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Tennessee Valley Authority

National Fertilizer Development Center
Fertilizer Abstracts
Muscle Shoals, AL 35660
 FOREWORD

A long-term marketing objective of the National Fertilizer

Development Center is to assist in making fertilizers available
for food production. Although oriented primarily to U.S.
needs, much of the information is potentially useful through
out the world. This encompasses timely new ideas that can be
helpful to countries in various stages of market development.
These new ideas—regardless of their source—have been
recorded and published in Fertilizer Abstracts, a monthly
abstract journal, since 1968. To date it has carried more than
23,000 abstracts from U.S. and international journals. The
journal is available on a subscription basis.

This bulletin is a collection of abstracts On Fertilizer

Marketing selected from those appearing in Fertilizer
Abstracts between July 1973 and June 1978. A similar
collection was made of the material from January 1968
through June 1973, and is available in Bulletin Y-59.
Together the two bulletins contain nearly 2000 abstracts and
cover the majority of marketing publications over the past
10% years.

A broad definition of fertilizer marketing was used in

preparing this publication for use in a large number of
countries. All the components thought essential for a
marketing program were listed. The list appears as the table
of contents and its components guided the selection of
abstracts for this publication.

Maurice Smith

Q
 TABLE OF CONTENTS

Page
MARKET ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Techniques . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Analyses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

MARKET DEVELOPMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
New Processes, Products, and Mineral Deposits . . . . . . . . . . . . . . . . . . 18
Legislation and Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

MARKETING ORGANIZATION . . . . . . . . . . . . . . . . . . . . . . . . . 30
Sales Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Mergers and Joint Ventures . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Trade Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Distribution Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Directories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

STORAGE AND TRANSPORTATION . . . . . . . . . . . . . . . . . . . . . . 37

Handling and Storage . . . . . . . . . . . . . . . . . - - - - - - - - - - - - - - 37
Rail Transport . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . 43
Pipeline Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Water Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
General . . . . . . . . . . . ... - - - - - - - - - - - - - - - - - - - - - - - - - - - 47

PRICING AND COSTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

Pricing Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Production and Distribution Cost . . . . . . . . . . . . . . . . . . . . . . . . . 52
Pollution Control and Energy Related Cost . . . . . . . . . . . . . . . . . . . . 54
Subsidies, Tariffs, and Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

TRAINING AND ADOPTION . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Adoption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

RETAIL SERVICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... 76
Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

WORLD TRADE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Imports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

SUPPLY AND DEMAND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

Production-Consumption Statistics . . . . . . . . . . . . . . . . . . . . . . . . 97
Forecasts and Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
 MARKET ANALYSIS
TECHNIQUES
1 Fertilizer Marketing—Need for a New Concept. F. J.
Heredia. Fert. News (India) 20 (8), 3-6, 19 (Aug. 1975).
During the past 10 yr, the fertilizer industry has witnessed
more than one cycle of Scarcity–glut—scarcity of marketable
product. The trade cycles have arisen from changes in supply
relative to demand and market forces have operated to restore
equilibrium. Two years ago, when a world-wide shortage of
fertilizer threatened, resort to physical controls on fertilizer
distribution immobilized the price mechanism that might
otherwise have operated to bring about a new equilibrium. The
administration of this control system has however created new
problems for fertilizer manufacturers and distributors, the
solution of which appears possible only through new concepts
of marketing. New concepts of marketing are identified and
examined.
2 Need for a System for an Extensive Information
Analysis of Specific Marketing Decisions. C. Gronroos. Eur. J.
Mkt. 7 (2), 130-6 (1973). F.A.I. Abstr. Serv. 13, 3736. There
are three main sources of information for specific marketing
problems: (1) information which is stored in a systematic
manner in the data bank of the firm; (2) the experience and
intuitive knowledge of the decision environment which the
decision-maker can be expected to possess; and (3) new data
obtained to solve an immediate, specific marketing problem. It
thus means that the decision information system must be
pragmatic, selective, and be determined on a cost control basis.
Also, the marketing decision information system is not a new
system which will replace the traditional information systems.
It is a complementary system which aims at giving the firm a
chance to accomplish better information economy when
dealing with specific marketing decision problems.
3 Estimating Fertilizer Demand. J. T. Shields (TVA,
National Fertilizer Development Center, Muscle Shoals,
Alabama). Food Policy pp. 333-41 (Aug. 1976). A review of
various ways of estimating fertilizer demand is given. Each
method has its advantages and disadvantages. The application
of each method depends on the conditions and purpose to
which it is subjected. It is important that the analyst inform
the reader of limitations that may influence the utility of the
results. The following information is necessary if the analyst is
to refine the techniques for demand analysis: (1) fertilizer use
by crop and by region; (2) crop: fertilizer price ratios;
fertilizer inventories by product, region, and country; (4
§ price elasticity decreases (in an absolute sense) when capital is
knowledge of farmer acceptance of new technology; (5)
knowledge of demand and price elasticities for fertilizer; and
(6) more knowledge of the contribution of fertilizer to food
productivity and the interrelationships of fertilizer to other
inputs in the production process. The search for improved data
will dictitate the search for new methodalogies. (21 ref).
4 An Approach for Demand Estimation of Fertilizer Use.
Gurdev Singh and V. Ramachandran (Indian Inst. Manage,
Ahmedabad, India). Indian J. Agr. Econ. 28 (4), 1 16-22
(Oct.-Dec. 1973). Targets of fertilizer use generally are based
on crop and soil needs with no consideration of past use or of
potential demand. This study was designed to measure
effective demand, using N consumption data for Mysore state,
India, as affected by past use and potential demand. Linear
projections based on fertilizer use during 1960-70 under.
estimated actual use for 1970-73 and semi-log projections
overestimated use. Projections based on a restricted growth
model that considered potential demand correlated better with
effective demand or actual use. Rate of growth in fertilizer use
can be increased by increasing potential demand, such as
through increased irrigation and evolution of varieties more
responsive to fertilizers.
5 Demand for Fertilizer in Southern Brazil, 1948-1971. D.
W. Larson and J. S. Cibantos. Ohio State Univ. Agric. Econ.
Rural Sociol. ESO 188, 21 pp. (Apr. 1974). Amer Bibl. Agric.
Econ. 4, 945. The demand for fertilizer in the State of Sao
Paulo is analyzed by means of the Nerlove adjustment model
and a traditional demand model. The demand funtion con
siders fertilizer use to be a function of fertilizer prices, crop
prices, area cultivated, crop yields, and time. The results
indicate that the price elasticity of demand for fertilizer is
inelastic in the short run and elastic in the long run and that
the demand has changed structurally between the 1949-60 and
1966-70 sub-periods. The policy implications of these results
are discussed.
6 Step Demand Functions for Fertilizers in the Mandi
District of Himachal Pradesh. P. L. Sankhayan (Punjab Agr.
Univ., Ludhiana, India) and A. S. Sirohi. Indian J. Agr. Econ.
27 (3), 69-77 (July-Sept. 1972). Normative static demand
functions were derived for fertilizers in Mandi district of
Himachal Pradesh in order to show the effect of price changes
of fertilizers on their demand. By using parametric pro
gramming, individual step demand functions were derived for
average farms (in each of the six tehsils) of the district, under
conditions of restricted and unrestricted availability of capital.
The aggregate step demand functions for the entire district
were then obtained from the individual demand functions by a
weighting process. The step demand function indicated a shift
upwards to the right when capital constraint was relaxed
through a borrowing activity. The same assertion was con
firmed by the algebraic functions used for approximating the
step functions. The estimates of price elasticities of demand
for fertilizers at the current price were observed to be much
less than unity, indicating an inelastic demand for fertilizer.
This is explained by the high initial productivity of high
yielding varieties grown in the district. Low price elasticities
suggested that the reduction or increase in the price of
fertilizers will not lead to any substantial change in the
normative demand for this input. There is evidence that the
available through borrowing, suggesting that farmers are
rendered less sensitive to the changes in the price of fertilizers
when credit facilities are liberal, this, however, could not be
confirmed due to lack of statistical tests. At the current level,
if the Government plans to withdraw price subidies or increase
the price of fertilizers without adversely affecting the demand
for fertilizers and consequently the production, such an action
must be accompanied by a policy of liberal credit facilities to
the farmers.
7 Demand for Fertilizer: Distributed Lag Models for
Explaining and Forecasting Variations in Fertilizer Consump
tion in Finland. M. Nevala. J. Sci. Agric. Soc. Finland 48 (1),
45.89 (1976) (Finn). Different types of distributed lag models
were constructed for the aggregate fertilizer consumption in
Finland. The main attention was focused upon those models
 MARKET ANALYSIS

that could be used for forecasting variations in fertilizer subsititutes including new lands. In developing countries of
consumption. Before specification of the demand models, a Asia it will be necessary to (l) increase the capacity utilization
method of time series analysis (EPA-method consisting of of existing fertilizer manufacturing facilities, and where
several subsequent moving averages) was applied to quarterly possible to identify new feedstocks and to plan for the
time series data on the quantities of the main plant nutrients development of new capacities, (2) identify all fertilizer
to divide them into three components: (1) trend cycle-, (2) substitutes and reevaluate land renovation projects that could
seasonal-, and (3) irregular components. In addition, the expand production capacities of the agricultural sectors in
average growth rates for fertilizer consumption were computed these countries, (3) carefully analyze the demand situation
for different periods. In the formulation of demand models it from the perspective of fertilizer response data so as to
was assumed that the variations in fertilizer consumption allocate fertilizer to high output response crops and to
depend on the variations in the prices of fertilizer, agricultural minimize the costs of transportation, storage, and product
products, and other farm inputs as well as on the variations in deterioration and damage. Substantial data is lacking on these
the farm cash receipts. Two types of distributed lag models activities and it is important that studies begin and data be
were used: (1) polynomial lag models (formulated by Almon) identified to provide answers to these questions. (41 ref).
and (2) Nerlovian partial adjustment models. Polynomial lag
formulations seemed to give the best results as compared to a 11 Economics of Fertilizer: Alternatives for Avoiding a
priori hypotheses. The demand for fertilizer was found to be Shortage. H. P. Marhatta (Univ. Connecticut, Storrs). Diss.
rather elastic with respect to the price ratio between fertilizer Abstr. Int. A 37 (9), 5960-1 (Mar. 1977). An adequate supply
and agricultural products. The response of the farmers spreads of fertilizer is essential for maximum production of the major
with respect to time; at its highest, the response is about two grain crops in the United States. The future supply is
economic years after the change in the price ratio. Also, the dependent upon the level of fertilizer prices, capacity of the
variations in farm cash receipts were found to be an important industry, and manufacturing technology. The demand by
determinant of the variations in fertilizer consumption. In farmers for fertilizer is largely determined by the level of
order to test the validity of the constructed models for fertilizer prices in relation to prices of the grains. The major
forecasting purposes, expost forecasts of total fertilizer con objective of this study was to ascertain the demand for and the
sumption were computed for the economic yr 1973-74 and supply of fertilizer in 1980. An econometric model of demand
ex-ante forecasts for the economic yr 1974-75 by means of for and supply of all three nutrients—N, P, and K–was
some models. formulated. By utilizing the annual observations from 1950 to
1974, estimates were obtained and used to determine the
8 Farm–Firm Normative Fertilizer Demand Response in equilibrium prices and quantities. After projecting exogenous
the North Central State of Nigeria. O. Ogunfowora and D. W. variables under three sets of assumptions, the 1980 projections
Norma. (Univ. Ibadan, Ibadan, Nigeria). Samaru Res. Bull. of supply and demand were made for all three nutrients. The
(Nigeria) No. 203, 10 pp. (1973). Abstr. Trop. Agric. 1, 1328. projections indicated that the 1980 equilibrium prices will
A combination of parametric programming and multiple result in large supplies of all nutrients. Even with increased
regression models was used to estimate the farm or firm acreage planted to the four major crops supplies will be large
elasticities of demand for fertilizer in an environment where enough to increase the rate of application. This, then, should
no time-series data exist and where the system of inter increase agricultural production in 1980.
cropping is the norm. The results lend support to the popular
belief that capital supply has the highest potential for inducing 12 Efficiency of Fertilizers Supply System (A Case Study
a demand for fertilizer, followed by price changes in fertilizer of Kandukar Village). D. P. Sharma and V. V. Desai (Sri
and crop output. Venkateswara Univ., Anantapur, A.P. India). Ind. J. Agr.
Econ. 28 (4), 104.9 (Oct.-Dec. 1973). An investigation was
9 Fertilizer and Food Policy in LDC's. C. P. Timmer. made during 1972-73 in Village Kandukur in Anantapur
Cornell Univ., Food Policy 1 (2), 143 (12) survey report (Feb. District of Andhra Pradesh to study the impact of delay,
1976). Environ. Abstr. 6, 6434. Through the use of a simple deficiency, and importance of fertilizers supplied to the
macro-model, the relationships between fertilizer and food agriculturists and suggest measures for improving the system.
production are discussed. Factors affecting farmers' fertilizer A two-stage stratified random sampling technique was adopted
use, long-term fertilizer demand, and fertilizer policy issues are for the selection of farm families in the village. The samples
examined. Little progress in boosting food production will be were obtained by stratifying the family holdings into small,
made in the absence of incentive prices, and little progress will medium, and large groups. These samples were further
be made even with incentive prices if development and stratified on the basis of a ratio of cultivated land to the total
locational adaptation of high yield varieties, large- and land holdings of a family. Finally, a set of samples consisting
small-scale water control works, modern distribution markets, of 20 small, 8 medium, and 4 large farm families was selected.
and markets to handle surplus grain are ignored or thwarted. An analysis of three factors, time variance, quantity variance,
and price variance, impeding efficiency and effectiveness of
10 Fertilizer Marketing Problems in Asia. D. C. Dahl (Univ. the flow of fertilizer to the farm was made. The findings of the
Minnesota, Minneapolis). Proc. Planning and Organization study revealed a mean periodic delay of 21 days, with standard
Meeting Fertilizer I.N.P.U.T.S. Project (held Oct. 21-5, 1974, deviation of 7 days, and an inverse relationship of periodic
Honolulu, Hawaii). Honolulu, Hawaii: East-West Food Insti delay to the size of holdings: the latter signifying that large
tute, East-West Center; pp. 68-78 (May 1975). Asian countries cultivators, having proper transport facilities, were able to
in short supply of fertilizers will have to reevaluate the secure fertilizer material before medium and small farmers. On
distribution systems they have in an effort to identify how the quantity variance, it was found that fertilizer availability
they can minimize the cost of distributing fertilizers that are ranged 38.4-60.3% of the requirement. The percentage of the
available and to look for alternatives in the form of fertilizer price variance was found to be in the range of 36.0-48.0.
 MARKET ANALYSIS
13 ICBR-A Decision Making Tool for Determining Profit
able Use of Fertilizers. S. M. Patel (Inst Coop. Manage.,
Ahmedabad, India). Fert. Marketing News 6 (8), 1-3 (Aug.
1975). A comparison of cropping systems is best made by
examining the cost:benefit ratio (CBR) whereas the value of
fertilizer is best determined by examining the incremental
cost:benefit ratio (ICBR). The CBR is based on the total costs
and returns for the system whereas ICBR is based on the
additional costs of a practice and the corresponding benefits.
Costs and returns should be determined at the farmer's market
place; this often is difficult because of the wide fluctuations,
However, the wide fluctuations in prices of fertilizers and
crops requires that new sets of ICBR's should be calculated
before fertilizer recommendations are made because farmers
are interested in profit maximization more than in production
maximization. The FAO standards for ICBR are 1:2.5
although some Indian authors have suggested that 1:2 is
adequate.
14 Multifactor System Gives Precise Crop Recommenda
tions. J. L. Strauss (Taralan Corp., Wheaton, Illinois). Agri
chem. Age 19 (8), 20-1 (Nov.-Dec. 1976). A systems approach,
based on 51 separate factors, is used in making fertilizer and
crop production recommendations. The factors include rain
fall, time of tillage, crop residues, plant populations, genetics,
pests, latitude, soil tests for nutrients, and many others. The solutions of N and the risk of a negative internal rate of return
multifactor model projects potential yield, calculates fixed and to fertilization for various sets of effective relative prices and
variable production costs, determines breakeven points, and locations.
shows the management profit. Analysis of research data from
25 states and 2 foreign countries over a 20-yr period shows
that yield response is linear to balanced production factors;
this is in contrast to the curvilinear response obtained by
adherence to the Law of Diminishing Returns.
15 , Least Cost Combination of Fertilizers—An Application
of Linear Programming Technique. K.N.R. Sastry and R.
Ramanna (Univ. Agric. Sci., Hebbal, Bangalore, India). Mysore
J. Agric. Sci. 9 (3), 486-93 (1975). A linear programming
technique was used to determine the best choice of fertilizers
to supply a specified quantity of plant food based on 1971-72
local fertilizer prices. Fourteen fertilizers, including straight
materials and mixtures, were available on the market. Each of
the primary nutrients was available from more than one
source. The least cost combination for sugar beets (125.40-50
kg/ha of N-P2 Os-K2O) was urea, diammonium phosphate, and
muriate of potash.
16 A Scale to Measure Attitude of Farmers Towards
Fertilizer Use-An Application of Scalogram Analysis Techni
que. B. N. Chaudhary (Kisan Vidyapith, Pussa Bihar, India)
and C. Prasad. Fertilizer News 22 (10), 22-6 (Oct. 1977). The
farmers’ attitude towards fertilizer use is an important factor
and a precondition for adequate fertilizer application. It is,
therefore, worth knowing the attitude of farmers towards the
use of fertilizers. An attitude scale has been developed in this
study. The scale was developed following a rigorous method.
In the initial stage, statements were selected by using
Thurstone's technique of Equal Appearing Intervals and
Likert's Technique of Summated Rating. These selected items
were subjected to a form of item analysis and with the help of
this, nine attitude statements were selected for the final
format of attitude scale which were further put to test on a
scalogram analysis for their unidimensionality. Higher con
sistency, dependability, and validity of this scale indicate its
wider use by extension workers and researchers.
17 Measuring the Risk of Investing in Nitrogen Fertilizers.
J. A. Roumasset (Univ. California, Davis). In Rice and Risk:
Decision Making Among Low-Income Farmers. Amsterdam,
Netherlands: North Holland Publ. Co.; pp. 101-54 (1976). A
measure of risk is derived by exploring the variables which
determine variation in rice yields by small farmers. Techniques
studied involve only variations in the level of nitrogen
fertilizer; other inputs are held constant. Four approaches to
the problem of measuring risk are presented. A description is
given of the “naive method.” The “experimental approach”
and the “econometric approach” are used to estimate the risk
of applying nitrogen fertilizer in the Philippines. A method for
estimating the risk of alternate techniques has been developed
which appears to be superior to statistical analysis of either
experiment station data or cross-section data on yields in
farmers' fields. The method uses experiment station data to
estimate the relationship between fertilizer and yield under
conditions of little or no crop damage and farmer interviews to
determine the nature, extent, and likelihood of the major
sources of crop damage in particular study areas. The two data
sources are combined to estimate stochastic production
functions, wherein percent damage is a random variable. These
functions are used in turn to determine the risk neutral
18 Optimum Model of Agricultural Expansion: Minas
Triangle or Brazil (POR). B. W. Cone and L. M. Eisgruber.
Pesquisa i Planejamento (Rio de Janeiro) 3 (2), 491-501 (June
1973). Amer. Bibl. Agric. Econ. 4, 922. This study was
concerned with the development of a model of the optimum
path of agricultural expansion over a given planning horizon
and ascertainment of the effect of inflation, rate of interest,
product and fertilizer prices, and farm size on the use of
fertilizer and land clearing. The location of the study was the
Minas Triangle of Brazil. Expansion either horizontally (land
clearing) or vertically (increased use of fertilizer) would not
maximize the present value of a discounted stream of net
revenue. If it were profitable to expand, it would be profitable
to simultaneously expand horizontally and vertically. Product
prices have the most significant impact on the profitability of
horizontal and vertical expansion, although all other factors
considered (rate of inflation, rate of interest, fertilizer prices,
and farm size) have some impact.
19 Fertilizer Use and the Modernization of Sao Paulo's
Agricultural. F. B. Homem De Melo (Inst. Econ. Agri., Sao
Paulo, Brazil). Agricultura em Sao Paulo (Brazil) 22 (1-2),
341-62 (1975) (Port). Abstr. Trop. Agric. 3, 14733. An
attempt was made to identify and quantify the effects of the
main explanatory variables in the fertilizer demand in the
State of Sao Paulo with two approaches: time series and cross
Section; with the latter, land prices and rural education were
introduced as variables. With respect to fertilizer prices, not
only the relevent picture for farmers was presented, but also
the situation affecting the domestic industry. In terms of
possible action by the public sector, the results indicate that
increases in fertilizer use could be obtained by eliminating
distortions affecting real fertilizer prices for farmers. In the
long run, public investment in rural education is emphasized as
an important strategy for agricultural development.
 MARKET ANALYSIS

20 Economics of Fertilizer Use. J. W. Couston. In Planning American Scene. S. Krishnaswami (Ministry of Finance, New
and Organization of Fertilizer Use Development in Africa. Delhi, India). Proc., F.A.I. National Seminar World Fert.
Rome, Italy: FAO, pp. 50-8 (1975). Several topics are Situation Seventies Technical Economic Aspects Production
discussed with analytical examples to access the various factors Ammonia Based Heavy Fractions Petroleum Feedstocks, pp.
affecting fertilizer use efficiency. The single most important III-1/1-3 (1973) New Delhi: Fertilizer Assn. India. During the
economic factor explained is the relationship between the cost 10-yr period ending 1971-72 world fertilizer consumption
of fertilizers and the value of the increased output expected more than doubled, and further increases are expected in the
from their use. Variables considered in the relationship coming years in all regions. The growth rates have been greater
include: (1) the expected increase in output from each in developing countries than in developed ones. Most develop
increment of fertilizer, (2) the price of the proposed crop, (3) ing countries will, however, continue to depend heavily on
the cost of fertilizers and of applying them, (4) the additional imports despite progress in local production. In a situation of
costs of harvesting and marketing the larger crop, and (5) the fertilizer shortage in international markets, as is currently
residual value in later seasons of fertilizer applied. The effects being witnessed, developing countries should seek to get their
of price controls, risk, subsidies, and taxes were similarly share by long-term contracts. There is a need for greater
discussed with reference to fertilizer use economics. understanding between producing nations and fertilizer
importing countries to evolve an enduring relationship in
21 The Economics of the Adoption of New Technology: international trade of this commodity. Stability of supply and
Fertilizing in Ghana. H. Hansel (Univ. Dar es Salaam, prices is very important for establishing such relationship.
Morogoro, Tanzania). Afr. Spectrum 2 (72), 15-31 (1972).
Trop. Abstr. 28, 1845. The usual system of using cost-benefit 24 Market Trends and Agronomic Suitability of Key
ratios as a means of convincing farmers of the benefits of Fertilizers Commonly Sold in World Trade. P. J. Stangel
introducing a new technique (for example, fertilizer applica (Tennessee Valley Authority, Muscle Shoals, Ala.). Proc.,
tion) is not of general validity. The costs of alternative FAI-FAO Seminar on Optimising Agricultural Production
methods for reaching the same production increases are often Under Limited Availability of Fertilizers; pp. 101-30 (1974).
decisive. In this case, fertilizer application compared New Delhi: Fertiliser Assoc. India. The current and expected
unfavorably with area increases; this explained the nonapplica production patterns of various fertilizers by the world industry
tion of fertilizer by farmers, although cost-benefit rates of are examined and their agronomic Suitability to world agri
application were very favorable. (tables, fig's, 37 ref) culture is described. Attention is given primarily toward
assessing these trends for various types of N, P, and K
fertilizers. Urea will soon become the dominant N fertilizer in
both total use and product moving in world trade. This will
occur primarily at the expense of ammonium sulfate and
ammonium nitrate. By 1980 world capacity to produce urea
ANALYSES will exceed 30 million mt with over one-half of this capacity in
the developing world. Almost all new N capacity being built in
the developing world will be as urea. Although agronomically
acceptable for most major food and industrial crops, urea does
22 World Fertilizer Market Review and Outlook. E. A. have certain problems, mainly inherent to its chemical
Harre, O. W. Livingston, and J. T. Shields. Muscle Shoals, Ala.: composition, that could hamper further penetration of world
Tennessee Valley Authority, National Fertilizer Development N markets. These problems are related to losses due to
Center; Bull. Y-70, 68 pp. (Mar. 1974). A shortage in N and P leaching or volatilization and its incompatibility with various
fertilizer has developed in international trade and in domestic N and/or phosphatic fertilizers. Recent developments in better
supply in many countries. These developments have raised conditioners, urease inhibitors, mixtures with ammonium
questions about the ability of the world fertilizer industry to sulfate, and coatings with S (SCU) show promise in offsetting
supply fertilizers at prices farmers can afford to pay. This is a these problems and improving the universal acceptability of
report of factors likely to influence world and regional urea. The trend toward high-analysis phosphates will continue.
fertilizer supply-demand between 1974-78. Shortages of N will Ammoniated phosphates, such as diammonium and mono
continue and may become more severe. Prices have not peaked ammonium phosphate and certain high-analysis complex ferti
and it may be 3-4 yr before price decreases occur. In 1972, lizers account for nearly two-thirds of the world's P3Os
83% of N production capacity was in developed countries and production. This growth is expected to continue, particularly
17% in developing countries. By 1978 more than 25% of N for high-analysis compound fertilizers. Present price structures
production capacity will be in developing countries. The warrant careful examination of the economic and agronomic
future of the world phosphate industry depends largely on suitability of highly reactive phosphate rock for direct
developments in phosphoric acid. If present plans materialize, application. Recent research suggests that for rice certain
the world P. Os supply-demand situation will be back in phosphate rocks can be nearly as effective as orthophosphates
balance by 1978 and surpluses could occur. Phosphate prices in the first yr when finely ground and directly applied to acid
may peak and level off during the next yr and trend downward soils. The agronomic effectiveness of water soluble orthophos
by 1976-77. Developing regions will continue to depend on phates appears to be greatly reduced on soils of high
world trade for their potash supplies. The world potash market phosphate fixing capacity. This is a major problem on many
is moving toward a balanced situation by 1978. Data on tropical soils. This, plus the current high prices of concen
supply-demand and plant capacity-production costs are trated phosphates, may accelerate acceptance of highly re
provided in 58 tables and 16 figures. active phosphate rock for use in direct application, possibly at
the expense of ammonium phosphates. The use of muriate of
23 World Fertilizer Situation in the Seventies: Japanese and potash will increase, particularly in high-analysis complex
 MARKET ANALYSIS
fertilizer. Its rate of increase will depend in part on the role
ammonium sulfate plays in the composition of complex
fertilizers.
25 What Happened to Our Fertilizers. J. H. Parker (TVA,
National Fertilizer Development Center, Muscle Shoals,
Alabama). Crops Soils 28 (7), 10-12 (Apr.-May 1976). A
review of the fertilizer industry from 1960 to the present is
given and the future is viewed. Supply-demand has cycled
from extreme peaks to valleys during the period 1960-76.
Increased demand raised prices, price increases brought
increased production, but price increases eventually limited
demand. We have just finished the limited demand part of the
cycle. What will be the direction from here? Many things--
weather, price of commodities, export demand, government
policies, production technology, and others influence the
farmers use of fertilizer. Producers will be guided by how
farmers respond to these and other forces.
26 The Fertilizer Panic. D. L. McCune (Tennessee Valley
Authority, Muscle Shoals, Ala.). War on Hunger 8 (6), 5-8
(June 1974). World fertilizer consumption will reach 113
million mt by 1979-80, up from about 77.5 million tons in
1972-73. Resources must be developed and made available for
these increasing demands. Hydrogen is the critical factor in
production of N products. At present the only economical
source of H is natural gas or petroleum derivatives. World
phosphate trade has relied heavily upon Morocco and the U.S.
Other potential producers and exporters, such as Australia,
Peru, Angola, Spanish Sahara, and Jordan, need to be
encouraged to meet increasing demands. Sulfur, essential for
phosphatic fertilizer production is one of the most plentiful
elements in nature. Potash production has been dominated by
North America, Western Europe, and Eastern Europe and new
production points are needed to provide improved logistics to
market. Potential producers are Peru, Brazil, Thailand, and
Ethiopia. The need for a program that would provide
insurance to help guarantee adequate food supplies for the
world is discussed.
27 Feast and Famine—Fertilizers. Forbes 113 (5), 28-9
(Mar. 1, 1974). Though U.S. fertilizers are nearly a $4-billion
industry, there are only a handful of companies whose
fortunes rise and fall on fertilizers. Almost no one is building
new plants these days, at least for the leading fertilizer, N.
Very little new fertilizer capacity is coming on-stream, and
farmers are planting almost 15% more acreage of corn, wheat,
and cotton and 5% less of soybeans. Of the three fertilizer
elements, N is the key, making up nearly 50% of the volume of
manufactured fertilizer. It is the most common element of the
three. There is no way in the world to satisfy U.S. and world
demand for ammonia in the foreseeable future, regardless of
cycles. Phosphorus and K are quite different. Both depend on
mining natural deposits, and there is plenty of raw material
around. Phosphate rock mining capacity is short right now,
potash is not. Absolute scarcity of raw materials for N.
government control of raw materials for P and K: These are
the underpinnings of today’s fertilizer boom.
28 Why Farmers Can't Get Enough Fertilizer. Fert. Prog. 4
(6), 20-6, 46 (Nov.-Dec. 1973). Farmers have been unable to
purchase fertilizer for a number of reasons. The Department of
Agriculture released additional acreage for 1973 planting
because of grain inventory depletion and additional acreage is
being released for 1974. Fertilizer exports have increased
because of higher prices overseas and controlled domestic
prices. Considerably more fertilizer is being used because of its
non-inflationary prices compared to products produced.
Delayed action in moving on these problems has created
turmoil. However, fertilizer prices are now decontrolled,
production is being increased, and exports are decreasing.
These steps along with solving some transportation and
marketing problems will assure the farmer an adequate supply
of fertilizer.
29 Wooing Back Demand. T. K. Baskett (Editor). Farm
Chem. 139 (3), 112 (Mar. 1976). The European fertilizer
industry faces a bleak 1976. Last yr the farmer backed away
from swollen stocks created by panic buying in 1974. The vigil
for raw material price drops began and continues. The
question is whether raw materials producers are able or willing
to trim prices. Faced with a discouraging demand and current
profit margins that have been trimmed to 5-6%, European
fertilizer manufacturers are looking to raw material price cuts
as their salvation. European producers face a problem of
increasing competition from outside the common market. This
could come from cheaper phosphates from the U.S. or cheaper
nitrogen and potash from Eastern Europe. Eastern Europe
shielded by wage control and government subsidies will pose
genuine threats to Western European fertilizer manufacturers.
30 Six Big Ouestions in Fertilizer's Future. J. R. Douglas
(Tennessee Valley Authority, Muscle Shoals, Ala.). Farm
Chem. 137 (2), 30-4 (Feb. 1974). Comparison of economics of
ammonia production at offshore sites with Gulf Coast produc
tion is made to answer the question of where additional North
American N will be produced. Canadian production with
pipeline distribution is a possibility. The supply of liquid
mixed fertilizers is limited because less high-quality phosphoric
acid is available. Large new capacities proposed for the U.S.
have yet to come on-stream and imports from Mexico have not
materialized. Furnace acid from the detergent business has not
been available. There has been a growing demand for phos.
phate rock without expansion of mines and inventories have
been depleted. Export of finished phosphate products will be
erratic until the developing countries can complete production
facilities. New export markets will be sought as the facilities
are completed. The timing of bringing on-stream the new
P. Os capacity and management skills in production and
distribution are critical factors in controlling over production
and under production. Logistics problems will not be solved in
1974. They could even be worse than they were last yr. The
experience gained in the mass tie-up of 1972-73 will be of
great value in combating the problems of 1974.
31 World Nitrogen Fertilizer Market Outlook, August
1974. Muscle Shoals, Ala.: Tennessee Valley Authority,
National Fertilizer Development Center; Cir. Z-50; 4 pp. (Aug.
1974). A current tabulation of worldwide fertilizer production
facilities is maintained by Tennessee Valley Authority. The
national and international market situation is monitored
regularly and status reports are issued every 2 yr. The most
recent of these, entitled World Fertilizer Market Review and
Outlook was issued in March 1974. (See FA 7, 1016). This is a
brief review of recent developments designed to update the
March report and assist planners in evaluating investment
opportunities. Nitrogen capacity expansion (announced and
anticipated) through 1980 is given for developed and
 MARKET ANALYSIS
developing regions and countries.
32 Nitrate Controversy: Three Proposed Policies and Their
Economic Effects. C. R. Taylor (Univ. Illinois, Urbana). Ill.
Res. 17 (2), 6-7 (Spring 1975). The economic effects of some
proposed policies for regulating the use of N fertilizer were
evaluated under Illinois conditions. Three policies were con
sidered: (1) restrictions on use of N/acre, (2) an excise tax on
N fertilizer, and (3) a market for rights to use N fertilizer. The
latter is described as an annual determination by a public
agency of the quantity of N to be used based on the quality of
water desired for that yr. Individuals would be issued their
proportionate share of rights to use N fertilizer but could trade
or sell these rights to other individuals, including those who
seek to improve the environment at a faster rate by not using
the rights they purchased. Per acre restrictions of 150 and 100
lb N would not significantly change corn and Soybean acreage
in Illinois but would reduce farm income and total N use in
the state. A 50-lb limitation would cause a significant shift
from corn to soybeans in Illinois and a compensating shift in
other corn belt states. An excise tax of 12¢/lb N would be
equivalent to limiting N use to 672 million lb (proposal 3);
either would reduce farm income about 9.6%, reduce corn
acreage about 5.7%, and increase soybean acreage about 6.6%
in Illinois. Doubling the tax or halving the quantity used
would reduce income and corn acreage still more. Proposal l
would be the most difficult and costly to administer. Proposals
2 and 3 would be less costly to administer but probably would
cause fertilizer to be bootlegged from neighboring States.
33 Urea-World Analysis and Prospects 1970-1980. British.
Sulphur Corp., Ltd., Parnell House, Wilton Road, London,
England; 44 pp. (1975). Urea has established itself in the
1970s as the leading N product in world fertilizer trade. In
1973-74 some 38.8% of N shipped was in the form of urea.
Urea production costs have almost tripled in the 1970s
because of escalations in the costs of feedstock and capital
plant. Export prices have temporarily exceeded this factor by
a wide margin. The principal consideration affecting produc
tion costs in 1975 was plant reliability, and the choice of a
well proven technology is the most certain way of minimizing
these costs. The publication provides details of urea back
ground, supply-demand, trade in the 1970s, prices, agronomic
considerations, trends in production technology, and much
data is given on statistics by tables and figures.
34 The Impact of Urea. R. L. Balser and J. E. Wise. In TVA
Fertilizer Conference, held July 31-Aug. 1, 1974, Louisville,
Kentucky; Bull. Y-78, pp. 43-5 (Aug. 1974). Muscle Shoals,
Ala.: Tennessee Valley Authority, National Fertilizer Develop
ment Center. The increased use of urea and the promise of
more product to come is having an impact on industry's
planning, production, and distribution. Changes in N use has
been conditioned by N supply. Thus, problems common to
change have been diminished by available supply. Nitrogen
capacity planned expansion for the next 3 yr in the U.S. shows
urea increasing 35.7% compared to ammonium nitrate (all
liquid form) 5.7%. The two most accepted solid forms of N are
ammonium nitrate and urea. The producer prefers urea
because of production economics. Urea is favored over
ammonium nitrate by storage and distribution people because
of high N and fewer storage and transportation problems.
Those involved in retail marketing and farming feel the change
greatest. Attitudes and emotions and all elements associated
with change must be considered. The research and educational
process must continue to assist in overcoming traditions and
providing yield facts.
35 Special Report: Ammoniacal Fertilizers Industry. Jap.
Chem. Week 15 (752), 4 (Sept. 26, 1974). With an increase in
the world population, the problem of food shortage has
internationally been discussed by FAO (United Nations Food
and Agriculture Organization), but advanced countries had
tended to think light of the problem as a local question.
However, world-wide abnormal weather for two consecutive
years in 1971 and 1972 did great damage to agricultural crops.
and horrible news such as food riots in India and appearance
of the dead from hunger in developing countries in Africa
spread all over the world. Consequently, the problem of the
food crisis has become very realistic. The food crisis has
necessitated the security of fertilizers which are indispensable
to yield increase. Thus, supply of fertilizers has rapidly
become tight world-wide. Advanced nations which have so far
manufactured fertilizers for export tend to refrain from
expansion of fertilizer plants to save limited petroleum
resources and to prevent environmental pollution. Therefore,
increase in fertilizer supply from advanced nations is hardly
anticipated. Consequently, in order to meet brisk demand for
fertilizers in fertilizer importing countries, plants construction
in oil producing nations from the viewpoint of material supply
and promotion of Self-supply in importing countries have been
considered. Actually, in China, the U.S.S.R., and India, large
plant expansions are planned, and some plants are already
under construction. However, it takes 3–4 years until these
plants contribute fully to fertilizer self-supply. Therefore, for
the time being, fertilizer shortage is likely to continue.
36 Economics of the United States Ammonia Industry. R.
K. Rudel (Colorado State Univ., Fort Collins). Thesis; 236 pp.
(1973). Avail. from University Microfilms, Ann Arbor, Mich.
The market structure, behavior, and performance of the
ammonia fertilizer industry were described, analyzed, inter
preted, and evaluated from the standpoint of economic
efficiency and overall impact on the public welfare. All stages
of the industry from production through retailing were
analyzed. The methodology was based on the theory of
industrial organization which postulates that market structure
variables are significant determinants of conduct that in turn
determines the performance of the industry. Several economic
models were used to complement the industrial organization
methodology. Results indicate that historically, the domestic
ammonia fertilizer industry has performed adequately as
evidenced by the 50% drop in the retail price of ammonia over
the period 1955 to 1972. This price reduction was made
possible by reductions of 50% in production costs and 30-40%
in primary distribution costs. Recommendations are made for
industry improvements which may further reduce production
and distribution costs by an estimated $314 million. These
recommendations include the continued move to large produc
tion units, the extension of improved transportation and
storage technology to all firms capable of adopting them,
consolidation of retailing facilities, and an agressive effort on
the part of cooperatives to take leadership in competitive price
making in the industry.
37 Ammonia Plant Study Identifies Uncertainties. Eur.
Chem. News 28 (733), 22 (Apr. 23, 1976). A feasibility study
carried out by Nitrigin Eireann Teoranta (NET), prior to its
 MARKET ANALYSIS
decision to build ammonia and urea facilities based on natural
gas at Arklow, Republic of Ireland, shows that the overriding
influence on the project viability was found to be the effect of
market-determined factors, particularly the prevailing prices of
ammonia and the cost of feedstock. The study was not limited
to parameters which affect capital and operating costs only,
but considered all factors which have a significant influence on
the economics of ammonia production, including the domestic
and export market situations and the effect and likelihood of
commissioning delays and operating levels below design. These
variables were assessed by their effect on the Net Present
Value (NPV) of the project. This concept is defined by an
equation and is a function of projected values of sales volume
and price, variable and fixed costs, tax considerations, changes
in working and fixed capital, and interest. The concept of NPV
is sensitive to both the rate of return and the size of the
project. After calculating the project NPV, taking all the
parameters at their most likely values, it was regarded as
essential in assessing the uncertainty in this calculated NPV to
estimate the project sensitivity to changes in these parameters.
On the basis of current projections of UK, EEC, and world
nitrogen fertilizer requirements, NET concluded that the
shortage of nitrogen fertilizer in all these areas will continue at
least for the rest of the decade. Further ammonia production
based on new Irish gas discoveries will have to be justified in
terms of the European market. This is because of the expected
future dominance of Middle East-derived material outside
Europe.
38 Phosphate Rock and Phosphatic Fertilizers in the World.
Development Center Organization Economic Cooperation
Development, Paris, France; 131 pp. (1972). Price $2.75. This
book contains five chapters. The following subjects are
discussed: structure and trends of the Pindustry; P fertilizers—
existing and new products; main factors in current trends;
production sources and installed capacities, 1960-1975; con
sumption of rock phosphate, 1960-1980; rock phosphate trade
flows, 1960-1975; freight rates in trade in rock phosphate and
phosphate fertilizer; trends in rock phosphate prices; the role
and shipment of phosphoric acid; the thermal process, the wet
process and price of S; comparison of 54% phosphoric acid
production costs; choice between various solutions for P20s
supply to India; prices of phosphate fertilizers (imported or
locally produced) in India; trade in phosphate fertilizers up to
1969; role of international aid in P fertilizer trade in
developing countries; untying bilateral aid—recent decisions
taken by OECD countries; projection of P20s trade in
developing countries up to 1980; financial implications of the
increase in P2Os consumption in developing countries. This
book would be of special interest to fertilizer industry in less
developed countries. (22 tables)
39 An Economic Assessment of the World's Phosphate
Industry, With Particular Emphasis on the South African
Industry. B. G. Russell. Johannesburg, South Africa. Dep.
Mines, Minerals Bureau, Republic South Africa. Rept. No. 2;
79 pp. (1976). Important aspects of the phosphate industry in
the major producing and consuming countries are presented
and the South African industry is reviewed in detail. The
phosphate processing industry is largely concentrated in
countries that do not produce the raw materials; this situation
is expected to change progressively, with , the raw and
processed commodities coming increasingly from the same
source. South Africa's phosphate industry is expected to
expand very substantially over the next 5 yr, when it will
become an important exporter of both raw and processed
phosphates. Phosphoric acid, which will be produced in large
amounts after 1977, is expected to meet stiff competition on
world markets; long term prospects are favorable.
40 Economic Significance of the Florida Phosphate Indus
try. Kung Lee Wang, B. W. Klein, and A. F. Powell (Office
Economic Analysis, Mineral Supply, Washington, D.C.). U.S.
Bur. Mines I.C. 8653; 51 pp. (1974). This Bureau of Mines
study illustrates the economic significance of the Florida
phosphate industry to the State and to the Nation. Environ
mental considerations related to phosphate industry activity
are discussed briefly. Based on forecasts of Florida phosphate
production in 1975, and using 1972 dollars, regional and
national output value, income, and employment created by
the phosphate industry were estimated for 1975. State and
Federal government tax revenues generated by the phosphate
industry, are also measured. Further, the concentrated impact
of the phosphate industry on certain Florida areas and on
regional industries is examined. Finally, the phosphate indus
try's importance to the U.S. balance of payments, U.S.
agricultural production, and the Frasch sulfur industry is
considered, in addition to byproduct fluorine, and potential
byproduct uranium from fertilizer manufacturing.
41 Phosphatic Fertilizers: Submissions to the Industries
Assistance Commission Inquiry. N. D. Honan. Camberra,
Australia. Bureau Agric. Economics. Industry Economics
Monography No. 15; 155 pp. (1976). This report is supple
mentary to Bureau Agric. Economics Occasional Paper No. 31
(See FA 9, 2152). The report describes economic research and
analyses relating to superphosphate use in Australian rural
industries. It is presented in four sections: Introduction,
Recent Changes in Superphosphate Use, Aspects of Demand
and Supply, and the Appropriateness of the Superphosphate
Subsidy as a Form of Assistance. The report is supported by
four authored attachments: The Outlook for Superphosphate
Use in Australian Rural Industries, C. D. Easter and J. M.
Malecky: A Further Cost-Benefit Analysis of the Superphos
phate Subsidy, O. T. Kingma et al; A Regional Analysis of
Superphosphate Use, C. D. Easter and O. T. Kingma; and
Problems in Estimating the Demand for Fertilizer Using
Econometric Techniques, G. Bond. (49 tables, 15 figures).
42 The Role of Potassium Sulfate in World Agriculture.
Phosphorus Potassium No. 78, 33-6 (July-Aug. 1975). Potas.
sium sulfate demand has grown at a steady annual average rate
of 2.7% over the last 6 yr and now stands at more than
1,000,000 tons/yr K2O, about 5% of total world demand for
potassium fertilizers. It suffers a serious disadvantage of being
more expensive than KCl and offers no advantages in terms of
K2O content. Its use is essential in specific circumstances,
which provides the stable core to the demand pattern. A
survey of production, trade, and demand of potassium sulfate
is given. The factors which could disturb the present stable
market position of potassium sulfate are discussed.
43 United States Sulfur Industry. Eur. Chem. News 23
(569), 8 (Feb. 2, 1973). The future of the U.S. Frasch sulfur
industry is now severely jeopardized by shrinking natural gas
supplies. Production is forecast to drop to 6 million tons by
1990, against 8.5 million tons last yr. Two major threats add
to the Frasch producers’ burden-Mexican and Canadian
 MARKET ANALYSIS
sulfur. The challenge of low-priced Mexican sulfur was beaten
off last yr with the imposition of countervailing import duties
and the U.S. Frasch producers are now in a better position to
make their latest price increase stick. Canadian offshore sulfur
shipments increased to only 2 million tons last yr, due mainly
to inadequate storage and terminal facilities at Vancouver.
Two major terminal companies are now considering expan
sions of storage capacities with a total investment of around
$2 million. Canadian sulfur producers seem likely to share in
the costs of expansion. Shortage of rail tank-cars hampered
Canadian shipments to the USA last yr and exports were only
9 million tons.
44 Sulfuric Acid Demand Increases. Chem. Mkt. Rep. 206
(21), 25 (Nov. 18, 1974). The world needs a larger amount of
fertilizer if it plans to survive the current food problems, and
this in turn means that the fertilizer industry will need greater
amounts of sulfuric acid in order to meet that demand.
Producers of sulfuric acid overwhelmingly agree that it is
increased pressure from the fertilizer industry that is creating
firm prices and short supplies of their product. Historically,
over half of the acid produced in this country goes toward the
fertilizer industry, but since fertilizer inventories are at an
all-time low, producers are trying to turn out all of the
fertilizer they can. Market analysts say that normally sulfuric
acid consumption could be regarded as a sort of barometer of
activity in its related areas, but the unprecedented demand in
the fertilizer industry has changed all of this. As long as
fertilizer is in demand, the sulfuric acid market is going to be
firm. With the world situation as it stands right now, the
demand for fertilizers is going to continue on the upswing.
45 Survey Shows Liquids Have Strong Position in United
States Fertilizer Market. N. L. Hargett and R. H. Wehrman
(TVA, National Fertilizer Development Center, Muscle Shoals,
Alabama). Fert. Solutions 20 (2), 62, 64-6, 68, 70, 72, 74
(Mar.-Apr. 1976). Today, granulation, bulk blend, and fluid
mix fertilizer plants produce and distribute nearly all fertilizer
used in the United States. Each segement of the fertilizer
market system is described. Analysis of the questionnaires
returned in the national AAPFCO-TVA survey (See FA 8,
923) by fertilizer registrants has produced a composite picture
of the fertilizer market system. Of the 6581 respondents, 5023
had manufacturing facilities, bulk blenders, liquid mix, suspen
sion, granulation, or basic nutrient plants. Of the 5023
manufacturers reporting, 44.8% offered anhydrous ammonia;
69.5% provided custom application services; and 32.8% added
pesticides to their fertilizer mixtures. An item of particular
interest in recent years has been the amount of nonfarm
fertilizer use in the U.S. Survey results indicated that 4.8% of
the total tonnage for all respondents was for nonfarm use.
About 75% of all manufacturing plants had bulk blend
facilities and 33% had fluid mix facilities. A third of the fluid
mixers had both liquid and suspension facilities.
46 Fluid Fertilizers are Riding High. Farm Chem. 139 (1 l),
17-21 (Nov. 1976). Experts are predicting a growth in
consumption of 15-20% annually over the next 5 yr. New
markets are opening up for the fluids dealer with increased
irrigation and more minimum tillage. The foliar fertilizers
being tested this yr on soybeans offer tremendous opportuni
ties for the fluids dealers. Materials needed for producing fluid
mixes are more available, and major companies are committing
a percentage of their tonnage to the fluid industry. Some
dealers will be offering a new service, liquid lime- nitrogen
suspension. Reports from dealers around the country are
given.
47 The Role of Fertilizers. L. R. Brown and E. P. Eckholm.
In By Bread Alone. New York, N.Y.: Praeger Publishers Inc.,
Published for The Overseas Development Council; pp. 114-130
(1974). While the world area of cultivated land has expanded
only modestly since 1950, the use of chemical fertilizers has
expanded five-fold. At least one-fourth of the world's food
output is directly attributable to the use of chemical
fertilizers. The food supply of at least a billion people is
directly dependent on the output of the fertilizer industry.
Since 1973, critical world shortages of fertilizer have emerged,
and consequently the prices of many key fertilizers doubled or
tripled between 1973 and 1974. Many populous developing
countries that are highly dependent on fertilizer imports—
including China, India, Indonesia, and the Philippines—were
unable to buy needed amounts of fertilizer at any price. Price
increases and scarcity of fertilizer are certain to cut food
production at a time when world food reserves are at a modern
low and food prices are at a historic high. The current fertilizer
shortage is due primarily to a lag in the construction of new
production facilities. But even if construction catches up with
demand—perhaps by the late 'seventies—fertilizer prices will
remain high because of the high cost of essential energy inputs.
48 An Appraisal of the Fertilizer Market and Trends in
Asia. J. T. Shields, O. W. Livingston, E. A. Harre, and T. P.
Hignett. Muscle Shoals, Ala. Tennessee Valley Authority,
National Fertilizer Development Center; 140 pp. (June 1975)
(Bulletin No. Y-95). Recent developments indicate that the
fertilizer situation in Asia is changing rapidly. Due to the
importance of fertilizer to food production, it is essential that
the changing conditions be monitored closely. An assessment
of fertilizer production, marketing, and utilization in Asia is
reported. Reported use of fertilizer nutrients (N. P. Os , and
K; C)in Asia totaled just over 13 million mt in 1973. This was
only 17% of the world total of 77 million tons. Two countries,
Japan and China, have a combined nutrient use of almost 7
million tons (over one-half of Asia's consumption). By 1980,
the Asian nations are expected to be using about 22 million
tons of nutrients– 14.8 million tons of N, 4.8 million tons of
P;Os ; and 2.4 million tons of K2O. This represents an increase
of nearly 70% between 1973 and 1980. The largest two
consuming Asian regions, by the end of the decade, are
expected to be the Centrally Controlled Economics (primarily
China and North Korea) and the Middle Continent (consisting
of India, Bangladesh, Sri Lanka, etc.). Northeast Asia (Japan,
Korea, and Taiwan) will continue to increase its consumption
but at a much slower rate than other regions. Consequently,
this region's share of the total Asian fertilizer use will decrease
by the late 1970's. (106 tables, 47 fig and 55 reſ)
49 Economic Survey of Fertilizer Situation in the Asian
and Pacific Region. Dong-Bai Lee. Taipei, Taiwan; ASPAC
Food Fert. Technol. Center; 198 pp. (Dec. 1973). A review of
the fertilizer situation in nine countries in the Asian and
Pacific region is given. Data is given on the production, trade,
uses, and marketing of fertilizers in Australia, China (Taiwan),
Japan, Korea, Malaysia, New Zealand, Philippines, Thailand,
and Vietnam. (170 ref)
 MARKET ANALYSIS
50 Scope for Improving Marketing and Credit Systems for
Fertilizers in African Countries. H. J. Mittendorf. In Planning
and Organization of Fertilizer Use Development in Africa.
Rome, Italy: FAO Soils Bull., No. 26; pp. 91-4 (1975). The
marketing and credit systems of five selected African countries
is analyzed to identify the major contraints and indicate
solutions for their improvement. The countries included in the
study were Ghana, Nigeria, Kenya, Ethiopia, and Zambia. The
results are presented in tabular form and compared with
respect to each countries consumption patterns, marketing
channels, transport system, storage facilities, credit, pricing,
and promotion schemes. The major conclusion reached was
that most systems studied lacked sufficient incentives for
those involved to perform efficiently. This refers particularly
to the pricing systems, where better provisions should be made
to those most effective in enhancing sales.
51 Analysis of the International and Brazilian Fertilizer
Markets. N. M. Dos Anjos and J. F. De Noronha. Agric. Sao
Paulo 21 (2), 1-23 (1974) (Port). Abstr. Trop. Agric. 1, 3859.
There is a substantial disequilibrium between supply and
demand since the middle of 1973. In the long run, main
tenance of equilibrium in the world market will depend not
only on greater industrial capacity but also existing improved
operational efficiency of existing plants.
52 Appraisal of Fertilizer Markets and Distribution Systems
in Central America With Emphasis on Small Farmers. J. T.
Shields, C. L. Ahrens, and H. B. Tatum. Muscle Shoals, Ala.:
Tennessee Valley Authority, National Fertilizer Development
Center. Bull. No. Y-89; 114 pp. (Mar. 1975). A study was
made to help identify constraints and recommend im
provements in the fertilizer marketing systems in Costa Rica,
El Salvador, Guatemala, Honduras, and Nicaragua. This report
is divided into three parts:: (1) a regional situation; (2) total
country evaluations; and (3) an analysis of a small retail dealer
study for each country. The constraints are of three types: (1)
national-economic and political, including policies; (2)
marketing—infrastructure–roads, transportation, storage, and
others; and (3) farmer—education, credit, tenure, and others.
Some suggested action for consideration in stretching fertilizer
supplies in these countries is given.
53 Review and Analysis of the Fertilizer Situation in Latin
America. J. T. Shields, O. W. Livingston, and E. A. Harre.
Muscle Shoals, Ala.: Tennessee Valley Authority, National
Fertilizer Development Center; Bull Y-76, 99 pp. (June 1974).
An investigation of the fertilizer supply-demand conditions,
raw materials resources, and capability to produce N, P., Os,
and K2O in Latin America was made. Latin America produces
slightly over half of the N and 45% of the P used in the region.
Potash fertilizers are imported to meet their need. Potential
raw materials are limited. Good possibilities of raw material
exist in Peru, Argentina, and Brazil. Fertilizer use is low in
most Latin American countries, less than 40 kg/ha, and yield
response varies. Nutrient use more than tripled from 1962 to
1972 to 3.2 million mt. Total nutrient use is expected to
increase to 7.16 million tons by 1980. Investment opportun
ities in production facilities are not extensive. Investment in
the marketing and distribution of fertilizers in Latin America
appears to be a real opportunity because the demand has
grown so fast that no adequate supply system is available and
marketing and distribution represent an excessively high
portion of the cost of fertilizer to the farmer.
54 Dominican Republic Fertilizer Situation. Joe Free,
Conrad Kresge, and T. H. Foster. Muscle Shoals Ala.:
Tennessee Valley Authority, National Fertilizer Development
Center. Bull. Y-103; 101 pp. (Jan. 1976). A report is given of a
study conducted to identify constraints and recommend
improvements in fertilizer marketing, distribution, and educa
tional systems in the Dominican Republic. For many of the
small farmers, fertilizer offers one of the more important
opportunities for significant increases in yields of food crops.
The present marketing system is inadequate to make farm
inputs, including fertilizers, available to small farmers, which
makes it difficult for them to obtain farm inputs on a par with
the larger commercial farmers. The study was not intended to
be an in-depth country study. It was designed to assemble
secondary data and opinions of those knowledgeable of the
Dominican Republic small farm and fertilizer situation and to
organize tha data for planning purposes.
55 Fertilizer Alternatives for Ghana. D. A. Russel, R. D.
Grisso, and R. G. Lee (Tennessee Valley Authority, Muscle
Shoals, Ala.). Muscle Shoals, Alabama: Tennessee Valley
Authority, National Fertilizer Development Center; 108 pp.
(Mar. 1973). Bull. Y-56. A TVA team was sent to Ghana in
September-November 1972 to review the fertilizer program
and develop recommendations that would insure continued
progress in fertilizer use. The objectives were: (1) evaluate past
performance of fertilizers, (2) review recommendations for
major crops and regions, (3) project consumption for the
period 1973-82, (4) provide guidance on economics of
methods of supplying fertilizers, (5) prepare preliminary
design and recommendations for facilities that are appropriate,
and (6) provide information that would improve advertising
promotion and lead to the establishment of fertilizer specifi
cations and laws. The team's recommendations were: (1) a
fertilizer processing plant be constructed and operated, (2) the
plant be located near Port of Tema, (3) a 2-ton rotary blender
be installed if a bulk blending plant is constructed, or a
25-ton/hr rotary drum if a steam granulation plant is con
structed, (4) distribution and marketing at the national level
be handled by the company that operates the plant and that
regional and local levels be handled by a combination of
existing commercial companies and several crop development
boards, (5) storage facilities for 6000 tons of bagged product
at the processing plant, (6) a 3200 ton terminal be constructed
at the Port of Yapei, (7) the country be divided into
zones and that base prices for each zone include transportation
costs to the terminal warehouse in that zone, (8) the passage
of laws that define commercial fertilizers and establish
standards of quality that shall be enforced upon all handlers,
and (9) fertilizers from the processing plant be packaged in
several sizes of bags.
56 Review of Fertilizer Marketing Situation in India–
1974-75. Fert. News (India) 20 (8), 7-10, 24 (Aug. 1975). The
Fertiliser Association of India recently undertook a quick
all-India study to identify the various factors responsible for
the decrease in consumption and to determine their impact
State by State. The survey was carried out in different States
by the constituents of the FAI while the FAI provided the
framework of the study regarding its scope and methodology
and also coordinated the effort to ensure uniformity in
approach, findings, and reporting. Out of the 13 States
selected the reports on 11 States have since been received.
 MARKET ANALYSIS
57 Demand and Marketing Study in India. Fert. Mkt. News
(India) 4 (5), 10-11 (May 1973). The Fertiliser Association of
India made a comprehensive study 3 yr ago on Fertilizer
Demand and Marketing. Sponsored by USAID, the study is the
first of its kind in India. It is divided into three independent
but interrelated projects. One of these relates to investigation
into the marketing and distribution facilities with an aim of
identifying factors which inhibit fertilizer use. Involving an
extensive all-India field survey covering over 2000 dealers, the
results of this study are being produced in the form of 18
State reports and an all-India summary report which will
highlight the findings. The study quantifies for the first time
actual costs at dealer levels of transportation, handling,
warehousing, and others and identifies areas where economies
are possible and necessary. For instance, nearly 30 to 40% of
the dealer’s margin is taken up by transportation costs and this
is one area where scope for economy exists. The study notes
that the expanding dealer network in the State needs to be
adequately equipped to render proper customer services.
Augmented availability of credit, particularly at retail levels, is
seen as a necessary element in increasing fertilizer offtake at
retail levels. Improvements in methods of forward planning of
indenting, transportation and warehousing, better packaging,
and others are necessary to reach farmers in time and in
adequate quantities. The study also points to the need of
constructing godowns in the interior, so as to enable retailers
to stock fertilizers in advance of the season for meeting the
initial demand in time.
58 Supply of Fertilizers—A Study in Jabalpur District of
Madhya Pradesh. M. C. Athavale, S. W. Bhave, and D. K.
Marothia (Jawaharlal Nehru Krishi Vishwa Vidyalaya,
Jabalpur, Madhya Pradesh, India). Paper presented at the 33rd
Annual Conf., Indian Soc. Agr. Economics, Rajendrangar,
Hyderabad, Andhra Pradesh, India, Dec. 26-28, 1973. Ind. J.
Agr. Econ. 28 (4), 147-8 (Oct.-Dec. 1973). An attempt has
been made to study the following aspects of fertilizer supply
in the Jabalpur district of Madhya Pradesh: (1) demand and
supply, (2) the role of different agencies in the supply system
and the procedures adopted in distribution, (3) distribution
costs at various levels, and (4) problems relating to the supply
of fertilizers. Agriculturally, Jabalpur is a very important
district. The region under the Haveli system is known as
granary of the tract. Due to the expanding irrigated area and
the spread of the high-yielding varieties the consumption of
fertilizers is increasing yr after yr. During 1972-73 the supply
of N and P fertilizers exceeded the estimated demand by 14.67
and 51.33% respectively. The supply of K fertilizers, however,
fell short by 24.21%. The cooperatives and private dealers
operated in the district, the cooperatives having a larger share
in the total supply. The procedure followed by the cooper.
atives in financing and distribution of fertilizers was that the
credit permits were prepared by Samiti sevak and were
submitted in the branch of the bank. The agent at the branch
of the bank debited the loan account of the society and
credited the account of the Apex Marketing Federation to the
extent of the value of permits. Fertilizers were supplied by the
cooperative marketing society. There were 15 private dealers
and eight fertilizer companies operating in the district. The
Fertilizer Corporation of India also played an important role.
In 1972-73 Government of India also sold some quantity of
urea from the pool stock. Retail prices were fixed by the
Cooperative Marketing Federation and were approved by the
Agriculture Department. The distribution cost was 9.09% for
10
superphosphate, 8.19% for ammonium sulfate and 7.83% for
calcium ammonium nitrate, of the consumers rupee. Although
the district had a network of roads, in many areas, roads were
under mud and water till the end of September while the
sowing season for the rabi crops was the first week of October.
This posed the problem of fertilizer transportation to the area.
Other problems of fertilizer supply were irregular supply due
to power shortage, shortage of urea, and those related to
agricultural financing.
59 Marketing of Fertilizer in Raipur District of Madhya
Pradesh. C. S. Mishra (Ravishankar Univ., Raipur, Madhya
Pradesh, India). Paper presented at the 33rd Annual Conf.,
Indian Soc. Agr. Economics, Rajendrangar, Hyderabad,
Andhra Pradesh, India, Dec. 26-28, 1973. Ind. J. Agr. Econ.
28 (4), 156 (Oct.-Dec. 1973). The recent technological
break-through in agricultural production is primarily due to
the seed-fertilizer contributions. The marketing of seed-fertil
izer, therefore, assumes great importance in the program of
agricultural development. The marketing of fertilizers was
studied in two villages of Raipur district of Madhya Pradesh.
The study is based on the marketing behavior of 50 cultivators
of different size-groups (2.5, 2.6-7.5, 7.6-15, 16-25, and above
25 acres). The cooperative sector, which had the monopoly in
fertilizer trade in the State until recently, continues to sell the
bulk of fertilizer. In village Kurra, 71.5% of the total sale and
in the other village, Charoda, the entire sale were executed
through the cooperative sector; the remaining was sold
through the private sector. Among the different types of
fertilizers, gromore, urea, and superphosphate appear to be in
greatest demand. The cooperative banks financed the entire
purchases of fertilizers in Charoda while in Kurra 73.5% of the
purchases were financed by the cooperative sector; the residual
came from funds of the cultivators. The cooperative credit has
gone disproportionately in favor of the largest size of holdings
in both the villages. In Kurra, this group of cultivators cropped
44% of the total cropped area and commanded 53% of the
credit against 26% of cropped area and 39.4% of cooperative
loan in Charoda. In the two villages taken together, 12 out of
50 cultivators belonging to the group of less than 7.5 acres of
land did not purchase any fertilizers. Four of them were
defaulters and hence were refused cooperative loans while
others were not convinced of production response to fertil
izers. Fertilizers were available at the village level itself and no
one complained of getting them late. The per acre purchase of
fertilizer is very low in the area, there is enough scope to
boost-up the sales of fertilizers in the area.
60 India Evaluates New Fertilizer Sources. Eur. Chem.
News 24 (601), 4 (Sept. 14, 1973). India will have to look for
alternative sources of N fertilizers since the supply position in
the U.S. and western Europe is likely to remain tight for quite
Some time to come. This is the assessment that has been made
by the Fertilizer Association of India after studying the trends
in world fertilizer production and marketing. The view is that
the U.S. industry, major supplier of fertilizers in the past, will
be hampered by lack of feedstock and also further expansion
may be restricted as a result of pollution controls being
imposed.
61 The Fertilizer Marketing System in Japan. C. L. Ahrens
and J. T. Shields. Muscle Shoals, Ala.: Tennessee Valley
Authority, National Fertilizer Development Center; Bull.
Y-60, 26 pp. (June 1973). A team from TVA visited Japan and
 MARKET ANALYSIS
interviewed selected fertilizer distribution firms. The Japanese
fertilizer marketing system has two major distribution
channels: agricultural cooperatives (Zen-Noh) and private
merchants. Distribution is free of government control and
there are no government subsidies on fertilizers. The cooper.
ative organization accounts for about 90% of the retail market.
The private firms promote fertilizer for specialized uses and
premium products. Problems cited are shortage of low-cost
labor, fertilizer logistics, small size of agricultural holdings,
storage space, no off-seasons sales promotion, and credit for
purchases in the private channel. This report is useful in
providing technical assistance on the improvement of fertilizer
production, marketing, and utilization in developing countries.
62 Japanese Fertilizer Industry Study. Jpn. Chem. Week 17
(836), 1 (May 6, 1976). A Governmental study panel was
asked recently by the head of the Ministry of International
Trade and Industry (MITI) to suggest how to develop the
Japanese fertilizer industry which has been hit by international
economic changes adverse to its vital export trade. Receiving
his inquiry was the Chemical Fertilizer Industry Subcommittee
of the Chemical Industry Committee of MITI’s Industrial
Structure Council. The subcommittee was requrested to come
up with a recommendation on the problem. The move has
been motivated by the fact that the Japanese fertilizer
industry has been operating at an unprecedently low level. It
has been forced by declining foreign demand for its products
since last yr into a series of production cuts. The industry is so
dependent on exports for its survival that it has to sell abroad
more than half its annual output of ammoniacal fertilizers, its
mainstay products, to be in a good shape. Expected to be
recommended by the Subcommittee are the best ways of
regulating the industry's production according to foreign
demand. This would be done through such reforms as
switching from expensive light oil to less costly heavy types
for chemical fertilizer material, scaling down of ammonium
sulfate production, reduction of the present total dependence
on phosphate rock for making high-analysis compound fertili
zers, and developing new ways of application of gypsum.
63 Fertilizer Marketing, Distribution, and Use in Malaysia.
Bangkok, Thailand: Food Agric. Organ. United Nations; 96
pp. (Dec. 1975). Descriptions and analyses are given of the
agricultural conditions within which fertilizers are being used
in Malaysia; government activities affecting fertilizer-use; the
aggregate supply situation covering imports, exports, and local
manufacture; consumption by sector, sub-sector, and crop; the
structural and functional organization of the market; and
constraints to improved fertilizer-use with special reference to
the problems of small farmers. The main finding is that much
of the fertilizer is used in rubber and oil palm estates and
government land development and replanting projects. There is
a large segment of small farmers using hardly any fertilizers at
all. These subsistence-oriented, mainly food-producing small
farmers face severe problems of nonaccess to fertilizers, field
transportation difficulties, deteriorating product: fertilizer
price ratios, technological limitations, and unavailability of
credit. The aggregate effect of these constraints is to make
investments in fertilizers much less attractive for small farmers
than for estates and government projects. In some cases, for
example in smallholding rubber, there is a likelihood of 66
negative returns to investments in fertilizers if the fluctuating (9), 55 (Feb. 14, 1973). Economic prospects for the fertilizer
combinations of product and fertilizer prices, and yield industry are sprouting strong and green for the first time in
responses are not favorable at the time. More government nearly a decade. But mounting shortages of rail cars and tank
intervention than is currently in practice is necessary to
alleviate these unfavorable factors and forces constraining
efficient fertilizer-use among small farmers. The focus of these
suggested measures is on lowering predistribution prices,
introducing some form of transport subsidy, stabilizing profit
margins, intensifying short-term measures to increase technical
efficiency, and establishing a more extensive and uniform
network of distribution centers and institutional credit facili
ties. A national fertilizer center might be established to
reconcile the views of all public and private sector agencies
dealing in fertilizers and mobilize and integrate their efforts
towards these policy objectives.
64. The Fertilizer Marketing System in Taiwan. J. T. Shields
and C. L. Ahrens. Muscle Shoals, Ala.: Tennessee Valley
Authority, National Fertilizer Development Center; Bull.
Y-58, 20 pp. (May 1973). A team from TVA visited Taiwan
and conducted a survey of fertilizer distribution firms. Taiwan
is considered self-sufficient in finished fertilizers, with the
exception of potash. There are two major companies operating
altogether seven factories. Distribution is primarily the respon
sibility of the provincial government. However, sales are made
through several channels. The Food Bureau serves as the
wholesaler and the farmer associations perform retail
functions. Approximately 65% of all sales in 1971 were
distributed under the supervision of the Food Bureau through
over 300 farmer associations with nearly 875,000 members, an
additional 25% of sales were distributed through promotional
groups such as sugar, pineapple, and tea corporations; these
organizations receive their products through the Food Bureau.
Registered private retailers accounted for about 10% of the
sales distribution. This system represents a rigid form of
government control on supply and demand. Elements of this
system appear to have considerable application to developing
countries. Important to the system has been the planning and
supervision in its early stages. The principle of fertilizer in the
right place, at the right time, and at a price the farmer can
afford has been successfully applied in Taiwan.
65 United States Fertilizer Industry Competitive Despite
More Concentration. Green Markets 1 (32), 7 (Sept. 19,
1977). The United States fertilizer industry is evolving into a
highly concentrated business in the mid-1970's with big
private and cooperative producers enjoying a considerable
competitive advantage over firms which entered the industry
after 1970. A report prepared by USDA’s Economic Research
Service concluded that there are extensive linkages within the
fertilizer industry sectors, especially in the nitrogen and
phosphate sectors. Private sector producers still own much of
the domestic fertilizer production capacity but coops are
gaining a healthy sector of the market. United States coops
control 25% of U.S. phosphate capacity and operate 8
wet-process phosphoric acid plants. Coops control a sub
stantial portion of U.S. capacity including urea, 11 plants and
28% of capacity; ammonium nitrate, 11 plants and 28%; and
concentrated superphosphates, 3 plants for 30%. The study
further reports that the U.S. phosphate and ammonia industry
are closely intergrated and that the top four potash producers
control 56% of the total U.S. capacity.
Fertilizers Flourish in United States. Chem. Week 112
11
 MARKET ANALYSIS

trucks are tempering the industry's optimism. Domestic
fertilizer prices have gained important ground-up to 12%, in
some cases. Nitrogen and some phosphates are tight and
getting tighter. And there's no talk of discounting. Despite this
cheery news and predictions of an 8-10% boost in domestic
fertilizer demand this yr, industry leaders are nervous about
getting product to market. Last fall, bad weather kept farmers
from pouring on the fertilizer. That shortfall could further
boost demand as farmers expand acreage to cash in on
extremely high grain prices. Basically, there's not much
fertilizer makers can do about the traffic crisis except to urge
farmers to put down phosphate and potash now, and apply
nitrogen later. Ammonia will set records and will be short
through 1975. Urea will be extremely tight and brisk
movement for ammonium nitrate and sulfate is expected. The
crunch in diammonium phosphate is easing, but triple super
phosphate supplies are likely to be inadequate, possibly until
spring 1975. Only potash is long.
67 U.S.S.R. Reviews Fertilizer Position. Eur, Chem. News
23 (576), 6 (Mar. 23, 1973). The minister of the chemical
industry in the U.S.S.R. has commented on the fertilizer
situation in the Soviet Union, detailing past progress and
problems to be faced in the future. U.S.S.R. fertilizer
production totalled 66 million tons last yr and is scheduled to
increase by a further 24 million tons in the remaining 3 yr of
the current 5-yr plan. The next increase in production will be
largely achieved through expansion of existing capacities.
Plants under construction are suffering delays and Kostandov
cited contact equipment for sulfuric acid production at the
Phosphorite combine at Kingisep, which proved to have similar
defects to the equipment supplied to the Uvarovo plant. Other
problems included the continued loss of fertilizers during
transportation, difficulties in improving low-quality fertilizers,
and under-utilization of plants. A committee of control has
now been set up to systematically control transport and
storage of fertilizers. The average nutrient content of fertilizers
in the U.S.S.R. increased by 33.6% in 1972. It is planned to
produce 700,000 tons more fertilizers than originally planned
this yr.
68 U.S.S.R. Phosphate Fertilizer Industry. Phosphorus
Potassium No. 62, 13-18 (Nov.-Dec. 1972). In the past, the
U.S.S.R.'s phosphate fertilizer industry has made little impact
on the West or on the neighboring communist countries.
Largely geared to meeting the needs of the domestic market
within the U.S.S.R., the industry has been moderately successful
at expanding output while at the same time upgrading the
quality of its products. However, it has now become clear that
the industry’s performance is inadequate and that the planners
do not expect a great improvement in the coming years. The
immediate shortage is being covered by substantial P:Os
imports from the West, under contracts made by Russian 15. A detailed analysis of the situation with regard to the use
buyers in the course of 1972. To meet requirements over the of fertilizers for crop production in Zaire shows the need of
longer term, the U.S.S.R. has been negotiating a complex deal each fertilizer agronomic,
with Occidental Petroleum Corp. which could involve the incorporating
information. In particular the study of existing channels of
annual purchase of 1 million tons of phosphate fertilizers, the extension, credit facilities, and economic effects at regional
fact that this deal is being related to a 20-yr time span can be
seen as reflecting the pessimistic outlook of the Russian
planners on the performance of their own phosphate fertilizer should be paid to increased production, and impacts on Social
industry.
Croatia and a Review of Future Potentials. Duro Reagon. Inst.
za Ekonomiku i Organizaciju Polioprivrede, Zagreb, Yugo
slavia, 24 pp. (1969) (Yugoslav). In Yugoslavia, the expansion
of agricultural production has been closely linked with an
increased consumption of chemical fertilizers. In 1957,
805,000 tons of fertilizers was used, in 1966 the consumption
reached 2.18 million tons. At the same time, the production of
wheat and maize went up from 8.7 million to 12.5 million
tons. Plant nutrients come from fertilizers (434,000 tons) and
from animal manure (650,000 tons). In the Republic of
Croatia the trend is also towards greater use of fertilizers: from
260,000 tons in 1959 to 611,000 tons in 1966; 51.5% of all
plant nutrients in Croatian agriculture come from fertilizers,
and the rest comes from animal manure. The socialized sector
held 15.7% of all arable land in Croatia in 1966 and used
55.8% of all fertilizers. Plant nutrients from fertilizers used by
the socialized sector in 1966 amounted to 290 kg/ha and the
yield was 39.1 grain units; on private farms, only 36 kg/ha of
plant nutrients came from fertilizers, while over 87 kg came
from manure, and the yield was 21.4 grain units/ha. Consider
able differences still exist in different parts of Croatia in this
respect, but the private sector everywhere has room for
improvement, especially now that the Yugoslav fertilizer
industry is expanding the volume and improving the quality of
its production. Since private farmers are expected to be the
main users of the growing output of fertilizers, a series of
marketing problems are likely to occur. Information on the
economic aspects of fertilizer use will have to be made
available. New forms of organization will be needed that will
be capable not only of supplying fertilizers to farmers but that
will also be prepared to buy their produce.
70 Supplying Fertilizers For Zaire's Agricultural Develop
ment. R. B. Diamond, J. J. Shultz, P. J. Stangel, G. L. Terman,
and R. C. Woodworth. Muscle Shoals, Ala.: Tennessee Valley
Authority, National Fertilizer Development Center. Bull.
Y101; 83 pp. (Nov. 1975). A report of the finding of a TVA
team selected to study the agricultural development in Zaire is
given. The objectives of the study were to: (1) assess the
fertilizer use situation in Zaire; (2) identify obstacles to
increased fertilizer use; and (3) develop alternatives the
governement of Zaire might follow in developing programs and
policies for production, distribution, and use of fertilizer on an
economically sound basis. Increased fertilizer use and other
improved crop production technology can avoid or minimize
deficits in grain, palm oil, and cotton by 1980. It can improve
the low living standards of rural people, reduce foreign
exchange requirements for food, and increase overall employ
ment.
71 Towards a National Fertilizer Strategy. G. Verhaegen.
Cah. Econ, et Soc. 8 (1), 133-81 (1970) (Fr). Trop. Abstr. 28,
program being prepared and implemented by
economic, demographic, and social
and national level should be dealt with. Considerable attention
structures, cultural changes, and food habits.

