A multi-channel market adoption approach has been established to achieve awareness and market penetration of POLY4 into the established fertilizer industry.
The global fertilizer market for the component nutrients in POLY4 is substantial with a value of $190 billon in 2016 and predicted to reach a value of $245 billion by 2020. At full production this means that POLY4 would only account for up to 4.5% of the global market. The existing demand for POLY4's four composite nutrients is well established and there are significant direct multi-nutrient substitution market opportunities for the product with other fertilizers containing one or more of hte same primary nutrients.
Long-term partnerships have been developed with universities, customers, governments and food manufacturers to validate the efficacy of POLY4 and to ensure the Company’s comprehensive research and development programme is appropriate for the global marketplace. These partnerships, combined with a targeted regional sales strategy, have enabled Sirius to enter into a number of binding large-volume, long-term supply agreements under which customers have agreed to buy a minimum amount of POLY4 once production begins and pay a given price.
Global marketing regions and current supply agreements
According to the United Nations Department of Economic and Social Affairs, the world’s population numbered nearly 7.6 billion as of mid-2017, implying the world has added approximately one billion inhabitants over the last 12 years. Population growth rates of 1.1% per year mean 83 million people are added to global population annually. This will result in a forecast global population of 9.8 billion by 2050. In response to this growth, food production will have to increase by >60% to keep pace with demand.
The increase in food demand could, in part, be achieved by devoting more land to agriculture. However, additional land is not readily available.
The more sustainable option is to make better use of the already available agricultural land and adopt more effective and efficient fertilizer practices.