the map of the world in 1947. This was accomplished on the basis of the Two-Nation Theory. This theory held that there were two nations, Hindus and Muslims living in the territory of the Sub-continent. Sir Syed Ahmad Khan was the first exponent of the Two-Nation Theory in the modern era. He believed that India was a continent and not a country, and that among the vast population of different races and different creeds, Hindus and Muslims were the two major nations on the basis of nationality, religion, way-of-life, customs, traditions, culture and historical conditions. The politicization of the Muslim community came about......

Words: 648 - Pages: 3

Dairy in Pakistan

...DAIRY REPORTS DAIRY DEVELOPMENT IN PAKISTAN DAIRY REPORTS DAIRY DEVELOPMENT IN PAKISTAN Umm e Zia, T. Mahmood and M.R. Ali FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS Rome, 2011 Author Umm e Zia is the Managing Director of Cynosure Consultants in Islamabad. She has supported international donors and governments in undertaking rural development and agriculture value chain projects in over ten countries. T. Mahmood is a dairy consultant based in Lahore, Pakistan. He also serves as a visiting faculty member at the University of Veterinary and Animal Sciences. Muhammad Raza Ali is Senior Research Associate at Cynosure Consultants. Recommended Citation FAO. 2011. Dairy development in Pakistan, by Umm e Zia, T. Mahmood and M.R. Ali. Rome. Keywords Production systems, Dairy value chain, Dairy institutions, Product safety, Livelihoods, Employment The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations (FAO) concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The mention of specific companies or products of manufacturers, whether or not these have been patented, does not imply that these have been endorsed or recommended by FAO in preference to others of a similar nature that......

Words: 17498 - Pages: 70

Forecast

...(or implementation) implications are huge! Alternatively, I’ve observed over-zealous executive teams declare a time-to-market mandate without consideration of the project complexities. The pressure on the project teams results in estimates executives “want to hear,” but that have no basis in the reality of the work. As time and cost estimates are missed, the environment tends to deteriorate into one of finger-pointing, excuse-making and general dysfunction Fear Impacts Estimates: While fear pushes project estimates out into the future, this same environment likely results in ultra-conservative sales forecasts on one hand and unrealistic cost estimates on the other. For anyone accountable for revenue and/or expense numbers, you tend to take your cue on these numbers from environmental pressures. I’ve observed managers who felt pressure to inflate revenue forecasts out of fear of being viewed as naysayers and poor team players, while at the same time, deflate expense numbers out of fear of being viewed as not having control over costs. Fear in the workplace creates estimating and forecasting gamesmanship. Prior Performance May Be a Poor Predictor: Much like the recency effect displayed by the Everest expedition leaders, we open additional trap doors for our estimating and forecasting approaches by relying too much on prior performance in spite of changing conditions. The past is interesting, but in times of significant change or distress, it is a lousy......

Words: 1143 - Pages: 5

Pakistan

...Pakistan is a beautiful country. It is the land of the pure and the land of dreams, where each day the sun rises to mark a new beginning. Founded back on the 14th of August 1947, it is 65 years old. When Pakistan first came into being, many people said it would not survive. However, it is true that our forefathers faced several problems and had to make many sacrifices, but today, as the 21st century progresses, Pakistan has surely come over hurdles and made developments in many fields of life. Pakistan is a country that possesses a store of talent; however the problem arises when it comes to using that talent, as for many years now, Pakistan has been facing serious issues that include terrorism. Terrorism has led to a rising death toll and destruction of homes, markets, businesses, etc. the constant blast of guns and bombs has instilled a fear in the hearts of the people. One of the major problems that Pakistan is currently facing is the load shedding issue of electricity and gas. It has resulted in absolute chaos. Industries are collapsing, people are facing the evils of unemployment and there is general disorder in the country. Businesses are also facing closing issues. It has resulted in inflation as production of products is low and therefore it has increased demand rates where sufficient materials are not being provided. Load shedding is also causing a menace to the domestic sector as now we have to work by candlelight, generators, U.P.S etc. the studies of...