69 Economic Problems of Fertilizer Consumption in 72 Economic Impact of Shortages on the Fertilizer In

12
 MARKET ANALYSIS
dustry. Arthur D. Little Inc. (Acorn Park,Cambridge, Mass.). U.
S. Nat. Tech. Inform. Serv., PB Rep. – 240 418; 233 pp. (Jan.
1975). Avail. NTIS. A study was conducted in 1974 to provide
information on the basic structure, characteristics, and prob
lems of the fertilizer industry. Emphasis is placed on fuel use
and substitutability as well as the impact of fertilizers on farm
production. The report is subdivided as follows: I. Analytical
factors (nonenergy) 109 pp. A. product service data, and B.
industry structure. II. Analytical factors (energy), 101 pp. A.
major uses of fuels and energy, B. fuel and energy use by
product and region, C. fuel and energy supply, and D.
substitutability of major fuels and petroleum products. III.
Fertilizer and agricultural production, 23 pp. (130 tables, 31
figures).
73 Impact of Fertilizer Shortage: Focus on Asia. (Symp. on
Interrelationship Between Agricultural Input Industry and
Agriculture, Nov. 26-Dec. 2, 1974). Tokyo, Japan. Asian
Productivity Organization; 372 pp. (1975). Major topics
discussed are (1) recent trends of world fertilizer market, (2)
impact of the energy crisis and other factors on the fertilizer
industry of Asia, (3) impact of the Supply shortage and high
prices on fertilizer distribution and consumption, (4) possible
effects of fertilizer shortage on food grain production, and (5)
external trade problems for fertilizer and food grains. The
fertilizer supply shortage, particularly among the import
dependent developing countries, over the last 2 yr has been
aggravated by the world-wide inflation, energy crisis, and rising
freight rates. This condition triggered a chain reaction causing
a rapid increase in market prices of fertilizers, including
feedstocks and raw materials. The inability of the fertilizer
industry to cope with increasing demand was attributed to the
severe restraint in new investment in production facilities, 77
closure of obsolescent plants in 1968-1972, and the low
Fertilizer Consumption. Girdhari Lal (Industrial and Allied
priority generally given to fertilizer products by the chemical Sales Private Ltd., New Delhi, India). In FAI-FAO Seminar
and mineral industries because of reduced returns owing to
over-capacity and over-supply.
74 Impact of Fertilizer Shortage in United States. Chem.
Eng. News 55 (7), 5 (Feb. 14, 1977). Spring could bring a
nightmare both for the fertilizer industry and for farmers.
Barges used to move fertilizers were locked in frozen water
ways. And because of the severe winter, tank cars that could
be used for ammonia likely will be held in service hauling
propane and liquefied petroleum gas for longer than usual.
Also, many of the rail hopper cars that normally would be
available for shipping solid fertilizers are being used to haul
grain and other commodities. In addition, natural gas curtail
ments are costing the fertilizer industry thousands of tons of
ammonia production for springtime nitrogen fertilizers. The
loss could rise to as much as 700,000 tons. Further com
pounding the problem, is that dealers—nervous about prices
and nervous about farmers' intentions—finished 1976 with low
inventories. Fertilizer prices probably will rise 8-10% above the
depressed levels of last fall, but they will remain below the
levels of last spring. Although the phosphate situation con
tinues to be volatile, the export end of the business is starting
to pick up. Phosphate rock inventories have reached 15 million
tons, but demand has been strong because foreign countries
have used up the rock that they overbought during the scare
period. International demand for diammonium phosphate and 78 An Econometric Model of Relationships Between Inputs
triple superphosphate also is rising. and Aggregate Agricultural Production in Gujarat State. T. K.
75 Fertilizer Shortage Effects on Forestry. Fert. Int., No.
66, 7 (Dec. 1974). One aspect of recent price increases of
fertilizers will be the effect upon future forestry fertilization.
Fertilizer application to trees as a crop is successful and
although wood properties may suffer a little this is counter.
balanced by increased wood vol and possibly matched by
technical advances within the wood processing industry. As an
investment, fertilization is currently proving profitable in
several countries, but as might be expected this is very
dependent on the relationship between wood and fertilizer
prices. In the short term at least, recent price increases in
fertilizers paint a gloomy picture for forestry as far as
fertilizers are concerned.
76 Elasticity of Fertilizer Demand: Aspects of Its Effects
on Agricultural Productivity. Phosphorus Potassium No. 80,
26-32 (Nov. Dec. 1975). Farmers are carefully examining their
options regarding fertilizer use. They are paying close atten
tion to the recommendations of advisory services. In devel
oped countries it is highly probable that there will be a
progressive easing of the rate of phosphate consumption per ha
in regions of high fertilizer consumption. However, in coun
tries with a very large area of agricultural land many of the
soils are still poor. In the developing countries the need for
phosphate fertilizer remains considerable. Economic problems
continue to obstruct progress and favorable conditions of
agricultural credit and global stabilization of agricultural prices
are of the greatest interest to fertilizer manufacturers. Because
of the build-up of phosphate fertilizer in the soil, the balance
of nutrient application will tend to change in favor of
nitrogen.
Economics of Fertilizer Use as a Constraint in Increasing
Strategy. Stimulating Fertilizer Consumption 1976 Proe (held
New Delhi, India, Dec. 9-11, 1976). New Delhi, India: Fert.
Association India III-1 (iii) I-6 (Mar. 1977). The constraints on
fertilizer consumption are discussed. The two most important
factors are: (1) the abstaining from fertilizer consumption by a
large segment of the Indian farming population, and (2) the
cultivation of a number of crops without use of fertilizer. It is
felt that fertilizer consumption should increase once these
factors have been corrected. The reasons why a number of
farmers do not practice fertilization programs are then
analyzed; the major factor is the lack of water either because
of unfavorable weather conditions or uncertain irrigation
facilities. With the absence of water as a complementary input
to fertilizer, the responses of crops to fertilizer alone are not
attractive. There are also crops on which fertilizer use is
economic only under restricted conditions. In these cases,
research should be carried out to show to the farmer the exact
circumstances under which his application of fertilizer should
be profitable. If this is not done and the farmer continues to
apply fertilizer to these crops randomly, he is likely to lose
confidence in the efficiency of fertilizer. The lack of infra
structural facilities in large parts of the country and the related
issue of inefficient farm management expertise are also major
variables which affect the efficiency of fertilizer use.
13
 MARKET ANALYSIS
Jayaraman and V. B. Savdasia (Bureau of Economic and
Statistics, Gujarat, Gandhinagar, India). Indian J. Agric. Econ.
31 (3), 123-4 (July-Sept. 1976). An econometric analysis is
made to explain the past agricultural production trends by the
level of input use over the period 1961-74. Several hypothesis
were tested with regards to fertilizer, energy use, and capital
availability. The results obtained through the estimation
procedure confirmed that (1) rainfall and fertilizer consump
tion have been significantly responsible for agricultural
development in the state, (b) long-term financial loans do
influence capital formation, (c) the impact of fertilizer prices
on the levels of use is not established, (d) short-term loan
finance has a significant impact on the level of fertilizer
consumption, and (e) a significant direct relationship exists
between rainfall and per capita land put to use.
79 Protection of the Fertilizer Industry and its Effects on
Agricultural Production and Savings of Foreign Currency. The
Case of Saltpeter. A., Valdes (International Food Policy Res.
Inst., Washington, D.C.). Cuad. Econ. 13 (39), 93-108 (Aug.
1976) (Span). Abstr. Trop. Agric. 3, 13818. Studies in other
countries have shown that a large part of the increase in Soil
productivity is due to a greater use of fertilizers. The purpose
of this study is to show that because of the protection of the
local saltpeter (KNO3) industry, farmers did not take advant
age of the lowering of world prices of N fertilizers. The history
of the Chilean saltpeter industry, the price of N and its effects
on domestic use, the savings of foreign exchange, and the
elasticity of supply and demand of N fertilizers are reviewed
with particular emphasis on wheat, the major consumer of N.
(14 ref).
MARKET DEVELOPMENT
DEVELOPMENT
80 Fertilizer for the Nation. B. J. Bond. In Situation 77,
TVA Fertilizer Conference. (held Kansas City, Missouri, July
26-27, 1977.) Muscle Shoals, Ala.: TVA, National Fertilizer
Development Center, Eull. Y-115; pp. 88-93 (July 1977). An
evaluation of the role of TVA’s national fertilizer program in
developing and introducing new fertilizers and fertilizer
processes is given. The influence the program has had on
fertilizer production, marketing, and use is outlined. The
information given is indicative of the impact of fertilizer-as an
agricultural inp t—on the Nation's agricultural production and
economic stricture. Chemical fertilizers are the lifeblood of
modern American agriculture. Specific impacts of fertilizers on
increased agricultural production, food prices and dietary
practices, soil conservation, and the Nation's economic posture
are illustrated. Fertilizer now accounts for more than 37% of
U.S. crop production and is expected to contribute more as
new technology is developed as used.
81 Market Development for the Future. J. F. Reed (Univ.
Georgia, Athens). In TVA Fertilizer Conference (held July
29-31, 1975, Louisville, Kentucky) Muscle Shoals, Ala.:
Tennessee Valley Authority, National Fertilizer Development
Center; Bulletin Y-96, pp. 136-7 (July 1975). The old
philosophy of market development has been “leave it to some
other segment of industry”. Some of the don’ts are listed.
Some fundamental questions are: (1) Is market development
14
necessary or not? (2) Who is going to do it? (3) Who will pay
for it? (4) How much should be spent? Some avenues of
market development programs are: (1) keeping up the demand
on crops historically fertilized, (2) developing greater demand
on crops not heavily fertilized, (3) creating new usage on crops
such as roadways, parks, forests, and fisheries, and (4)
developing demand in other areas of the world. The future
market will most certainly be influenced by the extent of
market development. The industry should expect to spenda
reasonable portion of its gross income on expanding the
market for the product that provides that income.
82 Some Aspects of U.S. Policy in Determining the Future
Role of Fertilizer in Combating World Food Problems. P. J.
Stangel (International Fertilizer Development Center, Muscle
Shoals, Ala.). In TVA Fertilizer Conference (held July 29-31,
1975, Louisville, Kentucky) Muscle Shoals, Ala.: Tennessee
Valley Authority, National Fertilizer Development Center;
Bulletin Y-96, pp. 138-45 (July 1975). The U.S. Government
recognizes the growing importance of fertilizer in fighting
world hunger. It is aware that the United States is the bastion
of fertilizer technology and supplies, particularly of phos
phate, and methods of focusing these to maximize food
production. The success of U.S. agriculture and the major role
it has played in supplying food to the world is sound
testimony to this. These efforts in the future can take either a
humanitarian or political focus, or both. The present U.S.
policy appears to be designed to deal with both elements. The
creation of the new International Fertilizer Development
Center will help the U.S. to join forces with other nations in
transferring present technology or developing new fertilizer
technology directly to the nations needing it most and wishing
to make a major effort to produce food in their own country.
This along with the U.S. policy of supplying financial
guarantees or funds to international banking institutions such
as World Bank and Asian Development Bank and encouraging
them to finance production facilities has also allowed a
separation of the political effort from the humanitarian
element. As a result of this move the U.S. is still able to focus
its very best resource, ability to produce fertilizer and food, to
the area that will guarantee the U.S. people its greatest benefit
and at the same time accept the humanitarian role and
responsibility to help the less fortunate people of the
developing world who wish to help themselves.
83 Suggested Fertilizer-Related Policies for Governments
and International Agencies. Editor, T. P. Hignett (Inter
national Fertilizer Development Center, Muscle Shoals, Ala
bama). Muscle Shoals, Ala.: International Fertilizer Develop
ment Center. Tech. Bull. IFDC-T-10; 65 pp. (Aug. 1977). This
report was issued for the purpose of assisting governments and
international agencies in formulating policies that will facili
tate long-range planning of fertilizer production, distribution,
and use, particularly in developing countries. (8 ref).
84 Experiences of the FAO Fertilizer Program. H. Braun.
In Planning and Organization of Fertilizer Use Development in
Africa. Rome, Italy: FAO Soils Bull., No. 26; pp. 39-46
(i975). Since 1961, the FAO fertilizer program has assisted 34
countries in their efforts to develop the agricultural sector of
their economy. Based on experinece gained since that time,
related agricultural inputs and improved crop practices have
been included in the operations. Fertilizers serve as a Spear
head for most improvements and in gaining the confidence of
 MARKET DEVELOPMENT
the rural community. From an approach mainly concentrated
through demonstrations, four phases of work have been
developed. These include: (1) mass demonstrations on farmers
fields, (2) small specific trials on farmers fields for the
formulation or adaption of fertilizer recommendations, (3)
improvement in fertilizer distribution, and (4) development of
credit systems. Progressive efforts have been made to improve
the quality of fertilizer recommendations. In countries where
the demand for fertilizer already exist, action is concentrated
on distributional and credit systems. Training and education
aspects are also important features of the program.
85 Food Agriculture Organization Fertilizer Program
Activities in Asia and the Far East. Fert. News (India) 20 (1),
20-2 (Jan. 1975). The background to the establishment of the
Food Agriculture Organization (FAO) Fertilizer Program is
described. The importance of regarding the stimulation of
fertilizer consumption as an exercise in the development of a
sound and integrated marketing practice is stressed in the
following manner: (a) It must be reliably known what the
fertilizer can achieve under actual field conditions (adaptive
research phase). (b) The farmer must be given the opportunity
to evaluate the product with his neighbors (demonstration
phase). (c) When demand is established, timely delivery of well
packaged material of the correct type is essential (marketing
phase). (d) When input needs develop, timely credit must be
available and group discipline based on phases (b) and (c)
ensure repayment (credit phase).
86 Evaluation of TVA's National Fertilizer Introduction
Program. Muscle Shoals, Ala., TVA, National Fertilizer
Development Center. Circular Z-79; 6.3 pp. (Apr. 1977). This
report identifies and quantifies many specific benefits of the
TVA fertilizer program. These benefits will continue to
accumulate. The study also shows that there are current and
future opportunities for developing and introducing technolo
gies whose impact on the fertilizer industry, the nations farms,
and the national economy will be as great as the impact of
development in past years.
87 The International Fertilizer Development Center's Data
Processing System and the Role in Supplying Fertilizer
Research and Development. D. R. Waggoner, R. L. Booth, and
M. T. Frederick (Int. Fert. Devel. Center, Florence, Alabama).
In 26th Annual Meeting Fertilizer Industry Round Table (held
Atlanta, Georgia, Oct. 26-8, 1976), pp. 26-34 (1976). The
International Fertilizer Development Center (IFDC) World
Fertilizer Information System consists of various computer
packages (computer programs and data bases) developed or
planned by IFDC staff. These programs and data files are
primarily intended to provide pertinent and timely informa.
tion to aid companies, government agencies, and financial
institutions involved in the supply, consumption, and policy
aspects of fertilizers. The system will provide the following
data when completed: analysis of fertilizer raw materials
reserves, calculation of capital expenditure estimates for
fertilizer complexes, and market analysis statistics concerning
the production and consumption of fertilizers. These data are
first accumulated for IFDC use, but will be available on a fee
basis to interested parties from the computer network or by
mail from IFDC.
88 Fertilizer Use and Agricultural Development in Brazil.
W. C. Nelson and R. L. Meyer. Thesis, Ohio State Univ.; 32 pp.
(July 1973). A number of different policies have been used to
stimulate Brazilian agricultural growth in the past few yr. One
important set of policies has been aimed at expanding the use
of chemical fertilizers. This has included the building of
fertilizer plants, an expansion in fertilizer marketing facilities,
and providing substantial amounts of credit for fertilizer
purchases at concessional interest rates. The net result has
been a sharp expansion of chemical fertilizer consumption.
From 1950-60, consumption grew at an annual rate of 15%
and the use of fertilizer/ha doubled. Total consumption
reached nearly 300,000 tons in 1960. Policies modified in
1961 led to a substantial decline in fertilizer use until 1966.
After adjustments were made in credit and product pricing
policies, consumption doubled by 1968 and nearly tripled by
1970 to 820,000 tons. Increases in credit availability plus the
very attractive interest rates appear to have been the key
factors in stimulating fertilizer use. (14 ref).
89 The Caribbean: Development of the Nitrogen Industry.
Nitrogen No. 105, 23-6 (Jan.-Feb. 1977). Nitrogen production
facilities exist on three Caribbean islands, namely, Aruba,
Trinidad, and Cuba. Yet within this same area the nature of
the industry differs considerably. With only a very limited
domestic market for finished fertilizers on both Trinidad and
Aruba and indeed little in the way of downstream production
capacity, the industry there is essentially oriented towards
exporting merchant ammonia. In Cuba, meanwhile, the situa
tion is the reverse. This nation is the largest consumer within
the Caribbean area and although a nitrogen fertilizer industry
is now underway, the island still has to import solid fertilizers
to meet growing domestic demand. However, in no way have
these industries within this area developed side-by-side—one
fulfilling the needs of the other. Cuba does not belong to the
Caribbean Common Market (Caricom) but rather to Comecon
and obtains the bulk of fertilizer imports from the U.S.S.R. In
1974-75, Soviet material constituted almost two-thirds of total
nitrogen fertilizer imports. However, it is likely that Cuba may
increase its dealings with Caricom. Cuba apparently showed
interest in buying fertilizer from Trinidad, but apart from this,
there is little, if anything, to indicate that these islands intend
to develop in a more complementary manner.
90 Changes in Saskatchewan Potash Prorationing. Chem.
Week 113 (3), 20 (July 18, 1973). The province's Minister of
Mineral Resources, says that Saskatchewan now has 20% of
world markets and intends to boost that share closer to its
29% share of world capacity. He says Saskatchewan producers
must be more aggressive in marketing without resorting to
price cutting, and that the provincial government will give all
the help in its power. Among the possible changes in
prorationing is a system that takes into account the markets
held by each producer. A new formula that would encourage
more vigorous sales efforts will be set up by Oct. 31. The
formula would favor companies that have made special sales
efforts, especially in the direction of long-term contracts.
91 Ghana Progress in Fertilizer Production, Marketing, and
Education. R. D. Grisso, D. A. Russel (TVA, National
Fertilizer Development Center Muscle Shoals, Alabama),
Michael Goe, and D. R. Waggoner. National Fertilizer Develop
ment Center, Muscle Shoals, Ala., Bull. Y-110; 50 pp. (Jan.
1977). This is the third report on the fertilizer situation, in
Ghana by TVA. After the first report it was recommended
that production facilities be built in stages, controlled by the
15
 MARKET DEVELOPMENT
rate of increase in fertilizer use. Fertilizer use has increased
rapidly, averaging 33%/yr from 1968 to 1975. A fertilizer
committee was established to guide the formation of a
fertilizer industry. Working with the U.S. AID, TVA assigned a
fertilizer consultant to Ghana for 2 yr. During the assignment,
the Ghana Fertilizer Company, Ltd., was formed, a marketing
plan that would transfer distribution and marketing from the
Extension Service to the private sector was prepared, and an
education program based on fertilizer demonstrations was
started. This report is divided into four sections: (1) Fertilizer
Alternatives and the Fertilizer Action Program, (2) Fertilizer
Production, (3) Fertilizer Marketing, and (4) Fertilizer Educa
tion. (21 tables, 3 figures, many photographs).
92 Fertilizer Situation in Iran. I. Ghashghai and H.
Amirmorri. Fert, News (India) 20 (10). 3.12 (Oct. 1975). The
fertilizer industry has a pivotal role to play in the development
of agriculture. Fertilizers are even more important in devel.
oping countries where agriculture is the backbone of the
economy and yet these are the countries, more particularly in
Asia and the Middle East, where the fertilizer industry has yet
to achieve development on modern lines. Information re.
garding agricultural developments in developing countries with
Special reference to fertilizer, demand, prices, economics of its
use, and Govenmental policies is not widely known. A new
Series on “Our Neighbors’ has started in Fertilizer News. The
first in the series entitled 'Fertilizer Situation in Iran' is given.
The article deals with various aspects of agriculture and
fertilizer industry in Iran.
93 Fertilizer Marketing in Italy. Eur, Chem. News 24
(610), 6 (Nov. 16, 1973). The Italian fertilizer industry, scene
of so many cartels and dubious marketing devices in the past,
has recently found itself struggling to throw off the most
damning indictment of its sales practices ever—that of inten
tional development of a black market in fertilizers. In recent
years, Italian fertilizer producers have had to endure huge
financial losses and much severe criticism. The industry has
shrunk visibly over the last few yr as many plants have been
declared uneconomic and privately-owned companies
disappeared. The most common charge levelled at Italian
fertilizer producers, particularly by the communist daily press
in Italy, is that of production cut-backs and hoarding of
material for profitable export markets. But statistics fail to
bear out this charge and between January and August 1973,
around 25% more fertilizer became available for domestic
deliveries than in the same period of 1972. Exports were also
down, at about 1.42 million tons in 1972 compared with 1.6
million tons in 1971. Why then, are Italian farmers claiming
that they are unable to obtain fertilizers? At this point, the
existence of an Italian black market in fertilizers becomes
evident. Fertilizer producers are delivering to Italian merchants
and some large selected farming groups at prices pinned by the
Government at around 30% below other EEC levels. These
organizations, holding the bulk of free Italian supplies, are
stockpiling in anticipation of fertilizer price increases forced
on a reluctant government by the growing supply crisis. Be this
true or not, the hoarding moves are having a definite effect.
Unless the government moves soon, Italian farmers will have to
reduce fertilizer usage or import material at very high prices.
Some have proposed taking increased shipments from eastern
Europe, failing to recognize that prices would be 40% higher
than Italian list prices.
16
94 Extension and Marketing of Fertilizers in Ivory Coast
(Ministry Agric. Ivory Coast, Abidjan, Ivory Coast). In
Potassium in Tropical Crops and Soils; Proceedings 10th
colloquium (held December 1973 Abidjan, Ivory Coast
Berne, Switzerland: Int Potash Inst., pp. 56.1-7 (1974) (Fr.
The use of mineral fertilizers, along with other means, plays a
dominant role in increasing yields. But, there are difficulties
which hamper development. These include the high price of
fertilizer in relation to some agricultural prices, lack of
fertilizer response due to the interference of other limiting
factors, and the difficulty of using fertilizer on crops grown
under primitive systems. The Ivory Coast used, in 1972, about
20,000 mt nitrogenous, 5000 mt phosphatic, and 22,000 m:
potassic fertilizers with 460 mt complex, 29,000 mt mixed
fertilizers, and 7000 mt amendments. Fertilizer consumption
has increased sharply since 1970. About 60% of the fertilizer
used in 1972 came from local factories. All locally manu
factured compound fertilizer contains S and micronutrients in
addition to N, P, and K. Among annual crops, 90% of the
cotton and 15% of the rice received fertilizer but food crops,
in practice, only benefit from residual effects as they follow
the above in the rotation. Fertilizers are used on all plantation
and export crops: 40,000 mt on banana and dessert pineapple,
15,000 on canning pineapples, 10,000 on oil palm and
coconut, and 3000 on cacao. Though the price of fertilizer to
the farmer has risen 40% since 1971, the price he receives for
his seed cotton has only gone up by 15%. In some cases,
especially if the spraying program is incomplete, fertilizer is
only marginally profitable and this could eventually prejudice
the farmer and be a serious obstacle to the progress of the
development plan. There is a similar problem with canning
pineapple. Between 1966 and 1972 the price of fertilizer (5
mt/ha of 8-4-20 + 4 Mg) has risen by 86% while the return for
a day's work has fallen by 30%.
95 The Fertilizer Marketing System in South Korea. Y. K.
Shim, J. T. Shields, and D. C. Dahl. Muscle Shoals, Ala.:
Tennessee Valley Authority, National Fertilizer Development
Center, Bulletin Y-97; 20 pp. (Aug. 1975). A report on the
fertilizer situation in South Korea is given. In 1974 South
Korea had nine plants operating with a capacity of 1,705, 650
tons. Products and capacities were urea, 56.7%; compound
fertilizers, 21.2%; fused Mg phosphates, 13.4%; and ammo
nium sulfate, 8.7%. In 1974 fertilizer consumption was
1,781,425 tons. A dual pricing policy has been established.
The government controls prices to producers and importers
and prices to the farmers. The National Agricultural Coopera
tive Federation (NACF) distributes domestic production and
imports under close supervision of the government. The NACF
buys all domestic fertilizers and imports; provides all wholesale
and retail Services; arranges all shipping; provides all storage;
and, sells to the farmer at prices determined by the govern
ment. The farmers are subsidized. The general objective of the
pricing system are to maintain fairly low and stable fertilizer
prices to farmers. Problems encountered in the industry are
shortage of feed stock, shortage of transport equipment, and
lack of mechanical handling facilities.
96 The Fertilizer Marketing System in Mexico. C. L.
Ahrens and J. T. Shields. Muscle Shoals, Ala.: Tennessee
Valley Authority, National Fertilizer Development Center,
Bull. Y-65, 30 pp. (Aug. 1973). Fertilizer is produced by six
companies in Mexico but all distribution is the responsibility
 MARKET DEVELOPMENT

of government-owned Guanos y Fertilizantes de Mexico marketing schemes in developing countries should be an

(Guanomex). Petroleos Mexicanos is responsible for moving its integral part of developmental efforts for small-scale farmers.
anhydrous ammonia to Guanomex distributors but all other The quality and cost of services rendered depend increasingly
fertilizers are moved by Guanomex. About 74% of the on marketing functions with regard to quantitative and
fertilizer moves by rail and 24% by truck; some moves in bulk qualitative aspects, storage, transportation, and the conditions
but most in bags and virtually all solid fertilizers are bagged of purchase. To be successful, fertilizer marketing schemes
before they are sold to farmers. In 1970 Guanomex had 205 should be superimposed upon the existing structure for crops
distributors (189 private companies, 13 cooperatives, and 3 and other inputs. This will insure that the marketing costs will
Guanomex-owned distributorships) located in all but one of be held at an acceptable level. Efficient schemes require
the 32 states and territories of the country. Most distributors appropriate planning and management. Suitable incentives to
had subdistributors or agents as a part of their retail system. dealers and credit terms for farmers are also important
Usually, farmers transport the fertilizer (in 40-50 kg bags) determinants of a successful marketing strategy. Government
from the point of sale to their farm although some dealers participation may be quite substantial in certain cases. Such
deliver. Fertilizer pricing policy is the responsibility of participation, however, should be confined to initial activity
Guanomex and one objective is to equalize price throughout pending the establishment of a private firm or cooperative
the country. Prices paid by farmers vary, however. Fertilizer is producers associations.
not subsidized and markup at the distributor level is
8.6-34.2%, depending upon the material, bagging require 100 Organization and Development of Fertilizer Marketing
ments, and (apparently) transportation costs. About 75% of in Developing Countries. K. Wierer (FAO, Rome, Italy). Z.
the fertilizer is sold on credit but dealers provide only limited Auslandische Landwirtsch. 15 (3), 288-304 (July 1976) (Dut).
amounts of additional services. Peak sales are in June and over Abstr. Trop. Agric. 3, 13816. This study shows that develop
half the fertilizer is sold during May-August. Operating costs at ing countries increasingly use fertilizers to increase agricultural
the distributor level are equivalent to U.S. $5.17/ton or 6-7% production although there are large differences in fertilizer use
of the cost to the farmer. Administrative and distribution costs according to regions or crops. Factors that influence fertilizer
account for over half the operating costs. consumption are analyzed with special attention to the
fertilizer marketing organizations and to the integration of
97 Market Development of Fertilizer in West Pakistan. M. fertilizer marketing with agricultural extension, credit organi
Ishaque. Forward, W. Pakistan 10 (7), 7-9, 14 (1972). Trop. zation, and agricultural produce marketing. Although a deter
Abstr. 27, 2814. A program is outlined for sale and marketing mined marketing system is based on a certain economic policy
of fertilizers to farming communities in W. Pakistan. Key orientation, it is emphasized that the system must be adjusted
objectives include: (1) adequate distribution in time and place; to the stage of development and structural changes are needed
from time to time.
(2) fair price policies and satisfactory credit facilities; (3)
agronomic assistance as pre- and post-sale service; and (4)
training of farmers in fertilizer use. Broad details of each 101 Prospects for an Adequate Fertilizer Supply to
objective are discussed, some attention is given to the need of Developing Countries. Satya Nand. Fert. News 18 (7), 11-17
government protection as a basis for this program. (June 1973). Developing countries are characterized by low
level of industrialization and productivity, a lack of industrial
98 The Changing United States Fertilizer Industry. D. A. culture, and a rapidly increasing population. The situation is,
Paul et al (Economic Research Service, U.S. Dept. Agric., however, changing rapidly with the spread of modern concepts
Washington, D.C.). Agricultural Economic Rep. No. 378; 103 of agricultural practices involving the use of high-yielding
pp. (Aug. 1977). The United States fertilizer industry appears varieties of seeds, fertilizers, pesticides, and increasing irriga
to respond well to supply and demand signals, although it is tion facilities. For adopting improved agricultural practices,
relatively concentrated. The speed of response has slowed adequate availability of fertilizers is a sine qua non. Most
because of escalated construction and energy costs and developing countries have to depend upon imports of fertil
uncertainties regarding the availability of raw materials. izers, entailing a large outflow of foreign exchange which they
Economics of scale have necessitated the construction of larger can ill afford. It is, therefore, necessary to augment domestic
manufacturing facilities so that firms can be competitive. The production. During the short term, imports will continue.
effects have been an increase in concentration and integration Currently, there is a shortage in the international market and
and in barriers to entry. Manufacturing plant locations have adequate supplies are not available. Prices are continuously
become more oriented to inputs than to markets. Much of the moving up straining the economies of the developing
newer N capacity is in the Gulf Coast States, close to natural countries. There would appear to be a need for the developed
gas supplies and to water transportation for both inland and countries to exercise self-restraint on prices. Long-term fertil
coastal of movements. Many new plants are being built as parts izer requirements of developing countries should be assessed
of multiproduct complexes entailing considerable cost savings. on a global basis and capacity created to meet this demand.
The United States is a net importer of potash, but at the Coordination at an international level is suggested to balance
minimum it is self sufficient in N and P2 Os. More than demand and supply. The growing suspicion in the developing
three-fourths of the K2O used domestically in fertilizer is of countries that the suppliers of fertilizers and fertilizer raw
Canadian origin, and nearly all of the North American K2O materials are taking undue advantage of the current shortages
reserves are in Canada by raising prices, needs to be calmed.

99 Fertilizer Marketing in Developing Countries. H. Creupe 102 The Nonfarm Market. Lyn Prestwich and Marilyn
landt. In Planning and Organization of Fertilizer Use Develop Messerly. Farm Chem. 139 (11), 78-9, 82-3, 86-7, 90 (Nov.
ment in Africa. Rome, Italy: Food and Agriculture Organiza 1976). The nonfarm fertilizer market is a 2.4 + million ton
tion; pp. 62-74 (1975). Introducing or improving fertilizer market worth $550 million at the manufacturer's level. Home

