Principal component and gray correlation analysis of potash supply safety in China

Potash resources are the significant role on food security in China.This paper calculates the comprehensive score of China’s potash supply from 1996 to 2015 as the reference value with the principal component analysis, and then analyzes the influencing factors of China’s potash supply safety with the grey correlation method.The calculations prove that China’s potash consumption, imports, import concentration, production, exchange rate and demand competition have a greater impact on safety of potash supply in China.This paper also puts forward some practical suggestions.Firstly, it is necessary to improve the efficiency of the use of potash fertilizer to ensure the steady growth of potash consumption.Secondly, enterprises should make full use of the international cooperation platform of “Belt and Road” to explore overseas potash resources.Furthermore, strengthening the research on the insoluble potash resources can raise the domestic potash production.Lastly, enterprises had better strengthen risk management of the exchange rate and strive for the voice of the import price by taking advantage of the China’s competitive demand.