The world's third biggest fertilizer group has echoed comments from its smaller rival, K+S, of a collapse in European demand for potash – but said that the region's woes do not reflect the global picture.

Akiva Mozes, the chief executive of Israel Chemicals (ICL), has forecast "almost no demand" for potash in Europe, where farmers have responded to lower market prices for crops by scrimping on fertilizer use.

ICL's sales volumes were "very much down", Mr Mozes added, according to an analyst from Credit Suisse.

The comments follow a profit warning from Germany's K+S last week, noting "extraordinarily weak sales", which sent shares in fertilizer groups tumbling worldwide and prompted a string of downgrades from analysts.

'More bullish'

However, markets in developing countries were brighter, with India and China on course to settle import contracts over the next two months, Mr Mozes said.

"He was more bullish on emerging markets than Western [ones]," Credit Suisse said in a note following a meeting between analyst Rhian Tucker and the ICL boss.

The assessment echoes a statement from Belarusian Potash Company late last week that European and Asian markets had different demand, production and inventory dynamics.

BPC said it expected a revival in potash sales, by volume, in the second half of this year and a complete recovery in 2010.

Brazil boom?

Mr Mozes also singled out Brazil as an especially promising market, Credit Suisse said.

"He saw Brazil being very strong in the next few months and expected 4m-5m tonnes of potash to be shipped there from July to October," the note said.

ICL, with a market capitalisation of about $12.4bn, ranks behind Canada's PotashCorp and US-based Mosaic on the list of global fertilizer groups.