17
 MARKET DEVELOPMENT
lawns and golf courses account for about 70% of total
nonfarm use. Other significant markets are office parks,
neighborhood parks, churches, high Schools, shopping centers,
apartment complexes, government buildings and grounds,
universities, memorial gardens, and highway rights of way. The
market is expected to grow at about 4% per yr. The traditional
channel of distribution-manufacturer to distributor to con
Sumer will yield to more direct methods. Mass chain merchan
disers will get more of the do-it-yourself market, which in
itself will yield to the lawn service companies, particularly
where commercial buildings are concerned.
NEW PROCESSES, PRODUCTS,
AND MINERAL DEPOSITS
103 New Feeds and Processes Perk Ammonia Production. P.
R. Savage. Chem. Eng. 84 (23), 79-82 (Oct. 24, 1977).
Widespread uncertainty over the availability and price of
natural-gas has prompted several ammonia producers to
investigate feasible feedstock alternatives. While some manu
facturers plan a total change in feedstock, others seek
improvements on existing technology. The most renound
alternative today is the conversion of ammonia from coal. At
least two major companies have proposed plans to employ
coal-based technology. W. R. Grace of the United States along
with the Energy Research Development Agency recently
appropriated $350 million for a feasibility study, which if
successful, will culminated with the design and construction of
a 1200 ton/day demonstration plant. The Tennessee Valley
Authority likewise plans to construct a $46 million demonstra
tion plant scheduled to begin operation in 1980. Coal is not
the only alternative to natural gas. Naptha has been widely
employed in Europe. Heavy fuel oil is another option however,
it is estimated that costs for a heavy-fuel-oil-based ammonia
plant are about 40% higher than using natural gas. Several
other companies have modified or upgraded plant conversion
techniques. Among the most prominent is the new air
preheating technique which is estimated to save about 0.75
million Btuſton of ammonia produced. Another technique
being promoted is the Breda process. A recently completed
feasibility study shows that natural-gas consumption can be
cut from 20 million Btuſ short ton of ammonia produced to
15.2 million Btu.
104 Ammonia from Coal. M. C. Verghese and R. P. Cook
(United Nations Industrial Development Organization, Vienna,
Austria). In F.A.I. Symp. Coal Feedstock Fertilizer Production
1974. New Delhi, India: Fert. Ass. India, pp. IV-1/1-8 (June
1974) (price Rs.20). Ammonia production in the world is
estimated to go up from 47 million tons in 1971 to 64 million
tons in 1975 and 90 million tons in 1980. It is foreseen that a
reduction in the use of naphtha as feedstock will occur in the
next few yr and fuel oil and coal are expected to gain. The
percentage production of ammonia from coal is expected to
double between 1975 and 1980, that is, from 5.8 million tons
to 9.0 million tons. The energy crisis and increase in prices and
non-availability of naphtha and fuel oil will accelerate this
trend particularly in countries which have no proven resources
of oil and gas but which have coal resources. The capital cost
18
of a coal-based ammonia plant is about double that of a plani
based on gas, but with reasonably good quality coal and with
reasonable prices ammonia can be made at comparative costs.
Only at a price of $60 per ton or less would naphtha compet:
with cheap coal. The well-proven processes for producing
ammonia synthesis gas are discussed and the problems in the
use of coal are highlighted. A medium-term plan to meet the
shortage of N fertilizers in the world is indicated, namely tº
build 10 identical 1,000 tons/day ammonia plants and
equivalent urea facilities in countries where flared natural gas
is now available. Setting up of an agricultural input aid fund of
an export credit financing fund is recommended to support
and guarantee exports from such plants.
105 The Fertilizer Institute Calls for a Program to Develop
Ammonia From Coal. Chem. Week 117 (9), (Aug. 27, 1975).
The Fertilizer Institute has called for a 10-yr study of
ammonia production by coal gasification, to be funded by the
National Fertilizer Development Center of the Tennessee
Valley Authority. The study is needed immediately because of
declining and unsure supplies of natural gas. The minimum
cost of such a program, through the pilot plant stage was
estimated at $25 million. The aim of the study would be to
improve the economics of the coal-based route.
106 Ammonia Production From Coal. Chem. Mark. Rep.
211 (6), 5, 36 (Feb. 7, 1977). Continuing problems with
natural gas supplies pose serious questions about nitrogen
fertilizer production in the future, according to the manager of
Tennessee Valley Authority's National Fertilizer Development
Center at Muscle Shoals, Alabama. Natural gas is the prime
feedstock for producing ammonia, and almost all nitrogen
fertilizers are made from ammonia. About half of the 49
million tons of fertilizer used by American farmers last yr was
nitrogen materials. Nitrogen fertilizer is absolutely essential in
modern farming. In light of the critical natural gas supply
situation, it is obvious that we can no longer depend so heavily
on natural gas for nitrogen fertilizer production. TVA re
searchers have been looking for some time at alternatives to
using natural gas in the production of ammonia, and have
concluded that coal is the best bet for the rest of this century.
TVA began working on producing ammonia from coal about 2
yr ago, and hope to begin construction of a demonstration
ammonia-from-coal plant at Muscle Shoals in 1979. This pilot
operation, being planned by TVA, will serve as a vital inter
mediate step to reduce the risks in developing large com
mercial ammonia- from-coal plants. It will also demonstrate
how existing ammonia plants can be remodeled to use gas
made from coal.
107 Tennessee Valley Authority Approves Project of Ammo
nia from Coal. Coal Age 82 (7), 31 (July 1977). The Tennessee
Valley Authority board of directors recently authorized $46
million for a 3-yr demonstration project for producing
ammonia from coal for ultimate use by the Nation's industry.
The demonstration plant will be constructed at TVA’s
National Fertilizer Development Center at Muscle Shoals,
Alabama. It will be designed to produce ammonia synthesis gas
in conjuction with TVA’s 225 ton/day plant.
108 Texaco Choice Confirmed by Tennessee Valley Authori
ty. Fur Chem. News 31 (805), 22 (Sept. 30, 1977). Texaco's
coal gasification process will be used to convert the ammonia
facility of the Tennessee Valley Authority at Muscle Shoals,
 MARKET DEVELOPMENT
Alabama to coal-based operation. It will be the first such
“retrofitting” of an existing United States ammonia plant and
differs in this respect from the other recently announced
ammonia projects. The TVA plant will consume seven ton/day
of coal and produce about 135 ton/day of ammonia.
1 O9 United States Ammonia from Coal Project. Chem. Mark.
Rep. 212 (10), 3 (Sept. 5, 1977). W. R. Grace and Co. and the
Energy Research and Development Administration (ERDA)
have signed an agreement for a program leading to the
commercial manufacture of ammonia from coal. Total cost of
the program will be about $350 million, of which ERDA will
fund about 47% with the remaining $185 million—coming
from private enterprise. Phase I of the program, to be
completed in about 2 yr, calls for conceptual design and
engineering of a synthesis gas demonstration plant for the
conversion of coal to synthesis gas. The gas will be used to
produce ammonia for agricultural fertilizers. This phase will
include a feasibility study of the economic and technical
viability of the project. The synthesis gas demonstration plant
will use about 2000 tons of coal/day to produce 1200 tons of
ammonia/day.
110 India to Study Coal-Based Fertilizers. Chem. Age
(London) 108 (2875-6), 10 (Aug. 23-30, 1974). The Indian
Petroleum Ministry has asked the Fertiliser Corp. of India to
make locational studies for setting up additional capacity
based on coal as feedstock. The government decided some
time ago that new fertilizer projects should be based on fuel
oil or coal as feedstock instead of naphtha, but growing oil
problems may limit the use of fuel oil. The additional
coal-based capacity may not, however, be implemented in the
Fifth Plan ending in 1978-79. There are already 12 projects
scheduled for the Fifth Plan which will use fuel oil as
feedstock.
111 Coal Based Urea Plant for Philippines. J. Flour Anim.
Feed Milling 158 (4), 29 (Apr. 1976). The Inter-Regional
Development Corp. (IRDC) is to establish a coal-based urea
fertilizer plant in Albay, Bicol, Southern Luzon, Philippines.
The plant will have a capacity of 1500 tons/day, according to
the company's president, Jose Banez. IRDC has decided to
sign a contract for the establishment of this plant with a
German supplier and an Australian company—names are not
disclosed.
112 Prototype Solar Cell Used in Ammonia Process. Chem.
Eng. News 55 (40), 19-20 (Oct. 3, 1977). Ammonia has been
produced simply and catalytically for the first time in a
prototype solar cell from the reactants N and water. The
important catalyst for the reaction is powdered-iron-doped
titanium dioxide. The reaction proceeds at low temperature
and at atmospheric pressure. The prototype solar cell produces
about 5 micro-moles of ammonia during 3 hr of solar
irradiation in the presence of 0.2 gram of iron-doped titanium
dioxide. Reaction conditions are simple and mixing N gas with
catalyst that is saturated in water vapor is sufficient to
produce ammonia at 30°C. The catalyst can be reactivated by
heating it to 250°C under partial vacuum. It is estimated that
the catalyst's efficiency must be improved from 10-100 fold
for the process to look commercially attractive.
113 Charting New Course for Ammonia Plants. Chem. Week
117 (12), 37.8 (Sept. 17, 1975). A floating platform with
ammonia plants that use ocean temperature differences in
generating power for ammonia production from air and water
is a possibility by 1985 according to a report by John Hopkins
University Applied Physics Laboratory. The concept would be
to locate the plants in the Gulf Stream off the southern east
coast and use the temperature difference in surface water and
water at depths of 2000-3000 ft (20-39°F) to power turbines.
An electrolysis cell would provide H, for ammonia produc.
tion, thus eliminating the costly fuel reforming portions of the
plant. Estimated production cost is $70/ton delivered to U.S.
ports. According to the assistant director of the laboratory, a
10 megawatt pilot plant could be ready by 1978 and a
$75-million, 100 megawatt demonstration project could be set
by 1982 if funds are made available.
114 Floating Fertilizer Factories: Wave of the Future. Chem.
Week 116 (12), 34 (Mar. 19, 1975). Sea-going chemical plants
that will convert offshore natural gas into ammonia and urea
are under construction in West Europe. The fertilizer units are
being built for Pertamina, the Indonesian state oil company, to
exploit natural gas now being lost from oil fields off the east
coast of Kalimantan (formerly Borneo). It consists of two
units, a 1500 tons/day ammonia plant, and a 1700 tons/day
urea plant, that will be installed in separate ships. The plants
will be steamed to the Makassar Strait for startup next yr. A
ground-breaking ceremony at the Kalimantan site Jan. 25
signaled the start of construction of the terminal. Output of
the two ships at present urea and ammonia prices would be
worth some $650,000/day. Construction time for the two
sea-going plants is expected to be about 2 and one-half yr from
the time the contract was signed in the fall of 1973. In
Indonesia, construction of a unit on land probably would be
impossible. The Kalimantan coast near the oil and gas fields is
an uninhabited stretch of jungle with swampy beaches and
poor soil conditions. Backers say the sea-going concept has
other advantages. Ships can move periodically to the nearest
port, where maintenance and repair of chemical equipment
may be easier. More important, the cost of the plants can be
amortized over several small natural gas fields where total gas
Supply may be insufficient to justify land units. And sea-based
plants may have environmental advantages.
115 Floating Ammonia Plant Design. Green Markets 1 (9), 8
(Apr. 11, 1977). A floating ammonia plant for utilizing
offshore natural gas has been designed by Gotaverken, a
Swedish shipyard, and Haldo Topsoe A/S, a Danish chemical
engineering firm. The managing director of Gotaverken says a
contract for the first plant is expected to be signed within a
year. However, Gotaverken won't elaborate on the identity of
the potential buyer. The plant will have a capacity of 100
mt/day of ammonia. Its advantage, say the designers, is that it
could use otherwise uneconomical deposits of natural gas or
associated gas from offshore wells located near areas needing
nitrogen. Cost of the plant would be between $166-million
and $214-million. Production time would be about 3 yr. The
plant would be built on barge, 116 by 74 m consisting of three
Sections: the processing plant, storage area, and living quarters
for 70 people. It would include steam and electric generation
units. Ammonia would be stored on board in four tanks,
capable of holding up to 20 days of production, at atmos
pheric pressure and at minus 33°. The product would be
moved to shore in 10,000-20,000 DWT tankers which would
moor alongside the plant.
 MARKET DEVELOPMENT
116 New Units to Recover Urea and Ammonia Catching on
With Fertilizer Firms. Chem. Week 118 (11), 39 (Mar. 17,
1976). Skid-mounted, add-on stripping units that recover
unreacted ammonia and urea are finding favor with fertilizer
makers. Two units have been licensed by Technip (New York)
to unidentified U.S. clients and a third will be installed in
India by Zuari Agro Chemicals at Zuarinagar, Goa. It will
process 215 gallons/minute of effluent containing as much as
2% of ammonia and 1% of urea. The final effluent from the
hydrolyzer-stripper unit will contain less than 45 ppm of
ammonia and 100 ppm of urea. The unit, contained within a
single tower, was developed about 3 yr ago and employs a
Mavrovic process. The technique involves hydrolyzing urea and
carbamate contained in waste streams to ammonia and carbon
dioxide. The ammonia is then stripped. (See FA 9, 1117).
117 Uranium Recovery. Phosphorus Potassium No. 88, 40
(Mar.-Apr. 1977) There is a growing interest among phos
phoric acid manufacturers, particularly in the United States,
concerning the recovery of uranium oxide as a by-product. It
is estimated. that the price of uranium recovered from
phosphoric acid could be less than half the current price of
uranium extracted from ore and that a 1000 tons/day P. Os
plant could increase its annual profitability by several million
dollars. Apart from being economically favorable, uranium
removal also helps eliminate any potential environmental and
human health hazards. Two companies, Freeport Minerals and
Wyoming Minerals Corp., a subsidiary of Westinghouse, have
announced plans to construct uranium extraction equipment
at phosphoric acid plants in Louisiana and Florida respective
ly. Both the processes used for uranium recovery have been
individually developed by the companies themselves and are
based on solvent extraction techniques, on which no specific
technical information has yet been released. Two other
processes, currently being developed by Oak Ridge National
Laboratory, Tennessee, also employ solvent extraction techni
ques to recover the uranium content of filter-grade (3.2%
P. Os) phosphoric acid. The DEPA-TOPO process involves
reductive stripping with a mixture of diſ 2-ethylhexyl) phos
phoric acid (DEPA) and trioctyl phosphine oxide (TOPO)
while the other process, the OPAP process, is an oxidative
stripping technique, which uses a mixture of mono- and
di-octylphenyl phosphoric acid (OPAP).
118 Extraction of Uranium From Phosphoric Acid. Eng.
Min. J. 178 (5), 9 (May 1977). A method of extracting
uranium contained in phosphoric acid solution at a cost of less
than $10 per pound has reportedly been developed by the
Japanese government's Power Reactor and Nuclear Fuel
Corporation. The company claims that the process is far
simpler than one currently used by some U.S. companies to
extract uranium from phosphoric acid. The Japanese method
extracts up to 95% of the approximately 0.1 gram of uranium
fluoride contained in a liter of phosphoric acid through the use
of several solvents, with the remaining solution still usable as
fertilizer. The company plans to build a pilot plant this yr.
119 Large Scale Uranium Recovery From Phosphoric Acid.
Eng. Min. J. 176 (11), 32 (Nov. 1975). Commercial recovery
of uranium on a large scale from Florida phosphates is a likely
prospect, as economic and technological problems in proces
sing appear to have been ironed out. One commercial plant is
due to start up this yr, and four other programs are at various
stages of development toward commercialization. Uranium
20
Recovery Corp. has contracted to install two extraction
modules at a new phosphoric acid plant owned by a subsidiary
of International Minerals and Chemical Co., about 10 mi west
of Mulberry, and to install a second module at the Grace plant,
in an expansion planned for completion in 1977. When all four
modules are on line, production capacity will be about 1.3
million lb of uranium/yr. Total uranium content of all US wet
process phosphoric acid production is about 5.5 to 6 million
lb/yr of U3O8. The wet process phosphoric acids produced in
central Florida have higher uranium content than acid from
other sources. At present, the central Florida plants have a
capacity of 3.2 million tons of P. Os/yr. Since there is about 1
lb of U3Os for each ton of P2 Os in acid from central Florida
rock, nearly 5 million lb of uranium are being lost each yr at
the central Florida plants and those on the Gulf Coast using
Florida rock.
120 Uranium Recovery From Phosphate Rock. Chern. Eng.
News 55 (1), 7 (Jan. 3, 1977). Freeport Minerals will recover
uranium as an oxide from processing phosphate rock in
making H3PO, for fertilizers. Facilities using technology
developed by Freeport are scheduled to begin operations late
in 1978 in the company's plant at Uncle Sam, on the
Mississippi River above New Orleans. Capacity will be 690,000
lb/yr of uranium oxide, known as yellow cake, or about 3% of
U.S. uranium oxide production in 1975. Half of the facility’s
capacity has been sold under a long-term contract, which
includes $10 million in advance payment from an undisclosed
buyer.
121 Phosphoric Acid Process Offered in United States.
Phosphorus Potassium No. 90; 47 (July-Aug. 1977). A process
for purifying wet-process phosphoric acid developed by
Societe Azote et Produits Chimique of Toulause, France, over
5 yr ago is now being offered in America by Luwa Corp. of
Charlotte, North Carolina. Called the Phorex Process, it is
based on solvent extraction techniques and uses isobutanol as
the solvent. Not only is the process capable of producing pure
phosphoric acid but it is also flexible and allows the
production of a number of phosphate salts. About 98% of the
P. Os values are recovered.
122 Improved Phosphoric Acid Process. Chem. Eng. News
52 (39), 22 (Sept. 30, 1974). Fisons Ltd., in the U.K. has
developed process modifications that lead to a 4% improve
ment in the economics of production of phosphoric acid. The
degree of purity of phosphoric acid made by the process is
better than that of acid made by the dihydrate route, and
solids content is less than 1%. Moreover, the calcium sulfate
byproduct contains less entrained phosphate and fluoride ions
than is the case with material obtained from alternate
phosphoric acid routes—a fact that could lead to an additional
economic advantage when the calcium sulfate is sold as
building material. Fisons’ new Hemihydrate-Dihydrate process
is the basis of a phosphoric acid plant now going up in
Yugoslavia at Kosovska Mitrovica, some 120 miles south of
Belgrade. Designed by West Germany's Lurgi Chemie, the
plant will be capable of making 50,000 mt annually of P. Os
as 50% phosphoric acid (on a P. Os wt basis) when it starts up
early next yr.
123 Soviet Phosphoric Acid Process. Eur, Chem. News 28
(736), 43 (May 14, 1976). A process that produces concen
trated polyphosphoric acid has been put into commercial
 MARKET DEVELOPMENT
operation by the Soviet Khimprom enterprise in Dzhambul.
Designed by the Niigiprokhim institute, a 60,000 ton/yr plant
recently came on-stream producing orthophosphoric acid with
a 30% higher P. Os content than normally produced. Once
continuous production has been established, it is hoped that
similarly designed plants will allow the exploitation of the
low-grade rock deposits of the Karatuau area.
124 Potassium Salts from Egyptian Bittern. Pt. 1 Review on
Crystallization of Potash from Bittern. M. Y. Bakr. A. A.
Zatout, and F. El-Sayed (Univ. Alexandria, Alexandria,
Egypt). CEER 9 (No. 1, No. 102), 33-5 (Jan. 1977). Various
processes have been devised to try to extract potassium salts
from sea bittern on a commercial basis. Exploitation of any
particular process depends on various factors such as economy,
simplicity, and recovery of by-products in the process.
Crystallization of potash from sea bittern can be divided into
two main methods. One of them is desulphation of bittern
then further concentrations to crystallize potash in the form
of carnallite. The second is further concentration of bitterns to
obtain mixed salts. Various processes for separation of mixed
salt constituents is reported and reviewed in this study.
125 Indian Study of Potash From Waste Process. Eur, Chem.
News 27 (704), 46 (Sept. 26, 1975). Walchandanagar Indus
tries of India is constructing a RS250,000 pilot plant with
which to examine the commercial potential of producing
potash fertilizers from potassium salts contained in distillery
waste. Initial studies by the company have shown the
possibility of producing up to 15,000 ton/yr of potash
fertilizers from the 30 million 1./day of spent distillery wash
which is produced throughout the country.
126 Canadian Companies Develop Sulfur Prilling Process.
Sulphur No. 129, 49 (Mar.-Apr. 1977). Stearns-Roger Canada
Ltd. has announced that it now offers a sulfur forming process
using an air-prilling technique. The prills, formed by spraying
molten sulfur down a tower against an upward current of air,
help to alleviate the environmental pollution problem
normally associated with the bulk handling and transport of
solid sulfur.
127 Stack-Gas Sulfur Recovery Process Produces Liquid
Fertilizer. Chem. Week 116 (17), 36 (Apr. 23, 1975). A new
stack-gas S removal system that makes a fertilizer formulation
has been developed by the Illinois Institute of Technology and
Purity Corp. (Elk Grove Village, Ill.). In the process, S in coal
(the pilot plant uses 2.9% S coal, fed at about 70 lbs./hr) is
burned to SO3. After conversion into sulfuric acid, the stream
is sent to a vessel containing phosphate rock, where it reacts to
form calcium phosphate and calcium sulfate. The addition of
ammonia results in a 7-22-0 liquid fertilizer product containing
ammonium phosphate, ammonium sulfate, calcium phosphate
and calcium sulfate. A 500-megawatt plant could make
600,000–800,000 tons/yr of commercially acceptable ferti
lizer, according to Purity.
128 U.S.S.R. to Use Snam Progetti Integrated Ammonia
Urea Process. Eur. Chem. News 25 (632), l l (Apr. 19, 1974).
The first large capacity plant to use Snam Progetti's integrated
ammonia-urea process for producing urea is to be built in the
U.S.S.R. The Italian contractor has signed an agreement with
the Soviet Ministry of the Chemical Industry covering the
engineering and construction of the plant. No details have
been released on the size of the unit or its location, but it is
believed that the capacity of the plant will be around 2000
ton/day of urea. Process design work has been completed but
the only indication of the startup date is that it will be before
1980. Although this is the first commercial scale plant, Snam
Progetti does have a small unit in operation.
129 Tennessee Valley Authority Fertilizer Process Use. Farm
Chem. 139 (4), 82 (Apr. 1976). Tennessee Valley Authority
reports it granted 16 licenses last yr, bringing to nearly 100 the
number of fertilizer manufacturers using a TVA-patented
pipe-cross reactor process for making fluid fertilizers.
Developed at TVA's National Fertilizer Development Center,
the process's major advantages are its simplicity, economical
installation and operation, and capacity for utilizing cheap and
readily available low-grade phosphoric acid to produce
Superior fertilizer. It also conserves energy when used to make
granular fertilizers because no separate heat is needed for
drying out the product.
130 Introduction and Use of TVA Nitric Phosphates. Muscle
Shoals, Ala.: Tennessee Valley Authority, National Fertilizer
Development Center; Circular Z-45, 32 pp. (May 1974). A
simple, economical process for manufacturing nitric phos.
phates has been developed. TVA has produced enough for
field testing, educational programs, and market development
in a demonstration-scale plant since 1966. A description of the
introduction and use in educational programs is given. A
review of processes and chemical and storage characteristics is
presented. A summary of major uses by regions for the
test-demonstration and fertilizer industry demonstration
programs is given.
131 TVA Preliminary Report Shows Foliar Fertilization has
Potential. L. B. Nelson (TVA, National Fertilizer Development
Center, Muscle Shoals, Alabama). Fert. Solutions 21 (1),
108-11 (Jan.-Feb. 1977). The Tennessee Valley Authority’s
primary role in foliar fertilization has been supplying experi
mental materials for testing. Experiments conducted by other
organizations have shown significant yield increases and
suggest that the practice of foliar fertilization has potential.
More must be known about application methods, including
time and rate of application, type of equipment, size of spray
droplets, and suitable surfactants. Studies must be made on
what growing conditions are conducive to greatest positive
response, including soil moisture, weather conditions at time
of application, and others. Materials and formulations must be
examined from the standpoint of maximizing agronomic
response and minimizing cost. The effect of biuret must be
studied. Other additives to the fertilizer should be considered.
132 Prospects for Foliar Fertilization. Ned Von Buren. Fert.
Solutions 21 (3), 8, 10, 14, 19-20, 22 (May-June 1977). A
practice called foliar fertilization is blooming on the American
agricultural scene. Performance appear economically feasible.
Preliminary findings report that more research is needed to
study: (1) the different forms of the nutrient elements; (2)
optimum time of application; (3) optimum rate of application;
(4) differences in response among different varieties and
hybrids; (5) effectiveness of different adjuvants in spray
solution; (6) equipment and methods for field applications on
different crops; (7) effects of other factors such as chlorides,
biuret, urease, plant moisture stress, and others; (8) cultural
and planting practices; and (9) the economics of foliar
21
 MARKET DEVELOPMENT
fertilization. Future prospects for foliar fertilization will
depend on research yield-levels, and the relationship of crop to
foliar fertilization prices.
133 Fertilizer–Methane Made on the Farm is Goal
Projects Backed by Senator. Chem. Mark. Rep. 210 (6), 4, 17
(Aug. 9, 1976). Sen. Gaylord Nelson (Wisc.) last week
proposed a series of pilot projects to show whether a process
that produces energy from manure and crop residues is
practical for widespread use on American farms. He intro
duced a bill under which the Department of Agriculture would
set up anaerobic digesters on farms around the country
selected to represent a variety of climates, terrain sizes, and
other variable conditions. Animal manure and crop residues
would be processed in the digesters to produce methane gas.
The gas would replace natural and propane gas, and would be
used to generate electricity, heat buildings, dry crops, and do
other farm work. The residue of the process would be used for
fertilizer. “Bio-gas” plants, as the digesters sometimes are
called, are in use in Algeria, South Africa, Korea, France,
Hungary, and India. India has some 2500 plants.
134 Fertilizer Plant Uses Feedlot Wastes. Feedstuffs 47 (18),
16 (May 5, 1975). A new fertilizer plant using manure from
area cattle feedlots has been opened by the BioCon Divison of
Searle Agriculture, Inc., near Summerfield, Texas. The com
pany is using the aerobic bacterial digestion process to convert
animal waste into a product called "Tilleez,” according to a
company spokesman. Because some components are broken
down by the bacterial process, the product will not cause odor
or burning associated with regular manure. The plant will be
capable of using 150,000 to 200,000 tons of feedlot waste
annually, and will employ from 10 to 12 workers.
135 Fertilizer From Wind. Chem. Mark. Rep. 210 (19), 4, 27
(Nov. 8, 1976). Jacobs Engineering Company has been
awarded a contract by Lockheed-California Company to
conduct a process study for the manufacture of ammonia and
ammonium nitrate from gaseous hydrogen and nitrogen raw
materials produced by wind energy. Jacobs Engineering will
study the feasibility of constructing a number of small plants
which can convert wind energy to fertilizer using a concept
developed by the aerospace company. The concept proposes
to generate hydrogen by hydrolysis of water, and nitrogen by
the fractionation of liquefied air. These raw materials would
be reacted and made into a fertilizer that could be stored for
later use, which in effect would store the wind's energy. Using
a wind energy source to produce fertilizer in a vast number of
small plants, if feasible, would substantially reduce costs
associated with conventional fertilizer production today, says
the engineering company. For example, it would not be
necessary to produce a concentrated, water-free product—such
as anhydrous ammonia and prilled, solid ammonium nitrate—
to minimize shipping costs. Other savings would result from
mass production of the plants, standardized maintenance and
parts replacement and reduced operating costs since the plants
could operate virtually unattended.
136 Chemical Fertilizers from Renewable Resources Sought.
J. Commerce 335 (24, 117), 5 (Jan. 5, 1978). Three University
of Virginia chemical engineers are working on a method of
producing chemical fertilizers by using such renewable sources
as trees, peanut hulls, and corn husks. The researchers are
trying to combine nitrogen from the atmosphere with hydro
22
gen released from cellulose to make the fertilizer. Nitrogen
fixation depends on the ability of certain bacteria to combine
the ingredients and produce ammonia. A possible design is a
25-gallon container through which a stream of water would
of pass. Cellulose waste, such as corn stalks, peanut hulls or tree
bark, would be fed to the bacteria to break the material down.
If research efforts are successful scientist anticipate the
development of small reactors to be used on individual farms
to decrease transportation costs.
137 Plastic Fertilizer Bags Recycled. Fert. Int. No. 82, 8
(Apr. 1976). Associated Polymers (NI) of Newry, Northern
Ireland claims a world first at its plastics recycling plant. The
general manager believes that plant is the first integrated unit
to accept dirty plastic waste. The process is of interest to the
fertilizer industry because a high percentage of the plant's
input is in the form of used fertilizer bags. The bags are
washed and processed into granules ready for shipment.
138 New Products for the Future. A. B. Phillips. In TWA
Fertilizer Bulk Blending Conf. (Held Aug. 1-2, 1973,
Louisville, Kentucky). Muscle Shoals, Ala.: Tennessee Valley
Authority, National Fertilizer Development Center; Bull.
Y-62, pp. 23-7 (Aug. 1973). A large number of new materials
for bulk blending will become available within the present
decade. They will offer advantages in analysis, physical
properties, and cost over many of the present products. Some
of the materials will be useful in the production of liquid
fertilizers as well as bulk blends. The new materials described
have been developed at least through the pilot-plant stage and
their properties are described with confidence but these
predictions are subject to change as the development con
tinues. Materials described are granular urea, urea ammonium
sulfate, urea ammonium phosphates, slow-release sulfur-coated
urea, ammonium polyphosphates, and potassium phosphates.
139 Tennessee Valley Authority Begins Production of New
Fertilizers. Chem. Week 114 (8), 38 (Feb. 20, 1974).
Production of two new fertilizer materials has been scaled up
by the Tennessee Valley Authority at its Muscle Shoals, Ala.,
Development Center. It is making granular urea ammonium
phosphate (UAP) (28-28-0) and granular urea in a demonstra
tion plant for further testing by farmers and industrial firms.
The UAP product can be made in a variety of ratios and
modified to include potash. The plant food content runs as
high as 60%. Granular urea has nearly twice the crushing
strength of prilled urea, and the granules can be sized to match
other fertilizer materials. UAP is made in a pug mill from 98%
urea solution and ammonium polyphosphate melt produced
from merchant-grade, wet-process acid and ammonia.
140 New Product Introduced. Chem. Age (London) 114
º 8 (Feb. 4, 1977). A new urea-ammonium phosphate
ertilizer which, it is claimed, is equivalent to its own wt in
ammonium nitrate and an equal wt of ordinary superphos
phate fertilizer has been developed by the Tennessee Valley
Authority in the U.S. The fertilizer is produced in two grades,
35; 17:0 and 28:28:0. The first grade contains 67% urea and
33% ammonium polyphosphate, and the second contains
about 50% by wt of each. The fertilizer is particularly suitable
for soils having a low pH.
141 Sizing up Water-Insoluble Nitrogen Products. Farm
Chem. 139 (12), 36, 38, 40 (Dec. 1976). Three categories of
 MARKET DEVELOPMENT
controlled release or water-insoluble N fertilizer are the low
solubility materials, the water-soluble materials packaged in a
diffusion membrane, and the water-soluble materials with
biodegradable coatings. In the first category are the ureaforms,
made by reacting urea with an aldehyde such as formaldehyde
or isobutylaldehyde. Composition and characteristics can be
varied. The product is sparingly soluble in water although loss
of control during manufacture can result in production of
inert materials. The low solubility is advantageous but use of
the completely insoluble material, which sometimes happens,
destroys customer credibility in the product. Materials pro
duced commercially include Nitroform from Hercules Inc.,
Agriform from Sierra Chemical Co., and IBDU from Mitsubishi
Chemical Industries which is marketed in the U.S. by Swift
Agricultural Chemicals as Par-Ex. Another of the commercially
available low solubility materials is a co-granulated mixture of
MgNH4 PO4 and MgkPO4, known as MagAmp and produced
by Jiffy Products of America. O. M. Scott and Sons produces
low solubility turf fertilizers by a patented process whereby
nutrients are impregnated on to vermiculite; trade names are
ProTurf and Turf Builder. Soluble N materials jacketed in
diffusion membranes include Osmocote and Sierra Chemical
Co. products. Osmocote's coating contains cyclopentadiene
co-polymer and polymers of unsaturated glycerol esters. The
Sierra products are based on an Archer Daniels Midland Co.
patent. Release rate is affected more by soil temperature than
by soil moisture, pH, or microorganisms. The 3M Company is
expected to enter this market in the spring of 1977 with its
Precise tomato fertilizer that has a biodegradable plastic shell.
In the third category, TVA’s S-coated urea (SCU) is the only
material presently available. The TVA material is only semi
commercially available. Cost of SCU is about one-third more
than regular urea but much less than the products in other
categories. S-coated urea therefore can be used on a wider
array of crops, including some field crops, than other
controlled-release fertilizers.
142 Gold-N, A Sulfur-Coated Urea From ICl. L. H. Davies
(Imperial Chemical Industries, Billingham Teesside, England).
Sulphur Inst. J. 10 (2), 6-10 (Summer 1974). Development
work on a slow release N by coating urea granules with S was
started by Tennessee Valley Authority about 10 yr ago.
Technology for manufacturing sulfur-coated urea was studied
concurrently at Imperial Chemical Industries, Ltd. (ICI) which
resulted in a S-coated urea being placed on the United
Kingdom market in 1972 as GOLD-N. GOLD-N is produced at
ICI’s Teesside plant. Urea prills are coated with S to give a
product containing 32% N, 30% S, and about 2% wax. The
premium price above conventional fertilizers does not make its
use universally attractive. The properties of GOLD-N indicate
that it is a profitable commercial product for heavily irrigated
crops, grasses on parks, golf courses, etc., and land reclama
tion. ICI is continuing to explore applications for GOLD-N.
143 United States Sulfur-Coated Urea Plant. Chem. Mark.
Rep. 212 (16), 5, 37 (Oct. 17, 1977). Plans for the
construction of a facility in Columbia, Alabama, for the
production of sulfur-coated urea, a control-release N fertilizer,
have been announced by Ag Industries Manufacturing Cor
poration (AIM). This will be the first such plant in the United
States and only the second in the world. Construction of the
plants process equipment will begin after mid-October 1977,
with plans for operations to begin in early 1978.
144 New Chemical Slows Nitrogen Release. Farm J. 102 (2),
40 (Feb. 1978). Kalo Laboratories has recently introduced a
new product called “Extend” which delays the release of N
from aqua ammonia and urea-ammonium nitrate solutions.
Experiments show increases of 12 buſacre on corn yields when
Extend is applied. The product encapsulates some—but not
all—of the N molecules, chemically binding them to soil
particles and holding them “in reserve” for later-season use.
Kalo Scientist point out that Extend does not depend on soil
bacteria for N release. Moisture–rainfall or irrigation–breaks
the chemical bond, triggering periodic release of the encapsu
lated N. The product is noncorrosive and may be mixed
directly in the tank with N solutions. The estimated cost for
the product is about three cents/lb of actual N applied and will
be available in all mainland states except California during
1978.
145 N-Serve Update. Agrichem. Age 20 (2), 18-19 (Mar.
1977). Dow Chemical Co. began commercial production of
N-serve, nitrification inhibitor, during the summer of 1976.
The product is registered for use on wheat, corn, cotton, and
grain sorghum. The company is seeking to expand registration
of the product for use on rice, potatoes, sugarbeets, tomatoes,
and lettuce. Purdue research showed increased yields at 15 of
21 locations studied in 1976 with an average increase of 9
bu/acre corn attributable to N-serve. The increased yield
reflected increased N availability as well as reduced root rot
and stalk breakage. Nitrapyrin, the active compound, is
marketed in two forms: N-serve 24, for application with
anhydrous ammonia and dry fertilizer, and N-serve 24E for use
with aqueous ammonia and other solutions.
146 Wax Coatings Might Enable Urea and Triple Superphos
phate to be Blended. Phosphorus Potassium No. 87, 45
(Jan.-Feb. 1977). Experiments are now being carried out by
the TVA, National Fertilizer Development Center, into the
possibilities of producing a compatible blend of fertilizer
containing urea and triple superphosphate. The use of differ
ent wax and oil mixtures to create a coating which would
prevent triple superphosphate from reabsorbing moisture after
it has been dried is being studied. Montan wax and mixtures of
it with other materials are being investigated by researchers as
moisture barrier. The principal obstacle to the commercial use
of such a composition is its high cost. Proposals for reducing
the cost include using cheaper grades of montan and mixing it
with oil or other waxes.
147 Super Slag–Effective Alternative to Basic Slag. J. Flour
Anim. Feed Milling 160 (1), 25 (Jan. 1977). With recent
changes in the steel-making process affecting most steel works
in the United Kingdom, low phosphatic ores are now being
used with the result that the slag produced, the so-called LD
slag, is low-grade, containing only 2–4% P20s as compared
with 10-16% in the small proportion of high-grade slag still
being produced. There is, thus, a large reduction in the supply
of high-grade basic slag and efforts have been made to produce
a satisfactory substitute. One way of extending the use of the
reduced quantity of basic slag available is to mix with it a
proportion of rock phosphate. To do this, and still retain the
essential desirable characteristics of high-grade basic slag,
requires that the proportions in which the two ingredients are
mixed are such that the P2 Os contribution from basic slag is
dominant, and not that from rock phosphate. Super Slag is a
23
 MARKET DEVELOPMENT
mixture of high-grade basic slag and rock phosphate having
16% total P2 Os of which about 70% is from basic slag.
148 Fisons Markets Monoammonium Phosphate as Inter
mediate. Eur. Chem. News 24 (597), 9 (Aug. 17, 1973). Fisons
Fertilizer licensing manager says that Minifos monoammonium
phosphate (MAP) will soon supplant merchant grade phos
phoric acid as a long haul intermediate for NPK fertilizers.
Already, MAP has made considerable inroads into the estab
lished phosphoric acid fertilizer trade and it is anticipated this
will be responsible for the majority of movements by the end
of the decade. At the moment Fisons is working on a
computer model which will take into consideration a number
of parameters such as freight costs, capacities, and distance.
This should be completed by December 1973. The basis for
the costing is taken as a 300,000 ton/yr plant producing
fertilizers with an NPK ratio of 27-27-0, equivalent to 84,000
ton/yr of imported P2Os. It is assumed that a phosphoric acid
manufacturing unit is situated in a phosphate rock mining area
such as Florida and that the consumer plant is located at a
port on the coast of India.
149 Sulfur Pellet Facility Planned for Canada. Chem. Mark.
Rep. 207 (14), 4 (Apr. 7, 1975). Canadian Occidental
Petroleum, Ltd., and its affiliate, Petrogas Processing, Ltd.,
plan to construct what is reported to be the first major S
pelletizing plant in Canada. The unit with a capacity of 300
mt/day, will be installed at the Petrogas plant site at Balzac,
Alberta. Project engineering is currently at an advanced stage
and, subject to equipment and material deliveries, the unit is
scheduled for completion by October 1975. The sulfur pellets
are destined primarily for North American industrial chemical
and fertilizer markets. The finished product is said to be
completely dry and relatively dust free, with a bulk density of
70 pounds per cubic foot and ranging in size from two to six
millimeters in diameter. The product is reported particularly
suited for bulk fertilizer blending or for direct application to
the soil using conventional spreading equipment and methods.
150 Sulfur Nuggets: Yet Another New Form of Formed
Sulfur. Sulphur No. 126, 47-9 (Sept.-Oct. 1976). A novel
process-known as nuggetting—for the preparation of S has
been developed and patented by Liquid Terminals Inc. of
Corpus Christi, Texas. The most important characteristic of
formed S is its ability to resist dust formation during handling.
Test indicate that nuggets are markedly less prone to dusting
than is slated S. By modifying process conditions, it is possible
to produce low-density nuggets which are particularly suitable
for remelting. The heart of the process consist of spray nozzle
which produces nuggets directly from an immersed position in
a water bath. The remainder of the process consists of
dewatering and conveying equipment. The standard commer
cial unit is capable of 85 tons/hr output.
151 Japanese Firm Markets New Fertilizer. Jap. Chem. Week
14 (664), 7 (Jan. 18, 1973). Asahi Chemical Industry Co. has
developed a pile-type fertilizer for the exclusive use for trees
and is to start full-fledged sales of the fertilizer under the trade
name, Green Pile, through Chisso-Asahi Fertilizer Co. Green
Pile is time- and labor-saving because of its pile-type. Its
fertilization effectiveness is that 7% N content oozes out in a
week and 50% in 20 days.
152 Japanese Make New Fertilizer. Jap. Chem. Week 15
24
(756), 5 (Oct. 24, 1974). Mitsubishi Corporation and Nippon
Carbide Industries Co. have been conducting examinations to
utilize a byproduct from dicyan diamide manufacture as a
fertilizer. The dicyan diamide is being manufactured at the
Uozu factory (Toyama Pref.) of Nippon Carbide. A 35,000
tons/yr plant will be constructed with completion scheduled
for next spring. The product, as a lime fertilizer, improves acid
soil. Latent demand for the product is expected to be large.
153 Leacaena Plant—Fertilizer Potential. Green Markets 1
(33), 8 (Sept. 26, 1977). Scientists from the National
Academy of Sciences says the tropical plant leacaena might
become a practical source of fertilizer in the tropics. Leacaena
is a leguminous plant similar to soybeans and is able to fix
nitrogen from the air and soil. Leacaena plants harvested in
Hawaii contain 40 lbs P, 170 lbs K/acre and other nutrients.
Experiments show that if leacaena foliage is used as fertilizer,
crops respond with yield increases approaching those effected
by commercial fertilizer. The plant can only be grown in the
tropics and at low elevations, so it is doubtful that it can be
used widely.
154 Alcohol that Fertilizes. Chem. Week 121 (21), 18 (Nov.
23, 1977). A natural alcohol called “triacontanol,” is reported
to have increased crop yields an average of 12%. Triacontanol
is extracted from alfalfa. A Michigan State University
researcher used the chopped plant to fertilize tomato plants
and realized yield increases of more than 16 tons/acre over test
plots fertilized with commercial N fertilizers. Research to date
indicates that the compound has three important properties: it
acts at very low concentrations; the growth effect is very
rapid; and it causes some plants to grow in the dark. Further
tests will be conducted by American Cynamid before commer
cialization is attempted.
155 New Phosphate Rock Deposits in Africa. Phosphorus
Potassium No. 86, 17 (Nov.-Dec. 1976). The South African
Council for Scientific and Industrial Research has reported
that marine phosphate and glauconite deposits have been
discovered off the mouth of Kunene river on the border
between Angola and Namibia.
156 Phosphate Deposits Found in Angola. Eng. Min. J. 177
(6), 336 (June 1976). Marine phosphate and glauconite
deposits have been discovered off the mouth of the Kunene
River on the border between Angola and South West Africa
The deposits were found by a survey of the South African
Council for Scientific and Industrial Research and a marine
geology unit attached to the University of Cape Town.
157 United States Company Studies Australian Phosphate
Project. Chem. Week 116 (26), 13 (June 25, 1975). Inter
national Minerals & Chemical Corp. is studing the economic
feasibility of developing a major phosphate deposit in north
west Queensland, Australia. The deposit, about 70 miles
northwest of Mt. Isa, is reported to contain huge reserves of
phosphorite, similar in nature and phosphate content to
Florida deposits. Development of the deposit will require vast
investments for infrastructure, such as a railway and port
facilities.
158 Brazil Finds Phosphate Reserves Chem. Age (London)
110 (2907), 8 (Apr. 4, 1975). Phosphate rock reserves
totalling 350 million mt have been discovered at Patos in the
 MARKET DEVELOPMENT
region of Minas Gerais in Brazil, and the government is
predicting that the development of these supplies should end
Brazil's dependence on phosphate rock imports by 1977.
Imports of phosphate rock have been leaning heavily on
Brazil's balance of payments difficulties. The average phos
phate content of the reserves now discovered is 15%, and a
processing plant is to be built to produce a phosphate
concentrate of 35% P20s content. The plant is expected to
begin operation in about a yr with a capacity of 150,000
mt/yr, rising to 900,000 mt/yr by mid-1977 and to 1.8 million
mt/yr by 1980. Before this find was announced, forecasts of
Brazil's imports of phosphate rock indicated that these would
rise to 2.2 million mt by 1976.
159 Phosphate Deposit in Brazil. Chem. Mark. Rep. 210 (9),
7 (Aug. 30, 1976). New reserves of phosphate of at least 100
million tons are reported to have been located in the interior
of Brazil’s Minas Gerais state, according to a report of Vale do
Rio Doce. The state-owned company says preliminary research
in the area has been started. A consortium of state and Federal
government and private interests is expected to be formed to
develop the phosphate lands.
160 Brazil to Begin Phosphate Production. Chem. Age
(London) 112 (2959), 10 (Apr. 2, 1976). The Brazilian
government is set to start production of phosphate concen
trate at its mining company Cia de Pesquisa de Recursos
Minerais. The mine, at Minas Gerais, is estimated to hold
deposits of over 400 million mt of phosphate ore. Production
from the plant will reach 150,000 mt/yr.
161 Large Phosphate Find in Brazil. Chem. Age (London)
115 (3024), 3 (July 1, 1977). Brazil has discovered a large
deposit of phosphate in the Anitapolis district of the State of
Santa Catarina. The deposit is said to be large enough to
supply the states phosphate needs and contribute product to
the large fertilizer facilities in the neighboring state of Rio
Grande do Sul.
162 Phosphate Deposit in Canada. Wall St. J. (East Edition)
186 (33), 17 (Aug. 15, 1975). International Minerals &
Chemical Corp. (Canada), a unit of International Minerals &
Chemical Corp., Chicago, said it discovered a deposit of
phosphate-bearing rock in Cargill Township, in northern
Ontario, about 400 miles northwest of Toronto. The discovery
is considered potentially significant, but sufficient data aren’t
yet available to determine tonnage, grade, or mining feasi
bility. If the deposit is eventually brought into production, it
will be Canada's first phosphate mine.
163 International Minerals Confirms Canadian Phosphate
Discovery. Wall St. J. (East Edition) 187 (4), 8 (Jan. 7, 1976).
International Minerals & Chemical Corp. (Canada) Ltd., said
that 152 drilling tests have confirmed its previously reported
projection of phosphate-bearing minerals at its prospect in the
Cargill Township area of northern Ontario. However, the
company said that because the deposits found are substantially
different from occurrences of phosphate found elsewhere in
the world, the economic feasibility of mining and processing
involves numerous separate but related problems which must
be solved before production decisions can be made. The
company declined to specify the amount or quality of the
phosphate deposit beyond saying that it was substantial. The
site is about 400 miles northwest of Toronto.
164 Columbia Studies Phosphate Mining Potential. Green
Markets 1 (39), 3 (Nov. 7, 1977). Columbis is moving ahead
with studies designed to promote domestic phosphate mining.
The Inter-American Development Bank recently granted
Columbia's government mining enterprise, Ecominas, $1.7
million to contract feasibility studies in the northern and
central parts of the country. The regions involved include
Boyaca and Northern Santander which contains 42% of
Columbia's total phosphate reserves. Other phosphate deposits
are located in the states of Tolima and Hila. Prefeasibility
studies indicate that the internal rate of return on the project
would be about 26%. Estimated project costs is $60 million.
Currently the only commercial plants producing phosphate
materials are located at Cartegena where 75,000 mt of
phosphate rock is processed annually.
165 Geology and Exploration of the Large Phosphate
Deposit in Abu Tartur Plateau, the Libyan (Western) Desert,
Egypt. M. H. Hermina and A. Wassaf (Geol. Surv. Egypt,
Cairo, Egypt). Ann. Geol. Sury. Egypt 5, 87-93 (1975). CA 87,
4.2019. A phosphorite horizon of Egypt occurs in the Upper
Campanian-Lower Maestrichian Sediments. Proved reserves are
363 million tons; probable reserves 624 million tons con
taining P. Os 25%. Washing and flotation produced a concen
trate of P. Os 31.1%, with ~ 85% recovery.
166 Egyptian Phosphate Deposit Study. Eur. Chem. News
29 (754), 11 (Sept. 24, 1976). Alusuisse and Soc. Francaise
pour l'Exploitation des Mines (Sofremines) have signed a FF38
million contract to survey a phosphate rock deposit at the Abu
Tartour oasis in Egypt. If exploitation proves economic, Egypt
envisages setting up a 7 million ton/yr mine.
167 New Phosphate Discovery in Egypt. Eng. Min. J. 178
(12), 152 (Dec. 1977). Phosphate reserves of 1.5 billion tons
have been discovered in the Egyptian Qena governorate. The
find was said to be more significant than that at Abu Tartour
in the New Valley. The Qena reserves have a P. Os content of
25.5%.
168 Phosphate Rock Deposits in India. Eur. Chem. News 25
(650), 6 (Aug. 23, 1974). More news is emerging from India
on the extent of recent phosphate rock finds. The latest
discovery is deposits of around 10 million tons of rock on the
Bormer-Jaisalmer border of Rajasthan. Another 1 million tons
deposit of usable phosphate rock has been found near
Udaipur. Already being exploited are the Jhamarkota deposits
near Udaipur, where latest surveys have proved reserves
containing 10 million tons of high-grade and 25 million tons of
medium-grade rock.
169 Indian Phosphate Rock. Phosphorus Potassium No. 89;
25-7 (May-June 1977). The mining of phosphate rock in India
on a commercial scale is a fairly recent development in the
nation's industrial history. Apart from a few thousand mt that
were unearthed in the eastern states, the superphosphate
industry was entirely dependent on imported rock until 1969.
Three years previously an American geologist announced the
discovery of a phosphorite deposit near Birmania and, spurred
on by this, the first such discovery in 80 years, the Geological
Survey of India organized a series of surveys in the more
northern states. Since then the Birmania deposit has been
shown to be uneconomic, but three other main areas, the
Udipar, Mussoorie, and Jhabua, have been found to contain
25
 MARKET DEVELOPMENT
profitable reserves.
170 Indigenous Rock Phosphate—Current Status and Future
Plans. I. G. Jhingram and R. Choudhuri (Rajasthan State
Minerals and Mines, Juipur, Rajasthan, India). Fert. News 22
(12), 56-62 (Dec. 1977). The current status of proved and
probable reserves of indigenous rock phosphate quality and
commercial exploitation is discussed. These deposits includes
the areas of Rajasthan, Utter Pradesh, Madhya Pradesh, West
Bengal, Bihar, Andhia Pradesh, and Tamil Nadu. The investiga
tion indicates that the most important potential deposits exist
in three regions. These were the Udaipur/Jhabua in the
west–70 million mt, the Mussoorie in the north–20 million
mt, and the Puruha/Singhblum in the east–10 million mt.
Considering the techno-economic viability for the develop
ment of indivisual deposits, the Udaipur deposits justifiably
offer a heavy investment for prolonged production. Future
production trends and prices for phosphate are also given.
171 Phosphate Deposit Found for Mexico. Chem. Mkt. Rep.
206 (27), 3 (Dec. 30, 1974). The discovery of extensive
deposits of phosphate rock in the Baja California peninsula
was disclosed last week by the Mexican government. Govern
ment spokesmen estimate the deposit at around 3 billion tons.
This would be enough to transform Mexico into an exporter
rather than an importer of phosphate rock by 1976. The
country now imports an average of 2 million tons annually.
172 Phosphate Deposits in Norway. J. Flour Anim. Feed
Milling 160 (6), 27 (June 1977). Norsk Hydro has acquired the
right to mine the only known major phosphate deposit in
Norway, but there is uncertainty over whether this source of
fertilizer raw material will be mined in the near future. The
deposit is at Kodal on the west side of the Osla fjord, and
consists of an estimated 12 million mt of raw phosphate mixed
with large deposits of iron ore. At present the company's
fertilizer complexes at Porsgrunn and Glomfjord have to
import all phosphate from the USSR, Israel, Florida, and
Sweden. The reason for the uncertainty over commencing the
mining is the low phosphate content of the deposit (approxi
mately 17%). This is lower than most phosphate mines, but
could be offset by the relatively high iron ore content
(approximately 40%) if an economic use could be found for
the ore. Exploitation of the deposit will also depend on
developments in world price availability of phosphate. Hydro
consumes 400,000 mt of phosphate annually, and if mined the
site would cover the company’s requirements for 30 yr.
173 Peru to Begin Phosphate Rock Mining. Eng. Mining J.
175 (12), 30 (Dec. 1974). At Bayovar, near the coast in
northern Peru, phosphate deposits contain 550 million mt of
30.5% P., Os. These deposits were identified by drilling in two
main mineralized areas 18 miles apart. In a first stage slated for
rapid completion, $20 million is being spent to begin
production of 650,000 mt/yr of 30% P. Os with construction
to begin right away. For the more ambitious Second stage,
involving an investment of $170 million, Minero Peru has
contracted for a feasibility study to be finished in July 1975.
By 1977, production is to begin at 2.5 million mt/yr of
phosphate rock concentrate with a fertilizer plant scheduled
for startup in 1979.
174 Spain and Peru Set Mining Plans. Green Markets 1 (45),
2 (Dec. 19, 1977). The National Institute of Industry (INI) is
26
making a bid to mine phosphates in Bayovar, Peru, where
reserves are estimated at 550 million mt. If feasibility and
engineering studies prove satisfactory Mineroperu will own
51% of the venture and INI will own the remainder. The
project involves a capital investment of $300 million. INI
forecasts initial production to be 880,000 mt/yr of phosphate
rock. The proposed complex will include upgrading facilities
for production of (mt/yr) 500,000 of sulfuric acid, 370,000 of
triple superphosphate, and 150,000 of diammonium phos.
phate.
175 Phosphate Deposit Study in Saudi Arabia. Chem. Age
(London) 113 (2983), 16 (Sept. 17, 1976). Granges, the
Swedish mining and metals group, has reached an agreement
with Petromin, Saudi Arabia's state-owned petroleum agency.
Under the agreement, Granges will investigate a large phos.
phate deposit in Northern Saudi Arabia. The reserves in the
area are estimated at between 150 and 300 million mt of
phosphate ore. Upgrading methods have been tested at the
Granges mineral laboratory at Straassa in Sweden. These tests
show that a high quality concentrate can be produced from
the ores. Should the drilling tests and studies indicate that the
exploitation of the deposits is feasible then a joint mining
company will be formed on a 50:50 basis at an estimated cost
of £250 million which will include the construction by
Granges—of a railway, mine, and harbor. Granges will also be
responsible for phosphate production.
176 The Prospects of Availability of Phosphate Rock from
the Spanish Sahara. J. A. Alvarez Ercillan (Fosſatos de
Bu-Craa, Madrid, Spain). Proc., F.A.I. National Seminar World
Fert. Situation Seventies-Technical Economic Aspects Produc
tion Ammonia Based Heavy Fractions Petroleum Feedstocks,
pp. II-3/1-11 (1973). New Delhi: Fertilizer Assn. India. The
phosphate deposit of Bu-Craa located in the north of Spanish
Sahara is of the order of 1700 million mt. Two qualities of
75-80% of concentrated rock phosphate will be produced. The
production is staggered in three stages. The rock is mined by a
strip mining method evolved after a considerable study of the
existing experiences and through a pilot plant study. The
material is loaded into 100-mt bottom dump trucks carrying
the mineral to the feed hopper of the crushing plant at the
mine. The grain of less than 10 mm diameter go to the first
intermediate stockpile at the mine and to the second inter
mediate stockpile at the coast after travelling 100 km through
desert. The transportation posed a problem and the company
decided on conveyor belt system—98,653.95 m long. From the
second intermediate stockpile the material moves into the
beneficiation plant. The beneficiation is carried out through a
wet process using sea water. The concentrated material is
loaded from storage points into vessels at 4000 mtſhr. The
loading operation can be performed in three berths situated at
the end of 3200-mt long pier. A power plant with a capacity
of 56 MW to be raised to 96 MW in the third stage has been
built to supply power to the overall complex and to bring
fresh water to the beneficiation plant. The mines were to
produce 1 million mt of rock during 1973–the startup yr—and
3 million mt during 1974. The company planned production
of 5 million mt in 1975, 6 million mt in 1976, 8 million mt in
1977, and 10 million mt during 1978-79 and onwards. The
Bu-Craa reserves are expected to last for 100 yr.
177 Georgia Phosphate. Stratigraphy and Economic Geology
of the Chatham County Deposit. J. W. Furlow (Georgia Dep.
 MARKET DEVELOPMENT
Mines, Min. Geol., Atlanta Ga.). FLA. Geol. Surv. Spec. Publ.
No. 17, 227-8 (1972). A study was conducted of the title
subject to evaluate the deposit and potential hazards of mining
operations to the fresh-water aquifer of the area. Volumetric
studies show that there is a minimum of 4,800,000,000 yds”
of phosphate matrix containing an average of 22.5% BPL. A
conservative factor of 50% removal shows at least 800,000,000
tons of 100% concentrate could be recovered for market.
Evidence indicates that the phosphate horizon may extend
continuously out to sea for at least 10 miles and probably
beyond. The confining layer above the fresh-water artesian
aquifer is sufficiently thick and impermeable to allow removal
of the phosphate ore zone, without significant salt water
infiltration into the aquifer.
178 Evaluation of Phosphate Resources in Southeastern
Idaho. J. D. Powell. Moscow, Idaho: Idaho Bureau Mines
Geology. Information Circular No. 25; 33 pp. (Apr. 1974).
Idaho's abundant phosphate reserves occur in the Phosphoria
Formation which is widely distributed over much of South
eastern Idaho. Previously published information has been
combined with raw data collected from mining companies,
on-location measurements made in 1973, and projected
increased demands and costs to issue revised tonnage estimates
of phosphate rock potentially and feasibly mineable in the
next 25-50 years. The figures presented conservatively indicate
that * 450 million tons of ore-grade phosphate rock can be
mined before the year 2025, assuming only moderate increases
in mining activity and market potential. With < 20% of total
national production, Idaho annually ranks third or fourth
among the nation's phosphate producers. However, within ten
yr the production of eastern phosphates is expected to drop
considerably as reserves in Fla. and Tenn. are depleted. The
Western Phosphate Field of Idaho, Mont., Wyo., and Utah
appears to contain about 70% of the nation's phosphate
reserves, and significantly, southeastern Idaho has ~ 80-90%
of the easily accessible reserves. With the great increase in
demand for phosphate products, and the declining reserves in
the east, Idaho phosphate production should increase steadily
in the foreseeable future provided realistic land management
practices are implemented. Although most of the land
containing mineable phosphate rock in Southeastern Idaho
belongs to the Federal Government, royalties from mining
operations provide direct payments to the State Treasury each
yr. These monies, along with those obtained from leases and
eventual mining on State land, could provide millions of
dollars in revenue over the next few decades. (55 ref)
179 Draft Impact Statement on Idaho Phosphate Mining.
Ground Water Newsl. 5 (9), 2 (May 15, 1976). A regional
analysis covering potential operation on 145,000 acres in six
Idaho counties has been drafted. Four operating surface mines
produced 6 million tons in 1975. If the proposed new mines
are opened, production could increase to as much as 20
million tons by the 1980's. By the end of the century the total
would rise to 282 million tons, or about 30% of the known
reserves in southeastern Idaho. Idaho is the site of about 35%
of total U.S. phosphate reserves. A lowering of overall water
quality in the region and alternation of the land surface by pits
and dumps are two of the principal impacts listed in the
statement. Copies of the draft statement are available from the
Interagency Task Force, Box 236, Pocatello, Idaho.
180 Phosphate Rock Deposit in Michigan. Chem. Eng. News
55 (1), 34 (Jan. 17, 1977). Rich ancient deposits of phosphate
have been discovered in northern Michigan by researchers from
the U.S. Geological Survey. Deposits of the mineral apatite are
located about 40 miles northwest of Marquette and contain
about 15% phosphate, possible of minable grade. They are
about 2 billion years old and appear to be the oldest and
richest sedimentary accumulations of phosphate in the U.S.
They indicate that phosphate did accumulate in large concen.
trations that long ago and that other old deposits may deserve
further exploration.
181 Phosphate Rock Deposit Announced in USSR. Chem.
Age (London) 110 (2915), 7 (May 30, 1975). Reserves of
phosphate rock totalling nearly 3 billion mt according to
preliminary estimates, have been discovered in a new deposit
in Eastern Siberia. It is said to be one of the world's largest
deposits of raw materials for the production of mineral
fertilizers. A production complex is to be erected near the site,
which will be able to process 60 million mt/yr of phosphate
rock, and will be one of the largest production units of its type
in Europe.
182 Russian Raw Materials Supply. Fert. Int., No. 56, 4
(Feb. 1974). During 1972, Russian geologists prospected
mineral deposits containing more than 2,000,000 million m”
of natural gas, hundreds of million of tons of oil, 720 million
mt of iron ore, 260 million mt of phosphate rock, and 1660
million mt of potash salts. All these deposits are in the
R.S.F.S.R., the largest of the Republics which constitute the
U.S.S.R.
183 Potash Exploration in Canada. Wall St. J. (East Edition)
187 (49), 2 (Mar. 11, 1976). International Minerals &
Chemical Corp. said its International Minerals & Chemical
Corp. Canada subsidiary found potash in three of four test
holes drilled in the Salt Springs, New Brunswick, area. The
drilling encompassed an area of about one and one-half square
miles; the fourth hole was on the reriphery of the area. The
New Brunswick Department of Natural Resources found 51
feet of potash in a test hole drilled in the same area in 1974.
The potash found by the department averaged 31.6% K2O, a
measure of the grade of potash, between depths of 1994 feet
and 2055 feet.
184 Canadian Company Plans New Mexico Potash Explora
tion. Eng. Mining J. 174 (10), 149-50 (Oct. 1973). Promises
by Saskatchewan's government that it intends to implement
important changes in its potash prorationing system are
apparently not enough to ease the frustration of Noranda
Mines Ltd., whose 51%-owned subsidiary Central Canada
Potash Co., Ltd. is currently prohibited from producing at a
sufficient rate to supply its own captive market. Noranda is
seeking production elsewhere, and has turned to New Mexico
as being the most fertile prospect. Via subsidiary Norandex,
Ltd., Noranda has acquired a 32,000-acre property in the
Carlsbad area and plans a $300,000 exploration program this
yr. If it is successful, Noranda will be assured of a ready supply
of at least 505,000 tons/yr K2O—the amount of the cutback
ordered by the Saskatchewan government.
185 Potash from Dead Sea. K. S. Chari (Fert. Assoc. India,
New Delhi, India). Chem. Age India 28 (9), 788-90 (Sept.
1977). The historical perspective and future potash mining
potential from the Dead Sea is discussed. The Dead Sea
27
 MARKET DEVELOPMENT
contains chlorides and bromides of calcium, magnesium,
sodium, and potassium. Total salts contained in the Sea are
estimated to be 43,000 million mt of which 2000 million mt
are potassium chloride. Israel has established a capacity to
produce 1-1.2 million mt/yr of potassium chloride and Jordan
is establishing a capacity for 1-1.5 million mt/yr. By 1981-82
it is expected that 2-2.5 million mt of potassium chloride
production capacity will be installed in the Dead Sea area.
186 Potash Deposits Discovered in Laos. Eng. Min. J. 176
(11), 270-1 (Nov. 1975). Potash deposits, possibly totaling 1
billion tons, were discovered accidentally by the recently
evicted US Agency for International Development. To date,
three exploratory holes have been drilled on the Mekong River
flats north and east of Vientiane. The well nearest the
city—just 11 km away—has uncovered high grade potash 3 to 5
m thick at depths between 94 and 432 m below the surface. A
drillhole 20 km to the east intersected two bands of potash
between 108 and 310 m, along with three distinct zones of
potash clay. Two additional bands of the mineral were found
in similar conditions further north. The next phase, slated for
completion this yr, involves drilling a total of 10 holes across
the 50-km-wide Vientiane plain.
187 Potash Deposits Found in Mexico. Phosphorus Potas
sium No. 90; 18 (July-Aug. 1977). Potash deposits grading
14% K2O have been discovered in a bed of 2-meter thickness
in the Tancamichapa Salt Dome, south of Coatzacoalcas, in
Veracruz state. The Covsejo de Recursas Minerales of Mexico
has announced that approximately 12 million mt of potash ore
has now been blocked out. Plans for commercial production in
the area are now being made, and this is expected to remove
Mexico's current dependence on imports which reached over
67,000 mt. K2O in 1975-76. Full-scale production at the site
would run at approximately 100,000 mt/yr of potassium
chloride.
188 Poland Plans Exploitation of Potash Deposits. Eur.
Chem. News 23 (587), 16 (June 8, 1973). Poland is currently
working out plans for exploiting the potash salt deposits in the
region of Puck Bay and expects to have finalized details of the
project by 1975. Poland currently imports all its potash
requirements. Some work has already started on the installa
tion of platforms for underwater geological drilling in the bay.
Near to the potash deposits are large beds of rock salt and
although two salt mines are already operating in the south of
the country by 1980 these will be exhausted and a new mine
will be built.
189 Potash Reserves in Thailand. Eur, Chem. News 27 (673),
15 (Feb. 7, 1975). Thailand's National Mineral Resources is
asking for local and foreign bids for exploration concessions
for potash in the northeast Samarn Buravas. So far 12
companies—local, foreign, and joint ventures—have shown an
interest, and several are willing to produce fertilizers as well as
exploiting the deposits.
190 Thailand Potash Deposits. J. Flour Anim. Feed Milling
157 (12), 29 (Dec. 1975). With the discovery in north-east
Thailand of the only commercial potash reserves in Asia
outside China–Thailand could be in a unique position to
capture a large portion of the Asian K fertilizer market. Asian
K'fertilizer consumption is bound to increase—to Thailand's
benefit. The size of the deposit has not yet been assessed, but
28
reserves are roughly estimated at a minimum of 60 million mt.
The deposit however, is located in a region vulnerable to
insurgents, and the main drawback would be the lack of
infrastructure.
191 Potash Deposit Found in United Kingdom. Eur. Chem.
News 23 (573), 7 (Mar. 2, 1973). The Cleveland potash mining
operation of Charter Consolidated and ICI in the UK has
reported intersection of a major potash-bearing seam. Commis.
Sioning operation will start in the spring and production will
build up to design rates in 1974.
192 United Kingdom Potash Mining. Chem. Eng. News 51
(30), 4 (July 30, 1973). Britain's sole potash mine is starting
up. The mine, jointly owned by Imperial Chemical Industries
and Charter Consolidated, will reach its full rate of output of
million mt/yr before 1975. The deposits at Boulby, in north
Yorkshire, may be big enough to last 50 yr. Annual demand
for potash in the U.K. is now running at about 750,000 mt.
95% for fertilizers. (See FA 6,982)
193 Farmers Fertilizer Cooperative Explores for Potash.
Farmers Cooperatives 43 (3), 22 (June 1976). CF Industries,
Inc., is involved in a joint venture project that is exploring
potential for obtaining potash in the Williston Basin in the
northern regions of North Dakota and Montana. The project is
being conducted under the auspices of Farmers Potash Co., a
joint venture between CF Industries and Burlington Northern,
Inc., St. Paul Farmers Potash holds mineral leases for
substantial acreages near Scobey, Montana, and in north
western North Dakota. Core samples will be studied in the
months ahead to determine feasibility of mining potash salt;
deposits found in drillings that went as deep as 8000 feet.
194 Exploration for Sulfur Launched in Louisiana. Eng.
Min. J. 176 (1), 153 (Jan. 1975). Freeport Minerals, on the
strength of higher prices, has launched a new sulfur explora.
tion program in Louisiana. The company will also conduct
exploration on an offshore tract, Block 72, acquired in a
Federal lease sale in 1969, as soon as a deepwater drilling rig
can be obtained. The location in the Gulf of Mexico is 30
miles offshore and in 125 ft of water.
195 U.S.S.R. Sulfur Deposit. Eur. Chem. News 23 (587), 16
(June 8, 1973). A new large deposit of S has been found in the
south-east of Turkmenia in the U.S.S.R. At Guardak, also in
the south-east of Turkmenia, a S-mining combine has been in
operation for some years and at nearby Gissar and Kugitang
large deposits of S, potash, lime, and salt have been proven.
According to Pravda, the Guardak region is due for
development and fertilizer units are being planned.
LEGISLATION AND POLICY
196 Fertilizer Legislation. D. M. Mylonas. Rome, Italy:
Food Agr. Organization United Nations Soils Bull. 20; 135 pp.
(1973). This is a guide for governments, institutions, and
individuals responsible for the preparation of fertilizer laws
 MARKET DEVELOPMENT
and regulations. Examples are given of basic fertilizer laws,
specifications of composition of fertilizers, official methods of
analysis for fertilizers, and a uniform state fertilizer bill.
Reports are given on 14 countries as representative of different
legal and socio-economic systems and at different stages of the
development process.
197 Fertilizer Material Needs Backed by Senate Action.
Chem. Mkt. Rep. 205 (9), 41 (Mar. 4, 1974). The Senate voted
unanimous approval of a resolution requesting all agencies of
the government having any responsibilities for establishing
priorities for the allocation of materials and facilities to give
the highest priorities to the fertilizer industry. While the
resolution is only an expression of Senate Sentiment, and does
not have the force of law, it is expected to have a beneficial
effect for the fertilizer industry.
198 Fertilizer Use Curbs Proposed in Senate. Chem. Mkt.
Rep. 206 (23), 51 (Dec. 2, 1974). Legislation has been
introduced in the Senate to help increase world food supplies
by cutting back on uses of fertilizer, for decorative and
ornamental growing purposes. The bill requires the Federal
government to cut its fertilizer for nonfood production
purposes to not more than 10% of the average amount used in
the past 3 yr, and seeks to encourage state governments and
private individuals to reduce the use of fertilizer for these
purposes. The bill also directs the President to establish a
commission to determine methods of increasing fertilizer
production and using fertilizer more efficiently.
199 United State Senate Hearing on Fertilizer Shortage.
Chem. Week 114 (8), 17 (Feb. 20, 1974). Hearings by the
Senate Agriculture Committee's Subcommittee on Agricultural
Credit and Rural Electrification are intended to define the real
supply-demand relationship. Among those testifying before
the subcommittee were: The Fertilizer Institute president, The
Cost of Living Council director, representatives of the Agri
culture and Commerce Depts., and representatives of the
Federal Trade Commission. Representatives of Agrico
Chemical, Allied Chemical, W. R. Grace, and of farmers'
cooperatives are also expected to appear. The subcommittee,
in addition to trying to establish the degree of fertilizer
shortage, will delve into the relationships between dealers and
manufacturers, the fuel requirements of the fertilizer industry,
allegations of black markets in fertilizer materials, and
side-effects such as shortages of phosphates for animal feed.
200 White House Fertilizer View. Farmland News 43 (5), 15
(Mar. 15, 1977). The U.S. President recently suggested that
natural gas supplies could be shifted from ammonia produc
tion to labor intensive industries affected by winter curtail
ments. This prompted a letter of caution from the National
Council of Farmer Cooperatives. The cooperative leader
emphasized there is no substitute for natural gas in the
manufacture of anhydrous ammonia, the major source of
nitrogen fertilizer. He said ammonia production consumes less
than 3% of natural gas supplies and use of commercial
fertilizer increases domestic food production by at least 30%.
201 Effect of Government Policy on Fertilizer Production,
Marketing, and Use. Lane Palmer. In TVA Fertilizer Con
ference (held July 29-31, 1975, Louisville, Kentucky) Muscle
Shoals, Ala.: Tennessee Valley Authority, National Fertilizer
Development Center; Bulletin Y-96, pp. 6-9 (July 1975). The
most critical farm policy decision before Congress is whether
to decontrol natural gas. The biggest obstacle to decontrol and
development of an energy program is jurisdictional disputes in
Congress. The interior committees have always had jurisdiction
over natural resources. The commerce committees are responsi
ble for overseeing interstate movements of goods, including
gas. The finance and ways and means committees are involved
when tax policies are concerned, including the depletion
allowance. The appropriations committees are involved in
Federal expeditures. With this tangle, the consensus in
Washington is that there will be no decontrol of natural gas
prices this year and probably it will not come at all until the
private Sector begins reforms that will restore the trust of our
people.
202 State Fertilizer Laws and Anhydrous Ammonia
Regulations—1973 Summary. Washington, D.C.: The Fertilizer
Institute. 16 pp., (Sept. 1974). Fertilizers are state regulated
products. Forty-eight states in the United States have laws
which establish procedures for registering products, licensing
firms, labeling, and others. Alaska and Hawaii have no
fertilizer laws. This summary includes 24 major items under
product registration, licensing, inspection fees, tonnage
reports, tolerances, industrial statistics, and per cent sales tax
with each state regulation. Also included are 10 important
items from anhydrous ammonia regulations. Each firm selling
fertilizer must be responsible for understanding and complying
with the requirements in each state in which it sells fertilizer.
The summary emphasizes the need for more uniform fertilizer
laws and regulations.
203 State Fertilizer Laws and Anhydrous Ammonia Regula
tions. Washington, D.C.: The Fertilizer Institute; 16 pp. (May
1977). The laws governing fertilizer production and sales and
anhydrous ammonia regulations are provided for each state. A
directory with the name and address of each State's Fertilizer
Control Official is also included.
204 Saskatchewan to Take Over Potash Mines. Wall St. J.
(East Edition) 186 (96), 22 (Nov. 13, 1975). Saskatchewan
announced a plan to take over the assets of some or all of the
10 potash mines operating in the province. Under legislation to
be introduced in about 10 days, a three-member arbitration
panel would determine a fair price for the expropriated mines.
The legislation is expected to be passed soon. Decisions of the
panel could be appealed through the courts by either side. The
proposed panel would include one potash industry member, a
member nominated by the government, and a member
appointed by the chief justice of a Saskatchewan provincial
court. Of the 12 mining concerns that have developed the
Saskatchewan potash reserves, seven are U.S. or U.S. con
trolled. The Premier made it clear that the potash takeovers
will be swift and sweeping. The legislation would provide
control over the rate of potash production in Saskatchewan
and over the revenue flowing into the treasury as a result of
the production. The initial goal will be public ownership of at
least half of the potash production capacity in the province. A
time frame of six to 18 months is viewed before all initial
acquisitions are completed and expansion plans are in place.
The provincial government further tightened its tax laws in
1975 with the effect, potash producers argue, that the federal
and provincial governments could take up to 90 cents of each
29
 MARKET DEVELOPMENT
$1 increase in potash prices. Industry people argue, through
the Canadian Potash Producers Association, that potash
mining concerns in Saskatchewan are subject to a total tax
load exceeding 80% of pretax profits. Producers want the
reserves tax replaced with a levy based on their income.
205 Fertilizer Control in Sri Lanka. J. Flour Anim. Feed
Milling 160 (1), 26 (Jan. 1977). The Minister of Agriculture
and Lands of Sri Lanka will shortly introduce legislation to
regulate the manufacture, mixing, and sale of fertilizer.
According to the draft bill only registered dealers will be
permitted to sell fertilizer. This includes co-operatives and
agricultural productivity centers. The Director of Agriculture,
who is to be appointed Competent Authority under this law,
will issue all such permits. Firms or individuals putting out
special fertilizer mixtures on the market will be required to
obtain the prior approval of the Competent Authority. The
new law is expected to prevent undesirable fertilizer and the
sale of sub-grade mixtures to the unsuspecting cultivator. For
the present, only chemical fertilizer will come within the
control of the new law. But it gives the Minister of Agriculture
and Lands power to bring any other man-made manure within
its orbit.
206 New Fertilizer Regulations for United Kingdom. Milling
Feed Fert. 160 (11), 24 (Nov. 1977). New regulations to
control the sale of fertilizers have been recently presented to
Parliament. The new regulations contain the descriptions,
definitions, compositional, and labeling requirements in
European Economic Community (EEC) Directive 76/116
which will enable a fertilizer which conforms with these
requirements to be called an “EEC Fertilizer” and be freely
traded through the EEC. The regulations will come into force
for “EEC Fertilizers” on January 1, 1978, and for others on
June 1, 1978. The new regulations are designed to protect the
purchaser by setting minimum compositional standards for