Words: 498 - Pages: 2

Nestle in Pakistan

... milk, and Nescafe coffee to its line of items through mergers and research. Nestlé kept increasing the length and width of its product lines to cater to a wide range of consumer needs. As Nestlé was making its operations global, it found an eager market in Pakistan. Nestlé has been serving Pakistani consumers since 1988, when its parent company, the Switzerland-based Nestlé SA, first acquired a share in Milkpak Ltd. Few of the milestones achieved by Nestlé Pakistan and Milkpak Ltd. are mentioned in Exhibit 1. Global Structure At the international level, the world is divided into four parts, each reporting to the world headquarters in Switzerland. Nestlé employs bottom-up as well as top-down reporting. For yearly budgeting, each territory reports next year’s forecasted sales to its Area Manager who after gathering all these reports sends a summary for his area to the Regional Manager. Regional and Zonal Manager do the same process until National Sales Manager has the forecasted sales for the entire country. Target sales are then reported down to each zone, from where it is sent to each region, and the process continues until each territory has its target sales (Exhibit 2). Organization Structure Nestlé Pakistan follows a flat, matrix organizational structure (Exhibit 3). The departments are divided function-wise and product-wise. All the products use different functional departments, and all the functional departments have specific product departments within them....

Words: 6442 - Pages: 26

Ici Pakistan

...that time in Millbank, London, and was a constituent of the FT30 Index and FTSE 100 Index. After the January 2008 change of ownership, AkzoNobel fully integrated ICI's operations within its existing organisation. ICI Pakistan ICI Pakistan Limited (Imperial Chemical Industries) is located in Karachi, Pakistan.ICI Pakistan was acquired by AkzoNobel on January 2008. It operates as an independent business unit within AkzoNobel and as a part of its specialty chemicals portfolio, known as Chemicals Pakistan.It was set up as a public limited company in Pakistan in 1952. ICI’s presence in this part of the world, however, predates the formation of the public limited company and indeed, Pakistan itself. The Khewra Soda Ash Company, a predecessor of ICI Pakistan Limited, set up a soda ash manufacturing facility in Khewra in 1944 with a capacity of 18,000 tonnes per annum. This facility was sited next to the salt range as rock salt and limestone; two key raw materials for manufacturing Soda ash were available here in abundance. ICI Pakistan operates diverse businesses and provides services to a number of diverse industries in Pakistan. To name a few, they are Textiles, Glass, Pharmaceuticals, Agriculture and Livestock, Construction, Automobiles, Chemicals, Cement, Fertilizer, Rubber, Detergents, Footwear, Food, Beverages and Leather, with back-end relationships in twenty three countries. Businesses: Today ICI Pakistan’s five businesses, Polyester, Soda Ash, Paints, Life Sciences and......

Words: 1704 - Pages: 7

Economy of Pakistan

...pasdfghjklzxcvbnmqwwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnm Economy Of Pakistan | Economy of Pakistan The economy of Pakistan is the 47th largest in the world in nominal terms and 27th largest in the world in terms of purchasing power parity (PPP). Pakistan has a semi-industrialized economy, which mainly encompasses textiles, chemicals, food processing, agriculture and other industries. Growth poles of Pakistan's economy are situated along the Indus River; diversified economies of Karachi and Punjab's urban centers coexist with lesser developed areas in other parts of the country. The economy has suffered in the past from decades of internal political disputes, a fast growing population, mixed levels of foreign investment, and a costly, ongoing confrontation with neighboring India. However, IMF-approved government policies, bolstered by foreign investment and renewed access to global markets, have generated solid macroeconomic recovery the last decade. Substantial macroeconomic reforms since 2000, most notably at privatizing the banking sector have helped the economy. GDP growth, spurred by gains in the industrial and service sectors, remained in the 6–8% range in 2004–06 due to economic reforms in the year 2000 by the government. In 2005, the World Bank named Pakistan the top reformer in its region and in the top 10 reformers globally. Islamabad has steadily raised development spending in recent years,......

Words: 5890 - Pages: 24

Sicario El Dia Del Soldado BluRay-Screeener | Wallpapers | Jason Bourne 2016 HC 720p HDRiP x264 ShAaNiG mkv