many fertilizers and by requiring more information to be given
at the time of sale.
207 Fertilizer Fuel Allocation Increase Urged. Chem. Mkt.
Rep. 205 (8), 3, 18 (Feb. 25, 1974). Fertilizer manufacturers
may be granted the same priority status as agricultural
producers in meeting the industry’s needs for fuels—100% of
current requirements under the oil allocation programs of the
Federal Energy Office. The Federal Energy Office is currently
reviewing its regulations in this area as a result of mounting
complaints reaching the agency over the shortage of fertilizers.
208 Fertilizers Get Second Priority Under Gas Deregulation
Plan. Chem. Mkt. Rep. 207 (19) 3, 77 (May 12, 1975). The
fertilizer industry will get a second priority claim on natural
gas production for use as feedstock in the production of N
under provisions of the gas deregulation bill (S 692) reported
to the Senate last week. In so far as the fertilizer industry’s call
on available supplies of natural gas is concerned, the legislation
mandates the industry to have second call on this gas just
behind the residential and small firm users. The bill also
requires the states to give the industry the number two
priority position on the interstate gas within 120 days or else
the Federal government will declare this gas to be in interstate
and subject to federal mandated priority.
209 Fuel Exemption Urged for Fertilizer Industry. Chem.
Mkt. Rep. 207 (22), 22 (June 2, 1975). The fertilizer industry
30
is urging Congress to exempt its feedstocks and farmers’ fuels
from any fuel taxes aimed at cutting energy use if it expects a
maximum of food production from the agriculture industry.
The president of the Fertilizer Institute is urging the House
Agriculture Committee to intervene on the farmers' behalf in
the tax discussions going on between the Administration and
the House Ways and Means Committee. The administration
proposed natural gas excise tax of 37 cents/thousand ſt’, for
instance, would add $2.16 million to the cost of ammonia
production for nitrogen fertilizers.
210 Fertilizer Pollution Regulations. Chem. Mkt. Rep. 205
(14), 14 (Apr. 15, 1974). Effluent guidelines for fertilizer
manufacturers were issued recently by Environmental Protec.
tion Agency (EPA). The fertilizer industry guidelines,
published in the Federal Register April 8 to be effective June
7, 1974, apply to existing sources and provide standards of
performance and pretreatment for new sources within the
phosphate, ammonia, urea, ammonium nitrate, and nitric acid
sub-categories of the industry. In the fertilizer guidelines, EPA
has proposed application of limitations and standards for users
of publicly-owned treatment workers. Comments will be
received on this proposal until June 6, 1974.
211 United States Phosphate Industry Threatened. Chem.
Mark. Rep. 209 (11), 7, 24 (Mar. 15, 1976). The fertilizer
industry is concerned that amendments to the Clean Air Act
now being drafted by the Senate Public Works Committee may
lessen this nation’s ability to meet its phosphate needs from its
own reserves and thereby become more dependent upon
foreign sources. The amendment seeks to preserve the existing
air quality in areas where little or no industry is already
located. It proposes to do this through a complicated
classification system that would trigger curbs being placed on
further expansion of mines or plant sitings when an arbitrary
increment or range of any pollutant is reached. For certain
areas of Florida, North Carolina, Idaho, and Montana, it could
mean that the phosphate reserves in those areas could never be
fully developed. This amendment could well make American
farmers dependent on foreign sources for phosphate fertilizer
according to the president of the Fertilizer Institute.
212 Heat's on Fertilizers. Chem. Week 114 (25), 21 Ǻ
19, 1974). Acute fertilizer shortages and growing farmer
discontent are spurring calls for new political solutions. The
recent National Governors Conference at Seattle approved
unanimously a fertilizer policy statement that calls for federal
grants or loans for new fertilizer plants, closer cooperation
between federal and state agencies to assure fertilizer plants
adequate gas supplies and an understandable national policy of
fertilizer allocation. Farmers are also uptight about the
abandonment of selected markets by a number of companies.
State officials are trying several approaches to minimize the
effects of cutbacks. The chief executive officer of Phosphate
Rock Export Assn. (Tampa, Fla.), told the TFI conference
that U.S. phosphate supplies would begin to ease in the
second-half of 1975 but the rock shortage will worsen.
MARKETING ORGANIZATION
SALES ORGANIZATIONS
 MARKETING ORGANIZATION
213 Fertilizer Middlemen: World Wide Marketers. Chem.
Mark. Rep. 208 (24), 11-14 (Dec. 15, 1975). Most of the
fertilizer exports from this country, which serve probably the
largest single world chemical market, are handled by com
panies which own no production, storage, or transportation
facilities. Well over half of US fertilizer export business,
despite an enormous domestic fertilizer manufacturing indus
try, is conducted by international traders. These middlemen,
in function, are similar to the more recently emergent
domestic chemical distributor industry; their working
environment—the international marketplace—is considerably
different, and their place in that environment is considerably
more advanced. International Commodities Export Company
is the largest export marketing company in the country,
accounting for something like 25% of US fertilizer exports. In
1975 with the greatly slowed international fertilizer market,
due in large part to the breakdown of contract relationships in
recent years, the company expects an increase of nearly 50%
in income to a projected level of $200 million. The principal
service a firm such as this can offer is basic expertise; buyers
and sellers are brought together—though they may be 15,000
miles apart and are probably totally unknown to each other.
214 Company Formed to Ship Canadian Potash. Chem. Mkt.
Rep. 206 (3), 4 (July 15, 1974). Canpotex, Ltd., exclusive
overseas marketers of Saskatchewan potash, has formed a new
ocean freight and shipping brokerage company, called Can
potex Shipping Services, Ltd. The new Canadian company will
be headquartered in West Vancouver, B.C., and will act as a
freight and shipping broker and as a ship's agent. Canpotex
Shipping Services, Ltd., will handle ocean shipments of
Canadian potash and a full range of other exports and imports
through its Vancouver office.
215 Potash Producers Form Export Cartel. Eur. Chem. News
26 (667), 18 (Dec. 20-27, 1974). Europe's potash producers
have combined their efforts on a wider front. A new company,
Kali Export, has been established under Austrian law in
Vienna and will now handle sales outside the EEC for a
number of producers. The company will initially handle
around 1.5 million tons/yr of K2O, from production sites
ranging between the Congo, northern Europe, and the Dead
Sea. Existing agencies and organizations working for producers
in markets outside the EEC will now be directly linked to Kali
Export.
216 European Trading Company in Potash Market. Eur.
Chem. News 26 (665), 8 (Dec. 6, 1974). Potash and
Continental, a new trading company based in the U.K. and
Eire, hopes to secure 9% of the £35 million U.K. potash
market, with supplies purchased in France, Spain, Israel,
U.S.S.R., and Canada. By next yr, the company hopes to have
£5 million worth of potash business in Eire, aiming for 50% of
the market and supplying such companies as NET, Gouldings,
Albatros, and Grassland Fertilizers.
217 New Spanish Fertilizer Firm. Chem. Age (London) 107
(2819), 12 (July 27, 1973). The Minister of Industry, Senor
Lopez de Letona, has announced that a new state group has
been formed, called ENFERSA (Empresa Nacional de Fertil
izantes), which will group together all the fertilizer firms in
whom INI have an interest. Sales are expected to be in the
order of 5,000 million pesetas/yr, capital is 2,000 million pts
and personnel over 2,000. This group will handle 40% of the
national market and also permit expanded overseas trading. By
means of this merger, it will be possible to rationalize
production, coordinate the various plants, improve sales
networks, and cooperate with private firms. In the first step,
70% of the capital is provided by REPESA, 15% by Calvo
Sotelo, and 15% by Ensidesa. The second phase will be
completed when INI acquire 100% of the capital.
218 Phosphate Producers Organize Export Organization.
Chem. Week 117 (5), 16 (July 30, 1975). Phosphate fertilizer
makers have set up the Phosphate Chemicals Export Associa
tion (PHOSCHEM), a Webb-Pomerene Act association, to act
as the export sales agent for concentrated phosphate fertilizers
produced by the members. The aim of the organization is to
promote international price and supply stability.
219 Agrico Becomes Third PhosChem Dropout. Chem.
Mark. Rep. 210 (6), 3, 28 (Aug. 9, 1976). Agrico Chemical
Company, a subsidiary of Williams Companies, has announced
that it will resign from the Phosphate Chemical Export
Association, making it the third company to resign from that
organization since mid-June. A top executive for the company
said that Agrico's decision should not be interpreted as a
criticism of PhosChem, but was based on internal considera
tions. Although Agrico refuses to discuss the reasons for its
resignation, other members of the fertilizer industry feel that
the company's growing overseas investments were central to its
decision. Agrico is seen as having a potential conflict of
interest, exporting phosphates on one hand, and selling them
through joint ventures in foreign countries on the other.
220 CF Industries to Manage Farmers Chemical Association.
Goldkist News 23 (7), 10 (Jan. 1973). Farmers Chemical
Association, Inc. and CF Industries, Inc. entered into an
agreement on Jan. 1, 1973, whereby CF Industries will assume
management of FCA which includes fertilizer manufacturing
facilities at Tyner, Tenn., and Tunis, N.C. CF Industries, with
headquarters in Chicago, is a manufacturer and distributor of
basic plant foods owned by 17 regional cooperatives in the
U.S. and one in Canada. The four owners of Farmers Chemical
Association–FCX, Inc., Gold Kist, Inc., Southern States
Cooperative, Inc., and Tennessee Farmers Cooperative—are
also member-owners of CF Industries.
221 Riverside Buys Cyanamid Farm Centers. Com. Appeal
(Memphis, Tenn.) No. 38, 47 (Feb. 7, 1973). Riverside
Chemical Company, which sells farm supplies, announced
yesterday it has bought 22 farm service centers in Texas and
Louisiana from American Cyanamid Company. The farm
service centers consist primarily of bulk blend fertilizer plants
which sell custom-blended fertilizer to farmers. Included in the
purchase were 17 plants in Texas and 5 in Louisiana. The
plants will continue to be operated as fertilizer outlets
However, at the same sites, other products will be offered,
such as pesticides, seed, feed, and farm equipment.
222 Fertilizer Company to Sell Stock Through Securities
Exchange Commission. Fert. Int. No. 48, 1 (June 1973). Beker
Industries, one of the major producers and sellers of diammo
nium phosphate, is going public. It has filed a registration
statement with the U.S. and Securities Exchange Commission
covering the proposed sale of 1.25 million shares of common
stock. The preliminary prospectus shows, for the first time,
Beker Industries' financial performance, as well as its manufac
31
 MARKETING ORGANIZATION
turing and marketing capabilities. Besides production of
diammonium phosphate, Beker also makes and markets
sulfuric acid (660,456 tons in 1972) and phosphoric acid
(241,829 tons). The manufacturing diammonium phosphate
units are at Taft, Louisiana, which has a capacity of 400,000
tons/yr; at Marseilles, Illinois, which produces 190,000 s.
tons/yr; and Conda, Idaho, with a capacity of 350,000 s.
tons/yr. In presenting its preliminary prospectus, Beker indi
cates that it has plans to expand the Taft operations by 70,000
s: tons/yr by the end of this yr at an estimated cost of about
$1 million. Most of the sulfuric acid and phosphoric acid
produced by the company at its three fertilizer works is used
in the manufacture of diammonium phosphate.
223 Cooperatives Increase Sales. Bus. Week (2469), 54-64
(Feb. 7, 1977). Until recently, co-op growth has been one of
the best-kept secrets in the U.S., largely because the co-ops
maintain a low profile. In the first half of the 1970s, total
revenues of the farm co-ops ballooned from $25 billion to $57
billion, giving them one-third of the total market. The co-ops
have stepped up their second business-buying supplies in bulk
and reselling them to farmers. In just the last decade, the
so-called supply co-ops have boosted their share of the $7
billion retail fertilizer market to 42% from 30%; of the $3.3
billion farm petroleum market to 40% from 26%; and of the
$2.5 billion retail market for agricultural chemicals to 40%
from 16%. More important for U.S. industry, the co-ops, with
their stores constituting an assured market, are moving
aggressively into the manufacture of their supplies. They are
building fertilizer and pesticide plants, and running refineries.
And they are integrating backward even further-into the raw
materials for these enterprises. The most successful is CF
Industries Inc., the Chicago-based fertilizer co-op, which is
owned by 19 regional co-ops having collective annual revenues
of more than $10 billion.
MERGERS AND JOINT VENTURES
224 Joint Fertilizer Venture To Be Set Up in Brazil. Jap.
Chem. Week 16 (766), 3 (Jan. 2, 1975). Japanese and Brazilian
companies have signed protocols on joint-venture manufacture
of fertilizers in Brazil. Under the protocols, Japan's Mitsui &
Co. and Mitsui Toatsu Chemicals, Inc. and Brazil's Petroquisa
will set up a joint venture capitalized at Cr.S50 million.
Ownership will be 60% by Petroquisa and 20% each by Mitsui
& Co. and Mitsui Toatsu Chemicals. They will start manu
facturing 150,000 tons of ammonium phosphate annually by
mid-1976.
225 Japan-Brazil Enter Joint Fertilizer Venture. Jap. Chem.
Week 14 (679), 7 (May 3, 1973). Mitsui & Co. recently
clarified that a joint venture of Fertilizantes Mitsui S.A.
(Industria e Comercio), a subsidiary in Brazil of Mitsui & Co.,
and Cooperative Agricola De Cotia, a local agricultural
cooperative association, will be established in Sao Paulo,
Brazil, to produce high- and low-analysis compound fertilizers.
A 100,000 tons/yr high- and low-analysis compound fertilizers
plant will be completed by spring next yr. The new joint
venture will be established when the plant starts operation. To
32
meet the strong demand for fused magnesium phosphate in
Brazil, Fertilizantes Mitsui S.A. will expand its fused magne.
sium phosphate production capacity to 90,000 ton/yr by
autumn this yr. As a result, the company’s fertilizer produc.
tion capacity will become 110,000 tons/yr mixed fertilizers,
90,000 tons/yr fused magnesium phosphate, and 100,000
tons/yr high- and low-analysis compound fertilizers, totaling
300,000 tons/yr by spring next yr.
226 Dutch-British Fertilizer Companies to Merge. Chem.
Week 112 (19), 29 (May 9, 1973). Agreement in principle has
been reached, joining Royal Dutch/Shell's U.K. fertilizer
company, Shellstar, with Unie Van Kunstmestfabrieken
(UVK), owned by DSM (60%), Akzo (16%), Shell (16%), and
Dutch steelmaker Hoogovens (8%). The combined company
would have a N capacity of 1.23 million ton/yr. Akzo and
Hoogovens would withdraw from the new firm, leaving DSM
with 75%, Shell the rest.
227 French Fertilizer Companies to Merge. Chem. Age
(London) 112 (2959), 7 (Apr. 2, 1976). Enterprise Miniere et
Chimique (EMC) and Gardinier, the second and third largest
French fertilizer producers, have formed a cooperation alliance
to consolidate their positions in the French nitrogen fertilizer
market. The arrangement should give Gardinier and EMC a
60% share of the French nitrogen fertilizer market. The
agreement is limited to nitrogen fertilizers, although there have
been reports that it could be extended to include phosphatic
and complex fertilizers. Potash materials are excluded, how
ever. The terms of the agreement mean that EMC will
supply ammonia, possibly as much as 400 mt/day, to
Gardinier. This may lead to Gardinier cancelling its plans to
build a 600,000 mt/yr ammonia plant in Western France.
228 Fertilizer Merger in South Korea. Eur. Chem. News 23
(584), 10 (May 18, 1973). Two South Korean government.
owned fertilizer companies, Chungju Fertilizers and Honam
Fertilizer Co., have been consolidated into one company, the
Korea Integrated Chemical Co., according to reports from
Seoul. The merger gives the new company a total urea capacity
of 239,000 ton/yr.
229 Portugese Fertilizer Firms Combine. Chem. Age
(London) 109 (2889), 14 (Nov. 29, 1974). A fertilizer concern
of European dimensions is to be formed in Portugal by the
merger of the three companies Amoniaco Portugues, Soc
Portuguesa de Petroquimica, and Nitratos de Portugal, with
the state to acquire a majority shareholding in the new joint
company. In order to obtain sufficient domestic supply of all
main fertilizers and a considerable increase in export sales, an
investment of 5000 million escudos is foreseen for the
expansion of the country's fertilizer industry. A major project
will be in the Sines industrial zone, where Amoniaco Portugues
and Portuguesa de Petroquimica already have plans to build
capacities for 1500 mt/day of ammonia and 1000 mt/day of
urea. The feedstock for the ammonia plant is to be obtained
from the Oporto oil refiery, whose capacity is in the course of
expansion and the new Sines refinery is under construction.
Together with Nitratos de Portugal, the Amoniaco firm further
plans a Sines-based unit for 1250 mt/day of sulfuric acid and
plants for the production of phosphoric acid, monoammonium
phosphates, and complex fertilizers. Sulfuric acid, phosphoric
acid, and monoammonium phosphate units are also
programmed for the Sines site by the CUF group.
 MARKETING ORGANIZATION
230 South African Fertilizer Companies to Merge. J. Flour
Anim. Feed Milling 157 (11), 20 (Nov. 1975). The two
fertilizer giants, Fedmis and Triomf, are reported to be
negotiating conditions for a possible merger. In the discussions
between the chairmen, the SA Ministers of Agriculture and of
Economic Affairs have been consulted. A partnership between
the two big companies is desirable, especially in view of the
heavy capital expenditure to which both are committed.
231 Major Fertilizer Producers in Spain to Merge. Chem. Age
(London) 106 (2813), 4 (June 15, 1973). It has been
announced that UERT and Fertiberia are to merge. Fertiberia,
one of the major Spanish fertilizer producers 50% owned by
Banco de Bilboa, will bring three principal production sites to
the merger; at Castelon de la Plana they have units producing
nitric acid and ammonium nitrate; at Huelva units making
urea, ammonia, and phosphoric acid; and at their facility in La
Coruna one producing ammonia. The UERT group operate 12
fertilizer facilities in Spain.
232 United States Chemical Company in Partnership With
Irish Fertilizer Company. Chem. Mark. Rep. 209 (12), 3 (Mar.
22, 1976). Agrico Chemical Company says it has signed a
letter of intent to buy 50% of Goulding Chemical Ltd., a
subsidiary of Doublin, Ireland's Fitzwilton Group. This invest
ment will be Agrico's first in one of the Common Market
countries, if the deal is consummated as planned. The
contemplated arrangement would provide Goulding with a
partner basic in the production of phosphate rock and
phosphate fertilizers, assuring Goulding a supply of basic raw
materials to enhance its growth. Goulding has been engaged in
the manufacture and marketing of fertilizers in the Republic
of Ireland for over 100 yr.
TRADE ORGANIZATIONS
233 World Phosphates Alliance. Wall St. J. (East Edition)
188 (97), 19 (Nov. 16, 1976). Six countries that are large
producers of phosphates decided to set up a joint organization
in a bid to increase their control over fluctuations of the world
market. Plans for the organization were approved by delegates
from Morocco, Algeria, Tunisia, Togo, Senegal, and Jordan.
The organization would control the production and marketing
of the mineral and its derivatives, such as phosphoric acid and
superphosphates. The conference was called to study joint
steps to combat the current slump in the world market for
phosphates, a basic raw material used in making fertilizers.
Another major reason was the U.S. decision to step up its
exports of phosphates, chiefly to Europe. The six nations
control 80% of the world's phosphate reserves. Morocco alone,
with its control of the former Spanish Sahara, which Morocco
acquired a yr ago, controls 70% of world deposits.
234 Arab Federation of Chemical Fertilizer Producers. Fert.
Int. No. 84, 5 (June 1976). The Arab Federation of Chemical
Fertilizer Producers has now been established in Kuwait. The
members of the Federation are 12 companies representing all
Arab nations engaged in the field of chemical fertilizers and
their raw materials. Its aim is to develop, organize, and
coordinate commercial, managerial, and technical relations in
the above fields and in areas of fertilizer application. It will
among other things, assist members in overcoming problems in
supply of production inputs, facilitate the exchange of Arab
and world technical, economic, and commercial information,
including data and statistics, publish periodicals, and organize
training programs. It will try to achieve the development of
the fertilizer industry in Arab countries in the light of world
technological progress by instituting technical and economic
studies and helping members to obtain the latest techniques in
fertilizer application.
235 Organizational Change in National Fertilizer Corp. of
Pakistan. Fert. Int., No. 53, 7 (Nov. 1973). As part of the
reorganization of public sector enterprises in Pakistan, control
of Pak-American Fertilizers Ltd. at Daudkhel is to be passed to
the National Fertilizer Corp. of Pakistan Ltd. Until the new
organization is operational the West Pakistan Industrial
Development Corp. (WPIDC) will oversee its management. No
changes have taken place in the status of Pakistan's other
fertilizer manufacturers.
236 Mexican Fertilizer Group Formed. Eur. Chem. News 27
(701), 4 (Sept. 5, 1975). A new consortium aimed at
coordinating the development of state-controlled sulfur and
fertilizer companies is taking shape in Mexico. The consor
tium, Productos Basicos para Fertilizantes, will operate as a
holding company with a majority stake in each of the six
companies involved. The impetus for the plan has undoubtedly
been provided by the discovery of the Baja California
phosphate reserves.
237 Potash Institute Adopts Phosphate Program. Green
Markets 1 (26), 7, 8 (Aug. 8, 1977). United States phosphate
and potash producers will jointly promote both products
through the efforts of an expanded Potash Institute which will
now be known as the Potash/Phosphate Institute. The institute
will expand its current program to seek agronomic needs for
phosphate in much the same way as it presently does for
potash. Existing members of the institute include AMAX,
International Minerals and Chemicals, Cominco American,
Duval Great Salt Lake Minerals and Chemicals, Mississippi
Chemical, PCA Potash Co. of Canada, PCS, Texasgulf, and
U.S. Borax. New members include IMC's phosphate opera
tions, Agrico, Mobil, Occidental, Royster, Smith-Douglas,
Borden, and Texasgulf phosphates.
238 Potash Marketing Pact Banned by European Economic
Community Agency. Chem. Mkt. Rep. 203 (23), 5, 24 (June
4, 1973). The Commission of the European Economic
Community has banned a cooperation agreement between
West Europe's two largest producers of potash fertilizer
because it is alleged to infringe EEC competition policy. The
two companies are said to supply about 95% of the potash
market in France and Germany and some 55% of the market
in other EEC countries. Their main competitor is East
Germany. They are said to have coordinated their delivery and
distribution networks with joint distributors in Holland and
Italy, thus leading to a standardization of prices and sales
conditions.
33
 MARKETING ORGANIZATION
DISTRIBUTION SYSTEMS
239 Fertilizer Distribution Networks—Essential in Increasing
Consumption. Fert. Int. No. 95, 12 (May 1977). In recent
years promotion of fertilizer consumption is dependent on the
availability of finance for distribution. This includes storage,
mixing plants, local warehouses, transport facilities, technical
expertise, and operating capital. An adequate distribution
system must have stocks of fertilizer within easy reach of
farmers and the system must be such that credit is available to
the farmers over the period until the farmer receives payment
for the produce on which the fertilizer was used. The burden
of finance for investment in fertilizer distribution networks
usually falls on the government's own resources in local and
foreign currency and on aid from multinational and bilateral
sources. There are a variety of examples of successful credit
systems based on differing agencies. In Kenya, for example,
60% of the credit for fertilizer sales is provided by private
distributors who in general also have the advantage of buying
the farmers' produce. Similarly, the Federation of Coffee
Growers in Colombia supply farmers with fertilizer on credit
which is then recovered from coffee sales through the
Federation. The cooperative is strong enough to supplement
its own resources with borrowing from banks for which the
Federation is accepted as guarantor. Whereas commercial
banks have been reluctant to lend to small-scale agriculture it
seems that providing credit through the cooperative or other
agency that markets the crop could be a way of overcoming
the risk which is such an obstacle to the commercial banks.
240 Need for Ouantitative Approach to Fertilizer Distri
bution. H. K. Lakshman, R. S. Periaswamy, and B.
Madangopal. Fert. News (India) 20 (2), 3-5 (Feb. 1975). The
quantity of fertilizers handled in India each yr is increasing.
With new fertilizer plants slated to go into production, a
rational approach to fertilizer distribution would have to be
evolved to meet the twin objectives of serving all areas
equitably and at the same time minimizing transportation
costs. Application of linear programming model to such a
problem would be useful. An approach to linear programming
technique for fertilizer distribution from domestic manu
facturing units is presented. The underlying principle of the
model is to meet Statewise allocation for N and P from various
manufacturing units in such a way that the transportation cost
is kept at a minimum subject to marketing and policy
constraints. The model could also be used with appropriate
modifications to determine the distribution pattern for Pool
fertilizers taking each port as a supply point.
241 Financing Fertilizer Distribution and Use: An Inter
national Overview. J. C. Abbott (FAO United Nations, Rome,
Italy). In FAI-FAO Seminar Strategy Stimulating Fertilizer
Consumption 1976 Proc. (held New Delhi, India, Dec. 9-11,
1976.) New Delhi, India. Fert. Association India V-1||-| |
(Mar. 1977). Basic sources of financing available to fertilizer
distributing firms and cooperatives are original capital of the
owner or shareholders, other financial resources and savings of
the enterprise, and loans from banks or outside financing
agencies. Distribution organizations might need loans of 3-10
yr duration for suitable investment in storage and transport
facilities and of 3 yr or more for working capital. In some
cases Government banks are reluctant to finance operations of
34
private traders, while there are commercial banks who would
lend more to private trade. The possibility of obtaining capital
by launching a joint stock company is open in many countries.
Fertilizer wholesale companies some times seek capital from
foreign investors. The simplest way of meeting seasonal
financing requirements is that the credit needed at the
wholesale level be gradually transferred by the wholesale
distributors to the retailers and from them on to the farmers.
Cooperatives involved in fertilizer distribution receive finance
from cooperative development bank. It is important for the
distribution systems to be able to accumulate some capital
from its current operations.
242 A Survey of New Methods in the Distribution of Solid
Fertilizers. O. Gronlie (Norsk Hydro A.S., Oslo, Norway).
Fertiliser Society (London) Proc. No. 159; 22 pp. (1976). The
relative advantages of three methods of distributing and
transporting fertilizers in industrial countries is discussed. The
methods included: (1) bagged materials on pallets, shrink
wrapped; (b) bulk material delivered to the farm; and (c) the
use of disposable big-bags (IBC). Cost analysis revealed that
about £3/mt could be saved by adopting either of these
methods. Bulk transports combined with bagging facilities at
ports offer considerable savings when delivering fertilizers
from industrialized to developing countries. These savings
accure mainly from the differences in wage levels and sea
freight costs due to shorter time used for loading and
discharging ships. It is anticipated that future ports in
developing countries will be equipped with simple but effec
tive bagging facilities.
243 Model Systems for Marketing and Distributing Fertili
zers in Developing Countries. Washington, D.C.: World Bank
Reconstruction and Development Unit, F-5-175; 22 pp. (Nov.
1975). Evaluations are made of existing fertilizer marketing
and distribution systems to identify constraints limiting
fertilizer use in developing countries. This report summarizes
the factors examined and outlines several model distribution
systems to resolve specific problems. The proposed models
were assessed and the results support the view that infra
structural investment costs will be at least equal to the
investment cost of primary production. An overall example of
the procedures followed is illustrated by a case studied by the
World Bank in Orissa, India.
244 A Fertilizer Distribution System. T. T. Thomas. Fert.
News (India) 22 (5), 3-8 (May 1977). The 1976 FAI-FAO
seminar on marketing unveiled the need to develop a distribu
tion system capable of reaching all areas of India. A model
which emphasized the need of reaching distant areas was
presented at the seminar by Fertilizers and Chemicals Travan
core Ltd.
245 Farm Service Centers for India. Green Markets 1 (20), 3
(June 27, 1977). Fertilizer marketing and distribution
methods used in India are becoming similar to those in the
U.S. Development of farm service centers are being tried in
Haryana by the Indian Farmers' Fertilizer Cooperative, the
largest fertilizer manufacturing cooperative in Asia. One center
has already been started and, based on its success, the
cooperative is planning to open two more. The centers provide
a full range of agricultural products and Services, including
fertilizer application advice and arrangement of credit from
cooperatives and commercial banks.
 MARKETING ORGANIZATION
246 South Africa's Phosphate Distribution. J. Flour Anim.
Feed Milling 160 (5), 27 (May 1977). South Africa's future
competitive position in the world market for phosphate rock
and derivatives depends to a large extent on the future price
levels for the various phosphatic products in this market. Of
the major suppliers only Morocco and the Spanish Sahara are
expected to play increasing roles in the phosphate rock export
trade. There is little doubt that Morocco will emerge as the
world leader in the phosphate rock export trade. The
low-grade, hard ore immediately puts Foskor at a sizable
disadvantage opposite most other producers. In terms of
transport to final destination, South Africa has a great
disadvantage compared with North Africa. Phalaborwa is more
than 1000 km by rail from Richards Bay, and so much further
from Europe than the North African producers with its ocean
freight distance adding greatly to the cost.
247 Fertilizer Distribution in the Arab Republic of Egypt.
E.D.H. Ahmed and M.G.A. Dahab (Inst. Natl. Planning, Cairo,
Egypt). Paris, France: Organ. Econ. Coop. Develop.; 117 pp.
(1972). Distribution of plant nutrients in the U.A.R. is a
Government monopoly, centrally controlled by the Agri
cultural Credit Organization (A.C.O.). This public agency has
the exclusive franchise for the purchase of all locally-produced
fertilizers and all imports made by other public bodies. The
total national supply is then regionally allocated by the A.C.O.
by arrangement with the Ministry of Agriculture and stocks
are shipped to the various governorates and their individual
quotas made according to cropping patterns in each region. In
each village, there is a co-operative which distributes to each
farmer an amount corresponding to the data on his “farm
holding card”. This card identifies the location of the farm, its
size, and the crop rotation pattern prescribed for it—these
being the basis of the fertilizer quota. There is no voluntary
demand for fertilizer consumption as the farmer is obliged to
use the prescribed NPK rates. The distribution pyramid stands
on a base consisting of 4000 co-operative retail outlets. Above
the village level, there are 415 stores which receive shipments
from 52 major modern warehouses. These A.C.O. stores sell to
co-operatives as well as directly to farmers. An essential
feature of Egyptian fertilizer distribution is that, from the
national supply level all the way down to immediately before
the retailing stage, the system is highly centralized. Credit to
finance input fertilizer purchases is not a problem in the
U.A.R. because the A.C.O. is primarily an agricultural credit
disbursing agency. Over 90% of fertilizers are distributed on
credit, free of interest charges. Fertilizer prices are controlled
at each stage of the distribution chain. Prices charged by the
producer, wholesaler (A.C.O.), and retailer (co-operatives) are
rigidly supervised. No direct subsidies exist, although in
essence, an indirect subsidy scheme operates through the
Fertilizer Price Stabilization Fund. Implementation of a
uniform price policy throughout the country is facilitated by
the centralization of fertilizer distribution in one national
organization.
248 Fertilizer Distribution in Sri Lanka. Fert. Int. No. 95,
11 (May 1977). The Government of Sri Lanka has organized a
bilateral pilot project with West Germany to improve fertilizer
distribution. The West German team has made surveys on the
construction of fertilizer storage and has organized the
building of a 20,000-mt fertilizer store to distribute fertilizer
to several districts on the island. The present fertilizer
distribution system serves two principal areas, one the food
crop sector and the other the plantation crop sector. The
importance of increasing food production is undeniable, since
over 80% of the population depend on agriculture for their
livelihood, two-thirds of agricultural production being destined
for export. It seems likely that changes in the present pattern
of fertilizer consumption will be implemented by the end of
this decade. The distribution of a variety of blends currently
produced may not be an optimum method for increasing
agricultural production in Sri Lanka as the detailed pedological
surveys required for exact prescription are not available.
Financial participation in the projects by India indicates a
likelihood that surplus production will be absorbed by this
market.
249 The Tunisian Fertilizer Distribution System. Structural
and Policy Considerations. D. L. Good and J. W. Hammond.
St. Paul University, Minnesota: Economic Development
Center. Dept. Agric. Applied Economics Bull. No. 2; 90 pp.
(Oct. 1975). A study was conducted to examine the charac
teristics of fertilizer use, pricing, and the distribution system in
Tunisia. A number of programs and activities have stimulated
fertilizer use and increased the demand for fertilizers. In
creased fertilizer consumption is constrained by: (1) high
prices, (2) lack of farmer know-how in using fertilizer, (3) lack
of farmer conviction of importance of use, (4) lack of
promotion of use, (5) inefficient distribution system, (6)
limited credit, and (7) climatic factors. Data for the report was
drawn from government documents and an in-country survey.
250 Availability of Fertilizers—Can it be Extended and Made
More Reliable Without Increasing Costs? F. J. Heredia. Chem.
Age India 27 (13), 153-60 (Annual 1976). This study
examines in detail the scope of extending the coverage and the
reliability of the fertilizer distribution machinery, as an
essential ingredient of the efforts needed for attaining national
targets of fertilizer consumptions and agricultural producti
vity. This is examined with particular reference to urea and
advocates that, if the manufacturers undertake direct respon
sibility for distribution, it is possible to realize this without
increasing the costs. At the present controlled selling prices,
distribution costs are already eating into the fertilizer manu
facturer's margins. Greater promotional activity will inevitably
increase these costs still further. A model distribution system,
based on a differential seasonal prices list, shows that with
proper management of the distribution function it should be
possible for the manufacturer to absorb all these increases
without damage to his margins.
251 A Look at Fertilizer Distribution. N. L. Hargett (TVA,
National Fertilizer Development Center, Muscle Shoals,
Alabama) and L. G. Sills. Farm Chem. 141 (2), 58, 60, 63-4
(Feb. 1978). The results of a survey on United States fertilizer
distribution is given for fiscal yr 1976. The study was
conducted by the Association of American Plant Control
Officials and the TVA. Statistics reported include tables of the
number and types of plants on a regional basis, the distribu
tion of materials by class, regional distribution of bulk blend,
granulation and fluid mix plants.
252 Efficiency and Impact of Various Fertilizer Supply
Systems on Production in the Punjab. P. L. Sankhayan, D. S.
Sidhu, and P. S. Rangi (Punjab Agr. Univ. Ludhiana, India).
Indian J. Agr. Econ. 28 (4), 77-84 (Oct.-Dec. 1973). A study
was made to compare the suitability of the cooperative and
35
 MARKETING ORGANIZATION
private trade in distributing fertilizer in the Punjab area of
India. The distribution costs per q of different fertilizers were
worked out for each system. Distribution costs were defined as
the difference between the price at the source and the price
paid by the farmer. The distribution cost ranged from Rs
3-10.5/q for cooperative agency. For the private trade,
distribution cost ranged from Rs 3-20/q. The superiority of
one system over the other regarding agricultural production at
the farmers' level could not be established. It is suggested that
the cooperative system may achieve better social justice
without adversely affecting the agricultural production.
253 Economies of Size and Plant Utilization in Distribution
of Anhydrous Ammonia Fertilizer. D. G. Anderson, J. L.
Jorgensen, and D. C. Nelson (Univ. Nebraska, Lincoln).
Lincoln, Nebraska: Agr. Exp. Sta. Univ. Nebraska, SB 530; 37
pp. (Dec. 1973). A delivery system of pickup truck-drawn
nurse tanks was analyzed to determine the effect of plant size,
annual volume, sales density, and number of pickup trucks and
nurse tanks upon costs per ton. Engineering and statistical
cost-finding methods were employed. Small retail plants
(26,000 gallons storage capacity), operating in an area where
the use density was 20 tons NH3/square mile had average total
costs of $10.76/ton compared to $9.35 for plants with
capacity of 52,000 gallons. Plants of 78,000 gallons capacity
had slightly higher costs of $9.94/ton. Average total costs of
retail plants with 26,000 gallons capacity operating in an area
having a use density of 20 tons/square mile were $8.49/ton
less when operated at 100% capacity than at 50% capacity
Reducing delivery truck and nurse tank numbers made low
plant volumes much less inefficient. The pickup truck delivery
system for transporting NH3 from storage plant to farmer was
more efficient for the 26,000-gallon plant operating in a use
density of 30 tons/square mile. Variable delivery costs
increased as the market territory was expanded. More
important, truck delivery costs increased more rapidly for the
larger plants than for the smaller ones. Anhydrous ammonia
use density affected average costs because truck operating
costs increased with miles traveled and because more trucks
were needed to deliver a given volume. Average costs for
78,000-gallon plants in areas with annual consumption of 30
tons/square mile were $2.04/ton less than in areas with
consumption of 10 tons/square mile. The 26,000-gallon
capacity plant had average costs which were $0.54/ton less in
the 30-ton/square-mile density area than in the 10-ton density
area. Cost efficiencies associated with high levels of utilization
of relatively large plants suggest that fewer, better utilized
plants of greater capacity might reduce the cost of NH3 to
Nebraska farmers. Potential cost savings are dependent on
several other factors, however. These include: (1) Future
growth in farm demand, (2) The effects of reduced plant
numbers on competition, (3) The mobility of resources, and
(4) The future role of storage plants and nurse tank delivery
distribution from anhydrous ammonia manufacturing centers.
DIRECTORIES
254 World Directory of Fertilizer Products. London,
England: British Sulphur Corp. Ltd., 4th Edition; I 19 pp.
36
(1977). This directory provides the names and addresses of
companies in each country along with the various types of
fertilizer products produced. A listing is also included of major
international trading organizations; national purchasing organi
zations, and export suppliers of raw materials and fertilizeſ
intermediates.
255 Directory of Fertilizer Production Facilities: Part II
Asia. Vienna, Austria: United Nations Industrial Development
Organization. ITD. 272; 109 pp. (Apr. 10, 1973). This
directory is one of a series designed to provide concise and
factual information in the field of fertilizer production
facilities of the various regions of the world. Data by country
for subregions of East Asia and South Asia are given. It gives
the present and projected fertilizer demand and production;
existing production facilities; and projects being implemented
or in the planning stage. It also contains information on the
availability and production of fertilizer raw materials and fuels
and other relevant data. (Part I dealing with Africa was issued
as ID/44 in 1970.)
256 Information Sources on the Fertilizer Industry. New
York, New York: United Nations Industrial Development
Organization; 96 pp. (1976). Price $4.00. This publication lists
the names and addresses of trade and research organizations
which provide statistics, marketing, and other types of
economic data on the fertilizer industry.
257 Directory of Fertilizer Plants in the United States.
Muscle Shoals, Ala.: Tennessee Valley Authority, National
Fertilizer Development Center, Bull. Y-87; 247 pp. (Jan.
1975). Questionnaires were distributed in early 1974 to
registered fertilizer manufacturers. A total of 6587 question
naires was returned which represents approximately 70% of
total reported fertilizer distribution in FY 1974. The directory
includes a breakdown by type of plant: dry bulk blend, liquid
mix, suspension, and granulation. Other information includes
the manager and/or owner's name, storage capacity, and
auxiliary services offered such as supplying micronutrients,
pesticides, seed fertilizer mixtures, spreader rental, and custom
application.
258 Directory of Fertilizer Plants in the United States. N. L.
Hargett, L. G. Sills, and R. H. Wehrmann. Muscle Shoals, Ala.:
TVA, National Fertilizer Development Center, Bull. Y-114;
287 pp. (June 1977). Price $4.00. This second edition (for
first edition see FA 8, 923, May 1975) was compiled from
questionnaires distributed in late 1976 and early 1977. A total
of 7150 fertilizer manufacturers is shown. This list includes
dry and fluid blenders, granulators, and some retail outlets.
The listing further includes a breakdown by type of plant; dry
bulk blend, liquid mix, suspension, and granulation. Informa
tion relative to the managers and or owners name, storage
capacity, auxiliary services and a listing of the Association of
American Plant Food Control Officials, its member agencies,
and national state fertilizer industry associations are also given.
259 Fertilizer Marketing-Abstracts. Muscle Shoals, Ala.:
Tennessee Valley Authority, National Fertilizer Development
Center, Bull. Y-59, 150 pp. (June 1973), price $5.00.
Regardless of the stage of market development in a country,
new ideas are always useful. This has been the principle
objective in selecting the abstracts for this publication. These
ideas were originally published in a large number of journals
 MARKETING ORGANIZATION:
and special publications from all over the world and all have
also been published in Fertilizer Abstracts since 1968. There
are 919 abstracts in this special collection on fertilizer
marketing. A broad definition of marketing was used as a
guide in selecting the abstracts for this publication. Thus, the
abstracts are divided into nine categories with two to six
subdivisions in each category. The categories are: market
analysis (114 abstracts), market development (75), marketing
organization (60), storage and transportation (113), pricing
and costs (82), training and promotion (31), retail services
(49), world trade (124), and supply and demand (271).
260 Farm Chemicals Handbook 1978. Willoughby, Ohio:
Meister Publ. Co.; 610 pp.; $25.00 (1977). The 64th edition of
this handbook contains basic data for market research analysis
of both fertilizers and pesticides. Major sections are the plant
food dictionary, which provides physical and chemical infor
mation along with brand and common names for primary,
secondary, and micronutrients; specifications for application
equipment by brand name; a pesticide dictionary with cross
references to brand and common name for discontinued
commercial, and experimental pesticides; a list of commercial
suppliers for equipment and technical chemicals; and the
addresses for farm chemical manufacturers.
261 Farm Chemicals Handbook 1973. Editor, W. L. Berg
(Farm Chemicals, Willoughby, Ohio). Willoughby, Ohio:
Meister Publishing Co.; approximately 440 pp. (1973) Price
S 17.50. This handbook is an up-to-date reference for the farm
chemical industry today. It is divided into five main Sections:
(l) Dictionary of Plant Foods—over 450 difinitions of fertil
izer substances with fertilizer trade names and product
descriptions cross referenced by company are given. A
complete guide to micronutrients with manufacture trade
name, and product descriptions is included. (2) Application
Equipment Guide – this is a new section in the handbook. It
gives specifications on fertilizer application equipment and a
section is devoted to photographs of new equipment offered
for 1973. (3) Pesticide Dictionary pesticides available com
mercially in the U.S. and around the world are given with
trade names, common names, and chemical names cross
referenced whereever possible. Names of basic producers are
listed under each pesticide. (4) Buyer's Guide sources of
chemicals, equipment, services, and supplied required by farm
chemical manufacturers are given. (5) Addresses of Farm
Chemicals Manufacturers an alphabetical list of farm chemical
manufacturers and suppliers is given.
262 Survey of the World Agricultural Documentation. P. J.
Boyle and H. Buntrock. Aldringen, Luxembourg: Food Agr.
Organization Documentation Centre. FAO/DC/AGRIS 6; 219
pp. (Nov. 1973). Available from Commission of the European
Communities D.G. XIII 29, rue Aldringen, Luxembourg, Price
B. Fr. 300. Results are presented of a world survey of
Secondary documentation services in the fields of agriculture,
fisheries, food science and technology, and related subjects.
Statistical and descriptive data, mostly relating to the yr 1971,
are given for 124 title and 230 abstract services operating in 41
countries and having a total annual output of 632,000 title
citations and 1,137,000 abstracts. Output of title citations by
country was highest for the U.S. with 34% of the total,
followed by France with 17%, U.K. 9%. Netherlands 7%, and
Federal Republic of Germany with 6%. For abstracts, output
was highest for U.S. with 35% of the total, U.S.S.R. 12%, U.K.
and Czechoslovakia each with 9%, France 7%, Federal
Republic of Germany 5%, and Netherlands 3%. Forty-six
percent of the total output of abstracts was published in
English, followed by 13% for Russian, 9% for French, and 8%
for Czech. Twenty-nine title services and 45 abstract services
used computerized data processing methods.
STORAGE AND TRANSPORTATION
HANDLING AND STORAGE
263 Are You Handling Ammonia Safely? Farm Chem. 137
(10), 54-6 (Oct. 1974). A photo story prepared by the
fertilizer division of the National Safety Council on how to
handle ammonia safely is presented. Three top priority
accident prevention rules in handling anhydrous ammonia are:
(l) keep the uninitiated away from the immediate work and
the rig, (2) review the procedure, and (3) check equipment. A
checklist of equipment to receive daily inspection and
constant observation is given.
264 Ammonia Handling Rules. Chem. Mark. Rep. 210 (1), 5,
20 (July 5, 1976). Industry concensus safety standards remain
the most effective means for regulation of handling and
storage of anhydrous ammonia in agriculture, according to a
spokesman for The Fertilizer Institute. The concensus process
of setting standards involves, by definition, all concerned
parties. To date, no government body ... has devised a better
procedure for developing a safety standard. The industry
representative stressed that Federal regulations are not needed
because of state efforts to adopt and enforce concensus
standards and conduct safety training and educational pro
grams for using anhydrous ammonia in agriculture. The
concensus standard now in use in many states is a direct result
of joint efforts between producers, user groups, and safety
organizations under the auspices of the American National
Standards Institute.
265 Handling, Storage Problems at Agrico Eased With
Chemical Warehouse. Chem. Process. 39 (7), 100-1 (July
1976). High efficiency in the storage and handling of granular
urea has been achieved at Agrico Chemical Company with a
77,000 square foot warehouse that was recently added to the
firm's existing ammonia production facility in Blytheville,
Arkansas. The efficiency can be attributed to the type of
material used in the construction of the building and to the
material handling system which includes approximately 5000
ft of conveyors, a 30,000 ton capacity storage building, a
screening tower completely equipped with screening systems,
weighing units, delumpers reclaim equipment, a loading shelter
with loadout systems to trucks and railroad cars, and
conveying systems for barge loading at the Mississippi river
loading docks.
266 Packaging. K. A. Wadia. Seventh F.A.I. Training Course
for Fertilizer Marketing Personnal, Bangalore, Sept. 18.30,
1972, pp. 1-7. F.A.I. Abstr. Serv. 11, 2741. The main
considerations for selecting a suitable packaging material are
tensile strength, resistance to chemicals, impermeability to
moisture, weight and size of the container, shelf life, ease in
filling, availability at economic price, and resale value. Hygro
37
 STORAGE AND TRANSPORTATION
scopic fertilizers are generally packed in alkathene lined
bitumenized jute bags, polyethylene laminated jute bags, or
PVC bags. However, high density polythene (HDP) bags are
found to be superior and cheaper than the polythene when
used for 50 kg packing. Currently, the 50 kg bag is the
standard packing. The cost of 50 kg 71.5 kg and 100 kg
packings ranges between Rs. 50 to Rs. 65/ton. There is a
possibility of using smaller size of bags like 25 kg in the future
for easy handling.
267 High-Capacity Reusable Bags for Low-Cost Fertilizer
Packaging. Phosphorus Potassium No. 77, 45 (May-June
1975). Pertwee Landforce Ltd., Colchester, Essex, England,
has introduced a new packaging system for one-ton lots of
fertilizer. Large, square woven polypropylene bags have
safety-belt webbing stitched at the top so as to form four
loops. A fork lift or crane can lift the bag by these loops, thus
eliminating a need for pallets. The bag has a safety factor of
4-5 times the wt of the design load. The bags are filled from
the top and can be emptied from the bottom in 30 sec. The
bags have a life of at least 10 trips and simplify storage and
distribution. The company has registered the bags under the
trademark of “mini BULK’’.
268 New Simple Equipment for Bagging Fertilizer in
Developing Countries. Fert. Int., No. 64, l l (Oct. 1974). Bulk
shipment of fertilizers from industrial to developing countries
has been on the increase in recent years. This method gives
cheaper and faster transit and terminal handling by modern
bulk carriers. However, lack of suitable bulk terminals having
facilities to unload, store, and bag material has limited the
increase in bulk shipments. One way to start bulk shipments
where no facilities exist is to discharge material into big
lighters, using, for instance, obsolescent ships which have been
stripped down. Bagging could be done on shore or on board
the lighters. Based on practical experience in bulk shipments
to India, a company has developed simple equipment—a
bagging spout to bag fertilizers. The fertilizers to be bagged are
measured by vol. The fixed vol is filled from a small overhead
hopper. When this vol is full, a bag is placed underneath the
spout and a handle is lifted. The valve at the top closes
whereas the one at the bottom opens which lets the measured
quantity into the bag. Then the handle is pushed down closing
the bottom valve and opening the top one. Five bags can be
filled per minute. The fixed vol can be changed to cater to
different bulk gravities. The bagger can be adapted to different
levels of mechanization.
269 Fertilizer Bagging Equipment to Korea. Jpn. Chem.
Week 16 (774), 1 (Feb. 27, 1975). Domain Kabushiki Kaisha,
a Tokyo-based subsidiary of Domain Industries, Inc. of
Wisconsin, United States has won an order for 13 lines of
bagging equipment for fertilizer from Fluor Engineers and
Constructors, Inc. of Los Angeles for installation in South
Korea. The bagging equipment on order is capable of bagging
up to 4800 mt of fertilizerſday, and each line is made up of a
surge hopper, a weighing machine, and bag-closing machines,
composed of a heat sealer and a sewing machine, and
conveyors.
270 Urea Handling Project for Bangledesh. Nitrogen No.
108; 22-3 (July-Aug. 1977). In approximately 2 yr time
construction work should be completed on the 272,000 ton/yr
N ammonia project at Ashuganj, Bangledesh. As part of this
38
project urea handling facilities are being constructed to handle
the plants rated output of 1600 ton/day of prilled urea. These
facilities, with a rail loading rate of 400 ton/day and a barge
loading rate of 200 ton/hr, are now in the engineering stages.
The new plant will have a capacity for storing 40,000 mt of
urea in bulk, and 8000 mt in bags.
271 Bulk Handling of Fertilizers Solves Distribution Prob
lems. A. Buchner and K. H. Ullrich. Eur Chem. News
(Supplement) pp. 36, 38, 40, 45, (Oct. 18, 1974). The
technical and labor-saving advantages which bulk handling of
fertilizers offers the farmer and the final distributor have
facilitated the rapid introduction of this system into German
agriculture. In the sixties, just over 10% of total fertilizer
deliveries were handled using bulk techniques. Today this
proportion is 33-35%. It is expected that in the next 4-5 yr
that 50% of German farmers will use this method. Poor
distribution of the material by the disc poses problems, but
this is also true of bagged fertilizers. There are indications that
these difficulties will be overcome by the introduction of
special spreaders. The efficiency of bulk handling methods is
so great that larger farms (over 20 ha) are adopting them to an
ever-increasing extent. Certain modifications in operational
procedure can be expected as well as further developments in
spreading equipment. The bulk handling of fertilizers is a
process that is tailored to the special structure and conditions
in German agriculture.
272 India Installs Unloading Bulk Fertilizer Equipment.
Chem. Eng. World (India) 11 (4), 53-5 (Apr. 1976). India is
importing raw materials in bulk for fertilizer production such
as rock phosphate and muriate of potash. Because of the
nonavailability of facilities for fast and continuous discharging
at the Indian ports, huge amount of foreign exchange is lost by
way of demurrage, not earning despatch money and lower turn
around of ships. To eliminate these problems the Government
of India has decided to install rapid discharging continuous
unloaders at all leading ports of India. The first such unit has
been installed at Kandla port. The highlights of marine
unloaders are based on the features and operating principles of
the Kandla installation. The guaranteed peak unloading capa
city of the marine unloader is 500 tons/hr on dry and
free-flowing treated muriate of potash of bulk density 1.035
tons/m" with discharger leg fully immersed from bulk carriers
of 10,000 to 24,000 DWT. This continuous stream unloading
element has proven its merits specifically with rock phosphate
and many other bulk commodities of free flowing nature
producing overall higher unloading performance. The advan
tages are high continuous rate of unloading coupled with lower
cost per ton of material unloaded, and lower cost per ton for
upkeep, repair, and maintenance of the dust free operation
eliminating environment problems, since the conveying ele
ments are enclosed in a casing.
273 Contract Let for Automatic Unloaders on Urea Barges.
Am. Shipper 18 (3), 23 (Mar. 1976). Crowley Maritime
Corporation of San Francisco has awarded a contract for 20
Vibra Screw bin activators to automatically discharge prilled
urea from two barges which will operate between Cook Inlet,
Alaska and Portland. This is believed to be the first time that
prilled urea will be discharged automatically from vessels. The
material is brittle, hygroscopic, and extremely difficult to
handle in ordinary circumstances. The motion of the ocean
voyage and the moisture absorbed compound the problem.
 STORAGE AND TRANSPORTATION
The urea fractionates and cakes become as hard as concrete. In
the past it has often been necessary to dynamite the caked
material or cut it up with chain saws in order to discharge it.
Automatic handling has been impossible. Ten bin activators
will be installed on each barge. They will be removable and
when not in use to discharge the urea, they will be stored on
the vessels to provide additional cargo space. Installing the
units or removing them will take approximately 10 minutes
per bin activator. Each barge is 400 ft long, 80 ft wide and 65
ft high. The Vibra Screw bin activator is a vibrated bin bottom
which replaces the converging bottom of a static bin, thus
removing the compaction area which is the major source of
flow problems.
274 Phosphate Rock Processing. Phosphorus Potassium No.
79, 40-1 (Sept.-Oct. 1975). Large slurry handling systems are
now in use for storing and reclaiming phosphate ore by
International Minerals and Chemical Corp. in Florida. The
systems are capable of handling more than 10 million tons/yr
of washed phosphate flotation plant feed and provide a
continuous slurry flow at a controlled solids content (~40%).
There has been considerable interest in the long distance slurry
transport of mined phosphate rock where rail construction
costs would be prohibitive. The concept could find wider use
in the phosphate industry.
275 Reinforced Plastic Tanks Comings Into Own in Liquid
Fertilizer Industry. Fert. Solutions 20 (5), 70, 72-3 (Sept.-Oct.
1976). The latest production trend figures point to continued
and rapid growth of liquids in the fertilizer industry. Corrosion
has been a chronic problem in the storage of these products.
The proven corrosion-resisant qualities and low maintenance
costs of the reinforced plastic type of tank seem to be catching
on and should contribute substantially toward providing a
cost-effective means of improving fertilizer manufacturing
operations. A wide variety of accessories and fittings is
available for the fiberglass reinforced plastic tanks.
276 Stainless Steel Transports Now Tailor-Made for Fertili
zer Industry. Fert. Solutions 19 (6), 58-60, 62 (Nov.-Dec.
1975). The growth of the fertilizer industry and the increased
use of suspensions and phosphoric acid in the industry
demanded new technology in transporting these materials. One
of the first manufacturers to fill the gap between what the
makeshift carriers did not offer and what the dealers needed
was the Heil Co. of Milwaukee, Wisconsin. They custom build
trailers for transporting the liquids. The liquid tankers include
such features as stainless steel structure; no internal corners,
braces, or voids to retain residue; high pressure (up to 25 psi)
agitation and discharge system; and 36 in. drop in the bottom
of the tank. The capacity of its’ latest design (super jet-25)
ranges from 950 to 1585 cubic ft. Ten loads per 3 hr can be
handled on a five mile run according to the manufacturer.
277 Development of Ports in India. K. Sivaraj (Ministry
Shipping Transport, New Delhi, India). Fert. News 18 (12),
26-8 (Dec. 1973). Development programs of major Indian
ports under various 5-yr plans are given with changes that have
taken place in the types of cargo handled by them in the
post-war years. The vol of traffic handled in 1972-73 and the
types of cargo for which fully mechanized facilities exist or
have been planned in the major ports are presented. Port
facilities that have been or are now being developed for
handling fertilizers and fertilizer raw materials are discussed.
278 Italian Phosphoric Acid Terminal. Eur. Chem. News 25
(619), 10 (Jan. 18, 1974). Following the commissioning in
October 1973 of four tanks for the storage of phosphoric acid
at its terminal at Trieste in Italy, the firm of Alder SpA is to
put two further tanks into operation in March of this yr. The
terminal is being used for receiving shipments of up to 3000
ton of phosphoric acid in tankers from Tunisia and Spain. Part
of the available capacity is under long-term contract to Chemi
Linz of Austria. The Chemapol organization of Czechoslovakia
also receives a proportion of its phosphoric acid via this
terminal.
279 Morocco's New Phosphate Port. Eng. Min. J. 178 (1),
150 (Jan. 1977). A new phosphate port will be built by
Morocco at Jorf Lasfar, on the Atlantic coast near El Jadida.
Work on a generating station to supply the necessary elec
tricity is due to start this year. Jorf Lasfar (formerly Cape
Blanc) is to start operating by 1979. It will be expanded by
1990 to become Morocco's second largest port on the
Atlantic, after Casablanca. Phosphates from the region near
Dukkala will be exported from the new port. Casablanca and
Safi together can now handle 30 million ton/yr of phosphate,
export 1.5 million ton/yr of phosphoric acid, and import 1.5
million ton/yr of sulfur-capacity that will be insufficient by
1979-80. The port at Jorf Lasfar should be able to handle 20
million ton/yr of phosphates in the first phase, 25 million tons
in the second phase, and 50 million ton/yr later, if necessary.
280 Poland Builds Fertilizer Port. Eur, Chem. News 26
(664), 18 (Nov. 29, 1974). Construction has started in Poland
on a new large-scale fertilizer raw material port at Swinoujscie,
near Szczecin. By 1976-77, Swinoujscie, which is near the East
German border, will be capable of handling 1.8 million tons of
phosphorites and apatites, imported chiefly from the Soviet
Union and North Africa. This will subsequently be expanded
to a handling capacity of 3.2 million tons. When the second
stage is completed, covered storage facilities will be
commissioned as well as wagon-loading facilities. East
Germany is interested in importing a substantial part of the
fertilizer raw material brought into Swinoujscie.
281 Pneumatic Transport for Russian Apatite. Phosphorus
Potassium No. 86, 16 (Nov.-Dec. 1976). An experimental
pneumatic transport system for apatite concentrate from the
Kola combine is under construction at the port of Murmansk,
intended eventually to replace the existing belt transporter
system. The great advantage that the new development holds
over the old belt transproter is its speed of operation;
apatite-carriers with a cargo capacity of 22,000 mt normally
take 20 hr to load but this could be reduced to 10 hr using the
pneumatic system.
282 Sulfuric Acid Terminal for Spain. Eur, Chem. News 25
(630), 11 (Apr. 5, 1974). Terminales Portuarias SA of
Barcelona, part of the Petrofrance group, has commissioned a
sulfuric acid terminal in the freeport area of Barcelona port.
The facilities will comprise ten tanks each of 1000 tons
capacity and a throughput of 100,000 tons/yr is expected. It is
claimed that this is the first sulfuric acid terminal in Spain.
The terminal will initially serve domestic demand but it could
later serve material moving to the north European area.
283 Fison's New Ouayside Development at Immingham.
Sulfur No. 121, 33-5 (Nov.-Dec. 1975). A £1.5 million
39
 STORAGE AND TRANSPORTATION
development for handling of nearly 1 million mt of import and
export at Fison's Immingham Dock Fertilizer Complex was
officially inaugurated in October 1975. The new development,
which includes the lengthening of the quay and the installation
of new loading, unloading, conveying and storage facilities,
will greatly improve the efficiency of operation at the
Complex, especially in the handling of raw material inputs to
the plants.
284 New Terminal for United States. Pit Quarry 66 (11), 28
(May 1974). The completion in 1974 of a new loading
terminal at Tampa, Fla. will increase capacity for shipping
phosphate from the Gulf area. Two 22,500 long tons
self-unloading barges equipped with Parascrew unloading
system will be used in this hauling.
285 Distribution Terminal for United States. Phosphorus
Potassium No. 80, 16 (Nov.-Dec. 1975). The Agricultural
Chemicals Division of W. R. Grace & Co. recently announced
that it will be opening a $2.5 million fertilizer distribution
terminal in Greenville, Ohio. It is part of Grace's extensive
program to expand production and distribution of key
fertilizer materials, including triple superphosphate, diammo
nium phosphate, bagged ammonium phosphates, and bagged
mixed fertilizers. The terminal will improve distribution for
dealers and large buyers in the surrounding areas of Ohio,
Indiana, Michigan, and Pennsylvania, and will also custom
blend fertilizers to meet the specific requirements of farmers
in the immediate area.
286 United States Ammonia Terminal. Chem. Age (London)
113 (2977-7), 4 (Aug. 6-13, 1976). A 100,000 ton ammonia
storage terminal is planned near Donaldsonville, Louisiana, to
handle imported and domestic product under long term
contracts possibly totalling 500,000 ton/yr. J. B. Allison &
Associates of Dallas are conducting the feasibility and plant
surveys.
287 Construction Begins on Soviet Ammonia Port. Fur.
Chem. Newy 27 (703), 16 (Sept. 19, 1975). Construction has
started on a large new gas port with a liquid ammonia
transhipment complex at Ventsplis Latvia, in the Soviet
Union. The complex will include Storage tanks, pipelines, a
trestle bridge to discharge ammonia from tanks, compressors,
pumps, and berths for gas carriers. Work has begun on the first
of two 33,000-ton liquid ammonia storage tanks, and the first
stage of the complex will be put into operation early in 1977
when loading of ammonia into tankers will begin. A fertilizer
plant will also be built near the port.
288 World Maritime Anhydrous Ammonia Terminals. P. L.
Louis. ISMA, Paris, France, A/F/77/96; 16 pp. (June 15,
1977). World ammonia terminals are given for 46 countries.
Under each country, the company is given with its location,
present capacity, planned expansion, and limitations in feet.
289 NPK: Fertilizer in the Bin is Worth Two Cars on the
Way. Farm Chem. 138 (6), 16-17 (June 1975). For years basic
producers have been encouraging their customers to put in
addtional storage so that they could take more of their raw
material needs during the off season. Then came the shortages
and dealers learned that fertilizer in the bin is worth two cars
on the way. There have been substantial additions to storage
facilities in the market place and on the farm. Some dealers
40
recommend 60% of sales volume as a reasonable ratio of
storage; others recommend a minimum of 3 to 4 weeks supply.
Storage of more products and better use of transportation are
some of the good results of the fertilizer shortage. Even
though the supply-demand situation seems to be easing the
wise dealer will continue to add to his storage facilities.
290 Good Storage Makes Good Sense. Farm Chem. 138 (3),
56-8, 60 (Mar. 1975). Year-round shipment of products to
bulk blenders, liquid mixers, and dealers has been a target for
producers for years. The supply squeeze has shown a need for
additional storage by the distributors. The blender/mixers are
rushing to add storage for additional product which is a buffer
against uncertainty of delivery. Most mixer-blenders agree that
they are better able to serve their customers with extra
product on hand.
291 Trends in Storage, Handling, and Transport. F. D. Lyon
(CF Industries Inc.). In TVA Fertilizer Conference (held July
27-8, 1976, Cincinnati, Ohio). Muscle Shoals, Ala.: Tennessee
Valley Authority, National Fertilizer Development Center:
Bulletin Y-106; pp. 37-42 (July 1976). The definable trends
that appear to be present are: (1) increased use of pipelines to
move ammonia and UAN solutions, (2) increased barging of
fertilizer materials, (3) ocean-going barges are expected to
increase in size and will use the more efficient “push-towing”
concept, (4) railroads will continue to lose business to water
and truck, (5) there will be larger private fleets of hopper and
tank cars, (6) increased storage in fertilizer consuming areas,
and (7) larger shipping and receiving capacities at plants and
terminals. Other trends which are not definable at this time
are: (1) the solid pipeline concept, (2) conveyor systems for
the movement of dry fertilizer over long distances, (3)
movement of potash by pipeline in a slurry form, (4) federal
and state regulations on the movement of fertilizers, and (5)
increased fuel taxes on barge lines.
292 Fertilizer Storage. Nitrogen No. 106, 41 (Mar.-Apr.
1977). It has recently been announced that a new additive has
been developed for concrete which will greatly improve its
resistance to corrosion under the conditions found in bulk
fertilizer storage. The development, by Norsk Hydro's
Research Center and AS Norcem, a Norwegian cement
producer, increases both the corrosion resistance and strength
of the concrete. At present, it is common practice to protect
concrete against corrosive attack by fertilizers by coating it
with, for example, epoxy or asphalt. However, these are
expensive to apply and maintain and can be easily damaged,
leaving the underlying concrete open to attack. So far, test
work has been confined mainly to combatting the corrosion of
concrete by nitrates. This phenomenon has been observed in
many fertilizer stores and is assumed to result from the
reaction of nitrates present in the fertilizer with calcium
hydroxide in the concrete. The additive is now on sale under
the name “Norcem TS” and has a definite economic advantage
when compared with the cost of applying a coating material to
the concrete. It is recommended that the additive be used in
the proportion of about 20% of the weight of the cement. This
produces the required resistance to nitrate attack and will also
increase the strength by 30-100% depending on factors such as
the composition of the cement itself and the rate of hardening.
293 Ammonia Storage: Safety Warning From TF1 and
NFSA. Nitrogen No. 105, 36 (Jan.-Feb. 1977). The Fertilizer
 STORAGE AND TRANSPORTATION
Institute (TFI) and the U.S. National Fertilizer Solutions
Association (NFSA) recently issued a warning to their respec
tive membership of basic fertilizer producers, manufacturers,
distributors, retail dealers, and fertilizer equipment manu
facturers and distributors, and to fertilizer industry trade
associations and state fertilizer control officials all over the
United States. It concerns the risk of corrosion in storage
installations for anhydrous ammonia and draws particular
attention to the matter of third party liability in the event of
accidents or leakages resulting from such corrosion. It has
become apparent that where the ammonia contains additives
(other than water), corrosion can occur in the valves and
gauges on nurse and storage tanks as a result of electrolytic
action involving dissimilar metals. This is particularly severe in
gauges containing aluminium parts. Liquid ammonia is, of
course, a polar protic solvent akin to water in its dielectric
behavior, so it is of little real surprise to learn that it can act as
a medium for electrolytic corrosion in the same way as water.
The TFI/NFSA warning recommends an immediate and
thorough check of all valves, gauges, and rubber componenets
in ammonia storage installations where additives have been
used and regular systematic inspections even where they have
In Ot.
294 Ammonia Storage Facilities for India. Eur. Chem. News
23 (576), 10 (Mar. 23, 1973). Uhde has been awarded a
contract for the design and construction of a low temperature
ammonia storage plant. The work is part of a project by FACT
Engineering and Design Organization of Cochin, India, to
increase FACT's fertilizer capacity, based on imported
ammonia. The source of the ammonia is still uncertain but
Iraq is the most likely contender. Uhde will install one storage
tank with a capacity of 10,000 tons and one with a capacity of
5000 tons of ammonia at low temperatures. Also included in
the work will be the installation of the refrigeration plants,
ship unloading facilities for 700 ton/hr, road tanker loading
and unloading facilities, and a transfer pumping station.
295 Ammonia Storage and Handling at Kalol. C. P. Mathur
and P. Mittal. Fert. News (India) 20 (6), 33-6 (June, 1975).
IFFCO has built an ammonia plant of 910 ton/day capacity.
After meeting the ammonia requirements of the urea plant,
about 65,000 ton/yr of ammonia will be despatched from
Kalol to various destinations. An atmospheric storage tank of
10,000 mt capacity together with a refrigeration system and
flare stack have been provided. Loading pumps and loading
stations to achieve a loading rate of 150 mtſhr have been
installed. To transport ammonia in such large quantities
specially designed rail tank cars of 32 mt pay load have been
purchased.
296 Fisons Ammonia Storage Facilities. Eur. Chem. News 24
(597), 10 (Aug. 17, 1973). Fisons has been granted planning
permission for the second phase of its ammonia storage
terminal at Avonmouth near Bristol. The scheduled comple
tion date for the project is the latter half of 1974, when the
capacity will have been doubled to a total of 32,000 tons of
liquid ammonia. The total cost of the work is expected to be
in the vicinity of $2 million and will include outloading
facilities to road, rail, and sea. To facilitate the movement of
the ammonia, Fisons has contracted to hire fourteen 90 ton
ammonia railway wagons on a long-term basis. The reason for
the expansion in storage capacity is to enable Fisons to draw
ammonia from any part of the world in economically-sized
ships.
297 Ammonia Storage Being Constructed in United States
Port. Am. Shipper 18 (9), 37 (Sept. 1976). The Royster
Company of Norfolk will build a multi-million dollar storage
tank and truck-rail loading facility in Tampa, Florida. Con
struction will begin soon on the tank which will hold
anhydrous ammonia to be shipped to a phosphate plant in
nearby Mulberry, Florida. The ammonia will be shipped into
Tampa in liquid form from several sources, including Vene
zuela, Trinidad, and New Orleans and will be used in
producing fertilizer. The Royster facility will be constructed
on 17 acres of the Hookers Point section of the port of Tampa
and is scheduled to be completed by late 1977. The new
complex will have a storage capacity of 35,000 mt and will be
able to unload ships at a rate of 1250 tons/hr.
298 Ammonia Storage Under Construction. Farm Chem.
139 (3), 94 (Mar. 1976). Gulf Central Storage and Terminal
Co. is constructing two 30,000-ton capacity refrigerated
storage tanks for anhydrous ammonia, one each at Aurora,
Nebraska and Crawfordsville, Indiana. These will be the second
tanks in each location and will bring Gulf Central's storage
capacity to 270,000 tons in 9 tanks at strategic points along
the Gulf Central Pipeline, the 1880-mile system that transports
ammonia from producing areas on the Gulf Coast to Missouri,
Iowa, Nebraska, Illinois, and Indiana. Additional laterals are
being constructed this yr to serve new ammonia plants under
construction in Louisiana.
299 Soviet Union Awards Contract for Ammonia Storage.
Eur, Chem. News 26 (649), 10 (Aug. 16, 1974). The Soviet
Union has placed another contract in connection with the
large ammonia complex planned for Togliattigrad on the Volga
near Kuibyshev. Its import agency Techmashimport signed a
F100 million order with the French company Construction
Metalliques de Provence (CMP) for the installation of ammonia
storage, refrigeration, and loading facilities. The storage
capacity will be 60,000 tons and the nominal loading rate will
be about 600 tons/hr. CMP expects to complete work on the
facilities towards the end of 1977. If this schedule is met, the
Soviet Union will have its ammonia storage operational ahead
of the four 1360 tons/day ammonia plants which Chemico is
engineering at the same site (FA 7, 1630). These are due
on-stream at the end of 1978. The storage and loading
equipment will serve both rail tank cars and pipeline facilities.
Part, though not necessarily all, of the ammonia leaving the
site will be transported to Odessa and Ventspils, on the Black
Sea and Baltic Coast respectively, where Occidental is to build
import-export terminals for superphosphoric acid and
ammonia.
300 Ammonia Storage Expansion. Chem. Age (London) 114
(3023), 4 (June 24, 1977). A 420,000 mt increase in
anhydrous ammonia storage capacity is expected during the
next 2 yr, amounting to a 16.5% increase in world capacity,
which should reach 2.5 million mt. A restricted circulation
survey of ISMA is understood to show three terminal additions
bringing total capacity in the U.S. to 729,450 mt. In addition
to Western Europe, large installations are being built in Brazil,
Iran, Mexico, Qatar, and the USSR.
301 Storage and Handling of Urea. H. L. Balay (TVA,
National Fertilizer Development Center, Muscle Shoals,
41
 STORAGE AND TRANSPORTATION
Alabama). In Fla. Fert. Lime Conf. (held Orlando, Florida,
May 13, 1976). Gainesville, Florida. Univ. Fla.; pp. 22-33
(May 1977). Urea, properly used, is an excellent fertilizer.
Agronomic problems exist, but they can be overcome by using
well-known techniques. The prospect of increased quantities
of urea pleases many farmers who prefer this source of
nitrogen. There are some who, because of agronomic limita
tions, will not accept urea. There is little question that
economics, safety, and storability favor urea. Usually the
farmer who buys a blend is only interested in top agronomic
performance at the lowest cost, and only specifies a given ratio
without regard to the ingredients. This allows blenders to
choose the most economical nitrogen source, and an increasing
number are choosing urea Most problems with urea have a
practical solution. The major objective now is to convince the
user that the problems can be overcome and to teach him how.
302 Bulk Fertilizer Storage Problems. J. Flour Anim. Feed
Milling 160 (3), 24 (Mar. 1977). Savings of around £3/mt
could be made by switching to new methods of solid fertilizer
distribution according to a representative of Norsk Hydro.
Considerable advantages and savings could be derived from
shipping to developing countries in bulk. Deliveries in bulk to
the farm offer the most promising prospects for increasing
distributional efficiency. A lot of effort has to be put in to
make these attractive to farmers. Storage problems are the
main handicap in this sphere, since the construction of bulk
storage facilities is only likely to prove economic on large
farms, and without these some deterioration in fertilizer
quality is possible.
303 A Comparative Study of Alternate Models of Field
Warehousing for Fertilizers. V. S. Ramaswamy (Fertilizers and
Chemical Travancore, Ltd., Udyogamandal, Alwaye, Kerala,
India). Fert. Mark News (India) 8 (9), 6-8 (Sept. 1977). The
relative economics of two alternative fertilizer warehousing
strategies is discussed. The advantages and disadvantages of
two models representing rented warehousing facilities and
company owned warehouses is detailed. The results from a
cost: benefit ratio analysis concluded that it was more
economical to own company warehouses when storing at a
level greater than 600 mt.
304 Role of Field Warehouses in Stimulating Fertilizer
Consumption. K. Pushparaj (Fertilizer Chem. Travancore,
Ltd., Alwaye, Karala). In FAI-FAO Seminar Strategy Stimu
lating Fertilizer Consumption 1976 Proc. (held New Delhi.
India, Dec. 9-11, 1976.) New Delhi, India. Fert. Assoc. India
IV-1/1-6 (Mar. 1977). While fertilizers are products of a
continuous process industry, their demand is only seasonal.
There are limitations in providing for storage of fertilizers
during off-season periods within the factory. Considerable lead
time is required for movement of stocks from production units
to consuming centers; therefore, field warehousing for fertili
Zers assumes importance. The relative merits of two and three
tier field warehousing systems are given and the possibilities of
their adoption under different situations discussed. Field
fertilizer storage facilities should be recognized by the industry
as a part of its fertilizer promotion work to stimulate
consumption.
305 Inventory Control System on Storage of Material
Inputs. S. N. Sen. Indian J. Agr. Econ. 28 (4), 157 (Oct.-Dec.
1973). The formulation of a sound and flexible inventory
42
control system has a paramount importance for the smooth
and efficient functioning of a sound storage policy and in
maintaining an equity between input, output, and distribution
The structural relationship between the input and output
performances can be obtained for such inputs like seed, water
fertilizer, pesticides, farm machinery, and others. The suitable
stochastic models can be framed for estimating either the
demand of different material inputs or the content of the
storage at any time and the optimal order quantity depending
on the storage and distribution costs. The input of the system
is the constant required inventory level. The demand is
considered a normal variate with the estimable mean. The
order quantity is the decision factor. The quantity ordered of
the supply made at the beginning of a discrete period is
assumed to be delivered during that period itself. The total
cost is taken as the sum of the inventory carrying cost plus the
storage cost, the set-up cost being assumed as negligible. The
size of the demand at any time is taken as the random variable
and a linear stochastic model is assumed. The order quantity
(or the inputs) may be estimated also from the demand by
assuming a linear process. The mean and variance of the
estimated demand are worked out, assuming that demand
occurs intermittently at regular intervals. An optimal order
quantity is dependent on the cost of inventory storage and
handlings. Assuming a prior knowledge of the capacity of the
storage, the content of the storage at any time ‘t’ can be
estimated from the relation Zt = Zt - 1 + Xt - Yt where,
Zt = required constant inventory level at time ‘t’ Xt = order
quantity at the beginning of the interval, Yt = uniform
demand occurring at every ‘n’ review interval (where n = an
integer, t = In #1, I = 0, 1, 2, ...). The probabilities of the
storage content given by P (i, t, u, J) are estimable for any
value of ‘t’ using the familiar processes of the storage
problems. The model for determining the location of the
storage depending on the cost of distribution and time of
delivery is also discussed.
306 Fertilizer Suorage Project for Afghanistan. Green
Markets 2 (1), 8 (Jan. 2, 1978). Afghanistan is constructing 46
fertilizer warehouses with total storage capacity of 100,000
mt. The S8.67-million project will be partially funded through
a $5.7-million loan by the Asian Development Bank. The
project also includes four regional warehouses and 23 pro:
vincial depots with total capacity of 12,500 mt for storing
agri-chemicals and veterinary products.
307 Fertilizer Storage Facilities for Belgium. Eur. Chem.
News 26 (668), 14 (Jan. 3, 1975). BASF Antwerp is building
additional storage space for NPK fertilizers in Belgium. The
new storage space will be able to handle an additional 30,000
tons of NPK fertilizers. This will be composed of four bins of
2500 tons and four bins of 5000 tons. The total investment in
this project is Belgium F125 million, and it should be
completed by January 1976.
308 Dutch Fertilizer Company Builds More Storage. Fert.
Int. No. 64, 6 (Oct. 1974). The Dutch fertilizer manufacturer.
NSM, has announced plans for increased storage facilities at
their Sluiskil plant. One of the largest urea producers in the
world, NSM has had plans for extending its dock facilities for
over a yr. The latest announcement incorporates plans for
extending storage facilities for urea, ammonium nitrate, and
calcium nitrate. The new harbor facilities include deep water
quay facilities and the construction of a two-floor concrete
 STORAGE AND TRANSPORTATION
-*** -
-
conveyor gallery to enable dry conditions for loading either
-
bulk or bagged material.
309 Bulk Urea to New Zealand. Fert. Int. No. 70, 2 (Apr.
1975). New Zealand Farmers Fertilizer Co., Ltd. has installed
a 4500 mt bulk warehouse at Auckland which will facilitate
imports of fertilizers particularly urea and ammonium sulfate.
During 1974 New Zealand imported over 40,000 mt of urea
and slightly more ammonium sulfate primarily from Japan.
Two cargoes of bulk Japanese urea have already been unloaded
successfully at Auckland and more are scheduled to be
delivered before the end of the 1974-75 season. Domestic
fertilizer consumption in New Zealand could show a substan.
tial increase in 1975.
º succeed in reducing CN's rail car cycle from 40 to 12 days. It
-
-
310 New Zealand Phosphate Storage Losses. J. Flour Anim.
Feed Milling 159 (10), 34 (Oct. 1976). Seventeen piles of
º superphosphate stored directly on the ground or on previous
pads at farm airstrips were sampled over the winter-spring
º
º:
period of 1974 to assess nutrient status following delivery 2-3
months previously in the North Island of New Zealand. High
losses of up to 50% of the nutrients phosphorus, sulfur, and
soluble salts such as sodium molybdate were noted. Indica
= tions were that the capillary action of soil moisture caused
migratory losses in secure tarpaulin covered stacks of greater
proportion than direct downfall of rainwater within the same
time scale.
ºº.
311 United States Fertilizer Survey of Storage Capacity.
Fert. Int. No. 74, 4 (Aug. 1975). Total fertilizer storage
recorded in the survey was nearly 15 million tons. The storage
figures confirm the difficulties that U.S. fertilizer industry has
in trying to estimate consumption in the United States, based
on distribution and sales figures. A total of 5,135 plants
provided an adequate return to the survey, 63% of them being
solely involved in bulk blending, 13% handled liquids only,
7.5% liquids and suspension, and 8% bulk liquids and
suspensions. An analysis of distribution showed that almost
one-third of all fertilizers distributed were dry bulk blends, a
total which rose to 43% when bagged material is included.
Granulated products represent 13% of all fertilizers distri
buted, fluids 10%, anhydrous ammonia 7%, and nitrogen
solutions 7%.
312 United States Storage Facilities. Fur. Chem. News 31
(800), 10 (Aug. 19-26, 1977). Texasgulf of the United States
has announced plans to build an ammonia terminal and dry
fertilizer storage facility at the state port in Morehead City,
North Carolina. The multi-million dollar project will be
completed in about 2 yr and will include a new terminal
capable of unloading ammonia straight from ships into a
30,000 ton storage tank. The dry fertilizer facilities will have
at least two storage buildings able to hold 10,000 ton of
material.
RAIL TRANSPORT
313 Canada Establishes Fertilizer Rail Service. Fert. Int. No.
101; 4 (Nov. 1977). Canadian Pacific Rail has started a new
train service for the movement of solid fertilizers. The rail
company acquired 353 new 100 short ton capacity covered
hooper cars at a cost of Can. $11 million. About 190 of the
cars are dedicated to domestic and international shipping of
products from Cominco’s new urea plant at Carseland, Alta.
The remainder will be used to service the requirements of
Canadian Fertilizers Ltd. of Medicine Hat, Alta.
314 The Floating Train: A Response to the Logistics Snarl.
Farm Chem. 140 (5), 22 (May 1977). Transportation of
fertilizer products—especially potash—represents revenues of
approximately $150 million to CN Rail's of Montreal, Canada.
Because of this, a radically different method for distributing
potash (floating train concept) has been proposed which could
is anticipated that if effective, the system will: (1) ensure
readily available supplies during peak periods, (2) overcome
Seasonal traffic congestion, and (3) significantly improve
equipment use.
315 Jordan's New Railway. Phosphorus Potassium No. 81,
24-5 (Jan.-Feb. 1976). A new 116 km railway line for
transporting phosphate rock from the mine El Hassa to the
port of Aqaba on the Red Sea is now in operation. In order to
increase export shipments through Aqaba the transportation
capacity had to be significantly increased; by 1977 the line is
scheduled to carry 5 million tons/yr of phosphate rock and it
is planned to raise this to 10 million tons/yr in the 1980s. At
present, 2000 ton/hr of phosphate rock can be loaded and
there is storage for 160,000 mt of rock. Expansion to handling
and storage facilities is planned to cope with the increased
throughput the new railway will be able to achieve.
316 New System for Liquid Rail Transport. Chem. Week
117 (4), 9 (July 23, 1975). A new method of loading,
transporting, and unloading bulk liquids has been developed
by General American Transportation Corp. (GATX). The
company claims that costs to users of the new system would
be as much as 15-20% lower than costs of using conventionally
equipped railroad tank cars. GATX's system is a "tank train"
with interconnecting hoses, special valves and sensing devices
that permit a string of cars to be filled or emptied in a
continuous flow from a single connection. The firm says a
two-man crew can load or unload 20 cars containing 463,000
gal of liquid product in about 2 and one-half hr and an 80-car
train in about 8 hr. These rates are about six times as fast as
for conventional loading or unloading.
317 Railroad Equipment to Aid in Handling Phosphate. Fla.
J. Comm. 15 (12), 2 (Dec. 1973). Seaboard Coast Line
Railroad has invested $96,000,000 in all types of phosphate
moving equipment within the past 2 yr to help move Florida
phosphate rock to fertilizer plants throughout the United
States. In addition, nine railroads provided 1200-1300 extra
cars to keep phosphate moving last Spring when barges were
out of action on the Lower Mississippi River because of flood
conditions. American railroad added 13,000 covered hopper
cars and more than 14,000 plain box cars to the fleet since
January 1, 1973. Car utilization has improved 7.8% during the
first half of 1973, with car shortages declining 35% from the
peak last March 1973.
318 The Economics of Upgrading Seventy-One Branch Rail
Lines in lowa. C. P. Baumel, J. J. Miller, and T. P. Drinka
43
 STORAGE AND TRANSPORTATION
(Iowa State Univ., Ames). Am. J. Agric. Econ. 59 (1), 61-70
(Feb. 1977). Proposed abandonment of branch rail lines in
rural areas has stimulated considerable concern over the
impact of abandonment on shippers, receivers, and rural
communities. The purpose of this study is to present estimates
of the benefits and the costs of upgrading seventy-one branch
rail lines. A benefit: cost analysis is used to compare the net
benefits with the net costs of upgrading the rail lines. Separate
models are utilized to estimate the benefits to grain shippers,
fertilizer shippers, and shippers and receivers of all other
products from upgrading the branch lines. Benefit: cost ratios
are presented for six alternative solutions.
319 How Railroad Abandonment will Affect the Fertilizer
Dealer. Phillip Baumel et al (Iowa St. Univ., Ames). Farm
Store Merchand. 22 (2), 20, 22, 24 (Feb. 1978). An analysis is
made and results given of the economic effect of abandoning
71 rail lines on fertilizer and grain dealers in the state of Iowa.
Calculations were also made of the cost of upgrading as
opposed to abandonment. The study revealed that upgrading
would save shippers and receivers about $4.4 million/yr based
on 1980 projections of grain, fertilizer volumes, and rail rates.
Rail abondonment would cost an additional $1.5 million for
grain shipments out of Iowa and $1.3 million extra for
fertilizer shipments into the state. With fertilizer, the major
handling cost from source to farm was found to be local
delivery costs—from dealer to the farm.
320 Impact of Rail Abandonment on Agricultural Produc
tion and Associated Grain Marketing and Fertilizer Supply
Firms. A. R. Bunker and L. D. Hill (Univ. Illinois Urbana
Champaign). Ill. Agric. Econ. 15 (1), 12-20 (Jan. 1975). About
30% of the rail lines in the major grain states of Illinois,
Indiana, and Ohio are classed as potentially excess. Most of
these lines are located in rural communities that are serviced
by a single rail line. Any abandonment thus affects the
community and the local agribusinesses. In 1969 the Chicago
Rock Island, and Pacific (CRIP) abandoned a 14.1-mile spur
line from Guthrie Center to Menlo, Iowa and in 1971 the
Chicago and Northwestern (CNW) abandoned 95.4 miles of
track between Oskaloosa, Iowa, and Keithsburg, Illinois. Grain
elevators, feed distributors, and fertilizer distributors located
on the abandoned lines were identified and interviewed a yr
before abandonment and again in 1973. Similar businesses in
nearby areas still serviced by rail were also interviewed and
used as norms. In general abandonment of the CRIP trackage,
where the only alternate form of transportation was truck
shipment, caused a shift in agricultural production from grain
farming to livestock farming. The impact on grain elevators
was substantial but feed distributors were less affected.
Fertilizer distributors suffered some reduction in their ability
to compete with other distributors because of the increased
transportation costs for fertilizer supplies. Distributors often
had products shipped to a nearby rail unloading facility and
then transhipped by truck to the plant site. Extra cost was
about $1.50/ton for loading from rail to truck plus 4-8
cents/ton mile trucking charge. For the CNW case, alternate
transportation included trucks and barges. Rail abandonment
in this area had no measureable effect on agricultural
production nor were grain elevators affected. Both feed and
fertilizer distribution suffered some loss in competitive ability.
In the CNW area fertilizer distributors made a substantial shift
in procurement patterns, principally from distant sources to
closeby origins. There were no clear indications that rail
44
abandonment had any significant impact on employment,
business discontinuance, or capital investment.
321 Rail Car Shortage Affects Fertilizer Movement. Chern.
Week 113 (16), 51 (Oct. 17, 1973). Fertilizer producers are
bracing for a severe shortage of rail cars during the next few
months. The Fertilizer Institute says that according to its
recent survey, 20 major shippers of fertilizer said that between
Sept. 26-Oct. 9 they had ordered 10,000 rail cars but received
only 7000. The institute says it plans to keep weekly records
on rail car shortages.
322 Railroads Directed to Supply Additional Cars for
Fertilizer. Wall Street J. (East Edition) 183 (54), 40 (Mar. 19.
1974). The Interstate Commerce Commission (ICC) ordered
railroads to deliver 1100 freight cars for fertilizer shipments
out of Florida. The ICC said there's an acute shortage of cars
for fertilizer movement, with entire areas of the country
unable to receive adequate fertilizer supplies needed for
production of feed grains and other crops. The 1100 cars must
be delivered by April and will remain in fertilizer service until
the commission authorizes their use for other purposes or until
the agency's order expires May 1. The ICC ordered each of li
railroads to deliver 100 covered hopper cars with a capacity of
at least 140,000 lb each, to Seaboard Coast Line Railroad for
use in shipping fertilizer from production points in Florida to
other sections of the country.
323 Rail Rate Increases Resisted by United States Fertilizer
Industry. Green Markets 1 (36), 2 (Oct. 7, 1977). The United
States fertilizer industry is waging a successful campaign
against railroads which have proposed higher freight rates.
Southern carriers declined to impose a 7% increase on urea,
ammonia, superphosphate, and compounds moving to and
from points in the south and points in the eastern territory.
Southwestern lines likewise refused to go along with a
proposed 7% increase on superphosphate, urea, and com
pounds moving between points in the western and eastern
regions. The proposed interterritorial increases would have
been imposed in addition to a general nationwide 5% rail
freight increase which the railroads say is cost justified. The
only fertilizer material exemption to the 5% increase is
phosphate rock moving to plants in Florida.
PIPELINE TRANSPORT
324 Ammonia Pipeline Construction. Oil Gas J. 75 (8), 40
(Feb. 21, 1977). A 120-mile, 6-in. pipeline to connect Agrico
Chemical Co.'s ammonia plant at the Port of Catoosa near
Tulsa with the Mapco Inc. system at Enid, Oklahoma, should
be completed soon. Mapco officials say one-fourth of the
$4-million extension has been completed. The line will move
about 1400 tons/day of anhydrous ammonia.
325 Pipeline Accord Reached by United States Companies.
Fam Chem. 141 (2), 120 (Feb. 1978). Royster Co. and W. R.
Grace Inc. have entered a joint agreement to lease the capacity
of an anhydrous ammonia pipeline from Tampa, Florida to the
central Florida phosphate area in Polk county. The multi-yſ
 STORAGE AND TRANSPORTATION
lease agreement is with Tampa Bay Pipeline Co., which will
start construction of the 6-in. pipeline in the near future.
Completion date is scheduled for mid to late spring 1978.
Initial capacity of the pipeline will be 600,000 tons/yr.
326 Soviet Ammonia-Line Construction Agreement. Oil Gas
J. 73 (7), 39 (Feb. 17, 1975). Two American companies and a
French company are nearing agreement with the Soviet
Government to build a 1490-mile ammonia pipeline from
Togliatti, a Volga River city near Kubychev, to Odessa on the
Black Sea. Sources in Los Angeles said the final decision to
build the 10-in.-diameter line, with a 2.5-million-tons/yr
capacity, will come within 2 or 3 months. The Soviet Union
plans to construct four ammonia plants in the Togliatti area.
Design and engineering work is in progress. The proposed line,
costing an estimated $300 million, would be tied in with Oxy's
exchange project to sell the Soviets 1 million tons/yr of
superphosphoric acid and purchase ammonia, urea, and potash
from the Soviets for sale on world markets.
327 Expansion Program Begins on Ammonia Pipe Line. Oil
Gas J. 73 (51), 27 (Dec. 22, 1975). Santa Fe Pipeline Co., has
begun a $24-million expansion of its anhydrous ammonia and
gas-liquids pipelines. The project calls for new pumps and
pump stations for the Tulsa firm's Gulf Central Pipeline Co.
subsidiary and its Chaparral Pipeline division. New cryogenic
ammonia storage tanks also are planned. The manager of
administration for Santa Fe Pipeline Co., says engineering
work is under way. Foundations for two storage tanks have
been set, and pump parts have been ordered. The construction
program will be completed in stages through 1976 and 1977.
Main-line capacity of Gulf Central will be expanded initially to
1.8 million tons/yr from the current 1.1 million tons. Ultimate
capacity is expected to be 2.2 million tons/yr. The approxi
mately 2000-mile line moves ammonia from southeastern
Louisiana to the Upper Midwest, terminating at Aurora,
Nebraska. Work will include the construction of 15 new pump
stations and installation of new pumps at existing stations for
a total of 25 new pumps. A 6-7-mile extension to Farmland
Industries Inc.'s ammonia plant being built at Pollock,
Louisiana, also is scheduled. The 740-mile Chaparral line in
New Mexico and Texas will get 26 new pumps through
construction of six new stations and added horsepower at
existing Stations.
328 Long Distance Phosphate Rock Slurry Transport. Chem.
Eng. 83 (8), 67-70 (Apr. 12, 1976). Brazil's plan for a
phosphate rock slurry line in the country is moving ahead.
Bechtel is engineering the system for Valep (Mineracao Vale
do Parnaida S.A.). The 62-mile pipeline is to be 9 inches in
diameter and will have a throughput of 2 million tons/yr. This
artery will pioneer long-distance phosphate rock slurry trans
port. Phosphate lines until now have only served short inplant
applications, for example, at phosphoric acid plants.
329 Europe Opens Longest Sulfur Pipeline. Chem. Age
(London) 113 (2996), 16 (Dec. 10, 1976). A 7 km liquid
sulfur pipeline, worth about DM 5 million and claimed to be
the longest in Europe, has been opened in the Sulingen area of
North Germany. It has a transport capacity of 1000 mt/day.
The sulfur, produced by NEAG from natural gas, will be fed to
a rail-tanker loading point at Barenberg. Previously, the sulfur
was carried on a round-the-clock service by road tankers.
330 Poland Commissions Sulfuric Acid Pipeline. Eur. Chem.
News 24 (602), 12 (Sept. 12, 1973). The pipeline linking the
sulfuric acid production plant at Police in Poland with the
nearby port of Szczecin is to be commissioned soon. The
pipeline will have a capacity of 1 million tons/yr and the acid
will be exported from the port in vessels of 16,000 dwt.
Production capacity for sulfuric acid has been substantially
expanded in recent years during the first two stages of a
four-stage plan for the chemical industry at Police. Up to June
1973, production of the acid totalled around 1.8 million tons,
of which 575,000 tons had been exported. The production
target for 1973 is to be in excess of 1 million tons—a 50%
increase from 1972–and the target for 1974 is to be 1.3
million tons. It is planned to expand the Police production
capacity for sulfuric acid to a total of 2.4 million tons/yr by
1980.
331 Ammonia Called Transportation Hazard. Chem. Mkt.
Rep. 206 (27), 18 (Dec. 30, 1974). The National Transporta
tion Safety Board has urged Federal pipeline safety regulators
to consider anhydrous ammonia as well as liquified petroleum
gases as particularly hazardous products requiring tighter
transportation safety regulation. The recommendation was
contained in a report on an investigation of an anhydrous
ammonia pipeline rupture in the Mid-America Pipeline
Company system at Conway, Kan., December 6, 1973, when
90,000 gallons of the liquid leaked into the atmosphere as
vapor. The board noted that when the line was built in 1968,
there were no Federal regulations which dealt solely with
pipelines transporting anhydrous ammonia or liquified
petroleum gases.
WATER TRANSPORT
332 Ammonia Vessel Shipped. Chem. Mark. Rep. 210 (9), 3,
27 (Aug. 30, 1976). A special 2184-psi pressure vessel,
engineered in Canada and manufactured in Germany, is now
on its way by rail from Texas to a $145 million fertilizer
complex being built for Cominco, Ltd., at Carseland, near
Calgary, in Southern Alberta. The huge vessel, weighing some
740,000 pounds, and about sixty feet tall when erected is a
key component of the 1150-ton-a-day fertilizer ammonia plant
in the complex. It will convert Alberta natural gas feedstock to
anhydrous ammonia. The pressure vessel is of multi-layer
construction. It was offloaded and barged to Houston, where
it was again loaded on railway flatcars for the final leg of the
journey to Alberta. It is expected to reach the Cominco job
site this yr after a journey of some 8100 miles.
333 Two Ammonia Carriers for Norway. Eur, Chem. News
24 (611), 10 (Nov. 23, 1973). The Norwegian companies of
Fearnley & Eger and A/S Hanico (of Halvor North Astrup)
have jointly placed orders with the Moss Verft shipyards for
the construction of two LPG/ammonia tankers with a capacity
of 12,000 m” each. The scheduled delivery date for the first
one is to be early in 1976 and the second one to be delivered
later on in 1976. The two new vessels were ordered on a
speculative basis in the expectation of market possibilities and
45
 STORAGE AND TRANSPORTATION
no contracts have been offered as an assurance of future trade.
Both vessels will have minimum loading temperatures of .48°C
and will be equipped with Sulzer power units which will give a
maximum speed in excess of 17 knots.
334 Order Placed for Large LPG-Ammonia Carrier. Eur.
Chem. News 26 (646), 10 (July 26, 1974). Bibby Line has
placed an order for a 75,000 m3 LPG-ammonia carrier with
Chantiers de France, at Dunkerque. Delivery of the vessel—the
largest ever to be ordered by Bibby—will be made in 1978.
How far the new vessels will be used for ammonia shipment
remains to be seen, but clearly much will depend on the
progress of plans for substantial ammonia capacity in the
Middle East-North Africa.
335 Shipping Requirements for Anhydrous Ammonia in
Cargo Tanks. Fed. Regist. 40 (190), 44820-1 (Sept. 30, 1975).
The Materials Transportation Bureau of the U.S. Department
of Transportation amended its rules for the shipment of
anhydrous NH3, effective October 1, 1975. Cargo tanks
without manholes are not required to be so equipped and
stress corrosion testing of internal welds by the wet
fluorescent magnetic particle method will not be required on
such tanks. Also, NH3 certified to contain 0.2% H2O need not
be retested for H2O each time it is reshipped, provided the
shipper has not reduced the H2O content in any way.
336 Indonesia Urea Carriers. J. Flour Anim. Feed Milling
159 (12), 21 (Dec. 1976). A specially built urea carrier
ordered by P. T. Pupuk Sriwidjaja (PUSRI) of Indonesia was
launched recently at the Yokohama shipyard of Mitsubishi
Heavy Industries. The 7500 dead wt vessel will be the first of
three vessels to be acquired by P. T. Pusri for transporting urea
in bulk from its Palembang plants to urea bagging stations at
Tanjung Priok, Cilacap, Tanjung Perak, Teluk Bayur, Belawan,
and several other points. The urea-carrying vessel has a
capacity to load 500 tons of urea/hour and is equipped with
weather-proof self-unloading gear. Pusri's urea production is
expected to reach 1.1 million tons a yr when Pusri-II starts
operation next month, and to rise to 1.5 million tons when
Pusri-III is completed in 1977-78.
337 Specially Designed Barges for Long-Haul Phosphate
Shipments. Eng. Mining J. 175 (5), 94 (May 1974). Two
specially designed barges incorporating fully automatic para
screw self-unloading systems will be placed in service hauling
wet phosphate rock from Tampa, Fla., some 450 miles to
Agrico Chemical Co. acid plant facilities at Faustina, La. The
parascrew unloaders are capable of discharging wet phosphate
rock at rates up to 3000 tons/hr. The barges measure 495 ft
long by 85 ft wide and have an overall draft of 30 ft.
Capacities are 22,500 long ton/barge. The wet phosphates to
be hauled in the barges weigh 93 lb/ft” and have a 6% to 10%
moisture content. The material has a natural tendency to
bridge and is very sticky. Previous handling systems for barge
transport of phosphates have included wedge-shaped holds
with mechanically assisted gravity feeding to conveyor belts.
By eliminating the need for a wedge-shaped opening, barge
capacity is increased 20%. By rotating and transversing across
flat bottom, the parascrew in effect creates a live-bottom bin
having a 23-ft wide opening. For wet phosphates, over 99% of
the ore in the hold is considered live load.
338 Tugboat Transports Fertilizers. Farmland News 43 (13),
46
9 (July 15, 1977). Chemical Farmers Industries' first ocean
going tugboat made its first voyage from Sturgeon Bay,
Wisconsin, en route to its home port of New Orleans by the
Great Lakes, the Atlantic Ocean, and the Gulf of Mexico.
Once outfitted with its complementary barge now under
construction in New Orleans, the tug will move phosphate
fertilizers from CF's Florida manufacturing plants to the
mouth of the Mississippi River for transfer into river barges.
Capacity of the ship will be 22,500 long tons.
339 LASH Movement of Potash a Success. Fert. Int., No. 58,
1, 3 (Apr. 1974). One of the success stories of fertilizer
materials shipping during the current fertilizer yr has been the
use of the lighter-aboard-ship (LASH) system to move potash
from North America to markets in the Pacific. Toshoku
arranged for 36,000 tons of potash to be exported to Japan at
an average rate of one cargo per month through the 1973-74
fertilizer yr. Each consignment of approximately 3000 tons is
loaded at the Port of San Diego and taken to Moji, at the
northern tip of Kyushu. The LASH system has a number of
advantages for shippers generally, of which the flexibility of
cargo type, vol, the short time in port, and the wide range of
ports where the vessels can offload their lighters are the most
basic.
340 Seaborne Transporation of Acid—The Shipping Indus
try's View. Arne Holt. Sulfur No. 123,324 (Mar.-Apr. 1976).
Sulfuric acid trade, although small in relation to total
production has shown signs in recent years of becoming more
and more important for producers and consumers of acid.
Potential consumers have seen the availability of competitively
priced merchant acid as an attractive alternative to con
structing expensive sulfuric acid production facilities. A
significant quantity of sulfuric acid is transportated by sea.
The opportunities presented to the shipping world in the
sulfuric acid-phosphoric acid trade are discussed.
341 Morocco Sets Up Shipping Company for Phosphoric
Acid. Eur. Chem. News 23 (588), 11 (June 15, 1973). A new
company has been created which will be engaged in the
construction and operation, including chartering, of ships for
the transportation of phosphoric acid produced by Maroc
Phosphore, a subsidiary of l'Office Cherifien des Phosphates
(OCP). The company, Marphocean, has also been given the
exclusive rights to the transportation of the acid produced by
Maroc-Phosphore. OCP is one of the world's largest exporters
of phosphates. It has a development program which will, if
successful, raise its production by 10 million ton during the
period 1973-77 from 18 million ton to 28 million. Arising from
this, and the basic reason for the creation of Marphocean, is
OCP's plan that Maroc-Phosphore production of P2 Os will be
1000 ton/day by 1975 and 2000 ton/day by 1976. Similarly,
OCP's subsidiary Maroc-Chimie which produces super
phosphates at Safi and has a capacity of 500,000 ton/yr is
soon to double that capacity.
342 Moroccan Phosphoric Acid Carriers. Eur, Chem. News
28 (718), 14 (Jan. 9, 1976). Morocco's phosphoric acid
shipping company, Marphocean, took delivery in December of
its first vessel, Ibn Jabir, from the French shipyard, Ateliers et
Chantiers du Havre. The 10,500 dwt vessel has four tanks with
a total capacity of 6200 m ', and was launched in February,
1975. An identical sister ship, Ibn Khaldoun, is due to be
delivered to Marphocean in March, 1976. The company now
 STORAGE AND TRANSPORTATION
has a further four phosphoric acid carriers on order. Two are
being built at the de Hoop yard in the Netherlands and are due
for delivery in November, 1976, and May, 1977. The
remaining two are being built at Sarpsborg in Norway and
should be delivered in September, 1977, and April, 1978.
343 Phosphoric Acid Carrier Launched. Eur. Chem. Week 26
(644), 10 (July 12, 1974). A new 6500 dwt chemical tanker
was recently launched in Dordrecht. The vessel is especially
designed for the transportation of phosphoric acid and other
heavy acids and chemicals. It is equipped with stainless steel
tanks and has a total capacity of 5840 m”. The vessel is 111.5
m long, has a breadth of 16.5 m, and a depth of 8.8 m. It will
have a speed of about 15 knots.
GENERAL
344 Fertilizer Transportation Planning and Programming. V.
S. Shankar. Fert. News 19 (2), 10-12 (Feb. 1974). The
economic value of any product lies in having it in the right
quantity, at the right place, and at the right time at the
minimum cost. From the time and place the fertilizer is
produced, it should be transported to the time and place of
consumption. The seasonality of consumption and the
localized production of fertilizers make transportation a
pivotal activity in the distribution function. To make sure that
farmers get fertilizers in time and in the required quantities, it
is essential to plan fertilizer movement.
345 Transportation as it Applies to Fertilizer Shipments. A.
J. Skull (C.F. Industries, Long Grove, Illinois). In 26th Annual
Meeting Fertilizer Industry Round Table (held Atlanta,
Georgia, Oct. 26-8, 1976), pp. 19-22 (1976). The final link in
the success of the fertilizer industry is that of transportation.
Weather, market prices, and grain shipments are some very
important factors that affect the fertilizer industries ability to
deliver products. More problems arise due to the peak market
demands for fertilizer transportation equipment. Traditionally
barges, railroads, and motor vehicles are the main systems of
transports. Increased taxes in the form of user charges is
expected to increase barging costs substantially. Motor vehicles
(dump trucks) are very important for the transport of dry bulk
fertilizers but economics dictate that motor vehicles cannot
Supply high cost specialized equipment such as ammonia
trailers. Railroads provide most of the transport services for
the fertilizer industry. Potash is almost entirely dependent
upon railroads because of their land-locked locations in
relation to the market areas. Peak demand periods and
competition from grain shipments have in the past and will
continue to cause problems of short car supplies. Four
suggestions have been proposed to improve fertilizer delivery.
They are: (1) the fertilizer industry can increase its hopper car
fleet, (2) railroads might publish seasonal rates to increase
off-season shipments, (3) establish a national fleet of govern
ment owned cars for use by railroads during peak periods, and
(4) establish increased warehouse facilities at the local level as
close to the farmer as possible.
346 Fertilizer Transportation. K. Ramaprasad. SPIC
Industrial Eng. Training Bull. 3 (1), 18-20 (Dec. 1974). F.A.I.
Abstr. Ser 14, 107. The factors influencing fertilizer transpor.
tation are: continuous production and import; seasonal
consumption; spread of market; inadequate and relatively
expensive transportation, particularly in the rural areas for
secondary movement, inadequate handling skill and equip
ment; and consequent transit delays, damage, and loss.
Railways in India have, for the purpose of freight, grouped
fertilizers into two classes, A and B; high analysis fertilizers
like diammonium phosphate and urea fall in the class A and
others in the class B group. Road transport is economical for
distances up to 280 km from a manufacturing unit.
Considerable attention needs to be paid to barges, country
craft, and other forms of water transport to ease concentration
of fertilizer transportation by rail.
347 Economic Aspects of Fertilizer Logistics. R. Schottler.
In United Nations Economic Commission for Europe. Seminar
on Technical and Economic Aspects of the Fertilizer Industry
(held Helsinki, Finland, Aug. 11-15, 1975); pp. 3/R16-1-11
(1975). Logistics measures to reduce the discrepancy of time
and distance between production and consumption points are
characterized by five factors. These are: (1) the nature of the
fertilizer (nutrient content), (2) packing, (3) loading, (4)
transportation, and (5) storage. Transport costs are positively
influenced by every increase in nutrient concentration.
Packing expenses can be reduced by bulk shipments resulting
in time-saving loading and unloading operations. Transporta
tion costs are lower if moved by rail instead of by lorry and
decreased more if moved by barge depending upon the
quantities involved. At least 23% of the total cost of fertilizers
in the Federal Republic of Germany can be attributed to
logistics. The relative influence of each factor, however, may
be affected by governmental transport policies.
348 Transportation Problems Threaten Fertilizer Season.
Ag-Chem Newslett. No. 75, 1 (Feb. 1, 1973). An acute
shortage of transportation is currently jeopardizing what could
be the biggest fertilizer season in history. Hopper cars are
currently unobtainable, because the wheat the Russians
bought is now moving to ports. Diesel fuel is in short supply
and over-the-road truckers have had their operations limited.
Shippers of anhydrous ammonia need the tank trucks that are
being used to transport butane and propane, but they aren't
getting them very fast. Demand for fertilizer is strong. Even at
this early date farmers are starting to apply fertilizer to wheat,
and it looks like this season will be a big one for topdressing.
U. S. Dep. Agr. is expected to release more feed grain acreage,
helping to build fertilizer demand to record levels. Dealers are
fortunate to have substantial inventories of fertilizer because
bad weather limited normal fall application. Now, with
fertilizer prices advanced about $10/ton, they will make a
profit as long as supplies last. But, a few months from now,
they may have serious problems.
349 Fertilizer Industry Seeks Aid from Congress in Shipping
Problems. Chem. Mkt. Rep. 203 (6), 19 (Feb. 5, 1973). The
spring fertilizer shipping crunch will be the most critical faced
in the Midwest for the past several years. The president of the
Fertilizer Institute, so testified last week before the Senate
Agriculture Committee. The committee is investigating effects
47
 STORAGE AND TRANSPORTATION
of current heavy grain shipments on transport of other goods.
The fertilizer industry is being called upon to deliver 44-45
million tons of fertilizer to American farmers in 1973. Most of
this tonnage must move in a relatively short period for delivery
no later than May 30. The majority of it must, as in the case of
grain, be moved in covered hopper cars. He urged the
committee to draft legislation aimed at preventing future such
crises and insuring relief of the continuing railcar Squeeze
suffered by agricultural shippers.
350 Current Trends in the Transportation of Nitrogen and
Compound Fertilizers. Johannes Skaadel (Norsk Hydro AS,
Oslo, Norway). Nitrogen No. 100, 35-7 (Mar.-Apr. 1976). The
fertilizer industry has a responsibility for the development not
only of the most efficient production processes, but also of
more efficient distribution systems which will play their part
in keeping down the cost of fertilizers on route from the
factory to the farm, so that this critical factor will not be the
bottleneck which restricts the world’s ability to produce more
and better food. There is little doubt that in future the
emphasis will be on the development of integrated distribution
systems rather than on the improvement of isolated methods
of transportation or handling. It is probable that the most
important elements in these new systems will be disposable
bulk containers capable of easy handling on the farms,
shrink-wrapped pallets for outdoor storage and, quite possibly,
inexpensive bins for bulk storage on the farm. Within these
systems important means of transport will be special bulk and
unit-load carriers. For shipment to developing countries there
will certainly be a strong trend towards the use of modern
bulk carriers with the product being bagged at the ports of
discharge in simple bulk terminals.
351 Fertilizer Grade Ammonium Nitrate. Washington, D.C.:
The Fertilizer Institute; 24 pp The recommended method for
the packaging, handling, transportation, bagged and bulk
storage, and use of NH4NO3 fertilizer are given. Ship stowage
of NH4NO3 and fire fighting techniques are discussed as well
as the properties of NH4NO3 and the effect of heat on those
properties. (23 ref).
352 Ammonia Transport Tank Corrosion Under Study by
the Federal Highway Administration. Chem. Mkt. Rep. 206
(18), 4, 21 (Oct. 28, 1974). The Federal Highway Administra
tion has awarded a contract to the Southwest Research
Institute, San Antonio, Texas, to seek out the reason for cargo
tanks hauling anhydrous ammonia being subject to stress
corrosion. The tanks of concern are manufactured of
quenched and tempered steel. Bureau Motor Carrier Safety
(BMCS) initiated emergency action in 1967 to prevent or
reduce stress-corrosion cracking by requiring certain cargo
tank motor vehicles used for transporting compressed gases to
be inspected internally to determine the need for repair, and
to insure product retention integrity. It was believed at that
time that the problem was contained; but in early 1971 the
stress-corrosion problem surfaced again, prompting the BMCS
to look deeper into the basic cause of the cracking pheno
menon. Collaborating with the National Association of
Corrosion Engineers, the bureau proposed the following
rulemaking. To provide interim measures to reduce the
probability of cracking; to provide for detection of and
control over stress-corrosion cracking during the interim; and
to measure the effectiveness of these requirements until the
problem is further researched.
48
353 Possible Reclassification of Ammonia for Transporta
tion Disturbs Producers. Eur. Chem. News 26 (657), 11 (Oct.
11, 1974). Producers and distributors of ammonia are worried
about a possible reclassification of anhydrous ammonia, for
transportation purposes, from nonflammable to flammable.
The international bodies governing the safety regulations for
goods being transported by land, have held joint meetings
since 1968–the RID (Reglement International Dangereux)
governs rail transport and the ADR (Accord Dangereux
Routier) governs road transport. At present flammability is
only considered as a subsidiary risk for ammonia, toxicity
being its main hazard. The West German proposal, if accepted,
would make flammability the major hazard. This would
necessitate modifications and alterations in the design and
construction of ammonia carriers, and also alter the
restrictions on its movements. The chief objection to its
reclassification is that to class ammonia as primarily a fire risk
would shift the emphasis away from its major hazard, which is
toxicity. It is felt that changes in transport regulations would
be unnecessary and could lead to a downgrading in importance
of its primary hazard.
354 Department of Transportation May Exempt Amnonia
Nurse Tanks. Fert. Prog. 9 (1), 67 (Jan.-Feb. 1978). The
Materials Transportation Bureau recently proposed amend
ments that would exempt ammonia nurse tanks from
hazardous materials regulations. The tanks must meet the
following conditions in order to qualify: (1) minimum design
pressure of 250 lbs and meet ASME Code requirements, (2)
equipped with proper safety relief valve, (3) painted white or
aluminum, (4) have a capacity of 3000 gallons or less, (5)
loaded to a filling density no greater than 56%, (6) drawn as a
full trailer not to exceed 25 mph and properly marked with a
slow-moving vehicle sign, and (7) operated on public highway
only in daylight.
355 The Phosphate Wealth of Spanish Sahara. Eng. Mining J.
176 (8), 44 (Aug. 1975). When the Sirocco sweeps Spanish
Sahara, a wilderness the size of Arizona in North West Africa,
the sole obstacle the fiery wind threatens is a 62-mi-long
conveyor belt, the key element of a $447 million investment
by Spain's Fosſatos de Bu Craa for development of the world's
largest single deposit of phosphate rock. Spain plans to move
3.6 million tons of phosphate ore on the Sahara conveyor this
yr-the longest operating conveyor in the world—and will
increase the total in stages to 5.6 million tons in 1976 and
finally to 10 million tons in 1978. The mineral is hauled by
the conveyor from Bu Craa, the phosphate deposit southwest
of the confluence of the Algerian-Mauretanian-Moroccan
Sahara borders, which contains up to 1.7 billion tons of
high-grade ore. An electronic panel in a control room 20 miles
south of El Aaiun supervises the mines-to-ship loading opera
tion. Phosphate mineral is scooped up by a jumbo mining rake
with an 1 i-million-m’ capacity/yr and hoisted by a Caterpillar
mining shovel onto Wabco 109-ton trucks, for transport to a
primary crushing plant with a capacity of 1000 tons/hr. The
crushed ore then moves on the 62-mile conveyor belt to the
Atlantic seaport. Divided into 10 sections, it uses 650,000 ft
of 40-in.-wide, steel-reinforced belts with a capacity to haul
2000 tons/hr of phosphate to port.
356 Trucks Replace Conveyor Belt in Sahara. Fert. Int. No.
86, 4 (Aug. 1976). Office Cherifien des Phosphates, now
holding the controlling interest in the BuOraa phosphate mine
 STORAGE AND TRANSPORTATION
is intending to carry phosphate rock between the mine and El
Aaiun because of damage to the 100 km long conveyor belt.
Because of the large stockpiles held there, (estimated at over 1
million tons) a halt in production will not seriously affect
supply, and the main problem is one of transporting the rock
across the desert from the mine to the port at El Aaiun where
stocks are minimal. Deliveries of phosphate rock from the
Sahara in the second quarter of 1976 totalled only 54,000 mt
compared with 161,000 mt in the first quarter and nearly
514,000 mt in the second quarter of 1975.
357 Modern Trends in Transportation and Distribution of
Fertilizers in Bags and Bulk. Odd Grnlie. Economic Commis
sion Europe. Seminar Technical Economic Aspects Fertilizer
Industry (held Aug. 11-15, 1975, Helsinki, Finland). Paper; 12
pp. (1975). FAI Abstr. Serv. 15 102. Some of the newest
transportation systems which Norsk Hydro has established in
recent years are described. When introducing new transporta
tion system it is necessary to consider all the problems which
arise from the producer right through to the consumer, and to
establish the greatest possible cooperation with everybody
involved. It is essential to know how the quality of the
product will be affected both during transportation and in
storage. This gives valuable feedback to the plant and the
transportation function. A transportation system for palletized
bagged material which is shrink film-wrapped, and transported
by specially designed pallet carriers to Scandinavian ports,
thereafter being distributed to farmers is described. The
system, which includes five specially designed 1000-1500
tonners, is a success and has reduced the cost of distributing
bagged material to a minimum. These pallet carriers load and
discharge in 3 to 4 hr, and make about 150 voyages/yr.
Delivery in bulk right through to big farmers is the best
method in many cases, and results in saving in costs and time.
Specially designed bulk carriers of 1300-3000 ton which are
completely self-discharging are able to make a great many
voyages/yr to Scandinavian ports and have advantages over
conventional tonnage. Rational bulk handling equipment is
used during the season, and contractors often carry out the
spreading of the fertilizer. A newly developed one-way big-bag
to hold 500-1000 kg is discussed. Fertilizers should be shipped
in bulk to developing countries, and be bagged at the port of
discharge. Only relatively simple means are required, but the
shipper must participate at all stages and give personnel at the
port of discharge the necessary training. Savings of from US
$6–US $15/ton can be achieved by shipping in bulk instead of
bags. Simple, but functional terminals should be built in the
ports of discharge in the developing countries.
358 Bulk Shipment, Distribution, and Blending of Fertilizers
in India. B. P. Sikder (Ministry of Agric. and Irrigation, New
Delhi, India). Fert. Mark. News 8 (11), 1-8, 13 (Nov. 1977). In
India as well as other developing countries, bulk shipments,
distribution, and blending is advantageous because of the
economy involved. The potential savings and the steps
necessary to obtain these are analyzed and summarized in this
study. Two of the most important savings were a decrease in
packaging and handling costs and reduced fertilizer prices for
the farmer. It was estimated that by 1980, 70% of fertilizer
will be distributed in bulk.
359 Transporting, Storing, and Applying Suspension Fertili
zers. F. P. Achorn and H. L. Kimbrough (TVA, National
Fertilizer Development Center, Muscle Shoals, Alabama). Fert.
Solutions 21 (3), 74-81 (May-June 1977). The advantages of
suspension fertilizers are: (1) It can be uniformly applied. (2)
It can be placed beneath the soil at an exact location for
efficient use by crops. (3) The plant nutrient concentration of
a suspension is usually twice that of solutions and comparable
to granular bulk blends. (4) It is a convenient carrier of
pesticides or herbicides. (5) It can be transported and handled
more easily than granular fertilizer. (6) It readily fills the need
of a highly mechanized agricultural system.
360 Suspensions Transportation at the Retail Level. Rolland
Boesdorfer (Boesdorfer Trucking Co., Pleasant Plains, Ill.).
Proc., 1973 Round Up: Growing Profits with Liquids, pp.
12-13 (1973). Peoria, Illinois: National Fertilizer Solutions
Ass. Suspension fertilizers have outpaced liquids in growth
during recent years in spite of problems in distribution,
transportation, and other areas. Suspensions have advantages
over liquids because of higher analysis, particularly potash,
and cost advantages because they can be produced from lower
cost raw materials. With improved distribution and transporta
tion equipment now available, along with shortage of high
quality raw materials, suspensions are gaining on liquid
fertilizers.
361 Regulations on Equipment Used for Shipment of Acid.
Fert. Solutions 18 (2), 84 (Mar.-Apr. 1974). On January 1,
1974, a factor was introduced which could affect the
availability of tank cars. Phosphoric acid has been defined by
the U.S. Department of Transportation as a “regulated
commodity” for transportation purposes. The specific classifi
cation is “Corrosive Material” and applies to both chemical
and fertilizer grades of phosphoric acid. It does not affect
description and commodity rating for freight rates. As of now,
tank cars used for shipment of phosphoric acids prior to the
new regulation can still be used regardless of how they are to
be unloaded. It appears the real concern of the Department of
Transportation is the safety aspect of bottom unloading cars
involved in rail accidents. There are over 1000 tank cars
employed in phosphoric acid service; more than 83% have
bottom unloading. If bottom outlets are prohibited the
supply would be adversely affected, and the consumers' cost
could increase substantially. The developments in this
situation should be carefully monitored by the National
Fertilraer Solution Association so the best interests of liquid
fertilizer producers are protected. For those who wish to study
the new regulations in detail, refer to Title 49, Code of Federal
Regulation, as amended by the Office of Hazardous Materials,
Docket No. HM-57. It is available from the U.S. Department
of Transportation.
362 Location of a System of Storage-Distribution Terminals
for Agricultural Ammonia in the Corn Belt. F. A. Erickson
(Univ. Illinois, Urbana). Diss. Abstr. Int. B34 (1), 269B (July
1973), Order No. 73-17, 532; 182 pp. Ammonia production is
concentrated in the Gulf Region and transport to the Corn
Belt is by river barge to water-edge terminals. Distribution to
retailers is by truck. Year-round production and a seasonal
demand requires storage near the market. Rapidly growing
demand necessitates additional storage and new systems of
pipeline and rail transport suggest location in the unserved
off-river market area. A system of terminals is proposed
wherein each serves exclusively the market adjacent to it. This
results in major transport cost savings. A planning level of 200
lb of N/acre of corn is estimated and then converted to tons of
49
 STORAGE AND TRANSPORTATION
ammonia demand per square mile. An estimated time of
reaching the planning level is found by regression analysis.
Taking into account the trade-off between storage costs and
secondary transport costs, 40,000 tons is the optimal terminal
size. The proposed system requires alterations of current
business practice which accomplishes most distribution
through exclusive company channels. The distribution areas
are fitted to the off-river market at three levels of market
density. The indicated terminal location at the center of each
distribution area is tested to be sure that an acceptable
terminal location falls within five miles of the indicated site.
The pipeline and new terminals recently located within the
off-river market are very near to the proposed sites and could
easily be integrated into the proposed system and at a cost
saving. A major finding of the study is that the method could
be applied to other areas of the Corn Belt and possibly to
other agricultural inputs.
363 Going Metric in Fertilizers. J. Flour Anim. FeedMilling
158 (4), 29 (Apr. 1976). A combined metric fertilizer
recommendation list and yr planner has been published by
UKF Shellstar, including details of the amounts of individual
plant nutrients required in kg/ha. Users can now operate fully
in metric if they so wish, since fertilizer is already being
packed in 50 kg net bags. The bags will continue to be marked
with their chemical analysis in percentages of N, P, and K, the
nutrient content in kg being exactly half the percentage figure,
that is an analysis of 16:24:16 contains 8 kg of nitrogen, 12 kg
of phosphoric acid, and 8 kg of potash.
364 Logistics, Not Strike, of Greatest Concern to Fertilizer
Makers. S. E. Simak and R. E. Chamberlin. Farm Store
Merchand. 22 (2), 28, 30 (Feb. 1978). The results from a
recent survey of fertilizer dealers reveal that logistics will be a
major problem facing industry this spring. Wet fields, frozen
rivers, low commodity prices, and a shortage of railroad cars
are the principal reasons for this outlook. Supplies are
expected to be more than adequate especially for upgraded N
products such as urea. Most respondents anticipate an unusual
ly hectic spring application rush as fall fertilization was
reduced by about 20 to 30%. Dealers also feel that the U.S.
farmers strike will have little total effect on fertilizer sales and
uSé.
PRICING AND COSTS
PRICING POLICY
365 The ABC's of Fertilizer Pricing. J. R. Douglas, Jr.
(Tennessee Valley Authority, Muscle Shoals, Alabama). Fert.
Prog. 5 (5), 12-14, 20, 37 (Sept.-Oct. 1974). Comparison of
prices are made for 1955-1974 for fertilizer and farm
products. These comparisons indicate farmers can afford to
pay today's prices for fertilizers. Using 1957-59 as 100-unit
price index, the index were 1955, 110; 1960, 96; 1965, 86;
1970, 78; 1971, 84; 1972, 87. The rapidly increasing fertilizer
prices in 1973-74 were offset by even more rapid increases in
prices received for farm products; the farmer gave between
65% and 90% as much of his farm product for fertilizer during
this period as he did back in the 1957-59 base period. Three
alternate sets of relationships that could have major effects on
50
the overall fertilizer market are: (1) Farm crop prices could
decrease to support prices established in 1974 while fertilizer
prices remain at their spring 1974 level, (2) Farm crop prices
could remain at the spring 1974 level while fertilizer prices
continue to increase, (3) Farm crop prices could decrease to
the target level while at the same time fertilizer prices increase.
These alternatives would lead to significantly different
positions facing the farmer in deciding whether or not to use
fertilizer and how much to use.
366 Fertilizer Prices Under Phase 4. Ag-Chem Newslett., No.
80, 1 (July 1, 1973). Fertilizer manufacturers are anxiously
waiting to see what the government plans for their industry
under Phase 4. The word from Washington is that serious
consideration is being given to imposing controls on an
industry-by-industry basis, but whether for the fertilizing
industry such controls would apply to prices or profits is not
yet clear. In either case the effects could be disastrous, both
for users as well as manufacturers.
367 Fertilizer Makers Want Price Lid Lifted. Chem. Eng.
News, p. 4 (Oct. 1, 1973). A shortage of 4 million tons of
fertilizer for the 1974 season in the U.S. is forecast by the
Fertilizer Institute unless limits on fertilizer prices are removed
by the Cost of Living Council. Export market prices are higher
than domestic prices ($70 vs $40/ton for ammonia and $110
vs $75/ton for diammonium phosphate). Higher prices, rather
than an export embargo, could attract foreign imports and
increase investments in new production capacity but might not
affect 1974 supplies, most of which are already contracted.
368 Decontrols on United States Fertilizer Materials. Wall
Street J. (East Edition) 182 (83), 4 (Oct. 26, 1973). The
government removed wage and price controls from the
fertilizer industry but warned that a general scrapping of Phase
4 isn't likely this yr. In announcing the decontrol of fertilizer,
the Cost of Living Council Director conceded the result will be
a substantial increase in prices for crop nutrients. But he said
the action should relieve supply shortages and result in higher
1974 crop output, which should help stabilize food prices next
yr-a key goal of the overall wage-price restraint program. The
council's action on fertilizer exempts from controls the sale of
fertilizer and nutrient materials used in the production of
fertilizer and explosives. Also exempted were the sale of
ammonia, nitrogen, urea, phosphate, and potash used in the
manufacture of plastics, synthetic fibers, animal feeds, and
other products; sales of the nonfertilizer end products made
from these materials, however, weren't exempted from
controls. The government has obtained commitments from
about 40 fertilizer companies to help increase domestic
supplies. The promised industry actions include diverting some
350,000 tons of five fertilizer products from export to
domestic sales in the current quarter, and such diversion of
another 1.2 million tons in the first half of 1974; continued
operation of certain marginal fertilizer plants and exploration
of reopening a few closed plants; and actions to ensure early
completion of new plants under construction. The council said
that the government will institute a monitoring system to keep
track of fertilizer exports, but that actual export controls
aren't planned. The government also will require fertilizer
makers, traders, and brokers to report weekly their actual
selling prices for monitoring purposes. The government also
will take actions aimed at boosting fertilizer availability, such
as trying to improve rail-car supply during the main shipping
 PRICING AND COSTS
SeaSOIl.
369 Demand for Nitrogenous Fertilizers and Fertilizer Price
Policy in Pakistan. M. G. Chaudhry and A. Javed (Pakistan
Inst. Develop. Econ., Islamabad, Pakistan). Pakistan Devel.
Rev. 15 (1), 1-7 (Spring 1976). Abstr. Trop. Agric. 2, 11 136.
This study reviews agricultural price policy and the demand
for fertilizer. The demand for fertilizer is sensitive to changes
in the price of fertilizer. The consumption of fertilizer tends to
increase at the rate of 21%/yr, mainly because technological
changes make its use more profitable. Therefore, annual
increases in price of up to 20% would not lead to a decrease in
fertilizer consumption. This would justify the gradual with
drawal of the present subsidy on fertilizer.
370 Phosphate Prices on Seasonal Basis. Chem. Week 117
(1), 20 (July 2, 1975). Seasonal pricing of phosphate fertilizers
has returned. The new schedule on diammonium phosphate is
S190/ton from June 15 to Nov. 1; $195 from Nov. 1 to Feb.
28; and $200 from Feb. 28 to June 30. Prices of phosphoric
acid are $315/ton, $326/ton, and $337/ton, respectively, in
the same periods. Meanwhile, a major export trader is said to
have sold 1 million tons of phosphate fertilizers for delivery
over a 10-yr period. Trade sources speculate that the destina
tion is South America, although the company is said to have
discussed similar trade deals with East European buyers as
well.
371 Seasonal Price Cuts in Potash Market. Chem. Week 119
(3), 20 (July 21, 1976). Seasonal price cuts on potash have
been put into effect, reflecting current market stagnation and
buyer pressure for discounts and allowances. In a move led by
Potash Co. of America, several producers have cut their tabs
10-15¢/unit, effective through Aug. 31. New prices, f.o.b.
Saskatchewan, range from 554/unit for standard to 65¢/unit
for granular. Carlsbad N.M., quotes are 604 to 704/unit. Little
material is moving, however, and producers say they expect
both prices and shipments to strengthen in the next few weeks
as Midwest farmers buy for fall application.
372 India Plans Incentives for Investments in Fertilizer from
Oil Feedstock. Chem. Age (London) 107 (2833), 7 (Nov. 2,
1973). The Indian Government is reported to have finalized
the broad framework of a policy designed to attract new
private investment for fertilizer plants using fuel oil as
feedstock. To make new investments attractive, a 15%
dividend return on equity and reserves is being considered,
with no provision for cost inflation and sale price increase.
Meanwhile, the Indian Cabinet has decided on an increase in
the selling price of urea by Rs.91, ammonium sulfate by Rs41
and calcium ammonium nitrate (CAN) by Rs.50/mt. For
fertilizer plants using naphtha, the increase in price just
compensates for the increase in price of the feedstock. For
units based on fuel oil, the price increase is a bonus.
373 Japanese Export Prices of Fertilizers. Jap. Chem. Week
16 (769), 5 (Jan. 23, 1975). Japan's fertilizer industry recently
decided on a policy of not increasing the present export prices
of urea and ammonium sulfate. Since 1973 many countries in
the world have decided to increase harvest yields and fertilizers
have come to be in short supply world-wide. Consequently,
international fertilizer prices have skyrocketed. As Japan is the
largest fertilizer exporting country in the world, this decision
will check the skyrocketing international fertilizer prices and,
under certain cirsumstances, some other fertilizer exporting
countries may dislike the Japanese fertilizer industry’s
decision.
374 Urea Pricing in Japan. Jpn. Chem. Week 18 (885), 5, 6
(Apr. 14, 1977). The Ministry of International Trade and
Industry (MITI) reports that sharp decreases in the export
prices of urea and ammonium sulfate have brought about a
break in domestic quotations for these fertilizers. As a result,
the Ministry has fixed floor prices to prevent the export of
urea and ammonium sulfate at low prices, and presented the
fixed floor price to the Japan Urea & Ammonium Sulphate
Export Co. The Japanese will specify export prices in accord
with the floor prices fixed by the Ministry of International
Trade and Industry when they talk with China.
375 South Africa's Fertilizer Prices. J. Flour Anim. Feed
Milling 159 (9), 28 (Sept. 1976). South Africa's price control
formula for fertilizers, which has existed for 20 yr, was
designed so that the fertilizer manufacturer could count on a
return on investment of 13.5% on depreciating assets. As part
of the anti-inflation campaign, prices were reduced by 8%.
Cooperatives lost R1 million on fertilizer stocks on hand
because of the price decrease. Fortunately, export prices are
free of control and, as South African fertilizers sell for
between half and a third of world prices, the industry is able
to attract investment for its export projects. Phosphate rock
costs only R15 a ton, compared with a world average price of
about R25. Having no natural deposits of sulfur, South Africa
produces sulfuric acid from imported brimstone and local iron
pyrites.
376 First-Best and Second-Best Policies of Pricing an
Imported Input: The Case of Fertilizer in Taiwan, 1950-66. R.
C. Hsu (Clark Univ., Worcester, Mass.). Amer. J. Agr. Econ. 56
(2), 314-22 (May 1974). Pricing of fertilizer imported into
Taiwan during 1950-66 was studied to determine the relevance
and applicability of first-best and second-best theoretical
policies in a developing country. The government-peasant
fertilizer-rice barter system in Taiwan is unique in that the
official price of fertilizer is quoted in terms of a fertilizer-rice
exchange ratio. Some of the rice collected by the government
is sold to Japan from which the bulk of the fertilizer is
imported. If it can be assumed that maximizing foreign
exchange is the only objective of the government in setting the
fertilizer-rice exchange ratio, then a subsidy on fertilizer can
be justified and this would be the first-best action. However,
the government must also use a part of its rice collection to
feed government troops and employees. Government also
imposes a land tax on rice output which is paid in kind. Under
these conditions, it usually is best to set the land tax as high as
is politically feasible and then to lower the fertilizer-rice price
ratio to the point that the total quantity of rice collected by
the government remains constant. As a result, peasants
continue to pay the same total amount of rice to the
government but receive more fertilizer and thus produce more
rice. This is the second-best action.
377 United States Domestic-Import Pricing. Chem. Mkt.
Rep. 205 (13), 3, 17 (Apr. 1, 1974). A proposal has been
made that fertilizer manufacturers be allowed to blend in
prices of high-priced foreign fertilizers with lower-cost
domestic products as a means of immediately improving the
supply of fertilizers to U.S. farmers. The present shortages,
51
 PRICING AND COSTS
especially of anhydrous ammonia and N compounds,
combined with the fertilizer industry’s agreement to hold the
line on domestically-produced fertilizer prices have resulted in
a “two-price’ system. Large numbers of farmers are unable to
get adequate supplies, and many can get nothing at all, at the
domestic price, but can obtain additional supplies for double
or triple the domestic price. Major fertilizer manufacturers
should consider a system of acquiring as much imported
fertilizer as possible and developing a blend price for the
mixture of imported and domestic product. There is an
immediate need to improve the present industry allocation
system. It is not serving the needs of all farmers. Some are still
without fertilizer of any kind, others are far short, while a few
can get all they need.
378 United States Phosphate Mining Royalties are Increased.
Min. Congr. J. 62 (8), 60 (Aug. 1976). A new method of
computing royalty payments to the federal government on
phosphate rock mined on public lands has been approved by
the Department of the Interior. It is estimated that the change
should increase royalty revenues by about $540,000 during
the 1st yr of operation. Revenues were about $1.1 million
during 1975. The Mineral Leasing Act requires that a
phosphate lease provide for a royalty of not less than 5% of
the gross value of the mine output. Existing phosphate lease
terms require a royalty of 5% or 25 cents/ton, whichever is
greater. In practice, lessees have been paying a flat 25
cents/ton. The new method of computing royalties will be
based on a formula using the publicly available priceſton of
beneficiated rock. Even though the beneficiated rock is a
product several processing steps from the ore extracted from
the mine, the price would enable the department to determine
the percent of gross value of mine output. The new formula
would not necessarily apply to phosphate leases on Indian
Lands.
PRODUCTION AND DISTRIBUTION COST
379 Reducing Fertilizer Costs. Fert. Industry Series, Mono
graph No. 7, 44 pp. (1974). Vienna, Austria: United Nations
Industrial Development Organization. Price: S2.00. The mono
graph is based on information drawn from a number of studies
on the use of fertilizers in developing countries. In 1972,
farmers in some developing areas were paying $150/ton for
urea when the average price in the U.S. was only $90/ton.
Means of reducing the costs of fertilizers for farmers in small
developing countries are indentified. Good planning for new
facilities helps to keep the production cost down. The key
factors are: plant size and location; type of product; choice of
process; selection of contractors; adequacy of power and water
supplies; and availability and cost of feed materials. An
increase in the output of an underutilized plant usually means
a decrease in production cost. Increasing the nutrient content
of the fertilizer is a direct means of lowering the total
distribution costs. Prices paid by U.S. farmers are given for
some sources of N. nitrate of soda, 16-17% N. ammonium
sulfate, 20-21% N. ammonium nitrate, 33.5% N urea, 45-46%
N; and ammonia 82% N–S4.36, S2.59, S 1.95, Sl.82, and
S0.99/20 lbs of N, respectively. Total systems cost include
52
those of transporting storing, and handling within the
country. Cost comparisons must be made on total system
costs. (63 ref)
380 High Cost May Limit Fertilizer Industry Expansion. Oil
Gas J. 73 (41), 30 (Oct. 13, 1975). High capital costs and
rising operating costs will narrow future investments in
ammonia, phosphates, and potash. According to the president
of Amax Chemical Corp., it is highly unlikely that the
economics associated with fertilizer during the past decade will
ever return. Capital requirements and operating, energy, and
labor costs have risen sharply. The combined impact on cost is
So great that the plateau of new price levels is here to stay
Price targets must support orderly expansion In the future
they will track the general economy in ore rapidly.
381 Influence of Raw Material Costs on Processes for
Ammonia and Urea. G. Gargano, P. Salmieri, and R. Vasino. In
United Nations Economic Commission for Europe. Seminar on
Technical and Economic Aspects of the Fertilizer Industry
(held Helsinki, Finland, August 11-15, 1975); pp. 3/R13-1-12
(1975). The choice of technologies for the production of
ammonia is highly dependent on the cost of raw materials.
Due to recent events regarding cost and availability of
materials it is now more convenient to use processes requiring
less energy and raw material. In this study a comparison is
made of ammonia and urea production costs using four
different feedstocks: natural gas, virgin naptha, fuel oil, and
coal. Also, a summarized group of relevant processes is given
together with certain references on prospects for reducing
energy consumption.
382 United States Ammonia Producers Face Higher Feed.
stock Charges. Fert. Int. No. 73, 3 (July 1975). Canada is to
increase the price of natural gas exported to the United States.
The price will be raised by 40% to $1.40/thousand ſt” and this
will be followed in November by a further increase to
$1.60, thousand ft'. The present price of $1 has been in effect
since September 1974 when it was increased from 60 cents.
The change of price will hit ammonia producers in the
Midwest and on the Pacific Coast. It will raise the value of
Canadian exports by an estimated $600 million. In the United
States itself there seems no hope of a complete deregulation of
well-head gas prices. The latest proposal gives N producers
second priority, behind residential and small firm users, but
does not significantly encourage new exploration and so the
chronic problem of overall shortages will not be solved.
383 Higher Naphtha Cost Causes Indian Fertilizer Price
Increase. Chem. Age (London) 107 (2827), 16 (Sept. 21.
1973). An escalation in Indian fertilizer prices by about 15%
stemming from the sharp increase in the domestic price of
naphtha has become unavoidable, though it is still an open
question whether the full impact of the cost hike will be
passed on to finished fertilizers or a part of it adjusted through
duty reliefs. The price of naphtha has been raised from
Rs.192/mt to Rs.252/mt according to a spokesman for the
Fertiliser Corp. of India. Fertilizer producers in the public and
the private sectors will hardly be in a position to absorb the
increase in the cost of naphtha by Rs60/mt or by over 30%
since the feedstock accounts for 60% of the cost of urea and
80% of the cost of ammonia.
384 Coal-Based Ammonia Costs Analyzed. Eur, Chem. News
 PRICING AND COSTS
30 (791), 30 (June 1977). Costs and the extent to which
processes allowed the use of existing plant equipment was
compared between the Lurgi, Koppers, Totzek, Wlinkler, and
British Gas Lurgi Slagging Gasifier Processes. It was suggested
that capital cost was the most important difference between
the processes unil the price of coal exceeds $30/ton. Reason
able estimates of capital cost showed the Slagging Gasifier or
Texaco the cheapest followed closely by the Lurgi route with
secondary reforming. The Winkler process was considered
more expensive and Koppers most expensive of all.
385 Value Analysis Applied to Ammonia Plants. Dolphin
Development Co. London: The British Sulphur Corp., Ltd., 41
pp. (1973). Ways in which value analysis techniques can
improve utilization of capital in large process plants are given.
Recommendations are made for selection of staffs, facilities,
and methods for value analysis. The classical NH3 process
based on steam reforming of natural gas is used to outline the
value analysis techniques and indicate results that can be
achieved. Data indicate that substantial savings in investment
costs can be obtained by use of either the Breda or the Tunis
NH3 process in preference to the classical process. Abundant
comparative capital cost data are given for the classical NH3
process based on steam reforming of either natural gas or
naphtha. Comparable economic data is also given on the
production of NH3 by the medium pressure partial oxidation
of fuel oil. Screening evaluations of other fertilizer processes,
such as the manufacture of wet-process H3PO4, indicate that
very substantial investment cost savings are possible in these
processes also. (7 fig, 14 tables)
386 Cost Comparison of Nitrogen-Urea Versus Nitrate.
Agrichem. Age 20 (2), 13 (Mar. 1977). Comparing urea and
nitrate as sources of nitrogen appears to give urea the edge.
Capital cost to construct an ammonia-urea complex costs
about $300/ton of N production capacity, whereas the figure
for the same nitrogen in nitrate is near $500. Another
economic factor favoring urea, according to Cominco Ameri
can, Inc., is urea's higher analysis.
387 Urea Costs—Granulation vs Prilling. G. M. Blouin.
Bulletin Y-92; 11 pp. (Apr. 1975). Muscle Shoals, Ala.:
Tennessee Valley Authority, National Fertilizer Development
Center. In relatively small urea plants of 400-ton/day capacity,
the plant investment for a single-train pan-granulation unit is
about the same as that for a prilling unit. In these Small
granulation plants, the production cost and in-plant price
(production cost plus 20% pretax return on investment) of the
product are about one dollar/ton greater than in a comparable
prilling unit, primarily because of higher labor and main
tenance cost. As the capacity of the plants is increased to 1000
tons/day, the granulation plant investment increases at a
greater rate (about 25%) than the prill plant investment
because of the higher scale-up characteristics of the major cost
items (such as, twin pans, field fabricated cooler, process
building, and filter house). In the large plant, the combined
effect of higher investment, labor cost, and maintenance
increases the production cost and in-plant price by about two
dollars/ton over that of prilled urea. The one- to two
dollarſton higher prices of the granular product amounts to 1%
to 2% of the total price of urea. It is recommended that this
small premium be carefully considered in view of the
significant advantages of the physical characteristics of the
granular product.
388 Costs of Producing and Applying Bulk Blends. Paul
Rhein. In TVA Fertilizer Bulk Blending Conf. (Held Aug. 1-2,
1973, Louisville, Kentucky). Muscle Shoals, Ala.: Tennessee
Valley Authority, National Fertilizer Development Center;
Bull. Y-62, pp. 82-5 (Aug. 1973). A study was made of 24
bulk blending plants with an average investment of about
$78,000 and an average annual output of 4631 tons. Operating
cost, subdivided into 22 categories, averaged $8.17/ton with
salaries, building depreciation, and interest making up over
two-thirds of the cost. Seventy-nine percent of the output was
delivered to the farm or spread for the farmer, and the
remainder was picked up at the plant in either bulk or bagged
form. Delivery or spreading cost was $7.43/ton. Average
investment in equipment was $42,922.16/plant. The total
operating statement shows per ton gross margin, $24,09; other
income (spreading charge), $3.88; total expense, $20,29; net,
$7.68 or 7.78% of sales. The operation had an investment in
facilities and equipment of $120,922.16 and the net was
$35,571.22 for a return on investment of 29.4%. In this
study—the potential, the type of facility, and the amount of
equipment had nothing to do with net margin—there was no
correlation. The caliber of management is the answer to the
return on investment.
389 Fertilizer Operations of TVA to be Cut Back. Chem.
Mkt. Rep. 203 (15), 4, 39 (Apr. 9, 1973). The Tennessee
Valley Authority is changing its fertilizer developmental
production program to reduce the amount of Federal appro
priations needed each yr to finance the net program operating
expenses and the cost of modernizing and constructing
chemical facilities. The focal point of the fertilizer research
and development programs is the National Fertilizer Develop.
ment Center at Muscle Shoals, Ala. TVA is restructuring the
present program to minimize operating costs by shifting
production of basic phosphate, raw materials, and certain
intermediate materials from TVA to private producers,
dropping production of all products containing nitrates, and
modifying present facilities to produce urea-ammonium phos
phate fertilizers rather than building new facilities. GAO says
that TVA will close its phosphate-mining operation in Tennes
see and shut down all phosphorus electric furnaces and
phosphoric acid plants at Muscle Shoals. Wet-process phos.
phoric acid will be purchased from private industry to replace
the furnace phosphoric acid now produced by TVA and used
in most of TVA’s fertilizers. The wet-process phosphoric acid
costs considerably less than furnace acid, and this advantage is
expected to continue. TVA plans to phase out use of furnace
acid by the end of fiscal yr 1974 (June 30, 1975), if it can
obtain a reliable, economical supply of wet-process acid and
can complete the needed technical development to use
wet-process acid in producing all the fertilizers planned. This
change in plans will result in substantially closing nitric acid
plants at the end of fiscal 1973. TVA reports this move will
eliminate the need for about $1.4 million worth of pollution
abatement equipment to meet nitrogen oxide emission stand
ards. The last step in the plan adopted by TVA involves
modifying the existing granular combination fertilizer plant to
produce urea-ammonium phosphates instead of constructing
new facilities.
390 Fertilizer Shipping Rates Reach New Peaks. Eur. Chem.
News 25 (630), 8 (Apr. 5, 1974). Strong competition between
grain and fertilizer shipments for available U.S. deep-sea
carriers continues to force up long-haul freight rates. A
53
 PRICING AND COSTS
shipment of around 23,000 tons of phosphate from the U.S.
to Japan was recently fixed at $34/ton and a 27-28,000 ton
shipment of diammonium phosphate to India chartered out of
the U.S. at a massive $63/ton. Even a 14,500 ton fertilizer
cargo from the U.S. Gulf to Brazil required a premium charter
rate of $40.75/ton.
391 Phosphate Rock Freight Rates Increase. Eur. Chem.
News 26 (647), 8 (Aug. 2, 1974). Spot freight rates for
phosphate rock between mid 1973 and early 1974 have more
than doubled for almost all major routes. The net effect of
these rate increases on the long distance routes such as
Morocco or Florida to Japan has been to add $20-30/ton to
the cost of phosphate rock—similar to the increase in Florida
rock prices. North and West Africa currently accounts for 26%
of the world's total phosphate rock production. They will
contribute 33% of the total world increase in production by
1978.
392 Potash Transportation Cost to Japan. Fert. Int. No. 49,
3 (July 1973). Canadian potash ocean freight rates for Japan
have topped the $15 per ton f.i.o. level and are now hovering
at $17-18 per ton f.i.o. On the strength of this, Japanese
importers are hinting to local users that they would like to
raise the domestic sales price for the next fertilizer yr
shipment. The users do not agree to this on the grounds that
Zen-Noh’s “Kyokei Price” has yet to be announced. The result
is that the users are staving off an inevitable price increase for
potassium chloride, while the importers must wait patiently
until the Zen-Noh “Kyokei Price” is announced.
393 Delivery and Application Cost of Dry Bulk Fertilizer.
Fert. Prog. 4 (2), 18-20, 22, 24, 26 (Mar.-Apr. 1973). A cost
study on dry bulk fertilizer has been completed by Purdue
University. This study was made nation-wide and included
over 250 fertilizer dealers. Cost figures were produced on
materials picked up by farmer, delivery to farms, and applied
to fields. A broad spectrum of firms participated in the study
including independents, cooperatives, and company stores
from 29 states and Canada. Costs were broken down by fixed
and variable. Different types of equipment were used with a
complete breakdown of its cost. Management cost was
separated from operation. All variable cost was analyzed in
every detail.
394 Rate Standard Could Influence Fertilizer Producers.
Green Markets 2 (9), 3 (Feb. 27, 1978). United States
fertilizer producers may soon feel the effects of a federal
proceeding dealing with railroad rates of return. The Interstate
Commerce Commission (ICC) plans to study the issue this
summer and may allow higher rates if the ratio is judged too
low. Railroads currently earn less than 3% on net investments.
The ICC recently rejected a proposal to increase the return
ratio to 20%. Any significant increase in the allowable rate of
return could result in higher prices for shipping fertilizers.
POLLUTION CONTROL AND
ENERGY RELATED COST
54
395 New Costs Figure Into Fertilizer Bill. W. C. White (Fert.
Inst., Washington, D.C.). Wallaces Farmer 102 (3), 70-1 (Feb.
12, 1977). Three costs that hardly figured into the bill 5 yr
ago now make up about half of what farmers pay for fertilizer.
Charges for energy to produce fertilizer, environmental protec
tion at fertilizer plants, and transportation of fertilizer from
plant to farm add up to $16.12/acre for an Iowa corn crop.
Total cost for fertilizer for corn is estimated at $32.20/acre for
1977, based on 102 lb N, 59 lb P., Os, and 62 lb K2O/acre.
Transportation costs $13.16, energy for manufacturing $2.72.
and pollution control $0.32/acre. Rail freight rates have
doubled since 1970 and truck rates also have increased. Energy
costs, particularly for natural gas for N production, have
increased 300-800%. Pollution control costs are recent, the
result of the 1970 Clean Air Act and the 1972 Clean Water
Act.
396 Nitric Acid Pollution Control Equipment. Chem. Mkt.
Rep. 203 (3), 14 (Jan. 15, 1973). Mississippi Chemical
Corporation will spend an additional $815,000 during 1973 to
add two major air pollution control systems at its Yazoo City,
Miss., fertilizer complex. The two advanced systems—one
developed in France, the other by the Mississippi firm's own
research specialists—represent the best thinking of technical
experts in the US and Europe and were selected from the large
number of systems industry has developed in an effort to solve
these two extremely complicated emission problems. Over half
a million dollars is being invested to install a giant absorption
tower and process equipment to capture and remove the
nitrogen oxides from the off-gases of the nitric acid plants.
This sophisticated absorption system was developed in France
by the Grande Paroisse firm, and it should meet all Federal
and State emission guidelines; this may be the first time that
any US manufacturer has installed this advanced system on an
existing nitric acid plant.
397 Effluent Limits to Have Economic Impact on Fertilizer
Industry. Air/Water Pollut. Rep. 11 (9), 87 (Feb. 26, 1973).
Due to general lack of past abatement efforts, impact of
achieving effluent standards is expected to be significant, with
plant closures in some segments of the industry. Total capital
investment is expected to range from $22/ton for a 1 MM
ton/yr ammonia plant to $140/ton for a 50,000 tons/yr
phosphoric acid plant. Major product price increases are
expected to be: ammonia, 2.9% or 95tſton; ammonium
nitrate, 5% or $2.05/ton; urea, 4.4% or $2.50/ton; and
diammonium phosphate, 5.7% or $4.00/ton. Because of the
cost increases as many as 40 plants could close. Particularly
hard hit would be ammonium sulfate manufacturers with
plants representing 2% of capacity and 3% of manpower
closing, and ammonium nitrate manufacturers with plants
representing 15% of capacity and 29% of manpower closing. A
total of 770 workers could be affected; however, no severe
impact on surrounding communities is expected.
398 Economic Analysis of Proposed Effluent Guidelines for
the Fertilizer Industry. M. L. David, J. M. Malk, and C. C.
Jones (Development Planning and Research Associates, Inc.,
Manhattan, Kans.). Washington, D.C.: U.S. Environmental
Protection Agency, EPA-230/1-73-010; 205 pp. (Nov. 1973).
Five segments of 312 plants of the N and phosphate fertilizer
industry were studied to analyze the economic impact which
could result from application of proposed effluent limitation
guidelines and standards of performance for the fertilizer
 PRICING AND COSTS

industry. Nitrogen producers are expected to pass along 1976). As a guide for interpreting the energy and pollution
control costs with higher prices, excepting the NH4NO3 effects of changing feedstocks upon the economics of manu
segment which has high control costs. The phosphate segment facturing ammonia, typical investments and operating costs of
is expected to pass along a portion of control costs, limited by new plants using natural gas, coal, and heavy fuel oil
costs of larger producers and in place pollution control feedstocks are estimated based upon conditions prevailing
facilities. Closures due to pollution control are projected to be during March 1975 and a natural gas price of $0.85/million
< 1% of capacity in the NH 3 segment, 16-24% in NH4NO3, Btu. The coal and heavy oil alternatives are not economically
and 2-10% in the urea segment. In the phosphate segments, attractive under these conditions. If the price of natural gas to
projected closures are 9-19% of the ammonium phosphate the ammonia industry were to rise to ~ $2.50/million Btu, the
capacity and 2-10% of superphosphate capacity. External calculated ammonia costs would rise from $98/ton of amino
impacts on employment and community are not expected to nia to $153/ton. This would change the economic attractive
be large as the industry is capital intensive. Pollution impacts ness of the coal- and heavy oil-based alternatives. Significant
on foreign trade of fertilizer is not expected to be as great as incremental capital investment above that of plants based
with other factors. (12 fig, 79 tables) upon natural gas, which is on the order of $ 186/annual ton of
ammonia, is involved in the alternative processes. This is as
399 United States Set Tough Rule for NPK–Chemical Spill. high as $1 1 1/annual ton of ammonia capacity for the coal
Green Markets 2 (11), 2 (Mar. 13, 1978). Fertilizer producers alternative and $21/annual ton for the heavy fuel oil alterna
who dump or spill hazardous materials into waterways will tive. Incremental production costs of S 17/ton of ammonia,
now be subject to civil fines and possible criminal penalties. which includes $8.65/ton for pollution abatement, are
The new regulations, issued by the Environmental Protection expected for the coal alternative. The corresponding incre
Agency (EPA), also authorizes the government to collect mental cost for the heavy fuel oil alternative is $45/ton of
clean-up costs from industrial polluters. The EPA list of ammonia, which includes $3.46 for pollution abatement. The
“hazardous substances” include nitric acid, phosphoric acid, investment required for a coal- or heavy oil-based plant is
sulfuric acid, and ammonia. Barge transporters of materials higher than that for one based on natural gas. Nevertheless,
could be subject to fines of up to $5 million for discharges when faced with a continuing shortage of natural gas, the
from vessels exceeding specified limits. Companies which industry will have to find other fuel and feedstocks. The
dump from other sources could be fined up to $500,000. needed pollution control technology will mean an expenditure
Polluters may also be liable for clean-up costs of up to $50 of energy equivalent to 165,000 Btuſton of ammonia for the
million for discharges from on-shore and off-shore facilites and coal alternative, and a 0.5% increase in the total energy
up to $150/gross ton for spills from vessels. required for ammonia production. Approximately 125,000
Btu are required for pollution control for the heavy fuel oil
400 The Ammonia Model. J. A. Callaway, A. K. Schwartz, alternative, corresponding to a 0.2% increase in energy
and R. G. Thompson. In the Cost of Clean Water. Houston, consumption. Thus, the relative incremental fuel use is
Texas: Gulf Publishing Co.; pp. 6-40 (1976). This study negligible, while the fuel form savings are significant. While the
evaluates the effects of restrictive wastewater effluent stand environmental impact could be significant for these alterna
ards and the increasing prices for water withdrawal on the cost tives, there are no unique problems which will be encountered
of producing ammonia and the use of water and energy in a by new ammonia plants basing production on coal and heavy
newly designed ammonia plant. This evaluation is based on a fuel oil feedstocks. Difficulties will be no greater than those
linear economic model of water use and wastewater treatment encountered in electric power generation or in industrial
for a complete ammonia production facility. The model plant boilers fired with these fuels. However, the need to address
is scaled to produce 1500 mt of ammonia per stream day using these difficulties at industrial plants will be a new experience.
either naphtha or natural gas feedstocks. A high degree of
thermal efficiency is attained by integrating the production 402 Energy for the Fertilizer Industry. D. W. Calvert (Agrico
and electric power generation activities. The wastewater Chem. Co., Tulsa, Oklahoma). Proc. 1977 NFSA Round Up
pollutants evaluated are suspended solids and total dissolved (held St. Louis, Missouri, July 20-21, 1977.) Peoria, Illinois:
solids. Evaluations are made for Houston, Texas; Trenton, National Fert. Solutions Assoc.; pp. 16-18 (1977). A review of
New Jersey; Saginaw, Michigan; and Sacramento, California. the future energy requirements for the fertilizer industry and
This chapter includes: (1) a description of the integrated agriculture in general is given. An interpretation of the federal
ammonia production/power-process facility, an identification governments role in energy regulation and conservation is
of process-related discharge streams, and specification of fººd
uture.
with recommendations and suggestions for the
Several viable alternatives for waste treatment; (2) a descrip
tion of a linear economic model of water use and waste
treatment for a representative ammonia plant; (3) an analysis 403 How Much Energy Does Fertilizer Consume? C. H.
of the effects of different levels of waste discharge restrictions
Davis and G. M. Blouin (TVA, National Fertilizer Develop.
on the use of water, energy consumption, and the cost of ment Center, Muscle Shoals, Alabama). Farm Chem. 140 (6),
producing ammonia; and (4) an extension of the basic model 18-20, 22 (June 1977). A brief description of the manu
to account for regional differences in climate and inlet water facturing processes and estimates of the energy requirements
quality. for the major fertilizer compounds and components are given
in Btu/ton. The national energy consumption of fertilizer in
401 Environmental Considerations of Selected Energy Con the United States agricultural system is estimated to be about
serving Manufacturing Process Options: Vol. VII. Ammonia 0.7% of the total. Of this total for fertilizers, about 88% is for
Energy Report. (Arthur D. Little, Inc., Cambridge, Massachu production, 1% is for transport of raw materials, and about
Setts). Industrial Res. Lab. Office Res. Dev. U.S. Environ 11% is for the transportation, storage, handling, and applica
mental Proucction Agency, EPA-600/7-76-034g, 87 pp. (Dec. tion of products.

55
 PRICING AND COSTS
404 Energy Use and Economics in the Manufacture of
Fertilizer. J. L. Sherff (Arthur D. Little, Inc., Cambridge,
Massachusetts). In Energy, Agriculture and Waste Manage
ment. Ann Arbor, Michigan: Ann Arbor Sci. Publishers pp.
433-41 (1975). Edited by W. J. Jewell. Pollut. Abstr. 7, 3520.
The energy content of fertilizers, effects of energy shortages
on fertilizer availability and cost, and alternatives are dis
cussed. Ammonia requires the most energy, because of its N
component which is the basis for almost all N fertilizers.
Depending on the product, N fertilizers require 49-62 million
Btuſton of N in their manufacture. Phosphate fertilizers
require 12-19 million Btuſton of P. Os including the energy
required to product the phosphate rock and S raw materials.
Potash fertilizers require about 6 million Btuſton of K 20.
Fuels and electric power constitute roughly 12% of the cost of
fertilizer manufacture. The manufacture of N fertilizers in
1973 required the expenditure of $172 million for fuels,
largely natural gas, and $12 million for electric power. The
manufacture of phosphate fertilizers required $63 million for
fuels, and $25 million for electric power. The total use of
fossil fuels was 574 trillion Btu in 1973. The fertilizer industry
consumes 0.3% of the nation's electric power, 0.1% of the
distillate and residual oil, and 2.4% of the natural gas supply.
Problems encountered in the processing of major fertilizer raw
materials are escalations in the price of gas and the cyclical
nature of the industry. With the exception of NH3, the switch
to alternate fuels is inexpensive, but manufacturers will
convert only by necessity.
405 Fertilizer Production as Related to Energy Used. Agric.
Econ. Stat. 25(2), 4 (Feb. 1976). Total world consumption of
nitrogen fertilizer in 1972-73 was estimated at 36 million mt.
The consumption in developing countries, however, was only 6
million tons, or 16.7% of the total. On the basis of previous
trends and of increased fertilizer production capacity, it is
expected that the use of nitrogen fertilizer will more than
double by 1985 to about 85 million tons. With major increases
in consumption in the developing countries by 1985, the
nitrogen fertilizer requirements of these countries are expected
to be more than one quarter of the total. Nitrogen production
has a high energy requirement. One kg of nitrogen requires
approximately 2 kg of fossil fuel for its manufacture,
packaging, transport, distribution and application. Phosphate
fertilizer consumption in 1972-73 was estimated at 22 million
mt, with approximately 3 million tons used in developing
countries. By 1985 world demand is expected to increase to
42.5 million tons. By then, the developing countries are
expected to use 20% of the total. At these rates of
consumption, lower grade rock and/or deposits less favorably
placed than those used at present will then have to be drawn
upon. The production of one kg of phosphate fertilizer
requires about 0.25 kg of fossil fuel equivalent. In 1972-73
consumption of potash fertilizer stood at 18.75 million mt. Of
this, about 10% was used in developing countries. By 1985,
world demand for potassium fertilizer is expected to increase
to about 38 million tons/yr, with 6.6 million tons going to the
developing countries. Shortages of raw material are not fore
seen at present. The production of one kg of potassium fertili
zer requires approximately 0.18 kg of fossil fuel equivalent.
406 Change in Energy Cost and Sources for Ammonia. J. A.
Finneran. Chem. Eng. News 54 (17), 26 (Apr. 19, 1976). A
major characteristic of the nitrogen industry has changed in
the past 3 yr. For the nitrogen industry the effect of
56
high-priced energy has been to change from capital-intensive to
energy-intensive. For plants built in the 1960's and operated
with the low-cost gas then available, more than half of the cost
of ammonia production was directly related to capital cost.
For plants built in the middle 1970's and using natural gas
costing over $1.00 per 1000 cu ft, more than half of ammonia
production cost is related directly to energy. The U.S.
produced last yr about 17 million tons of ammonia. About 3
or 4 million tons are nominally intended for the industrial
market. Owing to the business recession during the past 18
months, more than 1 million tons of ammonia normally
destined for industry was diverted to the fertilizer market.
That trend has now been reversed, and in 1976 that 1 million
tons of ammonia will flow to industry, and not to fertilizer.
Looking to the near future there are numerous announced
plants and this increase in production has been viewed with
considerable alarm in some quarters. Some fear that we may
face repetition of the earlier extreme cycles that the ammonia
industry has undergone. The best estimates available indicate
that there will continue to be short supplies of nitrogen
through 1977 or 1978. There will probably be only a slight
surplus in 1979. By 1980 we will again be close to a balance in
supply-demand. On the worldwide perspective, the situation is
somewhat different. Although data and projections are far less
accurate than for the U.S., it is projected that a worldwide
deficit will still exist at the end of this decade. In fact, it is
likely that severe nitrogen fertilizer shortages will continue to
exist in some agricultural areas. Technology is, of course,
available and is constantly being improved for production of
ammonia synthesis gas from heavy oil and from solid fossil
fuels such as coal or lignite. The nitrogen industry cannot
easily or economically convert to an alternative feedstock.
This industry is an essential link in our very important
agricultural economy, and it is difficult, if not impossible, to
consider an industry which would merit a higher priority for
natural gas than the manufacture of fertilizer.
407 Nitrogen Pricing and Raw Materials. Agchem. Newslett.
No. 79, 3 (June 1, 1973). Higher feedstock prices for ammonia
manufacturers have already become a reality. In negotiating a
new gas contract with a subsidiary of Gulf Resources Corp.
Agrico has contracted to pay 60 cents per cubic foot, about
twice the price at which previous gas contracts have been
negotiated. Thus ammonia, and nitrogen fertilizers generally,
will have to cost more in the future. No longer are the millions
to put up a plant the sole requisite for being an ammonia
producer; a gas source that will allow you to remain
competitive is required. It is a question of how long gas
supplies will be available in the U.S. that can allow production
to continue here.
408 Natural Gas Pricing. Chem. Eng. News 54 (28), 10 (July
5, 1976). Prices for new supplies of natural gas are turning up
again after a slight downturn in the first half of the yi.
Chemical plant operators may have to pay $2.00/million Btu
or about 10% more for gas following a recent landmark sale at
$1.95/million Btu plus transportation by Houston Oil &
Minerals to a United Gas Pipe Line subsidiary. Actual prices
vary because of well characteristics and locality.
409 The Effects of Alternative Natural Gas Pricing Policies
on the Market for Anhydrous Ammonia Fertilizer. H. W.
Everett and O. C. Doering III (Purdue Univ., Lafayette,
Indiana). Paper, Annual Meeting Am. Agric. Econ. Assoc.
 PRICING AND COSTS
Columbus, Ohio; 11 pp. (Aug. 10-13, 1975). An econometric
analysis of anhydrous ammonia supply and demand is made in
the context of policy alternatives to maintain natural gas input
for fertilizer. It was shown that the price of gas explains some
of the variation in the quantity of ammonia supplied; the
relationship was an inverse one. This study also indicated that
the price of ammonia is not significant in its relationship with
demand. Other studies have shown price to play a significant
role in the quantity demanded. This model may require some
restructuring and refinement. The immediate problem is how
to maintain or increase the availability of natural gas to
ammonia producers at any price.
410 Gas Prices Alter United States Ammonia. Outlook. Fert.
Int. No. 89, 1 (Nov. 1976). The natural gas prices announced
in July by the United States Federal Power Commission (FPC)
have been revised as a result of consumer pressure. Further
changes may follow with the result that gas exploration and
exploitation in the United States may not receive the
encouragement necessary to secure future supplies. The
outcome is of particular relevance to the fertilizer industry
because of the use of natural gas as a feedstock for ammonia
production. The gas shortages blamed on Government price
restrictions are important to the fertilizer industry on two
counts. They result in curtailment of supply and as domestic
consumers have priority this leads to a loss of production. Last
yr it is estimated that 360,000 tons of ammonia production
was lost as a result of gas curtailments and a similar reduction
in output is forecast again this yr by The Fertilizer Institute.
The second factor relates to the long-term supplies of
feedstock for the industry. While the price paid by gas users
remains uneconomic insufficient exploration and exploitation
will take place with the result that even larger shortages may
occur in the future. The U.S. nitrogen fertilizer industry is
essentially orientated to the home market and so it is more
concerned with securing adequate feedstock than the effect
gas prices will have on exports.
411 Ammonia Makers Face Investment Problems. Chem.
Mark. Rep. 213 (4), 7, 12 (Jan. 23, 1978). Increasing raw
material prices, the availability of low alternative value gas,
and gas curtailment programs in the United States present
ammonia producers with major problems regarding feedstock
location decisions for new investments. For instance, the
marginal cost of ammonia from a Middle East plant today can
be as low as $15/ton compared to $90/ton for United States
producers operating plants built at the end of the 1960's.
These issues are further complicated by capital costs and
reliability differences between the various regions of the
world. Both fertilizer and industrial uses of ammonia are
approaching maturity in developed countries. Consumption in
developing countries has reached the level where future growth
will have an important impact on new investment decisions
and total world demand.
412 Canadian Ammonia Units Face Gas Price Increase. Eur.
Chem. News 23 (587), 6 (June 8, 1973). Three major
Canadian ammonia producers, Canadian Industries, Brockville
Chemicals, and Cyanamid of Canada, are facing stiff increases
in the price of natural gas. The National Energy Board has
authorized price increases on natural gas produced outside the
main production area of Alberta. It has turned down a
proposal by Union Gas, the supplier to the three ammonia
producers, to establish a special southwestern Ontario delivery
area which would have provided a more favorable industrial
rate than the rest of central Canada.
413 Higher Gas Prices Will Increase Price for Nitrogen
Products in the United Kingdom. Green Markets 1 (38), 2
(Oct. 31, 1977). The United Kingdom's Imperial Chemical
Industries (ICI), and the state owned British Natural Gas Corp.
are close to signing a new contract under which ICI would pay
more for its natural gas feedstock. United Kingdom fertilizer
producers are hopeful that higher gas prices to ICI will restore
competition in the N fertilizer market. Industry officials
speculated that ICI will have to pay three to four times its
present rate for gas. If so, ICI's price of ammonia would
increase 50% and result in a 25% price rise for ammonium
nitrate. Fertilizer producers are also confident that the market
can withstand a price increase of fertilizer from $119/mt to
about $150/mt.
414 Gas Shortage May Affect Fertilizers. New Products and
Processes, Newsweek Inc. 2 (1), 1 (Mar. 25, 1977). At present,
natural gas is the primary feedstock for producing ammonia,
which is the base liquid from which almost all N fertilizers are
made. The hydrogen required to make ammonia can also be
derived from coal, of which the U.S. and the world has
adequate reserves, but the technology necessary for converting
coal to ammonia synthesis gas is still in the experimental stage.
The Tennessee Valley Authority produces N fertilizer and has
been delving into the coal-to-ammonia process for the past 2
yr. They hope to begin work on a demonstration plant at
Muscle Shoals, Alabama in 1979. Hopefully, this plant, which
is slated to come on stream by 1983, will provide much of the
process technology needed to make it possible to launch
commercial production of N fertilizers from coal at about the
time it will no longer be practical to produce fertilizer from
natural gas.
415 An Evaluation of Coal as a Source of Synthetic
Fertilizer Production. Sidney Katell (Bureau of Mines, U.S.
Dep. Interior, West Virginia). In F.A.I. Symp. Coal Feedstock
Fertilizer Production 1974. New Delhi, India: Fert. Ass. India,
pp. IV-2/1-9 (June 1974) (price Rs.20). Coal was used for
many yr as the basic source of raw material in the production
of synthetic fertilizers. The advent of relatively cheap natural
gas led to the almost complete replacement of coal both in the
United States and other countries. However, recent develop.
ments involving the short supply of natural gas and the
increasing demand throughout the world for fertilizers have
reactivated the potential use of coal. The coal systems that can
be considered are explored based on recent research and
development efforts and the potential economics of
commercial applications.
416 Coal Resources for Nitrogenous Fertilizer Plants. S. K.
Bose (Ministry Steel and Mines, New Delhi, India), T. N. Basu,
and D. Basu. In F.A.I. Symp. Coal Feedstock Fertilizer
Production 1974. New Delhi, India: Fert. Ass. India, pp.
I-1/1-16 (June 1974) (price Rs.20). With unprecedented oil
price hike, attention may be given to developing basic fertilizer
industry employing established indigenous coal resources as
feedstock. Out of 83,000 million mt of coal and lignite
reserves, nearly 75% is noncoking coal, substantially suitable
for fertilizer manufacture. During the 5th Plan, production of
coal is expected to increase from 78 to 135 million mt and to
over 200 million mt by the end of the 6th Plan. Considering
57
 PRICING AND COSTS
for the present, coal quality up to Grade II (28%—ash +
moisture), coal fields, where coal based fertilizer plants can be
considered during 6th Plan, are Rajmahal, East Raniganj, East
Bokaro, South Karanpura, North Karanpura, Hutar,
Bisrampur, IB River, Kamptee, Chanda, Lakhanpur, and
Singrauli. However, the actual location would depend upon
various other factors. In addition, the existing fertilizer plants
at Talcher, Korba, Ramagundam, and Neyveli can be expanded
in the future.
417 Resources of Coal as Feedstock for Ammonia
Synthesis—Prospects and Retrospect. B. Kaskar (Geological
Survey India, Calcutta, India). In F.A.I. Symp. Coal Feedstock
Fertilizer Production 1974. New Delhi, India: Fert. Ass. India,
pp. 1-3/1-16 (June 1974) (price Rs.20). The development of
the fertilizer industry in India is reviewed and the reasons for
the shift from coal to petroleum feedstock for production of
ammonia are brought out. The prospects of utilizing coal as
feedstock for ammonia production in the period of oil crisis
are analyzed. The potential deposits of superior quality
noncoking coal in the country are listed.
418 Indian Coals and Their Suitability for the Production of
Nitrogenous Fertilizers. A. K. Moitra, N. C. Sinha, and K. C.
Lahiri (Central Fuel Res. Inst., Dhanbad, India). In F.A.I.
Symp. Coal Feedstock Fertilizer Production 1974. New Delhi,
India: Fert. Ass. India, pp. I-2/1-18 (June 1974) (price Rs.20).
The general quality specifications of coal for established
gasification processes for the manufacture of synthesis gas for
fertilizer production are outlined. Concurrences and up-to-date
reserve estimates for different types of coal in Indian coal fields
have been indicated. The physical and chemical characteristics
of coal seams so far assessed by the coal survey organization of
Central Fuel Research Institute have been classified into Coal
Code Ranks, represented by three parameters: calorific value,
volatile matter, and caking characteristics (coke type). About
four-fifths of the total coal reserves of 81 billion mt consists of
weakly caking to non-caking variety, almost all of which may
be utilized for synthesis gas manufacture with appropriate
modifications of equipment. The field-wise and state-wise
details of ranges of important physical and chemical properties
of coal are also provided. Qualities of some typical coal seams
considered suitable for establishing large gasification plants for
production of synthesis gas in the States of Andhra, Bihar,
M.P., U.P., Maharashtra, and West Bengal are presented.
419 Economics of Coal Based Urea Production. T. L.
Shankar (Planning Commission, New Delhi, India). In F.A.I.
Symp. Coal Feedstock Fertilizer Production 1974. New Delhi,
India: Fert. Ass. India, pp. IV-5/1-6 (June 1974) (price Rs.20).
Results of studies conducted by the Project Appraisal Division
of the Planning Commission on the relative economics of
production of urea based on different feedstocks are
presented. Process based on electrolysis was not included in
the study as it has been found uneconomic and production
technology based on natural gas was also excluded because of
its limited availability. Thus the comparison of relative
economics would be essentially with reference to naphtha, fuel
oil, and coal, and with the recent oil crisis, it would be
essentially between coal and fuel oil. Comparative economics
of coal based and fuel oil based plants at varying prices of raw
materials, on stream efficiencies, and of plants are presented.
Factors for consideration in setting up coal-based plants are
discussed.
58
SUBSIDIES, TARIFFS, AND TAXES
420 Fertilizer Subsidies. Dana Dalrymple. Develop Digest.
14 (1), 113-24 (Jan. 1976). FAI Abstr. Ser 15, C24. Subsidies
intended to stimulate the use of fertilizers by farmers are
relatively common in developing countries and appear to be
increasing. But they can become very costly, especially since
the 1974 increase in fertilizer prices; they present administra.
tive problems; and their effectiveness in producing the desired
result may be questioned. The author summarizes various
types of subsidies and notes that they should be used very
cautiously and selectively. There may be cases where they can
help to introduce fertilizer or be of assistance to small and/or
poor farmers. There also may be instances where adjustments
in product prices can help direct their use to certain crops, but
allowing product prices to rise and using limited funding
elsewhere usually leads to the better identification of con
straints on fertilizer use to increasing the efficiency of
fertilizer distribution, and to optimize utilization of available
fertilizer. This would, however require much more knowledge
about the fertilizer situation at the farm level than presently
exists in most developing nations.
421 Economics of Fertilizer Use—An Overview with
Emphasis on Subsidies. J. W. Couston (FAO, Rome, Italy). In
FAI-FAO Seminar Strategy Stimulating Fertilizer Consump
tion 1976 Proc. (held New Delhi, India, Dec. 9-11, 1976). New
Delhi India; Fert. Association India III-1 (i) 1-9 (Mar. 1977).
The relationship between the price of agriculture produce and
fertilizer price is one of the important determinants of
fertilizer consumption in any economy. In countries where
this relationship is favorable, fertilizer use has increased to
high levels and so has agricultural productivity. The experi
ences of Japan and Thailand, which are countires at the
opposite ends of this spectrum, demonstrate the validity of
this thesis. However, there are many other variables which
affect the farmer's decision to use fertilizer, including factors
like the incremental response to fertilizer use, cost of other
items such as labor, water, and the residual value of fertilizer
in the following season. Certain research studies have shown
that the short-run price elasticity of demand for fertilizers in
the developing countries of Asia varies from-0.30 to -1.20
which is rather a wide range. This may be explained by the
proposition that farmers who already use higher rates of
fertilizer and are consequently on the upper and flatter part of
the response curve are more sensitive to changes in price of
fertilizer than farmers on the lower and steeper part of the
response curve.
422 Price Support Versus Input Subsidy for Food Self
Sufficiency in Developing Countries. Randolph Barker and
Yujiro Hayami (Int. Rice Res. Inst., Los Banos, Philippines).
Am. J. Agric. Econ. 58 (4, Part I), 617-28 (Nov. 1976).
Self-sufficiency in food grains has been a publicized goal of
government policy in many developing countries. Among
various alternatives to achieve this goal, two policy options,
output price support and input subsidy, both characterized by
the government intervention into market pricing, are evaluated
by applying a simple demand-supply model to the Philippine
rice economy. The results demonstrate a possibility that a
subsidy applied to modern inputs, such as fertilizers, that are
being used below optimum can be more beneficial than
 PRICING AND COSTS
supporting product prices.
423 Input Subsidies for Variable Resources in Agriculture.
W. L. Nieuwoudt (Univ. Natal, Natal, South Africa). Can J.
Agr. Econ. 20 (2), 118-19 (July 1972). Benefits from subsidies
of variable resources, such as fertilizer, are compared with the
cost to the taxpayer. When farmers apply less fertilizer than
they should a subsidy causes use to increase. Both farmers and
the fertilizer industry benefit and there is a net benefit to
society. However, the subsidy should not be so great that
application exceeds the rate that farmers should have been
using.
424 Australian Fertilizer Bounty. Chem. Age (London) 111
(2940), 9 (Nov. 21, 1975). The Australian bounty on
nitrogenous fertilizers is to be phased out over a 3 yr period if
the recommendations of the Industries Assistance Commission
is accepted by the Ministry of Agriculture. In Western
Australia a price war has broken out with urea being offered to
farmers at A$127/mt fob, Fremantle. Only a month ago CSBP
and farmers were selling urea at A$178.70/mt, it then dropped
to A$144.60 and was followed by an offer from Rural Traders
Coop to sell product at A$127/mt. The company says it can
obtain 10,000 mt of urea from Romania if there are firm
orders and the urea would qualify for the Australian govern
ment bounty. This yr has proved traumatic because of sharp
price increases and the government's referral of the fertilizer
bounty to the Industrial Assistance Commission, which had
led farmers to hold back from buying in the hope that the
bounty might be restored.
425 Australia Supports Superphosphates Use. Chem. Week
118 (7), 67 (Feb. 18, 1976). Superphosphates fertilizer use in
Australia will be boosted by the new government’s decision to
restore a $15/ton subsidy that had been dropped by the Labor
Party regime at the end of 1974. The subsidy will remain in
effect until June 1977. The decision is expected to spark
protests from other mining and industrial firms that have been
refused aid.
426 Argentina's Fertilizer Guotas Drop as Levies Increase.
Green Markets 1 (33), 8 (Sept. 26, 1977). Argentina will not
restrict fertilizer imports; it will increase duties. The govern
ment is lifting import quotas for agri-chemicals, but is
increasing import levies on certain products. The country is
imposing a 15% duty on urea and nitrogen mixtures. The duty
for urea had been 5%, while that for mixtures was 10%. The
duty on ammonium sulfate was raised from 10% to 15%.
There was also a reduction of import duties from 50% to 15%
on ammonium chloride and complex fertilizers, which were
already being freely imported.
427 Brazil Resumes Restrictive Import Policy. Fert. Int. No.
74, 1, 9 (Aug. 1975). The Brazilian Government has reintro
duced measures to protect its domestic fertilizer industry
threatened by the much easier supply of imported material.
The restriction is a return to the quota system where mixers
and granulators are only permitted to buy a certain amount of
imported produce depending on the amount of domestically
produced material that is processed through their plants. The
quota for the more important central and southern regions is
1.1 mt N imported to 1 mt N of domestic produce and 1 mt
P.O.s imported to 0.6 tonnes P.O.s of Brazilian origin. These
limits apply only to N in the northeast, where phosphate
production is small, and are not applicable at all to the
under-developed northern region. The N contained in foreign
monoammonium phosphate or diammonium phosphate is
excluded from the quotas.
428 Brazil Protects Domestic Rock. Green Markets 2 (2), 3
(Jan. 9, 1978). Brazil's National Customs Council has adopted
two measures designed to reduce phosphate rock imports. The
council recently imposed a 30% duty on foreign rock and a
duty waiver that applies only to companies that use equal
amounts of imported and Brazilian rock. The regulation was
enacted to protect the Brazilian rock producer, Arafertil.
Fertilizer prices are expected to increase 20 to 25% as a result
of the new duties.
429 Canadian Additional Potash Tax Proposed. Chem. Week
114 (20), 33 (May 15, 1974). A levy, which would be in
addition to the current $1.20/ton prorationing fee and the
50¢/ton royalty on potash, would apply to all potash
operations. The Mineral Resources Minister says the amount
and precise form of the added tax are now being discussed
with the industry.
430 Canadian Potash Producers Want Tax Break. Chem.
Week 116 (10), 34 (Mar. 5, 1975). Potash producers are not
satisfied with a recent promise from Premier Allan Blakeney
that some royalties paid to the province would be deductible
from provincial taxes. A spokesman for the Saskatchewan
Mining Association estimates these deductions—lease charges,
prorationing fees, and some royalty payments—will amount to
a 5% cut in the 88% combined federal and provincial tax rate.
The industry says the tax is exorbitant and discourages private
investment in the potash industry. As a result of imposition
of the tax last fall, Saskatchewan potash producers are said
to have put off investments of $175-200 million. They are
seeking a switch to a tax based on profits rather than onselling
price of potash.
431 Potash Tax Levied by Canada. Chem. Mkt. Rep. 206
(18), 14 (Oct. 28, 1974). The Saskatchewan government
announced a new tax proposal this week concerning potash
that would vary for each individual mine based upon the
capacity and total ore reserves of the project. The plan also
includes government participation in all new expansions either
as a “majority partner in a joint ventue or full owner” of the
new plant. This tax would be added to the already existing
royalties that the government places on the industry. As part
of the new plan, the government expressed hopes that potash
producers in the Province will expand their current mining
operations with the stipulation that all new areas would have
government participation on an equity basis, whereby the
government would either be the majority partner in a joint
venture or the full owner. The new tax should take about 20%
of the total industry revenue for the year which is projected at
over $430 million.
432 Canadian Potash Reserve Tax. Chem. Week 117 (14), 19
(Oct. 1, 1975). Canadian potash producers have lost a round in
their battle with the Saskatchewan government over the
province's reserve tax. The Court of the Queen's Bench refused
to grant a request by the Canadian Potash Producers Associa
tion to order the provincial government to refund taxes
already paid if the tax is found unconstitutional as a result of
another action filed by the association. Producers have paid
59
 PRICING AND COSTS
about $52 million of the $60 million in reserve taxes due for
the second and third quarters. Under provincial statutes, the
government is not liable to repay taxes, even if they are
illegally collected. The producers association president, termed
the court’s ruling disappointing, but he said it would in no way
affect the association's plans to challenge the constitutionality
of the provincial law.
433 Royalty Agreements Reached Between Potash Company
of America and New Brunswick. Eng. Min. J. 178 (12), 126
(Dec. 1977). A $106 million potash mine and processing plant
will be developed at Sussex by the Potash Company of
America, following an agreement on royalty rates with the
New Brunswick provincial government. The company now
operates an 800,000 ton/yr potash operation 12 miles from
Sasktoon, Saskatchewan. The royalty rate will be fixed at
6.25% of the value of potash products loaded on rail cars at
Sussex. The agreement also allows the government to take up
to 25% equity in the venture
434 India Forced into Heavy Subsidies on Fertilizers. Eur.
Chem. News 25 (629), 8 (Mar. 29, 1974). The Indian
government will be forced to pay out a massive Rs.3000
million subsidy for imported fertilizers in 1974-75 as a result
of the steep increase in international prices. The subsidy could
be avoided by the imposition of 100% fertilizer price increase.
The government is anxious to avoid this, having already
refused to raise the price of naphtha for ammonia production
despite the four-fold increase in crude prices. India will import
more than 3.2 million tons of fertilizers in the next financial
yr, of which more than half will be urea. Prices for imported
diammonium phosphate (DAP) have increased to $250/ton
cost including freight. Poland has now agreed to supply India
with 200,000 tons of urea, 34,000 tons of phosphate
fertilizers, and 160,000 tons of S this yr under a new trade
agreement. More domestic urea will become available in India
in 1974-75 when the naphtha-based Barauni fertilizer plant
comes into production with its 330,000 tons/yr urea capacity.
Startup is scheduled for the yr-end.
435 Japanese Seeks Fertilizer Tariff. Chem. Age (London)
114 (3006), 1 (Feb. 25, 1977). Japanese fertilizer producers
are to seek immediate tariff protection from the Japanese
government to stop the alleged dumping of US produced
ammonium phosphate. The Japanese Phosphatic & Compound
Fertiliser Manufacturers' Association decided at an emergency
meeting recently to ask the government to impose special
tariffs on imports from the US, particularly Florida. According
to sources in Japan, ammonium phosphate of US origin is
currently being sold in Japan at Y5000/mt cif, a price below
US production costs.
436 Spain Lifts Ammonia Custom Duty. Chem. Age
(London) 107 (2838), 13 (Dec. 7, 1973). Spain has lifted its
customs duties on the import of ammonia for the period of 3
months. The step has been taken to guarantee supplies to the
country’s fertilizer industry.
437 Sri Lanka's Fertilizer Subsidies. J. Flour Anim. Feed
Milling 159 (9), 32 (Sept. 1976). The Govenment of Sri Lanka
has decided to provide fertilizer to all farmers at subsidized
rates in the future. The Government now extends this subsidy
to tea, rubber, coconut, and producers of other food crops in
the country, which were afforded no such subsidy in the past.
60
The decline in consumption of fertilizers, began in 1973 when
the quantity used was only 91,944 tons, picked up again
slightly in 1974 and 1975 was 99,835 tons.
438 Subsidy for Ammonia Import to United Kingdom
Requested. Chem. Mark. Rep. 207 (6), 5 (Feb. 10, 1975). The
president of the U.K. Fertilizer Manufacturers’ Association has
asked the British Government to introduce a subsidy on
imported ammonia, because the U.K. industry is faced with a
rising scarcity of home-produced ammonia. He calls the
subsidy the only way in which the shortfall can be met, since
ammonia imports cannot help because its high cost forbids
economic resale in Britain. The price of ammonia-based
fertilizer in the U.K. is between $156 and $168 per ton; so
that to make the exercise economically viable makers would
need a subsidy big enough to offset the $96 to $120 a ton
extra on the finished product that use of imported ammonia
would entail.
439 United Kingdom Phosphorus Tariff Ouota. Eur. Chem.
News 24 (608), 8 (Nov. 2, 1973). Under the Act of Accession
to the EEC, the U.K. has been authorized to open an annual
tariff quota for phosphorus of a volume corresponding to U.K.
needs but not in excess of 40,000 tons. The U.K.'s Depart
ment of Trade and Industry (DTI) proposes to open a nil duty
quota for 1974 of 36,000 tons.
440 Embargo on Fertilizers Needed. Ag-Chem Newslett., No.
82, 4 (Sept. 1, 1973). The president of CF Industries, Inc.,
called for an immediate abandonment of price controls or an
embargo on fertilizer exports in a letter to U.S. Agriculture
Secretary. He warned that unless prompt action is taken
available domestic supplies of N and P will not be sufficient
for the increased crop acres put back into production in 1972.
He reported that recent export sales of DAP were at a figure
$30 to $35 above CF's domestic price. If U.S. farmers must
bid against offshore buyers, their fertilizer costs will double.
CF’s vice-president told the same story in a speech before the
American Institute for Cooperation. An embargo, he warned,
is the only hope for ensuring that U.S. farmers will have
adequate fertilizer next yr. Nitrogen exports will have to be
reduced by 36%, he suggested, and phosphate by 47% from
last year's levels, otherwise the U.S. will be short 490,000 tons
of N and 670,000 tons of P30s. Looking to the future, he
predicted that fertilizer prices must rise. With plant
construction more expensive, and gas costs mounting,
ammonia will cost $22 to $38 more per ton to manufacture,
depending on the source of gas. Escalating costs of S and
phosphate rock, as well as increased capital investment and
higher operating costs will raise the cost of phosphate
fertilizers by $15 to $20 per ton, he predicted.
441 Fertilizer Embargo by United States Could Hurt
Farmers. Chem. Mkt. Rep. 205 (10), 21 (Mar. 11, 1974). The
Fertilizer Institute warned that an embargo on U.S. exports of
fertilizers would be contrary to the best interests of the
farmer, the industry, and the American consumer. Embargo
bills would not even secure temporary relief for farmers now
facing a critically short fertilizer supply for the Spring
planting. An embargo would invite retaliation from countries
such as Canada, Brazil, the Netherlands, and Japan which
depend on U.S. materials and also supply fertilizer to
supplement U.S. needs. The U.S. imported 3.9 million tons of
fertilizer during the last half of 1973 while exports took only
 PRICING AND COSTS
3.7 million tons.
442 Florida Phosphate Severence Tax Doubled. Phosphorus
Potassium No. 90; 12 (July-Aug. 1977). The Florida State
Legislature has recently doubled the rate of severence tax on
phosphate rock from 5% to 10% effective July 1. This will
yield about $1.15/mt of phosphate, an increase of 60 cents/mt
over last yr rate. The tax, which is payable by the customers, is
levied by the State Government as a percentage of the Tampa
rock price less transportation, drying, and processing costs.
GENERAL
443 Fertilizer Prices—A Delicate Subject. Fert. Int. No. 49, 4
(July 1973). Between the late 1960's and mid-1971, prices for
fertilizers were at very low levels, due to overcapacity in both
raw material and manufacturing sectors. Now the prices,
particularly for export, are once again at the mid-1960's high
levels. Nevertheless, fertilizer prices have not shown the rises
of other industries, since new technologies and heavy compe
tition have featured strongly in containing any price rises. Now
it is considered that with rising costs of feedstocks and raw
materials generally, the overall inflationary trends, with higher
labor, marketing and distribution costs and more stringent
pollution control, with its additional cost burden, prices will
continue upward. These views were expressed at the Rome
ISMA Conference held May 30-June 3, 1973.
444 Fertilizer Prices Strong. Chem. Mkt. Rep. 203 (8), 4, 15
(Feb. 19, 1973). Fertilizer prices at all marketing levels will be
bullish in 1973, says the U.S. Department of Agriculture.
Prices of some specific items –urea, concentrated Superphos
phate, some of the ammonium phosphate, most likely will
increase. Prices for high analysis phosphates will continue to
be particularly unyielding because the foreign market for
phosphates is booming. If a soft spot develops, it could be in
the price of potash. Demand will be strong for most fertilizers
as farmers press for high yields with expanded acreage because
of farm program changes. Fertilizer price changes were slight
in 1972, as a combination of competitive forces and price
controls kept price movements at a minimum at both the
manufacturing and retail levels.
445 Fertilizer Prices Increased on Domestic Market. Wall
Street J. (East Edition) 182 (88), 20 (Nov. 2, 1973). The first
round of fertilizer price increases since the Cost of Living
Council removed price ceilings from the fertilizer industry
appears to be taking shape. In Raleigh, N.C., Texasgulf, Inc.
said that effective immediately it is raising domestic list prices
for phosphate and potash fertilizer to levels comparable with
prices in the export market. The Texasgulf action follows
similar moves by W. R. Grace & Co. and American Cyanamid
Co. Industry spokesmen said the price increases range from
20-40% and more, with fertilizer products previously selling in
the $60-$80/ton range currently priced above $100/ton in
most cases. Other fertilizer producers are expected to follow
suit after having lobbied successfully in Washington for
permission to raise prices. Producers indicated they would
return fertilizer supplies to domestic markets as a result of
government action they favored.
446 Little Chance of Lower World Fertilizer Prices. Chem.
Age (London) 109 (2888), 2 (Nov. 22, 1974). There is little
prospect of a decrease in fertilizer prices and supplies of
nitrogen are likely to remain tight for a number of years,
according to the president of the Fertiliser Manufacturers'
Association. If fertilizer prices had merely risen in line with
inflation over the past 20 years, they would be 33-40% higher
than they are at present. Between 1971 and 1973 a series of
plant breakdowns, rising world demand, and the shortage of
fuel and feedstocks caused a shortage to develop. Because of
current oil prices, natural gas prices will rise to equate them
and there is no possibility of nitrogen price levels returning to
those prevailing before the oil crisis. Due to Morocco's
position as the dominant exporter and price leader, we may all
have to live with higher phosphate costs. Potash prices have
not risen as rapidly as those of other fertilizer components,
and massive price increases for potash in the immediate future
are not expected. Production of potash in commercial
quantities will be underway in the U.K. in 1975. This will put
the U.K. in the fortunate position of being a net exporter in
future.
447 Fertilizer Price Surge Slowing. Wall Street J. (East
Edition) 184 (128), 10 (Dec. 31, 1974). The surge in fertilizer
prices that contributed to the recent jump in farming costs
appears to be flattening, but the outlook for fertilizer demand
remains bullish, according to the Agriculture Department. The
department's Economic Research Service predicted that
farmers may pay 10% to 15% more a ton for fertilizer during
the 1975 planting Season, but such an increase would be well
below the more than 100% price increase since price controls
went off in the fall of 1973. It may also signal the end to the
violent upward price spiral of recent months. Signs are noted
that farmers' fertilizer purchases slackened noticeably during
the last half of this yr compared with 1973, while inventories
of basic materials have been rising.
448 Will Fertilizer Prices Hold Up? Chem. Week 116 (4), 25
(Jan. 22, 1975). This year could well prove crucial for
phosphate fertilizer pricing. New plants are coming onstream
that will push rated capacity for phosphoric acid beyond
demand by a fair margin, and there is some talk that producers
are pricing themselves out of markets, that farmers will cut
purchases sharply this yr because residual phosphates stored in
the soil can supply much of crop needs for a yr or so.
Meanwhile, there are indications that farmers’ enthusiasm for
phosphate fertilizers is already moderating. The Fertilizer
Institute's index for the first 5 months of the fertilizer yr
shows that producers shipped a mere 1% more phosphates
than during the same period a yr ago. And because producers
turned out 4% more material than during the same period last
yr, inventories have started to build. However, if U.S. acid
producers get all the rock they need to operate plants at
capacity, they will have ample acid for export. Thus, if exports
of rock decline, those of other phosphate products could take
up the slack. Fertilizer Institute President recently warned
producers to watch inventories of phosphate products. On the
other hand, farmers seem to be watching prices rather than
supplies.
449 Fertilizer Prices to Stabilize. Chem. Age (London) 111
(94.44-5), 7 (Dec. 19, 1975). World fertilizer prices can be
61
 PRICING AND COSTS
expected to harden significantly in 1976 as a result of the
news of the failure of the Soviet grain harvest in 1975. The
effect of all this will be a hardening of demand in the US for
fertilizers, particularly during the spring. This in turn will
tighten supplies and prices on the world market following the
collapse in prices and demand this yr. Farmers in the United
Kingdom are facing a further round to price increases. All the
major United Kingdom fertilizer producers, ICI, Shellstar,
Fisons, and Albright & Wilson have applications in with the
Price Commissions at the moment to increase prices, in most
cases, apparently, across the board. The levels of the price
application is probably around the 10% level for compound
fertilizers. Whether the producers will be able to introduce the
full level of increases they are allowed is quite another matter.
450 High-Nitrogen Fertilizer Cost May Increase 50%. Feed
stuffs 46 (3), 5, 39 (Jan. 21, 1974). The U.S. Dep. Agr. said
the 1974 bill for farmers in the U.S. may go to $4 billion,
nearly 40% above 1973. A ton of fertilizer will cost over $100
this yr as compared with $78 estimated for 1973. Early
indications are that prices for fertilizers with a high N content
may be up 50% this spring from a yr earlier, and phosphates
may be up 40%. Perhaps 8% more N and P will be available in
1974, but demand at current prices probably will not be
satisfied. The shift to use of separate materials has stalled. For
the third straight yr, the proportion of separate materials
averaged 48% of total consumption, and the use of liquid
fertilizers declined for the first time in recent years. Exports
were $468 million in the 1972-73 fiscal yr. This was 38% more
than during the preceding 12 months. The U.S. was a net
importer of urea and some other N fertilizers; however, due to
greatly increased exports of ammonia and ammonium phos
phates, the U.S. remained a net exporter of N by nearly two to
one. The outlook for 1974 world markets is a tight N supply
and continued strong demand. No let-up in demand for
phosphate fertilizer can be foreseen for the first half of 1974,
while world demand to produce P. Os is expected to increase
12% by the latter part of the yr. This will provide relief for a
tight supply situation and no problems are anticipated in the
world markets for potash.
451 Ammonia Plant Breakdown Cost. Eur. Chem. News 28
(732), 26 (Apr. 16, 1976). The safety problems which arise in
large-scale ammonia plants are similar to those associated with
any large petrochemical plant, but the impact of a developing
country's economy of an ammonia plant breakdown can have
a greater significance than that for any other product. To
stress the significance of the problem, the economic impact of
such an interruption was analyzed. Taking account of the lost
production, lost profit, and losses associated with the fixed
cost component of the production cost, the calculation of the
financial losses were based on the following assumptions: (1)
no provisions are made in the complex for storage of
ammonia, (2) capital costs are based on late 1975 costs for
ammonia plants between 925 and 1000 ton/day and equi
valent urea production of 1600 to 1725 ton/day, totalling
between $190 and $250 million, (3) plants operate at 90%
design capacity, (4) losses based on depreciation rate and costs
predicted for a plant operating in 1980, when predicted urea
market price will not be lower than $137-155 ton, and (5)
ammonia production is based on low-cost local resources of
natural gas. On these assumptions the unavoidable financial
loss (fixed cost component) of a plant breakdown was assessed
as $2.295 million/month. Losses associated with lost profit
62
and repayment of loans was assessed as $2.835 million/month
giving a total loss of $5.130 million/month.
452 Ammonium Sulfate Demand-Price Up. Chem. Mark.
Rep. 209 (12), 36 (Mar. 15, 1976). Some fertilizer companies
have announced price increases for ammonium sulfate. This is
the result of strengthening demand in a confusing fertilizer
market. Allied's price for the granulated chemical jumped
from $45 to $50/ton in bulk, fob Hopewell, Virginia. The
price of regular grade ammonium sulfate will remain
unchanged at $35/ton, fob Hopewell and $45, fob Tampa,
Florida. Nipro has also boosted prices. Regular grade ammo
nium sulfate will increase in price from $35 to $40, while the
granular form will increase from $45 to $50. Shipments are
fob Augusta, Georgia. There is enough uncertainty in the
market to keep producers unsure of which direction to move.
While forecasts are optimistic, price competition has led to
discounting from unacceptably high prices and to multiple
price changes.
453 World Urea Prices Soar. Jap. Chem. Week 15 (731), 5
(May 2, 1974). At present, Southeast Asian countries such as
South Vietnam, Indonesia, and India are importing urea at the
extraordinary high price of $280/ton f.o.b. South Vietnam
imported 120-130,000 tons of urea from West Europe at the
price of $300/ton f.o.b. Indonesia purchased 60,000 tons of
urea from the East European bloc at the price of $300/ton
c.i.f. India purchased 400,000 tons of urea made in the East
European bloc, during one yr at the price of $270/ton f.o.b.
Both ammonium sulfate and urea made in Japan for shipment
in 1973 fertilizer yr have been sold out immediately after the
opening of 1973 fertilizer yr, and the numerous export
inquiries for N fertilizers now being received are for shipment
in 1974 fertilizer yr.
454 Urea Producers See Strong Fall Pricing. Chem. Mark.
Rep. 210 (5), 11 (Aug. 2, 1976). Urea prices vary with
geographical area. In the rice belt, which is centered in
Arkansas, prices for domestic material are at their lowest level,
between $120 and $130/ton delivered. Wheat belt prices are
running somewhat higher, between $130-$140. The fall season
starts in August, and planting is expected to continue through
October., about 57.7 million acres. While most producers
report that the distribution pipelines are almost empty, there
is a strong possibility that they will take their own time filling
up. Many distributors were squeezed last Spring, buying
material early but not selling it until late in the season, when
prices had collapsed. These distributors may not be too
anxious to rush in and buy fertilizer until they know which
way the market will turn. This could create a transportation
bottleneck in the fall, but most of the producers questioned
did not believe this will happen. Urea prices West of the
Rockies range between $135 and $150/ton. Imported material
is running at about $100/ton on the East and West Coast
Lesser developed nations were formerly good markets for
fertilizer, but many of them are still in the process of working
off inventories from the shortage scare 2 yr ago. World wide
inflation and higher oil prices have also hurt their reserves of
hard currency.
455 Export Phosphate Rock Price Increase. Chem. Week 113
(12), 25 (Sept. 19, 1973). Phosphate Rock Export Association
(Phosrock) has boosted prices of Florida phosphate rock,
effective Jan. 1, 1974. The new schedule replaces one in effect
 PRICING AND COSTS
since Mar. 1, 1973. The range of increases: $3/long ton, to a
new price of $12.40 for 66% BPL material; $4.50/long ton to
$19, for 77% BPL material.
456 Export Phosphate Rock Price to Increase. Chem. Week
114 (18), 17 (May 1, 1974). Export prices of phosphate rock
will increase about 50% on July 1. The Phosphate Rock
Export Association (Phosrock) has tabbed 68% BPL rock at
$30/ton, up $10/ton. Material of 77% BPL content will go to
$47/ton, up $15/ton.
457 Phosrock Increases Prices and Goes Metric. Fert. Int.
No. 64, 1 (Oct. 1974). Effective October 1, 1974, Phosrock
listed its principal grades of Florida phosphate rock (66%-72%
BPL) at prices in the $36-$48/mt f.o.b. vessel Tampa range or
Jacksonville. Quoting prices in mt is a new departure for
Phosrock which has traditionally used long tons for its price
lists. The new prices, although effective October 1, will not be
paid by contract customers until 90 days have elapsed,
January 1, 1975.
458 World Phosphate Rock Prices Remain Stable. Chem.
Week 116 (2), 40 (Jan. 8, 1975). World phosphate rock prices
will probably remain stable in the first 6 months of 1975.
Morocco's 8-12% Jan. 1 increase (to $68/mt for 75% material)
will remain in effect until July 1, when the Office Cherifien
des Phosphates will reconsider prices in relation to those of
imported industrial products. The Phosphate Rock Export
Assn. (Tampa, Fla.) currently prices its 75% material at
$55/mt, about equal to that of Morocco rock delivered in
Europe, and says it anticipates no further short-term increases.
459 Phosphate Rock Prices Increase as World Demand
Increases. Chem. Mark. Rep. 207 (6), 21 (Feb. 10, 1975).
Domestic phosphate rock production reached a historic level
in 1974 of 44.5 million tons, but strong worldwide demand
Outstripped all available supply. Effective January 1, domestic
producers added a 40% increase to prices of phosphate rock,
but industry sources claim that this action was prompted by
the higher rates in world markets. Most U.S. producers have
allocated their customers for over a yr, and chances look dim
that this situation will change in the near future. Current
market prices for domestic phosphate rock are being quoted at
$31ſton for 68% BPL, while $35.50/ton is the level for 70%
material. Rock in 70 to 72% is now selling for $40/ton, 75%
grade material is $47/ton, and 77% is now $52/ton. Imported
material is being quoted at $56.50/mt for Tunisian rock 68%,
While phosphate rock from Morocco is presently priced at
$63/ton for 70-72% grade. Domestic farmers are enraged with
the price increases they have seen in recent months. Producers
ºf superphosphate and diammonium phosphate are asking
ºnywhere from $200 to $300 per ton for material. What has
been happening as the Fertilizer Institute sees it, is that
farmers are having to use less material per acre. The effects on
* crºp yields can only be estimated at the present time.
Meanwhile, various producers have reported that expansions
**er way, but some of the more substantial additions to
*P*ity will not come on-stream until mid-1976. Until that
* industry representatives believe that phosphate rock will
**ºnsiderably short and many customers will have to remain
On allocation.
*".* Prices increase. Chem. Week 115 (14), 19 (Oct.
*). Potash Co. of America (PCA) has issued a new
schedule—its third since June 13. The new list puts Canadian
potash tabs for standard, soluble, coarse, and granular grades
at 574, 634, 61%, and 634/unit, respectively, f.o.b. Potasco,
Saskatchewan. All are 3-44/unit above prices posted in August
and 10-11 &/unit higher than those in effect during July and
August 1974. Prices of potash produced at PCA's Carlsbad,
New Mexico, mine were also advanced. From October 1974 to
January 1975, PCA will charge 65¢ to 714/unit, depending on
grade, an increase of 6-74/unit over its previous list. Prices in
the February-June 1975 period will be 44/unit higher. For
example, standard grades will sell for 694/unit, granular for
75¢/unit, f.o.b. Carlsbad, minimum carload 40 tons. Potash
supplies are generally tight, and inventories of the material are
sparse.
461 Potash Price Increase. Chem. Week 116 (4), 23 (Jan. 22,
1975). Prices of most agricultural grades of potassium muriate
and sulfate shipped from Carlsbad, New Mexico, were hiked
by Potash Co. of America. New tabs, effective mid-January:
74d/unit for standard-grade 60% muriate, 784 for coarse;
804/unit for granular 60% material and soluble 62-63%.
International Minerals & Chemical posted similar prices.
Quotes on Canadian potash have not risen.
462 Can Farmers Afford Thirty Cent Nitrogen? J. F. Marten
(Purdue Univ., Lafayette, Indiana). Fert. Solutions 19(2), 30,
34, 36 (Mar.-Apr. 1975). Fertilizer products are in a tight
supply-demand balance for the 1975 spring season. A com
bination of quantity rationing, price rationing, and reduced
demand must combine to equalize the demand with the
available supply. A combination of higher strong prices and
excellent yield response from grain crops has kept upward
pressure on fertilizer prices. Farmers are shooting for max
imum profits, fertilizing to the point where added costs equal
added returns. However, farmers should reduce buying when
they can no longer earn returns equal to costs plus a
reasonable profit. The breakeven point is shown for corn
growth at $2.00, $2.50, and $3.00 per bushel with yields
reflecting residual N and current application of N. Application
of 150 lbs N/acre in previous years and current yr with above
prices of corn the breakeven price of N/lb was 28d, 35¢, and
424, respectively. (6 tables)
463 Price of Fertilizer to Farmers Increase. Chem. Week 115
(16), 27 (Oct. 16, 1974). Farmers are paying 40%-150% more
for fertilizers this fall than they were at this time in 1973,
when prices were controlled. The Agriculture Dept. says its
Sept. 15 survey showed that the average farm-level price of
ammonia was $229/ton, 48% above the $96.20 price on Sept.
15, 1973. Urea was up 1.41%, to $232/ton; ammonium nitrate,
120%, to $170/ton; triple superphosphate, 100%, to $188/ton;
phosphate rock, 57%, to $42/ton; muriate of potash, 43%, to
$91ſton. Increases since Apr. 15, however, are much lower,
ranging from 9% for phosphate rock to 27-28% for ammonia
and some high-analysis mixed fertilizers.
464 Farmers Paying More for Fertilizer. Chem. Week 116
(21), 29 (May 21, 1975). Fertilizers are costing farmers an
average of 33% more than they did a yr ago. The U.S.
Agriculture Dept.'s mid-April farm price index for fertilizers
and liming materials reached 237, compared with 178 a yr
earlier and 212 last September. Ammonia cost an average of
S265/ton on April 15 vs S183 in April 1974 and $229 in
September. Triple superphosphate was $214/ton vs $150 and
63
 PRICING AND COSTS
$188, and potassium muriate tabs hit $102/ton vs S81.30 and
S91.
465 Farmers Pay Less for Fertilizer. Chem. Week 118 (20),
41 (May 19, 1976). Farmers paid about 19% less for fertilizer
this spring than they did a yr ago. A recent report by the US
Agric. Dept. says the index of prices farmers paid in April was
193 (1967=100) compared with 237 in April 1975, 178 in
April 1974, and 112 in April 1973. Some recent average
farm-level prices: ammonia $191ſton, urea $166/ton, triple
superphosphate $158/ton, diammonium phosphate $189/ton.
The Fertilizer Institute says first-quarter fertilizer sales totaled
$1.1 billion, down about 28% from $1.53 billion in the
first-quarter of 1975.
466 Price Trends Show Fertilizer Tabs Are Not Out of Line.
Chem. Week 118 (7), 23 (Feb. 18, 1976). Relative prices of
corn and fertilizer support contentions of fertilizer makers
that their prices are not out of line. The U.S. Dept. of
Agriculture says that 1975 fertilizer tabs averaged about 2.25
times the 1967 level, while corn prices were about 2.3 times
the 1967 average. Wheat farmers got 2.5 times as much in
1975 as they did in 1967. Recently, however, the trend of all
prices paid by farmers has been going up. This could have
more effect on fertilizer use than the comparative levels of
fertilizer and farm product prices, since fertilizer costs can be
more easily controlled than some other farm cost inputs.
467 Retail Fertilizer Costs. W. D. Downey (Purdue Univ.,
Lafayette, Indiana). Fert. Progress 7 (2), 12, 14-16 (Mar.-Apr.
1976). A preliminary study of business costs for 35 fertilizer
retail establishments in 8 midwest states was made in 1974.
About half the firms were independently owned, 25% were
cooperatives, and 25% were owned by major fertilizer com
panies. The gross margin averaged 31.63%, with bagged
fertilizer having the highest margin (47.31%) and chemicals the
lowest (15.50%); dry bulk fertilizer had a 32.01% gross
margin, anhydrous ammonia was 33.62%, and liquids were
36.22%. The 35 firms averaged over $28,000 income annually
from custom services; 31 firms performed custom application
and 31 rented out equipment; only 8 handled soil testing
service. Sales occurred throughout the yr but 46.85% were in
the April-June quarter; the October-December fall season was
next with 23.57% of the sales; remainder of the sales was split
evenly between the two remaining quarters. Labor was the
biggest single operating expense, requiring 6.26% of the
budget; about 20% of this was for the manager's salary, which
averaged $14,406. Depreciation was 1.81% and repairs and
maintenance 1.51% of the operating budget. Expenses,
exclusive of products for resale, were 14.01% of the total
receipts; total receipts averaged $1,039,571.
468 Selecting Materials in Least-Cost Analysis. N. L. Hargett.
In TVA Fertilizer Bulk Blending Conf. (Held Aug. 1-2, 1973,
Louisville, Kentucky). Muscle Shoals, Ala.: Tennessee Valley
Authority, National Fertilizer Development Center; Bull.
Y-62, pp. 100-13 (Aug. 1973). Several methods are used by
TVA to determine least-cost material combinations for fertil
izer production. Formucharts developed by TVA over 15 yr
ago have been used successfully for both single and multi
nutrient materials. The three primary plant nutrients have
been incorporated into these Formucharts and a complete set
encompassing all combinations of fertilizer materials used in
the U.S. has been developed. A four material formulation
program called “FORM-U-VERSE” was developed. This pro
gram provided for eliminating the filler that was necessary
when using Formucharts (when formulating to 2000 lb). The
Simplex Method of Linear Programming has been adapted to º
fertilizer problems to determine the least-cost combination of .
materials for specified grades and ratios. The newest technique
developed by TVA for economic analysis is called “FORM-U- :
SHARE”. It is basically linear programming and has advan
tages over the traditional simplex solution. Least-cost mixtures
for bulk blend, liquid mix, and ammoniation-granulation
plants can be calculated and information provided in less time
and at lower costs. The program is available on any time
sharing terminal or TWX terminal using a standard telephone
line. Time sharing involves a centrally located computer and a
high-speed data network (telephone). This enables people who
have computer application but cannot justify owning or
leasing equipment to have access to a computer, paying only
for the time used. Examples of least-cost formulation for bulk
blending, granulation, and liquid mixing by FORM-U-SHARE
are given.
469 Effect of Changes in Nitrogen, Phosphorus, Pottasium,
and Agricultural Product Prices on the Profitability of Fertili
zation Using Experimental Curves and Profit Surfaces. A. Loue
(SCPA, Mulhouse, France). Bull. Assoc. Fr. Etude Sol, No. 2,
125-153 (1975) (Fr). Soils Fert. 39, 2150. The objective of
this study was to examine the influence of fertilizer price
increases on the profitability of fertilizer use. Response and
the corresponding profit curves and surfaces were determined
as a function of various combinations of N, P, and K nutrient
prices and agricultural product prices. For N, the following
prices were programmed: 1.25, 1.50, 1.75, and 2.00 francs/kg;
for P. Os the range studied was from 1.00 to 2.50 francs/kg
with steps of 0.30 francs and for K2O it went from 0.50 to
0.80 francs/kg in steps of 0.05 francs/kg. The rate of N
corresponding to maximum profit fell slightly by 6 to 10
kg/ha N, when the price rose from 1.25 to 2.00 francs/kg. The
rate of P. Os corresponding to maximum profits is substantial
ly reduced in certain cases. For the experimental group as a
whole, which had an above average response to P, Os, the
average optimum rate fell by 25 kg/ha with an increase from
1.00 to 1.90 francs/kg P. O's. The rate of K2O corresponding
to maximum profit underwent a slight fall when the price of
K2O increased from 0.50 to 0.65 francs.
470 Export Prices. Nitrogen No. 93, 6-7 (Jan.-Feb. 1975).
Evidence of the general easing of the supply position for
nitrogenous fertilizers continues to emerge, the prime factor
being the cutback in fertilizer consumption in the developing
countries which are not showing a willingness to purchase
fertilizers at the prevailing prices. Low demand in the
developing countries, associated with a marked absence of
activity on the tender market, is most acutely evident in the
cases of Brazil and India. In the latter country complicated
distribution arrangements have recently been streamlined in an
attempt to keep fertilizer moving through the domestic supply
channels, demand hit a trough as a result of the large domestic
price increases announced last summer coupled with a very
tight credit situation. Export prices are expected to stabilize
around the present level in the case of most nitrogenous
fertilizers, with urea showing the weakest trends. Middle
Eastern producers are expected to maintain the highest prices
longest, with some evidence already of East European sup:
pliers cutting their prices to those applying to material from
 PRICING AND COSTS
Western Europe, a trend which is expected to continue
through the first quarter of 1975. Export prices generally are
not expected to show really firm movements until demand in
the developing countries, dependent on a variety of factors,
picks up again. Spot prices are given for anby drous ammonia,
ammonium sulfate, urea, ammonium nitrate, ammonium
chloride, diammonium phosphate, and ternary fertilizers.
471 Price Increase for Phosphate Fertilizer. Chem. Week 115
(19), 29 (Nov. 6, 1974). Australian phosphate fertilizer prices
will more than triple on Jan. 1, 1975, with farmers paying
about $65/ton for single superphosphate. The main reason for
the sharp increase is the end of government subsidies. Other
factors include higher costs for imported phosphate rock and
devaluation of Australian currency. The increase also is
spurring development of domestic phosphate deposits. One of
the country's major mining companies, Broken Hill South, is
planning to start production early next year at its 1.3-billion
tons Dutchess phosphate deposit in Queensland.
472 South Africa Fertilizer Prices Increase. Green Markets 2
(2), 2 (Jan. 9, 1978). South African fertilizer prices have been
raised 14.3% by the government price controller because of
higher costs and withdrawal of some purchasing subsidies. The
government has withdrawn 40% of the fertilizer subsidy paid
to farmers, a move which adds 3% to farmer's costs. The
remaining 11.3% arises from increases in rail transport prices,
electricity charges, and costs of raw materials.
473 Canadian Sulfuric Acid Pricing. Can. Chem. Process 58
(9), 4 (Sept. 1974). Canadian Industries Ltd. (CIL) expected
to post sulfuric acid prices October 1 (f.o.b. Copper Cliff,
(Ont.) as follows: 66 Be (93.2%), $37/ton; 98.99% grade, $39/
ton: 10% oleum, $42.65/ton; 20% oleum, $43.60/ton; 25%
oleum, 44.05/ton; and 30% oleum, 44.55/ton. The company is
a price leader in eastern Canada and has two main production
sites, Copper Cliff and Kidd Creek, both in Ontario. Canadian
sulfuric acid production in 1974 will not reach 3.5 million
tons produced in 1973. The slight decline arises from strikes at
metallurgical and fertilizer works, and because phos acid
producers with captive sulfuric acid plants cannot get enough
phosphate rock to operate at capacity. However, installed
capacity for sulfuric acid will continue to grow in the next few
yr. Base metal smelters will all be producing more offgas as
they expand their facilities and install anti-pollution systems.
These producers include Texasgulf, Inco/CIL, Falconbridge,
and Noranda. When proposed facilities are operating, Canada
will be able to produce almost 6 million tons/yr of sulfuric
acid, most of it based on Smelter offgases.
474 Fertilizer Cutbacks in Developing Countries May Cause
Price Declines. Chem. Mkt. Rep. 206 (19), 16 (Nov. 4, 1974).
A cutback in fertilizer usage in developing countries which can
no longer afford to pay today's higher prices will lead to an
easing in the current shortage of supplies. This, in turn, is
expected to lead to a decline in prices in 1975. This yr is
expected to see a fertilizer shortage of several hundred
thousand tons—FAO hopes it will be under 500,000 tons but
that is likely to cut grain production in developing nations by
between 2 and 3 million tons. Unfortunately, recent trends
have discouraged new investments.
475 French Pricing Influenced by Imports. Chem. Age
(London) 106 (2815), 18 (June 29, 1973). Fertilizer imports
from East Europe, other European countries, and the U.S. are
hurting French prices. The industry in France had been
allowed to raise its prices by 3.35%, but this amount was small
against costs increases. Imports hit prices in France beginning
July 1972, but export prices have improved, which should
make it less attractive for outsiders to sell in France.
476 French Potash Prices Increase. Eur, Chem. News 25
(634), 8 (May 3, 1974). French potash prices, previously 50%
lower than world market prices and 30-35% lower than those
elsewhere in Europe, were raised by 24% on May 1, beginning
of the new 1974-75 selling yr.
477 French Producers Cutting Fertilizer Prices. Fur. Chem.
News 27 (684), 12 (Apr. 25, 1975). France's Ministry of
Finance has ordered French fertilizer producers to reduce
prices by 5.4% to 8.7%, due to falling prices for raw materials.
French producers are offering no resistance to the order.
Compound fertilizer demand has now dropped dramatically in
France and many plants, including those of Cofaz, are heavily
throttled back.
478 French Producers Cut Fertilizer Prices. Eur, Chem.
News 29 (744), 14 (July 9, 1976). French fertilizer producers
have been ordered by the government to cut their prices on
phosphate fertilizers. The decreases range from 6-11.8% and
are based on the lower raw material costs being paid by the
industry. In Austria Chemie Linz has also decided to decrease
prices on its compound fertilizers by up to 6.3%.
479 West Germany Increases Fertilizer Prices. Eur, Chem.
News 24 (593), 4 (July 20, 1973). West German N fertilizer
producers have increased prices for the new 1973-1974
fertilizer yr by an average of 3.8%. Fertilizer consumption in
West Germany in the past fertilizer yr increased by 6% to 1.2
million tons, while imports increased to 285,000 tons from
228,000 tons in the preceding yr. The West Germans estimate
that world fertilizer consumption will grow at an annual rate
of 7.2% until 1976. Capacities, in western Europe at least, will
only be extended at a rate of 4.5% annually and overcapacity
will be steadily eroded.
480 Fertilizer Prices Decline in Germany. J. Flour Anim.
Feed Milling 160 (1), 29 (Jan. 1977). Fertilizer prices in West
Germany are averaging 6-7% below last year's levels and lower
prices of phosphate rock have reduced complex fertilizer
prices this yr by 15%. Imports of N during 1976-77 may
increase to 370,000 tons from 260,000 during 1975-76, with
as much as 130,000 tons coming from East Bloc countries.
481 West Germany Potash Prices. Eur, Chem. News 30
(783), 12 (Apr. 22, 1977). Kali and Salz, Kassel, West
Germany increased its potash single fertilizer prices by about
4.5%, DM20/ton, effective May 1. The company is claiming
that higher labor, energy, and raw material costs have all
contributed to the price increase, which will bring prices up to
around DM420/ton free railway station. The company has
indicated that the new price will remain stable over the coming
fertilizer yr. Kali and Salz is responsible for marketing all
potash single fertilizers produced in Germany and about 50%
of its sales go for export. Total output of the nine potash
mines owned by different companies is about 2 million ton/yr,
representing some 11% of total world production.
65
 PRICING AND COSTS
482 India's Fertilizer Prices Increase. Chem. Eng. World 9
(6), 12 (June 1974). The Union Government has announced a
90% increase in the retail prices of statutorialy controlled
nitrogeneous fertilizers. The retail prices of urea have been
fixed at Rs.2,000/ton as against the existing price of Rs1,050,
and calcium ammonium nitrate at Rs1,095/ton as against
Rs615/ton. The prices of fertilizers will now be periodically
reviewed, perhaps once every yr and will be adjusted according
to the prevailing international prices.
483 Indian Mixed Fertilizer Prices Decrease. Green Markets
1 (32), 2 (Sept. 19, 1977). The Indian Farmers Fertilizer
Cooperative is cutting domestic prices of fertilizers by as much
as 6%. Prices for IFCO produced complex 10-26-26 has been
reduced from $221/mt to $2.11/mt. The price of 12-32-16 has
been cut from $246/mt to $232/mt. The reductions were
made possible by efficiencies gained in the production of
fertilizer at the cooperative's Kandla plant.
484 The “Real” Price of Fertilizers in India. M. P. Wagle.
Fert. Mark. News 9 (1), 2-4, 15 (Jan. 1978). An analysis is
made and the results given of a study designed to estimate the
“real” price of fertilizers in India from 1966-76. The “real”
price is defined as a measure of the number of units of
physical quantities (output) farmers need to exchange for
purchasing one unit of fertilizer. This quantity is measured by
the ratio of fertilizer prices to agricultural output prices.
Linear and log linear regression functions were used to test the
results. The analysis revealed that the real price of fertilizer
explained demand to a negligible extent and that prices
throughout the period rose at a relatively stable rate. The only
exception was yr 1974-75 when prices increased inordinately
due to the oil crisis.
485 Phosphate Rock Prices Reduced in India. Fert. Mark.
News 9 (1), 13 (Jan. 1978). The Minerals and Metals Trading
Corp. of India has reduced the price of phosphate rock by Rs.
5/mt effective January 1, 1978. The price of Jordan phosphate
rock for the January-March qua, ter 1978 is Rs. 354 and Rs.
410/mt for shipload and ex-jetty supply respectively. Prices
prior to January 1 were Rs. 359 and Rs. 415, respectively.
486 Higher Fertilizer Prices Approved in Italy. J. Flour
Anim. Feed Milling 157 (10), 29 (Oct. 1975). The prices of
most Italian fertilizers have increased 11.8%. The decision was
made by the Italian Government's Price Controls Committee
(CIP). in effect the price increases approved by the Price
Controls Committee was some 15%, but a decision by the
Minister of Finance to lower the VAT rate on fertilizers from
6% to 3% meant that farmers would only pay an extra 1 1.8%.
Italy's farmers and the farm unions, who at present spend
about 300 billion lire/yr on fertilizers, are both not satisfied
by the present round of prices increases. A leading member of
a farm union has pointed out that together with the latest
round of increases the price of fertilizers has risen by 150%
since January, 1974.
487 Japan Increases Prices on Fertilizer Materials. Jap.
Chem. Week 15 (717), 5 (Jan. 24, 1974). Fertilizer manufac
turers requested the National Federation of Agricultural
Cooperative Associations to raise prices of fertilizers again
because of steep rise in production cost. Zen-Noh has decided
to raise prices of nine items: calcium cyanamide, calcium
superphosphate, fused magnesium phosphate, multi-calcined
66
phosphate, potassium chloride, potassium sulfate, low-analysis
compound fertilizers, high-analysis compound fertilizers, and
calcium silicate. The price increases are effective from January
to June 1974. The prices of the nine items rose by an average
32.1%. Negotiations are underway for the price hike of N
fertilizers such as ammonium sulfate, urea, and ammonium
chloride. The negotiations will be completed soon.
488 Japanese Fertilizer Price Increases. Jap. Chem. Week 15
(748), 7 (Aug. 29, 1974). The Japanese Government allowed
the nation's fertilizer manufacturers to raise the prices of four
fertilizers effective immediately. Following the announcement
of the Government's approval, the fertilizer manufacturers and
the National Federation of Agricultural Cooperative Associa
tions (Zen-Noh) decided to increase the manufacturers’ prices
of the four items, effective immediately, by margins slightly
below the maximum margins allowed by the Government—
26.1% for high-analysis compound fertilizers, 31.5% for
low-analysis compound fertilizers, 24.3% for superphosphate,
and 34.7% for fused magnesium phosphate. Fertilizer manu
facturers and Zen-Noh had earlier decided to increase the
prices of ammonium sulfate and urea after obtaining the
Government's prior approval. The average price increase rate
for the six fertilizers is 28.5%.
489 Japanese Fertilizer Prices Increase. Jap. Chem. Week 16
(801), 5 (Sept. 4, 1975). A new series of price markups for
chemical fertilizers, effective September 1, was approved by
the Ministry of Agriculture and Forestry recently. The prices
of two basic types of fertilizer, ammonium sulfate and urea,
were kept unchanged because exports of the two types are
brisk enough to enable the industry to hold off price increases
through mass production. Eight other items, including lime,
phosphatic, chloric, sulfuric, silica and compound, were
marked up by margins of 5.62–18.99%.
490 Japanese Fertilizer Prices. Chem. Week 118 (26), 27
(June 30, 1976). Japanese fertilizer prices dropped by a
weighted average of 0.6% in the yr starting July 1 as a result of
negotiations between producers and Zenno, a federation of
Japanese agricultural cooperatives. Zenno, the largest fertilizer
buyer, got price cuts on six products and unchanged tabs on
tWO.
491 Morocco Boosts Phosphate Rock Prices. Chem. Mkt.
Rep. 204 (21), 7, 32 (Nov. 19, 1973). In coming months, most
European fertilizer producers are expected to announce higher
prices. The 200% increase revealed recently by the Office
Cherifien de Phosphate (the Moroccan State phosphate
organization) makes further increases inevitable. European
fertilizer producers had been expecting phosphate increases
which would push prices from around $15.00/ton to $25.00
or $30.00. In fact, the new prices posted by OCP range from
$37.50, f.o.b. Casablanca for 70% BPL material to $50.00/ton
for premium-grade 80% BPL rock. So far this yr, France,
followed by Spain, Britain, Italy, and Belgium have been the
biggest importers. In the first nine months, U.K. imports
totaled 1.1 million tons, compared with 1.8 million for the
whole of last yr.
492 Morocco Increases Phosphate Rock Prices. Chem. Week
114 (24), 21 (June 12, 1974). Morocco has posted a 50%
increase on phosphate rock prices; $63/mt, effective July 1.
The government's phosphate office attributed the hike to
 PRICING AND COSTS
inflation and strong demand. The increase in price follows
hard on the heels of a price increase in January.
493 Morocco Exerts Influence on Prices of Phosphate Rock.
Eng. Min. J. 176 (2), 21 (Feb. 1975). Since the advent of
OPEC, there has been considerable world speculation about
the possibility of minerals cartels manipulating prices. Little
thought has been given to a single country achieving such a
feat, but Morocco has done just that with phosphate. This
North African kingdom, the world's leading exporter of
phosphates, recently decreed another 8% price increase effec
tive Jan. 1, 1975, for an effective 200% price increase since
January 1974. Morocco's phosphate exports amount to about
37% of world shipments. In terms of identified reserves, Africa
(with deposits concentrated almost entirely in the northern
half of West Africa and all of North Africa) possesses 3.5
billion mt of sedimentary phosphates plus 15 million mt of
igneous phosphates. From Morocco's point of view, the price
increases constitute normalization of a depressed price situa
tion. Morocco's exports of 20.6 million tons of phosphate
rock in 1974 yielded revenues of about $1 billion. In an
attempt to check criticism of its price increases, Morocco has
announced the extension of special credits to developing
countries that need fertilizer, in exchange for other raw
materials, but the mechanics of this program remain to be
worked out.
494 Morocco Slashes Phosphate Price. Eur, Chem. News 28
(720), 4 (Jan. 23, 1976). Morocco has finally succumbed to
the pleas of the depressed world fertilizer industry and made
Substantial cuts in the price of its phosphate rock. Effective
January 1, 1976, prices have been slashed 29% dropping the
list price of 75-77% BPL rock from $68 to $48-50/ton fas
Casablanca. Market prices earlier stood at $58-60/ton after last
quarter discounting. The move means that Morocco's Office
Cherifien des Phosphates is now in open competition with US
rock producers. This position has now been completely
reversed and OCP's prices fob Morocco are $5/ton cheaper
averaged across the grades than US export prices ex-Tampa.
OCP's competitive edge, however, will be blunted by higher
freight charges. The point has nonetheless been taken and
Phosrock has wisely abandoned a 10% increase previously
scheduled for the beginning of this yr and is maintaining a
$55/ton price tag on its 74-75% BPL material. Even Morocco's
new official quotations don't tell the full story and market
prices have in fact plunged lower. Official OCP list prices are:
70-72% BPL rock $43/ton fas Safi, $46/ton fas Casablanca;
75-77% BPL $48-50/ton fas Casablanca. All other rock
producers are understood to be following the OCP price lead.
495 Rhodesian Fertilizer Pricing. Chem. Age (London) 112
(2957), 8 (Mar. 19, 1976). A 35% increase in superphosphate
prices has been announced by Rhodesia's two big fertilizer
producers, Rhodesia Fertiliser's and Windmill Rhodesia. The
increase became effective on March 1 and will have the effect
of pushing up compound prices by an average of 10%.
Producers, in consultation with the Government, have cut
ammonium nitrate prices by 8.6% and potash is down by
16.2%. Prior to this latest agreement phosphate prices had
Only risen by 15% in 2 yr. A system of early delivery rebates is
also operated giving buyers a 12% return for orders placed
between March and September.
496 Spanish Fertilizer Price Increase. Eur, Chem. News 8()
(787), 16 (May 20, 1977). The Spanish government has given
the go-ahead to fertilizer manufacturers for a new round of
price increases, averaging 5-5.5% on nitrogen, phosphate, and
compound fertilizers and 16% on potash fertilizers. Typical of
the new prices are AN33.3% at Pta')793/ton, urea at
Ptal 2,075/ton, N solution 35% at Pta 10,131ſton, 45% triple
superphosphate granules at Ptal 2,616/ton, and 50% potassium
chloride at Pta-4329/ton. This new round of price increases has
come too late to make much difference to the plight of
domestic producers. Raw material prices have been increasing
steadily, and last October’s fertilizer price increase was based
on raw material cost increases incurred 9 months earlier.
497 United Kingdom Fertilizer Price Increase. Eur. Chem.
News 24 (613), 6 (Dec. 7, 1973). Fertilizer prices in the
United Kingdom are set to increase by between 12 and 16%.
Fisons expects to be granted price increases by the U.K. Price
Commission and price increases from ICI, Shellstar, and
Albright & Wilson are unlikely to be far behind. These new
increases do not take into account the greatly increased costs
of ammonia, phosphate rock, and potash. Compound fertilizer
prices in the U.K. could be 40% higher in 6 months' time.
498 United Kingdom Fertilizer Prices Increase. Eur. Chem.
News 25 (631), 4 (Apr. 12, 1974). Following Fisons price
increases, ICl has now introduced 5.5% increases throughout
its entire range of fertilizers. The company’s fertilizer prices
have now increased by an average of 31% in a little over 3
months, while compound prices have risen by 37%. Fisons'
compound fertilizers have now risen by the 40% forecast by
the company's fertilizer division last December. Both ICI and
Fisons now claim that no further price increases are planned in
the immediate future. An application for temporary
exemption from import duty on ammonia in the U.K. was
made recently. This is a reflection of the acute domestic
shortage and the poor operating record of the U.K. plants over
the past few months.
499 United Kingdom Fertilizer Prices Up. Chem. Age
(London) 110 (2894), 9 (Jan. 3-10, 1975). Both ICI and
Fisons had applications for fertilizer price increases approved
by the Price Commission. Both companies applied for
increases of about 10%. ICI has announced price increases
averaging 6% on its whole fertilizer range, although as the
application was made on the basis of the increase in the cost of
phosphate rock and potash, the increases will be born mainly
by the compound fertilizer sector, averaging between 5-13%.
500 United Kingdom Sulfuric Acid Prices Increase. Chem.
Age (London) 112 (2948), 9 (Jan. 16, 1976). While the United
Kingdom sulfuric acid production apparently bottoms out
after reaching almost its lowest level for 9 yr, the industry's
customers now face a round of price increases of over 20% in
some cases. The increases have been made necessary by the
increased cost of sulfur in the United Kingdom, caused by the
strengthening of the dollar and the fall in the value of Sterling
over 1975. This could well have made a difference of about
15% on the equivalent price in January 1975, when the world
price of sulfur stood at $70/mt. The other major factor has
been distribution costs, which can represent anything up to
25% on the delivered price of sulfuric acid. There is no doubt
67
 PRICING AND COSTS
that the United Kingdom sulfuric acid industry is sorely in
need of higher prices, particularly after having experienced
such a depressing yr as 1975. The latest figures from the
National Sulphuric Acid Association showed that consumption
during the third quarter of 1975 was down by over 17.5%
against the 1974 level at 880,379 mt, while the second quarter
level of 880,379 mt was 18.3% below the 1974 figure. The
United Kingdom consumption figures for the fourth quarter of
1975, which are due out soon, could show the beginning of
the end of the depression for the industry.
501 United Kingdom Fertilizer Prices Rise. Chem. Age
(London) 113 (2996), 16 (Dec. 17-24, 1976). The United
Kingdom's major fertilizer producers have increased prices of
nitrogen and compound fertilizers. The increases became
effective January 1. ICI, Fisons, and UKF Fertilisers received
Price Commission approval for price rises. The ICI move,
which also covers SAI, Richardsons, Chafers, and Hargreaves,
increased straight nitrogen prices by 10.5% and NPK prices by
an average of 8%. UKF's round of increases moved nitrogen
fertilizers up 10% and NPK up 8%. Fisons increased its prices
by an average of 6.5% overall. Straight nitrogen increased 9.5%
while other examples were 20-20-20 up 8.4% and 24-4-15 up
5.5%. Distribution and manufacturing cost increases were
given as the reasons for the increase.
502 United Kingdom Fertilizer Prices Increase. Chem. Age
(London) 114 (3018), 1 (May 20, 1977). Major fertilizer
producers in the United Kingdom have received approval from
the Prices Commission to raise the price of nitrogen and
compound products. ICI obtained the largest increase with
10-11% on nitrogen fertilizer beginning July 1 and about 7%
on compounds beginning June 1. Apart from increased raw
material and manufacturing costs ICI's new price levels also
reflect a significant element of relief obtained under the Prices
Code for the investment it is undertaking, mainly in the
ammonium nitrate sector. Fisons will increase its nitrogen
prices by about 10% and compounds by 4 to 5%. This is the
second price increase allowed to United Kingdom producers
this yr.
503 Fertilizer Prices Increased in United Kingdom. Chem.
Mark. Rep. 213 (2), 5, 31 (Jan. 9, 1978). Imperial Chemical
Industries, Ltd., (ICI), led the industry by increasing its
fertilizer prices by 15% as of January 1, 1978. ICI disclosed
average increases of 10.4%, with straight N fertilizers
advancing by a flat 15%. The ICI increase comes in response to
renegotiations in 1977 of its long-term natural gas supply
contract with the British Gas Corp. This ends a period of great
uncertainty for the United Kingdom fertilizer industry as
other firms also move to increase prices.
504 United States Sulfur Price increase. Wall Street J. (East
Edition) 184 (15), 4 (July 22, 1974). Freeport Minerals Co.
said it is raising sulfur prices $7/ton, but becauseof higher
shipping charges, the actual boosts will vary according to the
location of the customer. At Tampa, Fla., for example, the
new dark sulfur price will be $50/ton, up from $42. This
matches the new Tampa price set earlier by Texasgulf, Inc.
when it announced an across-the-board price boost of $8/ton
for U.S. sulfur. Freeport said its new price for dark sulfur will
be $46/ton at Port Sulphur, La., and $47/ton for bright sulfur.
505 Sulfur Price Increase in United States. Wall St. J. (East
68
Ed.) 185 (63), 31 (Apr. 1, 1975). Freeport Minerals Co.
followed Texasgulf Inc. in raising S prices, but its boost of
$5.50/ton was $2.50/ton less than the increase announced by
Texasgulf last month. The Freeport price increase, effective
Apr. 1, will raise the price of dark S to $62.50/ton for delivery
at Tampa, Fla., and $57.50/ton for delivery at Port Sulphur,
La. The Texasgulf price increase brought its price of dark S at
Tampa to $65/ton.
506 United States Fertilizer Producers Increase Expendi.
tures. Chem. Week 115 (5), 9 (July 31, 1974). Fertilizer
producers will spend more than $5 billion on new plant and
equipment by the end of 1978. A survey made recently for
The Fertilizer Institute shows that nitrogen producers plan to
spend nearly $2.8 billion in the U.S. and Canada and that
phosphate producers will spend another $2.4 billion. Current
plans indicate the outlays will peak at about $1.5 billion in
1976. Environmental controls, says The Fertilizer Institute,
will cost about $96 million for nitrogen producers and $207
million for phosphate operations.
507 United States Phosphoric-Acid Pricing. Wall St. J. (East
Edition) 186 (100), 41 (Nov. 20, 1975). Monsanto Industrial
Chemicals Co. will boost prices for phosphoric acid at the
beginning of 1976. The new price for technical grade acid, east
of the Rockies, will be $14.50/hundredweight for 75% grade,
up from $13.50; $15.55 for 80% grade, up from $14.45, and
$17.05 for 85% grade, up from $15,85.
508 United States Phosphate Exporters' Spring Pricing.
Chem. Week 117 (26), 18 (Dec. 24, 1975). United States sales
and production of phosphate products were brisk last summer
and fall. Phosphate exports also surged. There may be little
connection, but recently the Phosphate Chemicals Export
Assn. said it would increase prices in the spring. Effective
March 1976, export tags will go up $25/mt on a 100% P,0s
basis; granular triple superphosphate, up $9/mt to $1.2%
diammonium phosphate (18-46-0) in bulk, to $167/mt, up
from $155; phosphoric acid, 100% P. Os basis, to $300/mt up
$25. There is some doubt the higher posting will hold up.
509 Florida Phosphate Rock Pricing. Chem. Week 118 (+),
19 (Jan. 28, 1976). The Phosphate Rock Export Assn.
(Phosrock) has trimmed prices of phosphate rock, effectivº
immediately. The reductions are $6.7/mt, f.o.b. Tampa and
Jacksonville, Florida, or about 14%. The new prices are firm
for at least 12 months, with freight equalization offered wheſ'
required by competition. Rock with 66% bone phosphate o
lime (BPL) content is cut to S30/mt, 68% material to $33.
70% to S37, 72% to $41, 75% to $47. The move brings
Phosrock prices into line with competitive actions by African
producers. Morocco has offered discounts on customer-by
customer basis.
510 United States Phosphate Prices Firm. Fert. Int. No. 87,
3 (Sept. 1976). The market for phosphate fertilizers firmed
noticeably in July with both domestic and exporting suppliº."
issuing new price lists. The prices are slightly higher than tº
latest Phoschem prices which quote the same figures per to".
fob. vessel, for delivery through September. Phoschem
prices in the final quarter of the yr are $105 per mt fob."
granular triple superphosphate and $140 per mt for diamm"
nium phosphate. Nominal phosphate capacity is well in exº
of current demand forecasts but the many closures and
 PRICING AND COSTS
reduced operating levels in the United States have contributed
towards a much lower production level, with the result that
prices have firmed. High hopes of a good autumn season in the
United States have encouraged optimism over prices in the
final quarter of 1976, although this would appear to be
dependent upon at least part of the idle capacity remaining
lmäctive.
511 United States Fertilizer Pricing. Chem. Mark. Rep. 210
(22), 15-16 (Nov. 29, 1976). It looks like the new technical
phosphoric acid price is going to stick, and super- and
polyphosphoric acid prices might increase. Superphosphoric
(105%) acid will climb $1.50 per hundredweight, to $23.70 in
the East and $24.70 in the West. Polyphosphoric acid (11.5%)
will move up $1.75, to $27,85 in the East and $29.50 on the
other side of the Rockies. Prices for several fertilizers have
continued to deteriorate over the last few weeks. Diammo
nium phosphate fell to the $110-$115 level though spot prices
ran as high as $125 three weeks ago. Triple superphosphate has
stabilized and is now running at $85-$90, instead of the
$80-$88 spread of three weeks ago. Anhydrous ammonia is
still running between $100 and $105 f.o.b. Gulf Coast. The
demand for the chemical has slacked with sagging wheat prices
and dry Fall weather. Ammonium nitrate is said to be running
at $85 to $90 f.o.b. Midwestern plants. The range on the East
Coast is about $5 higher. Ammonium sulfate is moving for
about $35 to $40, shipped from Northeastern steel mills, while
it is selling at about $45, f.o.b. Southeastern plants. Prilled
urea is moving at between $100 and $107, while granular is
Selling between $125 to $130, delivered in the Midwest.
512 United States Fertilizer Profits Drop. Chem. Week 120
(17), 29 (Apr. 27, 1977). Fertilizer companies posted lower
earnings in calendar yr 1976 than they did in 1975. The
Fertilizer Institute announces sales of basic potash producers
at $379.12 million, compared with $373.78 million in 1975.
Income of the group before taxes and interest fell to $100.67
million from 1975's $121.19 million. The 41 integrated basic
fertilizer producers that account for the bulk of all fertilizer
Vol had total sales of $5.6 billion in 1976. Fifteen integrated
nonbasic companies, on the other hand, had 1976 sales of
$379.7 million.
TRAINING AND ADOPTION
TRAINING
513 Technical Knowledge: Key to Fertilizer Sales. D. M.
Ambrose (Univ. Nebraska. Omaha). Agrichem. Age 18 (7), 12
(Sept-Oct. 1975). Fertilizers are technical in nature and
* Substantial knowledge to provide the most effective
* A survey of 40 farmers selected at random in York
County, Nebraska, showed that a dealer's knowledge was a
"*" determinant of farmer patronage. Over 40% of the
farmers drove by their nearest dealer in order to trade with
One they consi <dered more honest, had more knowledge, or
ºffered better Services. The number of brands carried, the
advertising and promotion program, farm visits, and dealer
* With farmers were ranked low as desirable dealer
WAActeristics.
514 Improve Your Business Skills. Farm Chem. 136 (11),
28, 48 (Nov. 1973). The Indian Point Division of MAPCO Co.
initiated dealer training programs in the mid-1950's. With the
introduction of suspensions in 1967 a basic training course was
developed for the firm's leading fertilizer dealers. This course
consists of 4 days classroom instructions in several aspects of
the fertilizer business such as: agronomy, products, chemicals,
equipment, preventive maintenance, formulation, cost
information, and salesmanship. Now the company is using the
Better Business by Budgeting (BIII) as a supplement to its
basic training courses. The BIII program begins with prepara
tion of a 12-month budget of income and expenses. At the end
of each month each dealer submits a report of aged analyses of
accounts receivable, trial balance report, inventory and
shrinkage report, and an accounts payable. The company is
convinced that people knowledgeable in sales and service but
perhaps lacking in fertilizer knowledge can make good
fertilizer dealers.
515 Knowledge of Product and People Gives Dealer Edge
Over Competition. Farm Store Merchand 19 (4), 72-4 (Apr.
1976). The prime factor for farm store success is knowledge
about the products sold and about the people who buy. In
order to be successful, Eugene Seiler, Sohigro manager at
Owaneco, Illinois, attends evening college courses dealing with
business, fertilizer, pesticides, and chemicals. He also attends
company training programs, manager and sales meetings, and
the annual u,liversity-sponsored spray school. He has 40 acres
of herbicide test plots on customer farms and usually runs
tests for 3 yr before adding a new product to his sales
program. Most of Seiler’s customers are under 40 yr of age.
They have no loyalty to a dealer who fails to provide the
information and service they want.
516 Intensity and Selectivity Combine for Training Program.
Agri. Marketing 14 (3), whole No. 138, 37-41 (Mar. 1976).
Olin Corporation has developed an intensive field representive
training program. In preparation for this training program they
did research on who their representives would be selling to.
The research provided data for building a typical fertilizer
dealer of 1980-85. The average dealer will be 45 yr old with a
degree in agriculture or business management. His products
will be bulk DAP, urea, potash, popular mixed grades, liquid,
and micronutrients along with agricultural chemicals. His
facilities will have storage capacity for 2000 tons. Most will
have blenders. His application service will include five flotation
spreaders, three tender trucks, access to airplane service with
all equipment radio equipped. Sales will be concentrated in a
25 mile radius with an average annual sales of 6000 tons.
Dealer will sell in advance of season to large farmers who will
rely heavily on dealer for product plus services. Ecology will
be an important consideration. Dealer will be less involved in
financing; banks and lending agencies will finance operations.
Budgets for gross margins, expenses, cash flow, net profit,
inventory turnover, and equipment utilization will become
extremely important. The dealer and farmer’s educational level
will rise-necessitated by larger operations, increased volume,
new laws and the constant pressure to design and implement
new marketing programs to improve profitability.
517 it Helps to Explain New Products to Employees. Stuart
Covington. Farm Supplier 51 (3), 32 (Mar. 1977). Introducing
a sales staff to new products demands careful planning and
69
 TRAINING AND ADOPTION
skillfull techniques. The most successful method of acquaint
ing sales people with new products is usually by holding an
instruction session. Some timely suggestions for planning
instruction sessions are: (1) thoroughly familiarize yourself
with each feature of the new product, (2) keep instructions for
varying operations of the product in proper sequence, (3)
repeat at least once all hard-to-understand details regarding the
discussion, (4) pace instructions to the knowledge of the
newest salesperson, (5) introduction of new products should
be on company time, (6) emphasize dissimilarity between the
new product and current lines of a like nature, (7) encourage
questions, (8) emphasize confusing points, (9) distribute any
instruction manuals a few minutes before the training sessions,
and (10) invite sales personnel to assist in demonstrations.
518 Relative Economic Advantage in Adoption of New
Technology. H. J. Kolshus and E. D. Smith. Univ. Kentucky
Agric. Econ. Staff Paper 6; 10 pp. (Aug. 1973). Amer. Bibl.
Agric. Econ. 4, 942. Effectiveness of efforts to promote
adoption of new technology depend on profitability and
riskiness. This study reports and interprets regression analysis
of results of fertilizer use by farmers on paddy rice under
varying conditions. Indications were that fertilizer response
was not significantly greater when so-called ‘improved varie
ties were used and, in general, was only modestly profitable,
contrary to previous evidence. Under these conditions social
behavioral variables become important determinants of effec
tiveness of extension demonstration techniques and other
media.
519 Differential Characteristics of Adoptors and Non
adoptors of Fertilizer Use in Rainfed Ragi in Bangalore North
Taluk. H. N. Byra Reddy and K. A. Jalihal (College Agr.,
Hebbal, Bangalore, India). Mysore J. Agr. Sci. 8 (1), 124-32
(1974). The study was conducted in Bangalore North Taluka
of Karnataka State to ascertain the differential characteristics
of farmers who have adopted and not adopted fertilizers on
rainfed ragi. The study included interviews with 50 adoptors
and 50 nonadoptors selected at random. The results of the
study revealedi. the adoptors had higher education, higher
social and media participation, possessed larger land holding,
had better economic status and higher general adoption level
than the nonadoptors. All the adoptors belonged to
nonscheduled casts while all the schedules cast farmers studied
were nonadoptors. The study also indicated that age, family
size and family type of farmers had no association with their
adoption. Lack of money, lack of knowledge, and no
experience about the practice were found to be the important
reasons for not adopting fertilizers on rainfed ragi by farmers.
520 Adoption Level of Literate Farmers of Bangalore
District. H. N. Byra Reddy, J. Srinivasamurthy, and R.
Dwarakinath (Univ. Agr. Sci., Bangalore, India). Mysore J.
Agr. Sci. 8 (2), 264-8 (1974). This investigation was under
taken to find out the general adoption level of literate farmers
of Bangalore district and their adoption stage in the newly
introduced crop–hybrid maize. A sample of 404 literate
farmers from different taluks of Bangalore district constituted
the respondents for this study. Findings of the study were that
there were only 7% of literate farmers who had 100% adoption
of selected improved farm practices which were introduced in
the area more than 10 yr ago. Among the adopted practices,
fertilizer use was the highest, followed by improved seed and
plant protection. It was also observed that the farmers with
70
higher general adoption levels were in the advanced stages of
adoption of hybrid maize which was a new introduction in the
a ſea.
521 Adoption of Package of Practices by Paddy Farmers of
Mandya District in Karnataka. M. B. Channe Gowda and K. A.
Jalihal (Agr. College, Bangalore, India). Mysore J. Agr. Sci. 8
(2), 276-82 (1974). The present study pointed out that no
paddy farmer in Mandya District had adopted the package of
all the eight recommended practices. The practices evaluated
were use of organic manure, improved varieties, seed rate,
planting young seedlings, line planting, use of fertilizers, plant
protection, and use of rotary weeder. More farmers (38.7%)
adopted three practices than any other number of practices.
Recommended quantity of organic manure, seed, seed rate,
and age of seedlings for planting were the frequently adopted
practices in different modal combinations. Though the level of
adoption was associated with yield level, most of paddy
farmers (76%) were at the medium yield level. Uncertainty of
irrigation water at critical periods of crop growth was an
important problem encountered by farmers in increasing the
yield of paddy. Lack of credit facilities and nonavailability of
fertilizers also were important problems. Intensive study on
individual practices to be included in the package and careful
reconsideration of present method of distribution of irrigation
water merit consideration.
522 Technological Change in Subsistence Agriculture: The
Adoption and Diffusion of Fertilizer in Ethiopia's Minimum
Package Program Areas. Bisrat Aklilu (Boston Univ. Boston,
Massachusetts). Diss. Abstr. Int. A 36 (11), 7540-1 (May
1976). The factors that determined the adoption and diffusion
of agricultural innovations in subsistence agriculture were
studied. The major purpose was to identify the factors that
explain the pattern of fertilizer intake in Ethiopia's Minimum
Package Program Areas (MPPAs). A macro-analysis of fertilizer
diffusion in twenty MPPAs and a micro-analysis of fertilizer
adoption of farmers in two MPPAs was undertaken. The macro
study focused on four key variables that come from three
subsystems of the adoption-diffusion model. These were
profitability, variability, extension agents and average farm
size. The regression analysis showed that the pattern of
diffusion was determined by the positive effects of profitabi
lity and extension agents and the negative effects of vari
ability. Profit, risk and information reinforced each other in
such a way as to make the innovation highly desirable for
some MPPAs but unattractive for others. The study investi
gated whether significant differences exist between MPPAs
located in the North (the provinces with “communal” land
ownership) and those located in the South (the provinces with
individual land ownership). The covariance analysis showed
the lack of significant differences in the adoption behavior of
these two regions. The most responsive area to the package
project, Jimma MPPA, and one of the least responsive areas,
Bako MPPA, were chosen for the micro study. This part was
based on a socio-economic questionnaire administered to 560
sample farmers in 1974. This study focused on the factors that
account for the differential time of initial fertilizer use and the
differential level of fertilizer use among these farmers. In
Jimma MPPA, the level of use was explained by the input's
objective profitability and its complementarity to available
resources, whil in Bako, it was the extent of contact with
extension agents that determined level of use. The differential
time of initial fertilizer use in both MPPAs was accounted by
 TRAINING AND ADOPTION
the difference in access to information. In both MPPAs, the
smallest farmers and tenants lagged behind the larger farmers
and owners in the time of adoption. The difference in the rate
and level of adoption of the farmers in the two MPPAs was
determined by the difference in the profitability of the input in
the two areas.
523 Fertilizer Input Recommendations: The Case of Micro
Evaluation. H. Hansel (Univ. Dar es Salaam, Morogoro,
Tanzania). Training Course in Fertilizer Use Development
(Held Oct. 22-27). Morogoro, Tanzania; 18 pp. (1973). To
increase agricultural production in developing countries, it is
important to provide new production techniques and promote
their adoption. Fertilizer innovation characteristics analysis
revealed, in comparison with improved seed varieties and plant
protection chemicals, disadvantageous properties with regard
to transport demand, capital intensive manufacture, large per
acre cost, and reliability of recommendations. These character
istics may contribute to the low level of application and to the
under-representation of this input in developing countries. The
establishment of economic and reliable recommendations
plays a major role in promoting fertilizer use development.
Two examples of fertilizer application in maize and rice
growing were applied to show the problems involved in using
the method of value-cost-ratio as criterion of fertilizer recom
mendations. With regard to minimum cost combination,
comparison of alternative practices showed that the major
economic influences on adoption of fertilizer recommenda
tions were the cost of alternative resources including fertilizer
prices, the physical production function, and credit; producer
prices seemed to be of minor importance. Microevaluation of
fertilizer recommendations under additional considerations
can yield conclusions on the benefits and costs incurred at
national economic level. Adequate producer credits, such as
input-tied credits, promote fertilizer adoption because they
provide funds needed by the small-scale producer, relieve the
risk of innovation, and, at the same time, allow for fertilizer
application under conditions of economically more
competitive alternatives.
524 How to Enlarge the Base of Fertilizer Consumption in
India. V. Ranganathan (Minister of Agric. and Irrigation, New
Delhi, India). Fert. News 22 (12), 16-20 (Dec. 1977). A
general profile of the agricultural situation in India is described
and possibilities for enlarging the base of fertilizer consump
tion is discussed. The role and knowledge of the farmer is of
considerable importance to increased consumption. In parti
cular, he should (1) know what type of fertilizers to use and
be convinced that its use is desirable, (2) use fertilizers of the
right quality and at the right time, and (3) be provided
adequate credit to procure fertilizers. Five other areas were
also considered for increasing potential fertilizer consumption.
These were: (1) improved irrigation techniques, (2) recondi
tioning of problem soils, (3) dry land fertilization, (4)
fertilization of oil seeds and pulses, and (5) increased
concentration on potential areas.
525 What Motivates United States Farmers in Use of
Fertilizer? L. J. Sullivan (Agrico Chem. Co.). Phosphorus Agr.
27 (61), 19-29 (June 1973). Fertilizer use has had an average
annual growth rate of 14% during the past 20 yr, but the rate
is expected to average 5.5% during the next few yr. Fertilizer
use has led all inputs in boosting farmers' yields and profits.
Farmers are motivated by the economics of fertilizer use
through yield, quality, and saving of other inputs. They like to
buy locally from a dealer they like, located close by, who
provides fertilizer promptly in the form they prefer. They
believe in soil testing and use it regularly. They have changed
from bagged to bulk fertilizer to save time, money, and labor.
Custom application of fertilizer and use of liquids are trends
that are increasing. Farmers will continue to use more fertilizer
as long as it returns a better profit than an alternate
1Il VeSt Innent.
ADOPTION
526 Fertilizer Promotion—Role of Fertilizer Manufacturers
and Their Dealers. N. S. Parthasarathy (E.I.D.-Parry, India
Ltd., Mardras, India). In FAI-FAO Seminar Strategy Stimu
lating Fertilizer Consumption 1976 Proc. (held New Delhi,
India, Dec. 9-11, 1976.) New Delhi, India. Fert. Association
India II-5 (i)/1-12 (Mar. 1977). With foodgrain prices under
control, a higher productivity in the use of inputs has become
significant. A good promotional program is necessary to
increase use and efficiency of fertilizers. Attention to marginal
farmers and dry crop areas will widen the base of fertilizer
consumption and will help to improve the conditions of the
weaker sections of the agricultural sector. The promotional
program should be part of a long range plan, make a positive
thrust towards enlarging primary demands, adopt innovations
to suit local conditions, and closely coordinate with other
agencies with a plan to translate ideas from research into ideas
for practical application. Several tools have been employed by
manufacturers as part of their promotional program. There is
considerable scope for enlarging the dealer network and in
transforming the role of the dealer to that of an agent for
technical progress.
527 The Role of Communications in Promoting Fertilizer
Use. V. L. Sheldon (Western Illinois Univ., Macomb) and J. E.
Culp. In Cento Seminar on Key Management Problems in
Marketing, Distribution, and Use of Fertilizers Proc. (held
Islambad, Pakistan, Jan. 7-10, 1974); pp. 281-91 (1974). In
any environment, fertilizer marketing strategy relies on
communications to get the farmer's attention and to tell him
what fertilizers are for sale. Its basic broad objectives are to
inform, persuade, or remind target farmers about the firms
marketing mix and the firm itself. The first step in designing
an advertising program is to define the company’s target
market. The next step is to consider the four attitudes that are
apparent in any marketing mix: awareness, interest, under
standing, and preference. Determining the location \of a
company’s product in any of the attitude areas determines the
advertising or communications objective. The most important
element of a message about a company’s product or service is
to fully describe its benefits. A good fertilizer advertisement
will cause an audience to respond quickly. In order to do this
the offer should benefit the prospect, be clearly stated, tell
enough about the offer to warrant prospect action, and be
presented in such a way that it builds a decided preference
over a competing offer. Media selection should be made on the
basis of the physical form that will get the farmer's attention,
71
 TRAINING AND ADOPTION
provide the lowest cost per prospect, and be capable of
reaching a designated audience. The final important objective
is to pretest the advertising's effect on a small group of people.
This can be accomplished through personal interviews,
questionnaires, and by objective discussions.
528 Communication Strategy for Fertilizer Promotion. B. N.
Chaudhary and C. Prasad. Fert. Mark. News (India) 8 (4), 1-4
(Apr. 1977). The communication strategy and the related
concepts, processes, problems, and the client system which
will ultimately not only help the fertilizer promoters but also
the beginners in the field are presented. Some communication
guidelines based on research findings have also been presented.
Communication strategies have been suggested for two major
categories of farmers, progressive and nonprogressive. Sugges
tions to make the strategy sucessful are included.
529 Marketing Strategy for Farm Inputs. A. Majumdar.
Econ. Times 12 (20), 4 (Sept. 29, 1972). F.A.I. Abstr. Serv.
11, 2738. Little is known about the structure of the farm
market, buying motives of the farmer, and media effectiveness
for different segments of this market. An attempt was made to
ascertain the place of agricultural inputs in the overall
structure of goods and to develop a marketing mix under
conditions existing in Indian agriculture. Agricultural inputs
were arranged in three groups: Group I consisted of minor
implements and seeds; Group II of fertilizers, pesticides, and
weedcides; and Group III of machinery and heavy equipment.
For products of Group I, an intensive distribution channel is
preferred. The extent of usage is high but user need for
services is low. Thus, little time and effort is spent in the
buying process and the significance of each individual purchase
is low. Products of Group III need selective distribution and
products of Group II require moderately intensive distribution
channels. In framing promotional policy a firm is often faced
with the problems of assigning due priority among advertising,
personal selling, sales promotion, and publicity. While the
promotional policy for products of Group I will be primarily
publicity and sales promotion supplemented by advertising,
personal selling and sales promotion will form the promotional
strategy for products of Group II and III. Price decisions of a
firm largely depend on the degree of control it has over the
market price of the product and partly on the degree of price
variation due to product characteristics. Firms have little
control over products falling under Group I, relatively more
control in Group II, and highest degree of control in Group
III.
530 Bank Credit and Fertilizer Promotion and Marketing. H.
C. Sarkar (State Bank of India, New Delhi, India). Fert. News
17 (10), 23-5 (Oct. 1972). A 5% increase in foodgrain
production is the target for India's Fourth 5-yr Plan. To
achieve this target, both indigenous production and/or impor
tation of fertilizer and consumption by farmers must be
increased. Working capital required for production facilities
can be obtained from banks but term financing is limited.
Short-term credit for farmers and for fertilizer dealers is
supplied by banks. Bank credit for dealers has an interest rate
of 9.25%, compared to 10% for most agricultural loans.
Borrowers normally are required to provide a 25% margin. For
small farmers, application forms for agricultural finance have
been simplified and shortened so as not to discourage them
from applying for credit.
531 Measuring Promotional Effectiveness. G. M. Desai. Paper
72
presented FAI Training Program Advertising and Sales Promo
tion Fertilizer Marketing, (Held Bombay, February 24-8,
1975); 14 pp. (1975). F.A.I. Abstr. Ser 14, 159. To attain
need-based targets of fertilizer use, substantial acceleration is
required in the past trends of fertilizer use. This would need
efforts in three directions: (1) continuous enlargement in the
availability of fertilizers, (2) creation of adequate and efficient
networks for the distribution of fertilizers, and (3) generating
continuous growth in cultivators' effective demand for ferti
lizers. Judiciously designed promotional efforts could play a
very useful role in generating growth in effective demand for
fertilizers by speeding up three forces which govern the growth
in demand for this input. These are: (1) adoption of fertilizer
by an increasing number of cultivators, (2) diffusion of
fertilizer use on a number of crops after cultivators have
adopted the use on one or two crops, and (3) increase in the
rates of application. Promotional measures could speed up
these forces by: (1) increasing the response of crops to
fertilizer use by educating the cultivators in various details of
optimal fertilizer practices such as rates of application, balance
among nutrients, use of micronutrients and/or soil amend
ments in certain situations, and number, timing, and method
of fertilizer application, and (2) improving cultivators' percep
tion of returns from fertilizer use on a number of crops under
varied agroclimatic conditions.
532 What Does a Fertilizer Marketer Expect From an Ad
Agency. Part I. K. A. Wadia (Dharamsi Morarji Chem. Co.,
Ltd., Bombay, India). Fert. Marketing News 6 (5), 1-4 (May
1975). Advertising and sales promotion, when blended into a
complete marketing program and assigned logical duties, help
lower the cost of sales and distribution an even out employ
ment peaks. Careful planning is a prime requisite in effective
sales promotion. The marketing company must set its objec
tives and support them with realistic facts. Sales goals must be
set product-wise, tonnage-wise, and value-wise for each month
of the yr. The sales goal must be based on an agronomic and
sales analysis of the likely usage pattern for each fertilizer
product for different crops in both irrigated and dryland areas.
The buying habits of the target audience and government
programs and policies must be documented. The marketing
group also must determine the finances available for promo
tion and the quality and quantity of staff available to execute
and follow throughout promotional plans. Equally important
is determining the sales characteristics of each fertilizer
product and the media most appropirate for these character
istics. The fertilizer company then determines whether to
select an advertising agency to handle the promotion program
or to handle it in house. An outside agency is selected on the
basis of its experience on agriculture, financial stability,
retention of other clients, service facilities (especially re
search), background of personnel, problem-solving abilities,
and other characteristics. In house handling of promotion
campaigns are not recommended except for very large com
panies. Small companies cannot afford to hire the creative
people nor support all the research services that are essential to
backup a promotion program. In house promotion by small
companies also tends to be repetitive because the staff does
not have an opportunity to exchange ideas with other creative
people.
533 What Does a Fertilizer Marketer Expect From an
Advertising Agency. Part II. K. A. Wadia (Dharamsi Morarji
Chem. Co., Ltd., Bombay, India). Fert. Marketing News 6 (6),
5-8 (June 1975). The advertising agency must be able to
 TRAINING AND ADOPTION
determine the exact position of the target audience in the
adoption process in order for the fertilizer company to
formulate the correct marketing program. Many advertising
agencies concentrate upon consumer and industrial products
and do not have any information about fertilizers. The author
proposes a pooling of effects by advertising agencies (in India),
fertilizer firms, and the Government of India to form a
corporate body capable of providing basic market research
data for specific areas on a permanent basis. Such data would
then provide a basis for determining the most appropriate
media and its cost for a promotional program. At present 80%
of the farmers in India do not use any fertilizer. These must be
approached differently than those who do use fertilizer. A
study in Punjab and Uttar Pradesh showed that the credibility
of media for the progressive cultivator, in decreasing order,
was: specialists X radio » progressive farmers 2 block
extension agency P. demonstrations > folders P newspapers.
For nonprogressive cultivators the order was: demonstrations
> progressive farmers 2 specialists 2 block extension agency
> radio » folders × newspapers.
534 For Sales Managers, The Key is Creative Matchmaking.
J. M. Trytten. Mkt. Mag. 111 (3), 22-3 (Aug. 6, 1973). F.A.I.
Abstr. Serv. 13, 3632. Selecting a media schedule is as
important as creating advertisements. The effectiveness of
advertisement can be enhanced by media that provides the
right kind of atmosphere, and reaches the target audience.
Matching a medium to a product begins by matching it to the
prospects. The next step is matching media to the objectives of
advertising. Products moving through wholesaler and dealer
channels require advertising media which should match the
distribution pattern of a company taking into account the
geographic and demographic factors. Some advertisements call
for use of regional and local media to attract customers in
order to create ‘back pressure’ on dealers and distributors.
Though advertising through vertical magazines covering a
market is important, the use of horizontal magazines covering
a number of markets is also advisable.
535 Agricultural Advertising Attitudes. Tom Quirk (Miller
Agric. Res. Serv., Minneapolis, Minn.). Farm Store Merchand.
18 (9), 60, 62 (Sept. 1975). A survey was conducted in the fall
of 1974 to determine the importance of various elements or
claims in an ad insofar as farmers were concerned. An identical
survey was conducted among advertisers who market their
products to farmers. A random sample of 1000 farmers was
chosen and 35.5% responded within 4 weeks. The second
survey went to 235 advertising personnel and the response was
59.1%. The survey responses were stratified for general
advertising claim, farm supplies claims, and farm equipment
claims. Both farmers and advertisers ranked overall quality of
the product and reputation of the company as the most and
second most important general elements in an ad. Advertisers
listed price of the product as the third most important element
but farmers ranked price least important. Both groups agreed
that product performance and product safety were the most
important characteristics of farm supplies and formulation was
least important. For farm equipment, dependable parts and
services was ranked first by both groups and both chose low
maintenance costs for second place. A full line of equipment
was considered least important.
536 Consumer Behavior to Fertilizer Marketing. S. B.
Tambad. Fert. News 18 (7), 57-9, 61 (July 1973). A marketing
firm has to understand the consumers' behavior thoroughly if
it is to do a good job of marketing. A consumer should be
treated as a promoter of the organization. The prosperity of a
marketing firm, to a considerable degree, depends upon
consumer satisfaction. There are different stages in the buying
process. Each stage is important to the marketer in directing
his promotional efforts through advertisement and demon
stration. There are different roles performed by individuals
and marketing efforts have to be directed accordingly towards
each of them.
537 Canadian Fertilizer Industry Program. Ag-Chem.
Newslett., No. 83, 5 (Oct. 1, 1973). Directors of the Canadian
Fertilizer Institute approved plans for a public relations
program for their industry at their annual convention. The
program will emphasize image building for the industry,
focussing on contributions to quantity and quality of food, as
well as environmental conservation achieved by fertilizer use.
The program will be directed to farmers, government, and
COn SunnerS.
538 India Expands Nitrogen, Phosphorus, and Potassium
Promotion. Green Markets 1 (22), 7 (July 1977). India is
launching an intensified fertilizer promotion campaign for this
Summer season. As part of the program the government will
expand promotional efforts to 66 districts. Methods used to
promote increased fertilizer includes expanding outlets,
increasing capacity at storage facilities, price breaks for
off-season purchases, and easier credit. In the 1976-77 winter
Season consumption was 402,222 mt, a 33% increase versus
last yr. Consumption from a central pool between mid
February and mid-March of 1977 was 58,000 mt, versus
1 1,000 mt last yr.
539 India's Fertilizer Consumption and the Steps to Realize
It G. S. Sekhon and Raghbir Singh (Punjab Agric. Univ.,
Ludhiana, Punjab, India). Fert. News 22 (12), 21-6 (Dec.
1977). Fertilizer consumption potential in India is much
higher than actual usage. Data from 1974 indicates that
approximately 33% of the farmers used less than 50% of the
recommended rate of N and 50% applied only one-half of the
recommended rate of phosphate. To bridge the gap between
use and potential usage a multi-prong systematic stategy to
promote large scale use is described. This includes: (1) an
overall measure to assign as national priority the use of
chemical fertilizers, (2) to promote research programs and
extension education to generate useful knowledge of fertilizer
use, (3) to strengthen the infrastructure arrangements for the
production, supply, and distribution of fertilizers, (4) devise
policies to make fertilizer use highly profitable to farmers, and
(5) promote more vigorous participation from members of the
fertilizer industry.
RETAIL SERVICES
MANAGEMENT
540 Management at the Retail Level. Keith Gaumer (Laverty
Elevator, Inc., Indianola, Iowa) and H. G. Walkup. In TWA
Fertilizer Conference, held July 31-Aug. 1, 1974, Louisville,
Kentucky; Bull. Y-78, pp. 78-80 (Aug. 1974). Muscle Shoals,
73
 RETAIL SERVICES
Ala.: Tennessee Valley Authority, National Fertilizer Develop
ment Center. Some of the new or revitalized marketing
practices that are taking place today are discussed. The retail
outlet provides a vital link between the producer and the
farmer. Fringe benefits by suppliers such as consignment, easy
credit, delayed billing, storage allowances, preseason discounts,
and others are no longer available. With supplies tight, the
retail dealer must be concerned with supplier ties, prepayment
by farmers, greater use of f.o.b. pricing, and price uncertainty
impacts. The retail dealer must have skill in innovation in
order to respond to constantly changing conditions.
541 Managing for Profit; Management by Objectives and
Return on Investment at Retail Level. W. D. Downey (Purdue
Univ., Lafayette, Indiana). In TVA Fertilizer Bulk Blending
Conf., (Held Aug. 1-2, 1973, Louisville, Kentucky). Muscle
Shoals, Ala.: Tennessee Valley Authority, National Fertilizer
Development Center; Bull. Y-62, pp. 113-20 (Aug. 1973).
Management by objectives is a system that defines in advance
the results to be achieved and the steps required to achieve
these results. There are three steps: (1) decide on goals, (2)
determine action plans, and (3) evaluate actual performance.
Goals must be clear. It is critical that the goals be written
down. The overall goal in the fertilizer business is an adequate
return on the owner's investment, although adequate is hard to
define. The action plans (should) state the specific things to be
done, how they are to be done, who will do them, when they
will be accomplished, and results anticipated from each step.
These plans should be geared to a specific calendar period. A
periodic review of each area of responsibility is necessary to
see if the established goals are being accomplished. The
evaluation must be specific and based on measurable results.
This system is built on the principle that people at all levels
will apply their own knowledge and creativity toward a
common goal if they understand how these objectives affect
the success of their organization and their own future.
542 Panel—Managing for Profit to My Business and My
Customer. W. C. Brummitt (Tennessee Valley Authority,
Muscle Shoals, Ala.) et al. In TVA Fertilizer Conference (held
July 29-31, 1975, Louisville, Kentucky) Muscle Shoals, Ala.:
Tennessee Valley Authority, National Fertilizer Development
Center; Bulletin Y-96, pp. 124-34 (July 1975). The response
of a panel of three people—W. H. Mitchell, Tennessee Farmers
Cooperative; D. W. Simonsen, Simonsen Mill Rendering Plant,
Inc.; and K. A. Ermy, Ermy's Fertilizer Service, Inc.—is given
to the following: (1) Briefly describe your organization's
fertilizer production and marketing program. (2) What are
Some of the major management adjustments you made during
the recent tight fertilizer supply situation? (3) What services
do you and or your dealers offer farmer-customers? Any
Suggestions for upgrading these services? Are the services you
offer on a “pay-their-own-way” basis? If not, any suggestions
for making them pay their own way? (4) Do you, or your
dealers, mix fertilizers with seed, herbicides, other pesticides?
If so, to what extent? What are the major problems? What is
the farmer-customer reaction to this service? (5) What kind of
activities do you conduct to equip, train, or motivate your
employees to better serve your organization and farmer
customers? (6) Are there other unique activities of your
organization which contribute to your business and farmer
customers? and (7) Looking toward the future, what adjust
ments do you visualize in your fertilizer marketing program?
74
543 Managing A Fertilizer Operation for Profit. Farrºt Store
Merchand. 18 (10). 18-24 (Oct. 1975). A company official of
a medium size bulk blend fertilizer operation was interviewed
to determine factors essential in maintaining a profitable
operation. The company was established in 1952 and has
expanded each yr. At present it consists of seven blending
plants with storage facilities at each plant ranging from 900 to
4000 tons. Financing is of upmost importance because
shipments are by rail and barge and in many cases invoices are
due before material arrives. Services to farmers have increased
and it is important that these services pay their own way. The
mixing of herbicides and pesticides is increasing and trained
personnel in the operation and maintenance of equipment are
essential.
544 Effective Retail Marketing: A Key to Surviving the
Fertilizer Shortage. D. R. Henderson (Ohio State Univ.,
Columbus). Ohio Fert. Lime Conf. (held Nov. 29-30, 1973).
Columbus, Ohio: Ohio State Univ., Columbus; pp. 58-74
(1973). Fertilizer shortages could lead to a low-volume
operation at the retail level. However, few businesses are able
to operate profitably with a low sales level and many local
retail dealers will disappear. In order to survive, the dealer
must increase his sales and optimize his product through-put.
Astute observation, deductive reasoning, and market research
are necessary for the fertilizer dealer to develop a marketing
plan that will help him to adjust to changing industry
conditions. Dynamic marketing, based on basic marketing
principles and a decision about the market segment that the
retailer wants to satisfy, will provide a basis for the dealer to
outperform his competitors and thus earn an allocation of
fertilizer from the basic suppliers.
545 Surviving in Today's Markets—A View From Iowa.
Larry Crosser (Farmer's Cooperative, Creston, Iowa). In TWA
Fertilizer Conference, held July 31-Aug. 1, 1974, Louisville,
Kentucky, Bull. Y-78; pp. 74-5 (Aug. 1974). Muscle Shoals,
Ala.: Tennessee Valley Authority, National Fertilizer Develop.
ment Center. Survival technique varies according to business
location, size, products handled, and service programs offered.
The Creston Cooperative in the livestock-grain area of south
western Iowa provides grain handling and storage, feed
manufacturing and sales, production and sale of soybean and
oat seed, seed marketing, agr-chemical services, and lumber
and building supplies in addition to fertilizers. Fertilizers are
available as bulk blends, bagged mixtures, liquid N, mixed
liquids, and ammonia. Producers are precommitted to supply
fertilizers as much as a yr in advance of sale to farmers. If
necessary, cash is paid at time of delivery. The precommit.
ment program is now being offered to farmers. Working capital
requirements have increased threefold in 4 yr. Customer
financing has been discontinued and prepayment to guarantee
delivery is encouraged. The bank is informed of changing
market conditions and probable capital needs are listed in
advance of these needs. Investment in buildings and equipment
has doubled between 1969 and 1974 because of increased
volume of sales. Operating expenses also increased 75% but net
costs per ton of fertilizer decreased 37.5%. Survival also
requires an open line of communication to the customer and
adequate transportation equipment, Customer ownership of
application equipment and storage also will help.
546 Surviving in Today's Markets—A View From Kentucky.
 RETAIL SERVICES
Mrs. T. W. Crady (North Amer. Fert. Co., Louisville,
Kentucky). In TWA Fertilizer Conference, held July 31-Aug.
1, 1974, Louisville, Kentucky, Bull. Y-78; pp. 72-4 (Aug.
1974). Muscle Shoals, Ala.: Tennessee Valley Authority,
National Fertilizer Development Center. North American
Fertilizer Company (a family business) came under new and
inexperienced management at the death of Mr. Crady.
Although basic marketing principles still are used to sell
fertilizer, marketing methods were changed. Emphasis was
switched from bulk to bagged fertilizers. The best quality of
bags were used to maintain the high quality of the contents.
The service of spreading was stopped and this eliminated the
investment in application equipment. Delivery service also was
stopped and the company now owns no trucks. All materials
are priced f.o.b. the plant, thus eliminating discounts,
commissions, freight allowances, and adjustments. Extended
credit was eliminated in favor of cash and carry. Trucks that
bring goods to Louisville are encouraged to backhaul fertilizer
from the plant. Truckers are able to book their needs for
specific grades of fertilizer and make appointments for pick
up; this resulted in customized production for the plant and
eliminated long waiting times for the truckers.
547 Surviving in Today's Markets—A View From Ohio.
Wayne LeCureux (The Andersons, Maumee, Ohio). In TVA
Fertilizer Conference, held July 31-Aug. 1, 1974, Louisville,
Kentucky, Bull. Y-78, pp. 76-7 (Aug. 1974). Muscle Shoals,
Ala.: Tennessee Valley Authority, National Fertilizer Develop
ment Center. Opportunities for fertilizer dealers attempting to
survive include changing farmers' practices in order to obtain
more efficient use of plant food; eliminating the seasonal
crunch by promoting farmer purchase, storage, and use on a
more yr around basis; upgrading the nutrient content of
fertilizers; and converting farmers to the use of good credit
practices. Dealers can change their own adverse situations into
opportunities by making better and longer range plans,
cultivating good relationships with suppliers and customers,
accepting deliveries on a yr-around basis, improving their
financial dealings with suppliers, and playing fair.
548 Market Development: The Key to Increased Fertilizer
Sales. R. M. Thorup. Farm Chem. 141 (2), 50, 52 (Feb. 1978).
Fertilizer dealers occupy a very important positions in their
marketing areas since they offer a valuable commodity to their
customers. They also have the opportunity to expand their
positions by becoming market developers and disseminators of
fertilizer use information. The key is to recognize the
difference between market service and market development. It
is one thing to test soils, provide credit, supply granular
products, and offer spread service; it is another to create a
greater market by proving the need, demonstrating the
response, educating the consumer, and promoting the concept
of greater profit through increased use. Dealers who have
accepted this challenge can be a motivating force in their own
areas because they have already earned the confidence of their
farmer customers.
549 Growth of a Dealer. Farm Chem. 139 (5), 13-18 (May
1976). An independent dealer (Coash Inc.) of Bassett, Nebras
ka, describes his business growth. Coash Inc. has been in
business for 20 yr. During this period the area has been
converting from dry land farming (cattle and hay) to irrigation
(corn and alfalfa farming). The company has now developed a
marketing system which averages a 20-25% growth increase
annually. Factors involved in the success of the company are
the farming changeover, qualitites of experience, thorough
ness, and innovation that are regularly brought to bear on the
customers' behalf. Coash's staff numbers about 25 full time
workers. They plan individualized programs for production for
over 50,000 acres.
550 Optimizing Retail Fertilizer Dealer Inventory Levels. G.
T. Devino and L. A. Dever, Jr. (Univ. Missouri, Columbia).
Paper, Annual Meeting Am. Agric. Econ. Assoc. Columbus,
Ohio; 15 pp. (Aug. 10-13, 1975). Because of the inherent
uncertainty in their business, retail fertilizer dealers experience
frequent changes in the variables affecting their business. Many
of these changes directly affect their cost of maintaining
inventories. Management of inventory is, consequently, an
important factor in business success. The computer simulation
model described is designed to assist researchers and managers
in answering some of the questions which the industry faces in
adjusting to changed conditions. The model was used to test
the effect of several key variables on the costs of maintaining
inventory for a representative 4000-ton/yr retail fertilizer firm.
Variables tested included: (1) operating policy with regard to
shortages, (2) shortage costs, (3) product delivery lead-times,
(4) product cost, and (5) interest costs. The analysis suggests
that lead-time and shortage costs exert the most influence in
determining which order policy is preferred. Despite high
interest rates and high product costs, long lead-times and high
shortage costs would indicate that a policy which entails high
safety stocks would result in lower inventory costs than a
policy which minimizes safety stocks.
551 in Anhydrous Ammonia Retailing, Reduce Costs and
Increase Profits. Ronald Raiher and Arnold Heubrock (Iowa
State Univ., Ames). Fert. Prog. 5 (2), 12-14, 52 (Mar.-Apr.
1974). Results are reported of a study of the cost of retailing
anhydrous ammonia and of ways to reduce this cost. Many
retailers can realize big savings by making more efficient use of
existing facilities, especially delivery equipment. The delivery
operation accounts for 50-75% of the total retailing cost.
Encouragement of customers to apply anhydrous ammonia at
times other than during the hectic preplant season in the
spring will also result in big dividends. The importance of
operating at maximum plant capacity, maintaining a large
share of the market, and having delivery capacity to match
plant output is stressed. A tabulation is given showing the
number of applicators, nurse tanks, and pickup trucks needed
for plant capacities ranging from 400-1000 tons/yr.
552 Least-Cost Formulation Plan Helps Fertilizer Blenders.
J. E. Culp and Y. C. Smith (Tennessee Valley Authority,
Muscle Shoals, Ala.). Farm Supplier 48 (8), 41-2 (Aug. 1974).
Computer network systems have been developed by TVA. One
such system is the FORM-U-SHARE®), a least cost formula.
tion service. The experience of a dealer in Schulenburg, Texas,
who has used this program is given.
553 Marketing Trends. E. M. Wheeler (The Fertilizer
Institute, Washington, D.C.). In TVA Fertilizer Conference,
held July 31-Aug. 1, 1974, Louisville, Kentucky, Bull. Y-78,
pp. 88-91 (Aug. 1974). Muscle Shoals, Ala.: Tennessee Valley
Authority, National Fertilizer Development Center. A forecast
of what the future dealer is going to look like is given. Dealers
will become larger in scope but fewer in number. Operations
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will change to include additional storage capacity, transporta
tion and movement will require expansion plans that consider
relocation of operation, substantial investment in new field
equipment such as floater equipment, and credit relationship
between the producer-dealer and dealer-farmer will be
improved by bank financing. A forecast of the supply of N, P,
and K is given.
554. Fertilizer Progress Interviews Bulk Blenders. Bertie
Groda (Agr. Service Co., Delta, Col.) et al. Fert. Prog. 4 (4),
20-1, 25-6, 28 (July-Aug. 1973). An interview with six
successful bulk blenders across the nation by the editor is
recorded. They were asked 10 basic questions and they spoke
freely. The average bulk blender of 1973 is first of all a good
manager. He has considerable capital tied up in his plant and
equipment. In most cases, he provides Services—custom appli
cation of fertilizers and pesticides, soil testing, equipment
rental and program planning. Very often he sells several
fertilizers other than blends . . . such as ammonia, nitrogen
solutions, mixed liquids, and sometimes ammoniated solids.
However, the heart and core of his business is usually bulk
blending.
APPLICATION
555 Future Looks Bright for Custom Applicators and High
Flotation Equipment. Farm Store Merchand. 21 (8), 21-2
(Aug. 1977). Custom application business is expanding, high
flotation equipment is becoming more popular and the future
looks bright for those who apply fertilizers and chemicals
commercially. Thirty-two out of 45 respondents to a Survey
agreed upon custom applicators expanding role. Reasons cited
in responses included: (1) custom application provides farmers
with a chance to buy labor and management during peak
requirement times, (2) it reduces the farmer's investment in
equipment which is used for only a few days, and (3) it saves
farmer's time and effort by avoiding the need for certification.
One manufacturer commented that application of fertilizers
and chemicals has become a specialized business with new laws
and regulations and thus farmers will continue to rely upon
the expertise of the custom applicator.
556 Custom Application: Bulk Blends—Granulated—
Liquids—Suspensions. Fert. Prog. 6 (4), 14-16 (July-Aug.
1975). Equipment manufacturers, suppliers, and custom appli
cators were interviewed and the answers and opinions from
these sources are presented. Data on the following questions
are given. Who buys custom application? Who are custom
applicators? How many are they? Why do farmers buy custom
application? What are some problems and opportunities for
applicators? What is happening in custom application? How
much of total product is custom applied? What are the
benefits of custom application?
557 Putting a Dollar Value on Uniform Application. L. W.
Lohry (Nutro-Flo Chemical, Sioux City, Iowa). Proc., 1973
Round Up: Growing Profits with Liquids, pp. 31-7 (1973).
Peoria, Illinois: National Fertilizer Solutions Ass. The value of
76
proper fertilizer, time of application, and adequate distribu
tion on the land is of importance in the response of a crop to
fertilizer. In applying fertilizer the farmer has to decide which
type application he will use. He can apply the material himself
or have it distributed by the dealer. Next he must decide on
the kind of fertilizer; liquid or dry, and what micronutrients,
insecticides, and herbicides to include. There is a time factor
to consider since the crop must be planted at the most
opportune time. These factors must be considered if the
farmer is to expect the top value and utilization of his time
and land.
558 Fertilizer Application Costs. H. G. Walkup (Tennessee
Valley Authority, Muscle Shoals, Ala.). In TWA Fertilizer
Conference (held July 29-31, 1975, Louisville, Kentucky)
Muscle Shoals, Ala.: Tennessee Valley Authority, National
Fertilizer Development Center; Bulletin Y-96, pp. 14-24 (July
1975). A great variety of fertilizer delivery and application
methods is used in the United States. Three systems were
Selected for study and analysis: (1) anhydrous ammonia
applied by tractor-mounted tool bar applicators, (2) dry bulk
fertilizer applied by towed bulk spreader of 4- to 6-ton
capacity, and (3) application of both fluid and dry fertilizers
by high flotation spreaders. The data was provided by 13
dealers in Iowa and Nebraska in 1974. The impact of various
factors on the cost of these systems is given. The average
delivery and application costs were: number one system with
an average length haul of 13.9 miles and average application
rate of 153 lb/acre, $36.22/ton and $2.75/acre; number two
system with an average length haul of 12.1 miles and average
application rate of 233 lb/acre, $16.17/ton and $1.76/acre;
number three system with an average length haul of 12 miles
and average application rate of 383 lb/acre, $5.75/ton and
$0.95/acre.
559 Investment Operating Costs Compared on High Flota.
tion Fertilizer Spreader. H. G. Walkup (Tennessee Valley
Authority, Muscle Shoals, Ala.). Fert. Solutions 19 (4), 26. 28,
32, 34, 39 (July-Aug. 1975). Three dealers were interviewed in
the irrigated areas of Washington and Oregon in October 1974
to assess the cost-returns and logistical aspects of marketing
fertilizer through high flotation spreaders. The analyses were
developed to show the cost return situations of what might be
considered typical under these conditions. One dealer dis.
tributed dry materials and two dealers distributed mixed fluid
fertilizers. Conditions of operations consist of 12 hr/day for all
dealers, 100-200 acres/day, 36-60 tons/day, and spreader
width 40-50 ft. Income was generated by charges of
$2.50.3.20 per acre spreading and S3.00.3.20 per ton for nurse
tank service. Cost analysis is presented in 3 tables and 4
figures.
560 Costs as Related to Source and Method of Application
of Selected Fertilizer Materials in Louisiana. L. W. Beasley and
W. F. Woolf. Louisiana State Univ., Agr. Exp. Sta., Baton
Rouge. Dep. A gr. Res. Rep., No. 431; 69 pp. (June 1971).
Costs can be reduced and profits increased by more careful
economic consideration to the costs of fertilizer materials and
the methods to apply them, since there is wide variation in the
prices of both materials and methods of application among the
different forms and sources of materials. Guidelines are given
to aid farm management personnel and others interested in
decreasing costs and/or increasing profits by determining
 RETAIL SERVICES
economically which form and source of N, P:Os, and K2O to
use, given different prices, forms and sources, methods of
application, and tenure arrangements.
561 Custom Application and Equipment, Cost, Maintenance,
and Management. D. H. Hemstock. Fert. Prog. 5 (l), 8-12
(Jan.-Feb. 1974). Custom application is a growing trend in the
fertilizer industry. It is a potential profit center which requires
a lot of planning and management. The experience of one
company in custom application is given. Volume per spreader
is the key to expense recovery. Fixed expenses drop from
S2.60 to S0.87/acre as the number of acres fertilized increases
from 1200 to 3600. About 25 acres/hr can be spread on fairly
level fields when the rate of fertilizer application is 335
1b/acre.
562 Field Costs, Time Being Cut with Feed and Weed Mixes.
Farmer (Minnesota edition) 91 (8), 16-18 (Apr. 21, 1973). A
study by Doane Agricultural Service showed that use of
fertilizer-herbicide combinations increased 24% in 1972. Corn
was the principle crop treated. Major pesticide producers have
obtained federal label registrations and developed specific
recommendations for use of many herbicides with liquid N,
complete solutions, and suspensions. Application equipment
designed for liquid fertilizers seldom requires modification to
handle fertilizer-herbicide combinations. Most application is
on a custom basis. Field trials in Iowa have showed that liquid
fertilizer-herbicide can be loaded and applied at a rate of 44
acres/hr. Savings in time and application costs and reduced soil
traffic by elimination of repeated trips over a field are
advantages of feed and weed.
563 Fertilizer Field Distribution Problems Can Be Solved. F.
P. Achorn and E. B. Wright (Tennessee Valley Authority,
Muscle Shoals, Ala.). Farm Store Merchand. 1612-13, 68, 70,
74, 76, 78 (Mar. 1973). Uniform application of solid and fluid
fertilizer has been a problem. Quality of bulk blends and fluid
fertilizer have improved but difficulties have been reported in
mixing and application of some materials. Segregation of the
individual components in blends is chiefly the result of
difference in particle size. Variation in particle size in the
blend from the average particle should not exceed 10%.
Coning in applicator bins and hoppers should be prevented.
Micronutrients or other powdered materials added to the
blend require special attention. A small amount (1-2%) of 18, 20, 22, 26, 28 (Jan.-Feb. 1977). The essential features of
liquid sprayed into blend as mixing occurs can control this the “drip” irrigation system and the advantages realized using
problem. Many variations in spreader equipment are found. liquid fertilizers are given. Coupled with a good liquid fertilizer
Some types are single spinner, double spinner, truck spreader,
and boom applicator. The operator must be well-trained in
calibrating the equipment and knowing the potential of the
equipment. Some spinner applicator were found operating at
extremely high speeds (3,000 rpm); for uniform application by
a spinner applicator, the speed of the spinner, should be
500-650 rpm. The use of micronutrients in liquids is gaining
popularity. The problem of salting out can be avoided by
knowing the dissolving properties of material used. A major
problem in use of suspension is excessive viscosity: The
viscosity of a suspension should be less than 1000 cp at 70 F:
dilution with up to 10% water usually solves this problem.
564 Balancing Fertilizer Application to the Limiting
Nutrients. Part I: The Midwest. R. G. Hoeft and W. M. Walker
(Univ. Illinois, Urbana). Fert. Solutions 18 (4), 44, 46, 48
(July-Aug. 1974). A shortage of fertilizer suggests the need for
a re-evaluation of recommended application rates. When the
supply of fertilizer is unlimited it should be applied to all land
at rates such that the last increment of fertilizer applied results
in a yield increase just slightly higher in gross return than the
cost of the fertilizer; therefore, maximum net return per acre.
However, under limited supply when maximum net return per
acre cannot be obtained, fertilizer should be applied at the rate
that results in maximum production per unit of fertilizer
applied. A number of factors must be considered when
determining the rate of application which will provide maxi
mum production per unit of fertilizer. Fertilizer efficiency will
be at its maximum when other management factors affecting
crop production are not limiting. Therefore, under conditions
of limited fertilizer supply it is important that producers use
good weed control practices, adapted varieties, adequate insect
and disease control, proper seeding date, proper date of
planting, water conservation practices, soil testing, and that
farmers allocate their available supply over all acres based
upon the expected economic return from the various crops.
565 Balancing Fertilizer Application to the Limiting
Nutrient. Part II: The Southeast. J. V. Baird (North Carolina
State Univ., Raleigh). Fert. Solutions 18 (5), 46, 48, 50
(Sept.-Oct. 1974). Even though their price has risen signifi.
cantly, fertilizers will continue to be important in achieving
the high crop yields so necessary to insure reasonable profits
for Southeastern U.S. farmers. This region has long been
dependent on heavy fertilizer use; therefore, careful considera
tion should be given to the most efficient utilization of
nutrients, particularly during the current period of short
Supplies. Inventories of materials are at new lows as a result of
expanded acreage. As dealers reflect on the current season and
look ahead to planning for 1974-75, there are numerous things
that can be done both by dealers and producers to cope with
the shortages. Dealers can help farmers adjust in getting
adequate materials to give the most profitable return. The
agricultural practices (1) soil testing, (2) lime application, (3)
animal manures as supplemental nutrients, (4) management of
nitrogen application, (5) value of legumes, and (6) place of
banded fertilizers are presented in details. The importance of
communication between the dealer and farmer in preventing
spotty shortages is stressed.
566 One Drop at a Time. Carl Fabry. Fert. Solutions 22 (1),
program, drip irrigation can produce superior plant growth,
Speed maturity, and increase production. The use of liquid
fertilizers with the system is one of its most efficient aspects.
Advantages include ease of application, uniformity of distribu
tion and a near constant supply of nutrients. Most growers
injecting liquid fertilizers are primarily using N and K mixes
because of fewer problems with clogged lines. Sources of N
which lend themselves well to the system include urea, urea
ammonium nitrate solutions, ammonium nitrate, and calcium
r1trate.
567 Fluid Fertilizers Versus the Competition. J. L. Strauss
(Taralan Corp. Wheaton, Illinois). Fert. Solutions 20 (1),
102-11 (Jan.-Feb. 1976). Eighteen advantages of fluids are: (1)
homogeneity, (2) better placement, (3) salt index, (4) mini
mum tillage, (5) foliar feed, (6) feed and weed, (7) feed and
seed, (8) fertigation, (9) additives, (10) N-P marriage, (11)
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décomposition, (12) erosion resistance, (13) versatility, (14)
high analysis, (15) time and energy saving, (16) water
solubility, (17) sequestration, and (18) even spread. There is
no more personalized service than a genuine interest in the
profit that is made on each and every acre of a farmer
customer. Profitability analysis of each field, regardless of
crop, is one of the best tools to show personal attention to
each farmer customer. The distributor must know the product,
know its advantages, talk dollars and cents, and provide
personal attention.
568 Aircraft Applies Liquid-Dry Fertilizers. Agrichem. Age
19 (8), 24 (Nov.-Dec. 1976). A 120-foot wingspan Martin 404,
with an 82-foot airfoil boom, may be the forerunner of a new
technology for agricultural aircraft. The airfoil boom, can
distribute liquid and dry materials (such as seeds) simultane
ously from twin 7500-pound hoppers located in the space
formerly used by 44 airline passengers. Two 10-inch side
mounted ram airjets for each hopper direct the airstream past
the inside hoppers. There, the materials is added to the stream
by metering star valves and carried out to the distributing
airfoil boom. With a fuel capacity of 15,000 pounds, the
Martin 404 can cover up to 30,000 acres daily. Location of the
loading equipment is planned for the rear of the cabin Space. A
new turbine liquid mixing system called the Vac-U-Mac can
take a dry fertilizer such as 14-14-14 and mix it into a solution
along with trace elements. This can be applied along with a dry
material such as seeds with the new aircraft.
569 Growers Like Cenex's Double Spread Tack. Custom
Applicator 6 (1), 50, 63 (Jan. 1976). Cenex Cooperative,
Eilendale, Minnesota, increased the volume of custom-mixed
fertilizer from 1000 tons in 1971 to 5000 tons in 1975. About
90% of the increase was due to improved custom application.
Modern applicators, including a flotation truck spreader, are
essential but quality application also is essential. For a
surcharge of $1/acre, fertilizer is double spread. Double
spreading consists of applying fertilizer at one-half the
intended rate and then overlapping each swath by 50%.
Accuracy and uniformity of application are increased 50% and
segregation due to variation in particle size is practically
eliminated. Crop yields are boosted 5%.
570 Nurse Tanks and Toolbars Boost Fertilizer/Ag Chemical
Sales. Ray Bates. Farm Supplier 50 (10), 8-9 (Oct. 1976).
Four county Ag Services, Morristown, Minnesota, has two
40-ft toolbar applicators that are used for custom application
of anhydrous NH3. The company also has nurse tanks for both
anhydrous NH3 and liquid fertilizer. These are used in
conjunction with the toolbar applicators or can be rented by
customers with their own application equipment.
571 Precision Unlocks Tight Fertilizer Dollars. Big Farmer 47
(3), 3 pp. (Mar. 1975). In the new fertilizer economy growers
are discovering that precision application, not huge applica
tion, yields big fertilizer returns. Test comparisons are given
which show that general recommendations for plant nutrients
are not sufficient for large profits. For example, the general
state recommendations for a farm was 200 lbs N, 55 lbs P:Os,
and 100 lbs K2O/acre; a specific recommendation from a lab
on a field to field precision basic resulted in a $10.90/acre
saving, using current fertilizer prices. Soil testing must be
precise, on a field to field basis, and the testing agency must
use standardized methods. Application of nutrients are re
78
ported to vary from 45% to 216% of the intended rate. Since
precision application is so very important, good equipment
and experienced operators are very necessary.
572 A Farmer Views Service Requirements. R. H. Ward
(Crawfordsville, Indiana). In TVA Fertilizer Conference (held
July 27-8, 1976, Cincinnati, Ohio). Muscle Shoals. Ala.:
Tennessee Valley Authority, National Fertilizer Development
Center; Bulletin Y-106; pp. 88-9 (July 1976). The cost of
custom application of fertilizer and herbicides on an 830 acre
corn farm are compared with self application. A $3.50/acre
charge is quoted by the dealer service. A break down of cost
for self application is given. The total charge by the dealer is
$2905/yr and the total cost for self application is $2694. The
cost of self application does not have a timeliness factor
incorporated into it. Because of the timeliness and other
production factors the farm operator cannot justify self
application for a savings of $211.
573 Custom Application Business. Les Hartwig. Custom
Applicator 6 (2), 14-15, 18 (Feb. 1976). Carpenter Sales, Inc.
is an Iowa custom application business with plants at
Bondurant, Martinsdale, and Ankeny. The company uses two
Big A's and two Terra-gators to fertilize up to 300 acres/day/
applicator. An application of fertilizer plus herbicide and other
additives could cost a farmer nearly $100/acre; thus Carpenter
Sales could gross $120,000/day. About 90% of the business
takes place in the spring with 75% of the fertilizer applied
preplant and 25% applied postplant. Over 75% of the
fertilizer—all liquid–goes on corn, 15% on pastures, and 10%
on soybeans. Over 95% of the fertilizer for corn contains a
herbicide. Custom application is limited to within a 5-mi
radius of each plant; when applying 1000 lb/acre, each
applicator uses 150 tons fertilizer/day. Keeping the applicators
supplied with fertilizer is a problem. The small business area
reduces travel time and expenses and also affords greater
opportunities for developing and maintaining close relation
ships with customers. In addition to the president, Lyle L.
Carpenter, the company staff is made up of five Carpenter
sons plus an agronomist. A Burroughs 7200 Series program
mable calculator at the Bondurant plant is used to formulate
each order for fertilizer. Formulations to be prepared at the
Martinsdale and Aukeny plants are telephoned to the mana
gers. All plants use Barnard and Leas Fas-batch punch card
automatic mixing systems. A mini-computer is used to prepare
detailed invoices for customers and to maintain a running
inventory of stock on hand. Carpenter sales was the first in the
area to use pit storage for phosphoric acid. The company also
markets Promesol 20, an organic acid product from Mexico,
which is claimed to neutralize soil acidity. New products,
especially herbicies, are introduced cautiously to obtain local
experience and maintain customer confidence. Fertilizer ratios
have changed with time; 5 yr ago the common N-P2 Os-K2O
ratio was 3-2-1. for about 2 yr it was 3-2-2; last yr it was 3-1-2.
Carpenter insists that fertilizer is a better buy now than it was
a few years ago; the price of corn has tripled but the cost of
fertilizer has only doubled.
CREDIT
 RETAIL SERVICES
574 Credit for Fertilizers. J. Flour Anim. Feed Milling 159
(7), 18 (July 1976). Three new loan schemes designed
specifically to assist farmers in the seasonal purchase of
fertilizers were recently announced by Midland Bank Ltd.
Midland Bank has decided, after successful pilot schemes were
operated in 1975, to extend fertilizer credit facilities on a
country-wide basis. Under these arrangements, farmers can
buy at the optimum time, benefit from early delivery rebates,
and take maximum discount for cash payment. Repayment is
then phased over a time scale geared to the income which is
received from produce sold. Two of these schemes will operate
primarily in conjunction with United Agricultural Merchants
Ltd. through their nationwide outlets. Agreement between
UAM and Midland makes the facilities available at an
advantageous rate of interest, calculated on daily balances.
Repayment will be by three equal installments of capital plus
accrued interest, due on the last business days of January,
February, and March in the yr following that in which the loan
was made. Maximum credit period will thus be 15 months.
575 A Case Study on Bank Credit Needs of Fertilizer
Dealers. T. K. Moulik and S. K. Karanjai. Fert. News (India)
19 (6), 10-14 (June 1974). A sample of 320 dealers,
comprising 3% cooperatives, 52% established businessmen
before starting fertilizer trade, and 45% new managers having
no previous business experience, was drawn by the Eastern
Marketing Zone (EMZ) of The Fertilizer Corporation of India
to study their fertilizer business behaviors during the years
1971-72 and 1972-73. On the basis of their desires and efforts
in running and expanding the business using the bank credit
facilities available, comparative results of the study have been
drawn.
576 Credit Outlook: Spring Thaw for Farm Loans. Farm
Chem. 138 (1), 46-7 (Jan. 1975). The farm loan demand was
strong during the third quarter of 1974. Farmers sought and
obtained more credit than ever before; some of these loans
were outstanding at the beginning of 1975 in order to take
advantage of tax breaks and possible higher prices. Farm
Chemical talked to several leading bankers and the consensus
was that the overall farm loan forecast for spring of 1975 will
be a little tight. Loan demand has been increasing about 10 to
15% each yr. Funds are expected to be available this yr at a
ratio slightly less than this 10 to 15% increase. Interest rates
on production loans are expected to remain fairly stable. At
the end of 1974, the going rate was generally 9-10% except in
states where a usury limit held the line at lower rates.
577 Fertilizer Dealers Scramble for Credit. Agric. Finance 16
(2), 16 (Mar.-Apr. 1975). The fertilizer manufacturers have
shown a reversal in credit policy. The dealer has been switched
to terms of 30 days without any cash discounts. The dealers
are now searching for alternate sources of financing. More
banks are involved in fertilizer dealer financing and collateral
control is required. Banks are establishing loan formulas based
on inventory and accounts receivable. This seems to be the end
of the traditionally liberal credit terms by the manufacturers
that amounted to consignment selling.
578 Distribution Credit for Fertilizers and Role of Banking
System. S. M. Pathak (Bank of India, Bombay, India). In
FALFAO Seminar Strategy Stimulating Fertilizer Consump
tion 1976 Proc. (held New Delhi, India, Dec. 9-11, 1976.) New
Delhi, India: Fert. Assoc. India, V-3(ii)/ 1-8 (Mar. 1977). The
banking system advanced Rs. 4290 million as credit to the
agricultural sector prior to March 1973. Of this, credit for
fertilizer distribution at wholesale and retail level constituted
12.5%. This percentage dropped to 10.9 but total advances
rose to Rs. 9370 million by Dec. 1975. In absolute terms, total
credit to fertilizer distributors and direct to farmers stood at
Rs. 2250 million before Dec. 1975 as opposed to Rs. 920
million before March 1973. By 1978-79 and 1983-84, the
value of fertilizer targeted to be consumed was estimated
around Rs. 15,250 and Rs. 57,250 million respectively.
Assuming that 60% of consumption would be on credit
accounts in 1978-79 and 75% in 1983-84, the institutional
system will have to make available credit to distribution
agencies and ultimate beneficiaries Rs. 9150 and Rs. 42,930
million by 1978-79 and 1983-84, respectively. Distribution
credit should flow to small and marginal farmers. Fertilizer
distributing units should extend their activities over the
geographical areas to cover the population without this input
and should develop an infrastructure like the pilot program
which may facilitate flow of institutional credit.
579 Credit for Fertilizer Consumption and Distribution. B.
P. Sikder (Ministry of Agric. and Irrigation, New Delhi, India).
Fert. News (India) 22 (8), 3-12 (Aug. 1977). The estimated
requirement of fertilizer production credit during 1977-78 and
1978-79 is Rs 1158.59 and 1325.27 crores, respectively. Total
credit available in India for the same periods is Rs 719.30 and
927.50 crores, a substantial deficit. This gap will enevitably
widen if cooperatives are not able to achieve their target of
disbursing production credit. Increased cooperative credit
requires a streamlining of the system through simplifying
procedures for obtaining credit, buying farmers produce, and
proper assessment of farmer's credit requirements. Along with
these modifications, the recovery level of credit should be
raised and commercial banks should open more branches in
the rural areas. The requirement of distribution credit is
estimated to be Rs 529.04 crores for 1977-78 and Rs 695.28
crores for 1978-79. Available credit will not be adequate under
existing arrangements. For a smooth flow of credit from banks
to distribution channels, contraints of high money margins and
high rates of interests have to be removed.
580 Input Innovations, Producer Credit, and Social
Differentiation. H. Hansel (Univ. Dar es Salaam, Morogoro,
Tanzania). East African Universities 8th Annual Social Sci.
Conf., Univ. Nairobi, Nairobi, Kenya (Held Dec. 19-23). Paper
No. 24; 15 pp. (1972). Development in rural areas through
introduction and dissemination of innovations is handicapped
by increased social differentiation and the growth of
inequalities between poor and wealthy farmers. Adequate
producer credit policies, such as input-tied credits, are one of
the means that could help to control extreme inequalities. This
is because input-tied credits provide the additional funds the
small-scale farmer needs for adoption of innovations; at the
same time, they relieve his risk-bearing ability and allow him
to adopt economically less competitive practices. Government
agencies and external donors, demanding and planning
adoption of input innovations which they believe appropriate,
should consider their moral obligation to facilitate farmers
obedience to these demands. Fertilizer use in Ghana serves as
an example of input innovation, producer credit effects, and
social differentiation.
79
 RETAIL SERVICES
581 The Fertilizer Dealer: Lately, No Profit but the Name.
Richard Fenwick (North Carolina State Univ., Raleigh). Fert.
Solutions 20 (6), 110, 114, 116 (Nov.-Dec. 1976). A shortage
of working capital is a real problem today for some dealers. It
is no longer sufficient to maintain just a profitable dealership.
Owners must also maintain a strong financial structure as well
and be able to pay bills when they come due. During the
period of increasing product prices, more and more dollars
were invested in inventory and accounts receivable. At the
same time, suppliers were reducing their terms extended to
dealers. A fertilizer dealer's cycle of bill payment was
increasing faster than the turnover of inventory or accounts
receivable. At the same time, high interest rates discouraged
the borrowing of long-term debt capital. Recently fertilizer
dealers have faced a product price decline and were forced to
mark down margins of fertilizers in inventory. At the same
time, credit terms extended by dealers to customers become
longer. This cycle contributed to a further reduction in
liquidity. If profit is to exist in other than name only, today's
fertilizer dealer must maintain a strong liquidity position.
582 Financial Planning—Retail Cash Flow Management. Part
l: Financial Trends in the Fertilizer Industry. Tom Patterson
(First National Bank Amarillo, Tex.). Fert. Solutions 19 (3),
12, 16 (May-June 1975). Dramatic changes have occurred in
financing patterns of the fertilizer industry. In a 2 yr period
we have moved from a buyer's market to a seller's market. In
the buyer's market credit was used as a selling tool. Manu
facturers felt forced by competition to bear the burden of
manufacturing, selling, and financing. The financial burden has
now been passed to the crop lender. Agricultural creditors
usually have a lien on crops and the financial burden is four to
five times what it was in the sixties simply because of price
increases. Earnings have been high for the farmer the last 2 yr
and he has been able to receive financing. This is a healthly
situation for the industry because it reduces the monetary
needs of the dealer.
583 Financial Planning—Retail Cash Flow Management. Part
II: Lawrence Systems—The Credit Avenue to Working Capital.
Joe Brosnan (Lawrence Systems, Inc., Indianapolis, Ind.).
Fert. Solutions 19 (3), 17-18, 25, 28 (May-June 1975). A
credit crisis developed in the 1973-74 fertilizer season for the
fertilizer dealer. The buyer's market of the past had encour
aged him to use a loosely organized financing system. The
seller's market of today requires a well planned financing
system. The third party, a collateral control company. System
is described. The collateral control company totals the
collateral value of a dealer’s fertilizer inventory and accounts
receivable and issue certificates which guarantee the validity
and the degree to which they may be used as collateral. They
monitor on a day-to-day basis and report to the lender. The
dealer can increase the amount of his loan at any time, up to
the limit agreed upon with the lender.
584 Financial Planning—Retail Cash Flow Management. Part
|||: The Modern Role of Production Credit Association. James
Rogers (Plainview Production Credit Association Plainview,
Tex.). Fert. Solutions 19 (3), 32-3 (May-June 1975). The total
farm debts in the U.S. on January 1, 1975, were estimated at
S95 billion. The 400 plus production credit associations
servicing all areas of the U.S. will furnish approximately 22%
of this credit. Their objective is to provide credit for bona fide
farmers and ranchers and farm-related businesses. Production
80
credit associations secure the majority of their money from
commercial banks, insurance companies, savings and loans and
other corporations through the sale of securities by federal
intermediate credit banks. They are federally chartered and
regulated by the farm credit administration. The local associa
tions, through a board of directors develop their own programs
and lending policies within the framework set down by farm
credit and the Intermediate Credit Bank. Some programs of
the plainview production credit association are discussed.
585 Financial Planning—Retail Cash Flow Management. Part
IV: Dealer Financial Management. V. M. Thompson (Utica
National Bank and Trust Company, Tulsa, Okla.). Fert.
Solutions 19 (3), 34.5 38, 40 (May-June 1975). The fertilizer
business has gone from abundance of supply to serious
shortage. Irom almost no profit to a respectable return on
investment. The dealer has a new set of problems: cash on
delivery, foreign competition, soaring interest rates, fuel
shortages, and the challenge of selling a customer whose profit
picture does not look too promising. The fertilizer business
today requires a new skill; the “think” skill one that helps
intel pret the results of all other skills. The balance sheet
operating record of finances cannot be left to an accountant:
the dealer must be a professional in financial management. The
bunker must be sold on the talents of the dealer.
GENERAL
586 Fertilizer Manufacturers Agree on Dealer Importance.
Farm Store Merchand. 21 (6), 63-4 (June 1977). The farm
store dealer is now and will continue to be very important to
fertilizer manufacturers, according to a Farm Store Merchandi.
sing survey. The major advantage cited was services rendered
by dealers, especially custom application. Other important
advantages reported were a dealers ability to supply credit and
that the fertilizer dealer offered the farmer the best solutions
to his questions on what to plant plus what fertilizer and ag
chemicals to use. Every respondent agreed that the dealer was
an integral part of its marketing philosophy.
587 Dealer's Role in the Future. Robert Book (Elanco
Products Co.). Farm Store Merchand. 18 (9), 40, 42 (Sept.
1975). Potential innovations in crop production and increased
government controls will require fertilizer and chemical dealers
to deliver new services. These include helping the farmer to
confirm planting depth, weather outlook, future markets, new
varieties, and row spacing; tailoring nutrient requirements to
optimum production; checking crop progress in the field, and
coordinating a farmer's financial needs, returns, and credit
sources. The dealer must provide supplies during the same
hours that farmers work. He must maintain a variety of
equipment and also be able to help farmers modify their
equipment. Dealers must attend meetings, seminars, and
training schools and demonstrate new techniques to farmers.
They must serve as outlets for chemical inventions as well as
understand and differentiate all the products they handle.
588 What Will the Dealer of 1980 be Like? David Downey
and John Marten (Purdue Univ., Lafayette, Indiana). Farm
 RETAIL SERVICES
Store Merchand. 18 (11), 9-10, 12, 14 (Nov. 1975). The
successful dealer of 1980 will emphasize service as a profit
center. Dealerships will begin to look like small chains with
operation of 3-10 plants expanding into a 50 mile radius
common. In-office minicomputer will provide systems of
accounting, inventory, and billing while large computers are
used on a time sharing basis. The dealer will be more conscious
of his cash flow and will be skillful in dealing with banks and
other financial sources on a regular basis. The plant will be
more automated using less personnel to perform higher quality
service faster. Highly qualified people will be sharing profits by
limited ownership to avoid loss of key people. There will be a
solid relationship between the dealer and supplier. A more
professional relationship will exist between the farmer and
dealer with the larger farmers making more decisions based on
value received for their dollar. The farmer will be better
educated and spend more time on economics. He will know his
cost of production. The dealer will be spending more to satisfy
government environment and safety regulations. Law suits will
be more common and legal liability of dealer will be of more
concern. Capital cost of dealer facilities are estimated to be
almost 4 times as great in 1980 as they were in 1970.
589 Dealers of 1980s Will put Even More Emphasis on
Service. W. N. Sutherland and J. C. Kramer (TVA, National
Fertilizer Development Center, Muscle Shoals, Alabama). Fert.
Solutions 20 (6), 98, 100, 102, 106, 108 (Nov.-Dec. 1976). A
Iecent study of dealer characteristics important to farmers was
conducted. The characteristics ranked important by farmers
are given in a table. The dealer’s knowledge of fertilizers and
his concern for the farmer's needs ranked high—along with
delivery and application services, honesty, and a good business
relationship. It is evident that even greater demand will be
made on dealer services in the future. The nature and
Sophistication of the farmer-businessman will help dealers
recognize the need for commercial application, soil testing,
and technical backup as an integral part of the farming
operation. The successful dealer of 1980 will likely emphasize
Service to an even greater degree.
590 Dealers: Where They Are, Products They Sell, Services
They Provide. Fert. Progress 6 (5), 14-6 (Sept.-Oct. 1975). A
Survey of 9537 fertilizer dealers in the United States and
Canada by the Fertilizer Institute showed 52.6% were inde
pendently owned, 23.3% were company owned or controlled,
and 24.1% were cooperatives. Nearly 60% of the dealers sold
bulk blended fertilizers, 51% sold N solutions, 44% sold
anhydrous NH3, 31% sold mixed liquids, 12% sold suspen
Sions, and 23% sold compound or manufactured mixtures.
Seventy-six percent of the dealers also handled pesticides, 6.1%
custom applied fertilizers, 42% custom applied pesticides, and
20% handled micronutrients. States with the fewest dealers
were Hawaii 3, Nevada 4, and Utah 5; states with the most
were Illinois 748, Iowa 7 14, Indiana 549, Missouri 512, and
Texas 500. It was estimated that the survey covered about
One-half of the dealers in the U.S.
591 Dealers Can Plan for Optimum Crop Production. C. A.
Wilson (Collingwood Grain Inc. Hutchinson, Kansas). Fert.
Solutions 20 (6), 78, 80 (Nov.-Dec. 1976). Progressive
fertilizer dealers help farmers become better managers. Past
experiences of dealers show that farmers will pay a fair price
for such service as counseling on cropping alternatives, soil
characteristic, past or existing production problems, product
knowledge, fertilizer efficiency, availability of proper tools,
availability of qualified labor, pest management, and finances.
Most fluid fertilizer dealers have acquired sufficient expertise
to adequately evaluate and respond to the information needed
to develop and implement optimum crop production pro
grams. Others know their limits and search for help to
accomplish the task—and only a few become absolete for lack
of knowledge and concern for the customer.
592 Improve Services to Increase Sales. R. B. Frye. In
Situation 77, TVA Fertilizer Conference (held Kansas City,
Missouri, July 26-27, 1977). Muscle Shoals, Ala.: TVA,
National Fertilizer Development Center, Bull. Y-115; 76 (July
1977). The fastest and most efficient way to improve retail
fertilizer sales and profits are discussed. Suggestions are given
to help improve a dealers service practices. They include: (1)
individualized services, (2) precision, (3) offer the most
current customer service, and (4) basing service programs on
customer involvement and economics.
593 Fair Play, Uniform Pricing Help Attract New Fertilizer
Customers. Richard Chamberlin (Editor). Farm Store Mer
chand. 19 (2), 8-10 (Feb. 1976). Sederstrom's Fertilizer and
Farm Supply, Litchfield, Minnesota, believes that sound advice
and good service are as important as price in retaining large
volume customers. Although Sederstrom now has reduced
margins because of the very adequate supply of fertilizer and
the soft market in the fall, price changes are relatively
infrequent. Uniform pricing and fair play to the customer have
attracted new customers to the company. Sound agronomic
advice, such as advising customers not to apply N last fall
because soil temperatures were too high, has helped to develop
customer loyalty. In the service area, upgraded equipment has
speeded up operations. Training farmers to take their own soil
samples also has helped by increasing farmer credibility in the
test results and by improving the accuracy of sample collec
tion. Collection costs have been reduced insofar as the
company is concerned but the company pays the analytical
fees and maintains a record on each field for each farmer
CuStomer.
594 Fertilizer Supply-Demand Situation is Changing. J. R.
Douglas and H. G. Walkup (Tennessee Valley Authority,
Muscle Shoals, Ala.). Farm Store Merchand 16 (2), 90, 92, 94.
96 (Feb. 1973). The retail fertilizer dealer must change his
sales strategy from the buyers' market to a sellers' market. The
Tennessee Valley Authority, in cooperation with The Fertil.
izer Institute, analyzed the financial activities of 18 randomly
Selected bulk blenders in the U.S. The average investment was
$90,000 and the average annual operating cost was $64,300.
Free services increase operating costs rapidly. Without free
Services the break even vol was 3395 tons of material. When
free Services valued at $2/ton were provide 4000 tons sales
were required for break even and when a 5% discount was
given the break even point moved to 4700 tons of material.
When the free service and 5% discount were both provided the
break even point increased to almost 6000 tons/yr. In the
sellers' market retailers must evaluate their sales and service
strategy as carefully as their purchasing strategy.
595 Trends in Fertilizer Dealer Services for Farmers. W. N.
Sutherland and J. C. Kramer (TVA, National Fertilizer
Development Center, Muscle Shoals, Alabama). In TVA
Fertilizer Conference (held July 27-8, 1976, Cincinnati, Ohio).
81
 RETAIL SERVICES
Muscle Shoals, Ala.: Tennessee Valley Authority, National
Fertilizer Development Center; Bulletin Y-106, pp. 84-7 (July
1976). Studies of the effectiveness of fertilizer dealer services
on sales have been conducted. Dealer characteristics important
to farmers are reported. In the future greater demand will be
made on dealer services. The nature and sophistication of
farmer-businessmen will help dealers increasingly recognize the
need for dependable and timely commercial application, soil
testing, and technical backup as an integral part of the farming
operation. The successful dealer of 1980 will likely emphasize
service to an even greater degree.
596 Trends in Selling and Servicing. Richard Warner (Warnel
Fertilizer Co., Inc.). In TVA Fertilizer Conference (held July
27-8, 1976, Cincinnati, Ohio). Muscle Shoals, Ala. Tennessee
Valley Authority, National Fertilizer Development Center;
Bulletin Y-106; pp. 43-5 (July 1976). The experiences of a
fertilizer company in Kentucky in sales and service over the
last 11 yr are presented. The forecast is that the future of
fertilizer retailing belongs to the progressive retailer who is
profit-minded and uses sound principles of money manage
ment while providing needed services.
597 Trends in Selling and Servicing: Some Approaches in the
United Kingdom. J. W. Poulton (Pertwee LANDFORCE Ltd.,
England). In TVA Fertilizer Conference (held July 27-8, 1976,
Cincinnati, Ohio). Muscle Shoals, Ala. Tennessee Valley
Authority, National Fertilizer Development Center; Bulletin
Y-106; pp. 46-8 (July 1976). Fertilizer industry operations in
the United Kingdom are unlike those of the United States.
Some 85% of United Kingdom fertilizer production is in the
hands of three large international companies. These companies
depend on agricultural merchants, distributors, and coopera
tives for the distribution. For these distributors, profitability is
often as low as 1-2%. The title company turned to bulk
blending for development and growth, because it offered
opportunity to service and sell profitably. Bulk blending.
contribution within the United Kingdom fertilizer System is
6%; however, its future looks bright. The need to provide
exactly what the crop and soil requires has never been greater.
If the trend continues, blending either dry or liquid may
develop in the United Kingdom much more quickly than it has
in the past decade.
598 Dealer Emphasis Paramount in Agrico Marketing Plans.
Fert. Solutions 20 (2), 8-10 (Mar.-Apr. 1976). Agrico Chemi
cal Company has organized a network of dealers called
“Certified Crop Care Centers”. Dealers are selected for the
program on their ability to provide total service to their farmer
customers. Agrico plans the marketing program for the dealer
promoting the dealer's image within the locale in which he
lives rather than advertising Agrico, a distant manufacturer.
Services offered to dealers from Agrico are: (1) a fluid process
unit that can produce 30-35 tons/hr of fluid blend; (2) a
financial guidance program called DART, a computerized
system that helps dealers examine their financial affairs; (3)
publications for dealers and farmers; and (4) soil and plant
analysis. the success of the program is such that Agrico entered
1976 with “Certified Crop Care Centers” in every geographical
area east of the Rockies and with more in the process of
signing up. In 1976 the company plans to put a 26 ft van on
tour in Agrico marketing areas with educational material and
displays of interest to dealers and farmers.
82
599 Kaiser Goes to Package Approach in Offering Lab
Services to Farmers. C. E. Fulcher and Barbara Anderson
(Kaiser Agric. Chemicals). Fert. Solutions 19 (5), 56, 58, 60
(Sept.-Oct. 1975). Kaiser Agricultural Chemicals has devel.
oped a package approach in a long range program to help the
customer optimize his profits through more efficient fertilizer
usage. The initial step includes three areas: (1) soil testing,
lime and fertilizer recommendations; (2) plant analysis; and
(3) nematode assay.The soil tests include analyses for P, K, Ca,
Mg, and pH as standard tests; organic matter, base saturation,
exchange capacity, micronutrients and S tests are available
upon request. Eleven elements are determined in plant samples
and nutrients are reported as high, sufficient, or deficient. In
the nematode assay, the farmer's fields are sampled and the
kind of nematodes present and the population levels of each
kind are determined.The company has two soil analysis centers.
They are located in Sullivan, Illinois and Savannah, Georgia.
Each center is staffed with qualified personnel and fully
equipped with the most modern instruments.
600 Fertilizer, Chemical Experience, Expertise Pay Off for
Holden Fertilizer. Shelley Simak (Editor). Farm Store Mer
chand 19 (2), 34-5 (Feb. 1976). A handout of Holden
Fertilizer, Holden, Missouri, lists 22 products and services
offered, 13 of which are fertilizer or chemical oriented.
Familiarity with customers' operations, field needs, and soils
result in high quality service to customers. Custom application
of fertilizers and chemicals is emphasized. Custom application
not only gives the farmer more time to concentrate on other
essential jobs during the spring rush but also provides the skill
and proper equipment for applying fertilizers and chemicals
and eliminates the need for farmers to develop this expertise.
Most customers are using dry fertilizers but the trend is to
liquid fertilizer because it is easier to calibrate liquid equip
ment and to spread liquids more precisely. Aerial photographs
are used to identify customer fields, most of which are within
a 15-mile radius of the plant. The company maintains records
of fertilizer applications to each field. Soil testing is promoted
and demonstrations are used to test fertilizers, herbicides, and
seeds. Rental equipment also is available but most customers,
as well as the company, prefer custom application.
601 On-Farm Sales-Service Moves Fertilizers and Ag Chemi
cals in Volume. Jean Ehly. Farm Supplier 50 (4), 24-5 (Apr.
1976). Taylor-Evans farm store in Tulia, Swisher County,
Texas, stocks supplies and chemicals for its customers and also
has an aerial spraying service and spray rigs for customers to
use. Infield inspection for farmers within a 15-mile radius of
the plant is an important part of the service program.
Fieldmen take soil samples and advise farmers on fertilizeſ
needs on a field-by-field basis. Occasionally, tissue samples are
analyzed in the field to determine if the correct fertilizer rates
were used. Fieldmen discuss crop yield potentials with farmers
and use soil test results to evaluate N carryover from one yr 10
the next before recommending fertilizer rates to achieve the
yield goals.
602 Florida Fertilizer Company Emphasizes Service and
Technology. Farm Chem. 138 10, 18-28 (Oct. 1975). A
medium sized independent fertilizer dealer operating in three
agricultural countries of Southern Florida was interviewed.
Many technical services must be supplied to the farmer that
large companies are not interested in providing. This company
 RETAIL SERVICES
has specialized technicians that work with customers in
checking crops and advising with regard to fertilizer use. The
company uses quality products, modern equipment, and well
trained personnel. Modern office computer equipment is
essential for formulations needs in this area. The company
feels that because of diversified agriculture and year around
growing season they occupy a very key place in the industry.
603 Fertilizer Service Center for Philippines. Jap. Chem.
Week 14 (668), 6 (Feb. 15, 1973). The Ministry of Inter
national Trade and Industry and the fertilizer industry have
been making preparations to establish service centers in the
main countries in Southeast Asia one by one in order to
extend technical assistance in agriculture centered around
wide-spread use of fertilization techniques. The service centers
will start functioning shortly with completion of the first
service center in Manila (Philippines) scheduled for October
this yr. The Ministry of International Trade and Industry and
the fertilizer industry dispatched a survey team there for 12
days to investigate local conditions.
WORLD TRADE
EXPORTS
604 Australian Ammonia for Export Market. Eur. Chem.
News 27 (679), 18 (Mar. 21, 1975). An additional 40-45,000
ton/yr of ammonia will be available for export when Kwinana
Nitrogen's major customer in Australia-Western Mining Cor.
poration (WMC), brings its own plant on-stream later this yr.
With its available ammonia about to double, Kwinana Nitrogen
is now looking at ways of disposing of the surplus production.
At present there is a strong export market and while it holds
the company does not expect to have any problems.
605 Australian Phosphate Rock Export. Eng. Min. J. 177
(7), 132 (July 1976). Rock phosphate from the huge new
open-pit Duchess deposit in northwestern Queensland will not
be sold within Australia for at least another 3 yr but will be
reserved for export. Following the government decision in
1975 to allow Broken Hill South to export up to 2 million
mt/yr, all phosphate rock is being shipped from the Queens
land port of Townsville. Broken Hill does not expect to reach
the 2-million-mt/yr production level until 1978. Christmas
Island is currently producing close to its capacity of 2 million
mt/yr. Sales are divided almost equally between Australia and
New Zealand on a cost-plus-freight basis.
606 Bulgarian Nitrogen Exports. Nitrogen No. 82, 26-9
(Mar.-Apr. 1973). Bulgaria has been the most prominent of the
three new East European fertilizer N exporters for the last 5
yr. During this period it has exported up to 200,000 tons N/yr
of material out of a total production of 550,000-600,000 tons
N/yr. Bulgarian N exports have found major markets in North
Africa, India, China, and Turkey, with more modest shipments
going into markets such as Cyprus, Italy, Yugoslavia and, more
recently, much of Western Europe. Quantities of material have
also gone into Cuba, and several smaller markets in Latin
America and Africa. Over 65% of total N fertilizer exported is
urea, followed by ammonium nitrate, and ammonium sulfate.
The achievement of the present production and consumption
levels has strained Bulgaria's investment capacity, particularly
where expenditures in hard currency are concerned. Growth in
N exports from 1968 onwards has provided some relief to
these difficulties by increasing hard currency earnings, but
there are currently difficulties in boosting agricultural output,
which still provides 45% of Bulgarian export revenue.
607 Canadian Potash Sold to China. Chem. Mkt. Rep. 204
(26), 5 (Dec. 24, 1973). Canpotex, Ltd., exclusive overseas
marketer of all Saskatchewan potash, has made another in its
series of huge fertilizer sales to China—this time 170,000 mt
for delivery between July and December 1974. Potash sales by
Canpotex to China in 1974, including this contract and the
previously announced sale of 150,000 mt (see FA 7, 99) will
be more than five times the vol shipped in 1973.
608 Canadian Potash Export to Korea. Chem. Mark. Rep.
210 (22), 3 (Nov. 29, 1976). Campotex, Ltd., Toronto,
Canada, has reached agreement on a long-term contract to
supply potash to Nanhae Chemical Co. in the Republic of
Korea. Nanhae, whose shareholder is the government of Korea
is constructing a major fertilizer complex which will come on
stream in 1977. The contract covers Nanhae’s total potash
requirements up to the end of 1980, according to the
president of Canpotex, and is expected to involve approxi
mately 600,000 mt of muriate of potash during this period.
609 Canadian Exports Fall Off Sharply. Eur. Chem. News 28
(720), 14 (Jan. 23, 1976). A 25% decrease in exports in the
first 10 months of 1975 and a similar size decrease in prices
has made it an unhappy yr for Canada's sulfur industry.
Export levels began to fall in March and the 10-month figures
show US shipments down from 915,000 to 705,000 ton and
offshore sales at 1.8 million ton against 2.5 million ton for the
comparable 1975 period. Prices fob plant stayed firm until
autumn, averaging $24/ton fob plant, but have been dropping
since. Some producers are currently getting only $19/ton.
Spot prices fob Vancouver (slated sulfur for offshore ship
ment) had been over $50/ton early in 1975, but are now being
quoted at Canadian $41-42/fob. Canadian production for
1975 (10 months actual plus two months estimated) is given as
6.5 million ton of which 6.45 million ton was from Alberta.
610 Canadian Fertilizer Exports—1977. Fert. Int. No. 102; 3
(Dec. 1977). Shipments of Canadian fertilizers during 1976-77
were 6% below the 1974-75 yr level. Exports during 1976-77
were up 21%, thus averaging 19% for the yr ended June 30,
1977. East Canadian shipments increased slightly more than
West Canadian totaling 1389 tons compared with 1299. Potash
shipments showed the most significant increase, up 33%
compared with increases of 14% and 2% for N and P,
respectively. Total inventories at yr-end were down slightly to
2192 tons compared to 2260 tons in 1976.
611 Fertilizer Commodities Exports—Chile. Mineral Trade
Notes 74 (6), 10 (June 1977). Washington, D.C.: U.S. Bur.
Mines. Fertilizer commodities exported from Chile in 1976
amounted to 377,643 mt value at U.S. $30,227,756, repre
senting a gain of nearly 7% and a decline of over 28%,
respectively, from the 353,159 tons valued at U.S.
$42,238,381 exported in 1975.
612 China-Exporter of Nitrogen by 1980. Fert. Int., No. 58,
6 (Apr. 1974). The People's Republic of China has been the
83
 WORLD TRADE
world's largest importer of N fertilizers for almost a decade,
and entil 1972 was expected to remain an important importer
until at least 1980. The balance between domestic supply and
consumption requirements was met by large-scale imports
costing upwards of $100 million/yr from Japan, Western
Europe, and latterly Kuwait and East European suppliers.
China became Japan's best customer taking up to 80% of
exports in more recent years. Since 1972 the picture has
changed very fast. China has emerged as one of the very few
populous countries with an existing hydrocarbons surplus and
high untapped reserves particularly in the continental shelf.
Secure feedstock has undoubtedly played an important role in
determining the spectacular growth in fertilizer N plant
contracts over the past 2 yr. No less than fifteen 1,000
tons/day ammonia-1,740 tons/day urea projects have been
planned for completion by 1979. China has a generally
excellent record for sustained efficient plant operation, so that
the additional capacity suggests either a large boost in
consumption, above 4 million tons N/yr by 1980, or the
creation of a modest commercial export capability.
613 European Producers Win Big Fertilizer Export Contract
in China. Eur, Chem. News 27(695),4 (July 18, 1975). Leading
European fertilizer producers have signed a major deal for the
export of fertilizers to the People's Republic of China.
Arranged through the Zurich-based export association Nitrex,
the trade involves the delivery of between 400-500,000 ton
from July to December this yr. The trade is thought primarily
to concern urea, but 20-30,000 ton of calcium ammonium
nitrate and some ammonium sulfate is also involved. Prices are
said by industry sources to be below those ruling on the
international market—that is probably below $150/ton for the
urea. Last yr urea was being sold in the Far East for over
$360/ton. Nitrex represents leading fertilizer manufacturers in
Norway, Germany, the Netherlands, Austria, Belgium, Switzer
land, and Italy.
614 Indonesian Urea Exports. Chem. Age (London) 114
(3006), 16 (Feb. 25, 1977). Indonesia has announced plans to
export some 250,000 mt of urea fertilizer this yr. It is planned
to gradually increase exports to the Philippines to 50,000
mt/yr. Indonesia is currently undergoing a major capacity
increase in urea fertilizers. A 570,000 mt/yr plant was started
up by P. T. Pusri in South Sumatra in December bringing total
Indonesian urea capacity to just over 1 million mt. A further
570,000 mt of urea capacity is due on-stream this yr at the
Pusri site in Sumatra. Another 570,000 mt/yr urea and
ammonia facility is also being planned by Indonesia for a site
in North Sumatra.
615 Indonesia to Become Major Fertilizer Exporter. Chem.
Age (London) 116 (3049), 6 (Jan. 6-13, 1978). Indonesian urea
fertilizer production for 1978-79 is estimated to be 2.3 million
mt according to industry authorities. Phosphate production
during the period is expected to reach 460,000 mt. Production
capacity has recently been raised to about two million mt
following the start-up of the 570,000 mt ammonia-urea Pursi
complex. As a result of this increased capacity the Indonesian
Government has recently signed export contracts for a total of
521,000 mt/yr of fertilizer with Pakistan, Sri Lanka, India,
Malaysia, Singapore, New Zealand, Australia, and the Philip
pines. The switch from major importer to major exporter will
provide a definite boost to the nations foreign exchange
reserves. In 1974 imports totaled $907 million but since then
84
they have fallen rapidly. In 1975 the total was $384 million
and by 1976 a further decrease brought imports down to only
$13.4 million.
616 Ireland Exports Urea. Nitrogen, No. 88, 8 (Mar.-Apr.
1974). Recent reports from Ireland reveal that at a time when
every ton of fertilizer is vital to the agricultural sector, large
quantities of urea are being reexported because of higher
profits to be made abroad. The urea originally was imported
by the same companies at a time when it could be bought
cheaply from several international sources. Low-priced
imported urea has enabled importers to undercut Eire's
domestic N producers, and created considerable opposition
from workers in the fertilizer industry, who were seeing their
jobs threatened. In 1973, more than 60,000 mt were brought
into the country. Now the picture has changed totally in the
wake of the fuel crisis and other raw material cost increases.
Urea, as have other fertilizers, has rocketed in price and this
has prompted the turnabout export trade. A shipment of 400
tons has already reached the United Kingdom and another of
2000 mt has gone to the United States.
617 Ireland Fertilizer Export. Eur, Chem. News 29 (760), 47
(Nov. 5, 1976). Nitrigin Eireann Teoranta (NET), the Irish
state-owned fertilizer producer, claims to have export orders
worth £150 million for products from its new ammonia-urea
plant under construction at Cork Harbor. The company claims
that export orders at this level will keep the plant in
production from beginning operation in 1978 until the
mid-1980s. After 1985, NET believes that Irish demand for
ammonia and urea will take up the entire output of the £72
million plant. In the plant's initial stages, some 60% of
production will be exported, with the balance supplied to the
domestic market.
618 Fertilizer Export Ban Being Urged by Italians. Chem.
Mkt. Rep. 206 (9), 7 (Aug. 26, 1974). Italy's farming industry
has called on the government in Rome to ban overseas sales of
fertilizers unless manufacturers agree to give priority to home
market sales. Figures for the first half of this yr show that
fertilizer exports increased 164% to a total value of 24.8
billion lire while imports were up 39% to 20.6 billion lire.
619 Japanese Fertilizer Export Increase. Jap. Chem. Week
15 (747), 5 (Aug. 22, 1974). Reflecting price markups,
Japanese fertilizer exports in 1973 fertilizer yr (July
1973-June 1974) declined in quantity but gained in value. All
types of fertilizers exported during the yr aggregated
3,682,000 tons, off 13% from the previous yr, but earned
$279,451,000, or a 20% gain. Volume exports declined
because the greater part of output was consumed at home.
620 Japan to Provide Nitrogen Fertilizers to International
Relief Supply Pool. Jap. Chem. Week 15 (760), 6 (Nov. 21,
1974). The Japan Urea & Ammonium Sulphate Industry
Association tentatively decided that the industry contribute a
total of 50,000 tons of nitrogen fertilizers to a proposed
international fertilizer relief supply pool for developing
nations. The projected pool of special cut-rate fertilizeſ
supplies from Japan and other major fertilizer-producing
nations is to be set up with funds to be donated by advanced
nations. According to the Association, it plans to ask the FAO
to do its best to send the Japanese industry's 50,000-ton
 WORLD TRADE
supplies to Nepal, Bangladesh, and Sri Lanka. The industry
prefers that such emergy Japanese supplies go to really
fertilizer-short and hard-pressed Asian nations among the
industry's regular customer countries, not to other developing
ſlātl OnS.
621 Japanese Urea-Ammonium Sulfate Exports in 1974.
Jpn. Chem. Week 16 (777), 1 (Mar. 20, 1975). With fertilizer
export talks with China settled, Japan Urea & Ammonium
Sulphate Export Co. recently announced that total urea
export contracts concluded in 1974 fertilizer yr aggregated
2.470,000 tons and that ammonium sulfate contracts totaled
510,000 tons. Urea export contracts with China in 1974
fertilizer yr amounted to 905,000 tons, the biggest export
destination, followed by Indonesia 500,000 tons, India
450,000 tons and the Phillippines 320,000 tons, and ammo
nium sulfate export contracts with China came to 180,000
tons, followed by Sri Lanka 65,000 tons.
622 Japanese Urea—Ammonium Sulfate Export. Jap. Chem.
Week 16 (801), 5 (Sept. 4, 1975). According to the Associa
tion's report on export in fiscal year 1974, ammonium sulfate
decreased by over 200,000 tons to 610,622 tons from the
previous fertilizer year's 841,383 tons. Urea increased to
2,450,247 tons, more than 300,000 tons over the preceding
year's figure of 2,121.481 tons because of domestic produc
tion increase. Destination-wise, exports of ammonium sulfate
to China came to 243,900 tons, a decrease of more than 50%
from the previous fertilizer yr. Against this, ammonium sulfate
to India accounted for 20,000 tons, reviving from nil in the
preceding fertilizer yr. Exports of urea to China dropped by
some 260,000 tons from the preceding fertilizer yr to 878,920
tons. However, urea to India rose by 200,000 tons to 556,575
tons and to Indonesia gained by 160,000 tons to 499,740
tons. Furthermore, urea exports to the Philippines, Egypt, and
others also increased. As a result, increase of urea exports
aggregated more than 300,000 tons.
623 Japan's Ammonium Sulfate-Urea Export. Jpn. Chem.
Week 17 (854), 11 (Sept. 9, 1976). Exports of ammonium
sulfate fertilizer in the 1975 fertilizer yr ended in June topped
the previous yr level, but exports of urea declined by nearly
50%, according to the Japan Urea & Ammonium Sulphate
Industry Association. Figures published by the Association
show ammonium sulfate exports in the yr totaled 666,000
tons, compared with 61 1,000 tons for the previous yr, and
urea exports amounted to 1,245,000 tons, against 2,450,000
tons the previous yr. Major markets for ammonium sulfate in
the 12-month period were China, which took 389,000 tons,
Sri Lanka (32,000 tons), Malaysia (23,000 tons), Thailand
(59,000 tons), Fiji (32,000 tons), New Zealand (14,000 tons),
the United States (71,000 tons), and El Salvador (21,000
tons). China remained the top importer of urea, taking
943,000 tons, followed by India (25,800 tons), Malaysia
(14,000 tons), Vietnam (6000 tons), and the United States
(5000 tons).
624 Japanese Ammonium Sulfate Exports. Fert. Int. No. 99;
4 (Sept. 1977). Exports of ammonium sulfate from Japan in
the yr ending June 1977 reached the record level of 1.5
million mt. This is more than the total tonnage exported in the
2 yr up to June 1976 and just exceeds the previous record set
º in 1966-67. Shipments of ammonium sulfate to China were at
the highest level for 3 yr, although in percentage terms sales to
China accounted for less than one-third of the total compared
to 58% in 1975-76 and 64% in 1973-74. Taiwan was the
Second most important customer in Southeast Asia, importing
165,000 mt of ammonium sulfate in 1976-77 compared with
only 10,000 mt in the previous yr. Exports to Malaysia and
Thailand also reached new heights and there was a recovery in
Sales to Sri Lanka, the Philippines, and New Zealand.
625 Japanese Fertilizer Contract with China. Jap. Chem.
Week 14 (681), 5 (May 17, 1973). Japan has concluded its
talks with China on fertilizer exports during 1973 fertilizer yr.
The Japanese fertilizer industry won higher prices for a smaller
volume than last yr. It was agreed that Japan would export
600,000 tons of ammonium sulfate and 1,150,000 tons of
urea. The total of 3,130,000 tons in terms of ammonium
sulfate is 330,000 tons less than last year's entire exports. The
ammonium sulfate was priced 4.2% higher than last yr and the
urea cost 32% more for an average markup of 35%. Therefore,
despite the decrease in volume the price for the two items is
larger than last yr. The Japanese fertilizer industry is in a
favorable position after long years of depression due to a
natural gas shortage in the U.S.A. and a sharp increase in
international demand which in turn led to a fertilizer shortage.
626 Japanese Fertilizer Export Contract With China. Chem.
Econ. Eng. Rev. 8 (3) (No. 93), 45 (Mar. 1976). The Japan
Urea & Ammonium Sulphate Industry Association announced
the signing of a fertilizer export contract with China covering
the 6-mo period from February to July 1976. According to
the contract, Japan will export 160,000 tons of ammonium
sulfate and 325,000 tons of urea, or a total of 900,000 tons as
ammonium sulfate. The total export price is ¥16,000 million,
which will be paid in dollars without usance. The contract
price is also denominated in dollars. The export volume is
about half of the level in the boom periods.
627 Japanese Exports to China. Fur. Chem. News 30 (792),
8 (June 24, 1977). Japanese fertilizer producers have signed a
contract for the export of some 962,000 ton of fertilizers to
China. The contract underlines the increasing view that prices
are now on the uptrend. Under the terms of the trade, Japan,
which traditionally exports around 40% of its fertilizers to
China, will deliver 542,000 ton urea and 150,000 ton ammo
nium sulfate by December of this yr and a further 270,000 ton
of ammonium chloride by March 1978. Prices for the Japanese
urea are $127/ton f.o.b. compared to $120/ton agreed in the
recent Nitrex/China deal. The Nitrex contract involved
delivery of about 500,000 ton of single and complex fertilizers
to China.
628 Japanese Ammonium Sulfate Export to United States.
Jpn. Chem. Week 17 (829), 7 (Mar. 18, 1976). Nissho-Iwai
Co., a major trading company, said recently it had signed a
contract to export 15,000 tons of ammonium sulfate to Valley
Nitrogen Producers Inc. of the United States. This is the first
time that a U.S. company has ordered ammonium sulfate from
Japan. The United States is a major ammonium sulfate
manufacturing country. The Japanese fertilizer industry has
begun studying whether the American company will buy more
ammonium sulfate from Japan. If the U.S. company buys
more ammonium sulfate from Japan, it will be a boon to the
Japanese fertilizer industry.
629 Japan Exports Fertilizer to Vietnam. Jpn. Chem. Week
85
 WORLD TRADE
17 (865), 1 (Nov. 25, 1976). Negotiations for Japan's first
export of fertilizer to Vietnam since its unification have got
under way, the Japan Urea & Ammonium Sulphate Industry
Association disclosed recently. The Association said Vietnam
has offered to buy next yr fertilizer from Japan with money
credits which are repayable over a five-yr period. Vietnam will
import a total of 300,000-350,000 tons of fertilizer next yr.
Japan wants to supply one-third of it. Before the unification,
Japan exported a total of 40,000-50,000 tons of fertilizers to
the former South Vietnam in 1965 through 1974, and 75,000
tons to the North.
630 Japanese Sulfur Exports. Jpn. Chem. Week 18 (897), 7
(July 7, 1977). The working group of the Mining Industry
Council recently began a review of the 5-yr sulfur and sulfuric
acid demand-supply estimate which was compiled in Sept.
1976 by the Agency of Natural Resources and Energy. In the
review, the export target of sulfur for fiscal year 1977
beginning April has been revised to 420,000-430,000 tons,
10,000-20,000 tons lower than the earlier estimate. Because of
excessive capacity the amount of the sulfur export target to be
set had increased yr by yr. Taking the various factors involved
into account, the working group is likely to review the
demand-supply position of sulfur and sulfuric acid at a lower
level.
631 Japan Exports Sulfur to China. Jpn. Chem. Week 17
(865), 1 (Nov. 25, 1976). Mitsui & Co. has become the first
firm in Japan to close an export contract for a total of 4000
tons of solid sulfur with China. China is reportedly to use all
the Japanese sulfur, which is produced by Kyokuto Petroleum
Industries, Ltd., for the production of sulfuric acid used in
fertilizer. The Communist country is a major sulfur consumer
in Asia. Until now, it has entirely depended on Canada for the
supply of the product, importing 400,000-500,000 tons/yr.
Troubled by an excessive supply of sulfur, Japan's manu
facturers have a deeper interest in China as a promising export
market than they do in Korea.
632 Japanese Exports of Sulfuric Acid. Jpn. Chem. Week 17
(835), 5 (Apr 29 1976). America's Texas Gulf Inc. has turned
to Japan for a supply of 400,000 tons of sulfuric acid over the
next 2 yr. The negotiations center on ways of sharing costly
freight charges—a major remaining obstacle to the export
contract. Japanese exporters have expressed willingness to
shoulder $10 for every 10 tons to be transported across the
Pacific Ocean, probably aboard a special European carrier to
be chartered by the American firm.
633 Japanese Sulfuric Acid Export. Jpn. Chem. Week 18
(880), 5 (Mar. 10, 1977). Shipments of sulfuric acid in 1976
totaled 116,575 tons, showing an increase of as much as
56,705 tons over the yr before. In particular, December export
jumped to 46,223 tons, a monthly all-time high.
634 Kuwait Signs Urea Export Contracts. Eur, Chem. News
31 (801), 11 (Sept. 2, 1977). Kuwait Petrochemical Industries
has concluded a 5-yr agreement with the Sudanese Ministry of
Finance for the sale of 200,000 ton/yr of urea for a 5-yr
period. Deliveries will be made to Port Sudan and prices will
be renewed annually. The company has also signed an
agreement to supply India with 150,000 ton/yr of urea, with
both quantities and prices renewed every 6 months. Under the
agreement, 75,000 tons is scheduled to be shipped during the
86
first half of 1977 with an option to supply an additional
25,000 tons at a price of $150.50/ton delivered to India’s west
COaSt.
635 Ammonia Exports to Begin in Libya. Nitrogen No. 110;
11 (Nov.-Dec. 1977). The first commercial shipments of
anhydrous ammonia from National Oil Corp.’s new Mersa-el.
Brega plant are expected in January or February 1978. The
Libyan ammonia will be distributed through the Brega
Petroleum Marketing Co. No down-stream product is expected
to be produced at the plant until 1980 when a 152,000 ton/yr
N urea unit comes on stream. A second ammonia-urea
complex is also scheduled for commissioning soon. Because of
the physical conditions prevailing in Lybia, N fertilizer
consumption is insignificant, little more than 10,000 ton/yr. A
level of 50,000 ton/yr is unlikely to be reached until 1980, so
that nearly all the ammonia and urea produced at the new
complex will be offered for export.
636 Mexico Begins Ammonia Exports. Chem. Week 120
(23), 44 (June 8, 1977). Mexico will begin exporting ammonia
in September. Shipments are projected at 280,000 mt in 1977,
760,000 in 1978, 599,000 in 1979, 717,000 in 1980, 599,000
in 1981, and 490,000 in 1982. Total export income for the
material is expected to reach $344.4 million in the 6-yr period.
In a capacity buildup under way, state-owned Petroleos
Mexicanos will bring three ammonia plants on-stream this yr.
637 Morocco Exports Phosphate to United States. Eur.
Chem. News 30 (791), 6 (June 1977). Morocco has scored a
notable first in its exports of phosphate rock. It has just signed
a contract to supply phosphate to the U.S. fertilizer company
Beker Industries for the latter's complex at Taft, Louisiana.
Terms of the deal and its duration have not been revealed but
the quantities involved are around 1.5 million ton/yr of
phosphate rock. The 207,000 ton/yr P. Os Taft plant
presently draws its supplies from Florida.
638 Morocco–Soviet Phosphate Deal. Chem. Week 122 (6),
30 (Feb. 8, 1978). Phosphate fertilizer shipments from
Morocco to the U.S.S.R. will begin this yr under terms of a
$10 billion, 30 yr contract. The shipments are expected to
reach 10 million tons/yr by 1980. They will include phosphate
rock, triple superphosphate, and phosphoric acid. In return,
the U.S.S.R. will supply Morocco with oil, timber, potash,
ammonia, and mining equipment.
639 Thriving Dutch Fertilizer Industry Plans to Expand
Exports in 1975. C. J. Warren (U.S. Agr. Attache, London,
England) and Herman Keyman. Foreign Agr. 12 (47), 7, 20
(Nov. 25, 1974). The Netherlands is the world's third largest
exporter of N fertilizer and also a big net exporter of
phosphate fertilizers. The Dutch production facilities are more
than adequate. The fertilizer factories are reported to be
working at 85-90% of full capacity. At 100% capacity they
could produce 2.25 million tons annually. They plan to export
1.19 million tons of N fertilizer in 1974-75 and 340,000 tons
of phosphate compared to 1.15 and 330,000, respectively in
1973-74. More than 80% of total Dutch production of
fertilizers is nitrogen products from domestic supplies of
natural gas which is well above industry needs. The phosphate
fertilizer industry is dependent on imports of phosphate rock.
A large part of Dutch nitrogen export will go to western
Europe, with sizable quantities to the U.S., China, India,
 WORLD TRADE
Indonesia, Brazil, and Egypt.
640 North American Potash Deliveries. Feed Farm Supplies
69 (11), 25 (Nov. 1972). Total deliveries of potash for all
purposes (including exports) by the North American potash
producers, plus overseas imports into the United States, were
12,051.865 tons of salts containing an equivalent 7,124.302
tons of K2O during the fertilizer yr of July 1971-June 1972,
according to the Potash Institute. This was an increase of 12%
over the preceding fertilizer yr. Total exports to other
countries were 1,830,983 tons of K2O, an increase of 27.5%.
Imports from overseas were 10,508 tons K2O, an increase of
27%.
641 North American Potash Sales. Chem. Mkt. Rep. 203
(21), 25-6 (May 21, 1973). Potash Institute of America says
total sales of potash salts by North American potash producers
(including exports) for the first quarter of 1973 were about
3.8 million tons of salts containing the equivalent of about 2.2
million tons K2O. This was an increase of 10% over sales
during the first quarter of 1972. Total agricultural sales,
including exports, were up 9% at about 2.1 million tons K2O.
Exports themselves dropped 2% at 541,320 tons of K20.
North American producers sold 1.5 million tons K2O in the
U.S., 15% more than they did in 1972. The U.S. imported
49,153 tons from overseas. Agricultural sales in Canada
amounted to 42,354 tons K2O, an increase of 9%. The
sharpest rise in sales was in the nonagricultural segment of the
market, which rose 33% to 119,239 tons K2O equivalent.
642 Fertilizer Export to North Korea. Jpn. Chem. Week 16
(781), 7 (Apr. 17, 1975). The Japanese Fertilizer Industry has
signed a contract to export 15,000 tons of urea and 10,000
tons of compound fertilizer to North Korea. The fertilizer will
be shipped to the communist nation in the near future. It will
be the first fertilizer export to North Korea from Japan.
643 Peru Plans Phosphate Export Increase. Chem. Age
(London) 110 (2917), 11 (June 13, 1975). Peru is planning
exports of phosphate fertilizers totalling 838,000 tons/yr in
1976, when the first stage of the country's Bayovar fertilizer
complex is scheduled to come on stream. The export trade will
be worth about $26 million to Peru. Major utilization of
phosphate developments along the northern coast of Peru is to
be started in the next few months. The proven reserves of
phosphate rock totalled 606 million mt, while total forecast
reserves were as much as 44 billion tons. Initial output from
the Bayovar fertilizer complex is planned to be 882,000
tons/yr, with 44,000 mt scheduled for the home market.
644 Poland Curtails Fertilizer Exports. Eur. Chem. News 30
(773), 16 (Feb. 11, 1977). Poland's inability to reach its
fertilizer production targets in 1976, combined with an
increase in domestic consumption has forced the country to
restrict fertilizer exports. Overall production only increased by
0.5% compared to 1975. Total production of N, P., Os, and
NPK fertilizers reached 2.594 million ton (in terms of
nutrient) last yr. Yet under the current plant the country
should have produced almost 2.5 million ton of N and P2 Os
alone—1.531 million ton of N and 967,000 ton of P. Os. It
now appears that Poland has severely restricted fertilizer
exports. A recent report indicated that the country had
cancelled a 150,000 ton urea contract with a Mexican
customer and several other sources have confirmed that
ºn fertilizer exports have come to a halt, for the time
eing.
645 Poland Supplies Fertilizer Materials to India. Chem. Age
(London) 108 (2854), 9 (Mar. 29, 1974). Poland will supply
India 200,000 mt of urea, 34,000 mt of phosphatic fertilizer
and 160,000 mt of S. The trade was finalized at the second
round of Indo-Polish talks held in New Delhi in March.
646 Polish Sulfuric Acid Exports Increase. Chem. Age
(London) 108 (2863), 8 (May 31, 1974). Polish exports of
sulfuric acid rose by some 59% last yr to 553,000 mt and it is
intended, in view of the continuing rise in demand, to increase
the volume further in the future. Polish output went up last yr
to some 3 million mt and the country is second only to West
Germany as a sulfuric acid exporter. Last yr, some 65% of the
Polish exports were to hard-currency western countries, among
them Switzerland, Austria, and West Germany.
647 South African Phosphoric Acid Exports. Fert. Int. No.
92, 2 (Feb. 1977). Following the completion of Bosveld
Fertilizers' 165,000 tons/yr P. Os phosphoric acid plant at
Phalaborwa late last yr, a contract has been signed betwº-en
Fedmis, Bosveld's parent company, and a customer in Brazil
for the delivery of about 500,000 mt of phosphoric acid over
5 yr. Shipment of the acid will not be spread over the period
but will expand in line with Brazil's growing import needs.
648 South Africa in Phosphoric Acid Trade with United
States and France. Eur, Chem. News 25 (635), 6 (May 10,
1974). Another major international fertilizer trade was
confirmed this week when the head of South Africa's major
Triomf fertilizer group signed two major export contracts
which together constitute South Africa's largest single
chemical trade deal. The contracts are with major companies,
so far unnamed, in the U.S. and France. Feeding the export
contracts will be a new $100 million, 400,000 ton/yr
phosphoric acid plant at Richards Bay, on the east coast. The
new plant, which will double South Africa's fertilizer industry,
is scheduled to enter production in October 1976. It is likely
to draw its phosphate raw materials from the extensive
Phalaborwa deposits. Philipp Bros., with strong South African
connections through its links with Engelhard, is likely to
market its share of the phosphoric acid in international
markets. The French phosphate fertilizer industry has suffered
Severe phosphoric acid supply problems in the past. At one
time last yr, the industry was at a virtual standstill due to
interruptions in phosphoric acid supplies from Tunisia and
Mexico. France is easily Europe's largest importer of phos
phoric acid, taking around half of the EEC's annual
400-500,000 ton imports.
649 South Korean Export. Fert. Int. No. 92, 8 (Feb. 1977).
Export data for 1976 suggest that South Korea is developing
as a major source of nitrogenous export material in the Far
East. The Korean aggression is illustrated by sales of ammo
nium sulfate in 1976, mainly to Thailand and Malaysia but
also to the relatively restricted Philippines market. A similarly
aggressive policy is being pursued with sales of South Korean
urea but so far the tonnage involved has not been very great.
Since the first urea plant was built with an annual capacity of
85,000 tons in 1960, the fertilizer industry in South Korea has
expanded rapidly. Urea is the most important product–75% of
total ammonia production being devoted to the manufacture
of urea in 1975. Ammonium sulfate accounts for a further 6%
and complex fertilizers represent the bulk of the remainder.
The Nam-Hae Chemical Corp.’s complex under construction at
Yosu reinforces this pattern. The Yosu project includes two
87
 WORLD TRADE
naphtha-based 246,000 tons/yr Nammonia plants with down
stream ammonium nitrate and urea facilities, phosphoric,
nitric and sulfuric acid plants, and two complex fertilizer
installations each with a capacity of 356,000 tons/yr. The
complex is due on-stream in 1977-78. Thus by the end of this
decade South Korean complex fertilizer capacity should have
soared by almost 150% to 1.2 million tons/yr. This is solely as
a result of the Nam-Hae plants at Yosu and the recent
expansion of the Yong-Nam Chemical Co.'s plant at Ulsan.
Similarly, urea capacity should rise by over 30% in 1977-78
over the previous yr owing to the new 152,000 tons/yr plant
at Yosu.
650 Syrian Phosphate Export Plans. Chem. Age (London)
110 (2915), 9 (May 30, 1975). Syria is anticipating sales
totalling more than $60 million from exports of phosphates in
1975, according to the director general of the General
Company of Phosphate and Mines. Total output this yr should
reach 1.35 million mt, the planned target. Syria has recently
concluded an agreement with Romania for a survey and
estimation of the proven deposits of phosphate rock in the
Syrian desert, and also for the building of a phosphate
processing plant on a turnkey basis. The project is to be
on-stream by 1977. Forecasts are that production of phos
phate would be more than 3 million mt by 1980, and there are
plans to build railway systems linking the mines with the ports
on the Mediterranean as well as storage and loading facilities.
651 Sweden Signs Fertilizer Deal with U.S.S.R. Eur. Chem.
News 24 (595), 8 (Aug. 3, 1973). Supra, the organization
representing the interests of Sweden's fertilizer producers, has
signed a 5-yr agreement with the U.S.S.R. Under the agree
ment, Swedish producers will supply chemical and phosphate
fertilizers to the value of Sw.kr. 150 million to the U.S.S.R.,
receiving potash in return.
652 Taiwan Bans Fertilizer Exports. Fert. Int., No. 54, 2
(Dec. 1973). In order to ensure that the rice crop will be
adequately fertilized, an order by the Government of Taiwan
has been made withdrawing fertilizers from the list of export
commodities. The markets likely to be affected by the ban
include Thailand, India, and Indonesia, all of which have
purchased increasing tonnages of urea from Taiwan in the past
2 yr. Furthermore, Taiwan's withdrawal from the market
together with the recent downtime in a couple of Japan's urea
units—necessitating remedial imports—can only make the
supply situation in Southeast Asia that much tighter.
653 United Kingdom Fertilizer Producers Reduce Exports.
Eur, Chem. News 26 (665), 6 (Dec. 6, 1974). ICI has backed
up its commitment to the U.K. farming community by
reducing its level of urea exports. Urea is its most export
orientated fertilizer. The U.K.'s requirements of urea have,
until recently, been supplied largely by imported material but
these imports have now dried up and ICI is diverting urea to
the domestic market at prices way below the export level.
ICI's urea exports are now said to be at a low level. ICI states
that it has not taken on any new exports business since
October 1973 and the product is only being exported to meet
long-term contracts. Fisons sees its commitment simply in
terms of providing the U.S. market with fertilizer based on
U.S. ammonia. Approximately 15-20% of world ammonia
demand is accounted for by industrial chemical outlets and the
stagnation of industrial demand has relieved the pressure on
88
fertilizer ammonia supplies. This has helped stabilize inter
national fertilizer prices but, with government controls still
gripping most European countries, there remains the prospect
that European prices will move towards the international
price.
654 Developments in United States Nitrogen Exports. Fert.
Int. No. 87, 4 (Sept. 1976). The U.S. June trade figures
confirm the trends which were apparent for the first 11
months of the 1975-76 fertilizer yr. There has been little
increase in import trade as a whole, whereas export trade has
risen by a sizeable 12%. Of the three nutrient categories, the
largest increase was in phosphate (16%), and this was mainly
due to a 21% increase in ammonium phosphates, the major
component in phosphate export trade. Phosphoric acid
exports rose by 30% and triple superphosphate by 11%. Two
significant features arise from the nitrogen export figures.
Firstly, they reveal a very big rise (76%) in net imports of
anhydrous ammonia, which amounted to almost 464,000 tons
N. This is some 60,000 tons N higher than was forecast by
USDA and must be due to the high level of domestic demand
for nitrogen products, especially this spring. Secondly, there
has been a turnaround in the more usual role of the United
States as a net importer of urea into that of a net exporter. As
a result of urea exports increasing by 29% while imports fell
35%, a net export surplus of 78,000 mt Narose.
655 United States Exports of Nitrogenous Fertilizers Fall
While Phosphatic Exports Post Sharp Rise. D. E. Johnson
(U.S. Dep. Commerce, Washington, D.C.). Fed. Regist. 40
(127), 27709-11 (July 1, 1975). U.S. exports of fertilizer
totaled 846,328 tons of N and 1,345.382 tons of P2 Os during
July 1, 1974--March 31, 1975; imports during this same
period were 794,056 tons of N and 182,659 tons of P:Os. Net
exports of N were 52.272 tons compared to 354,097 tons for
the same period a year earlier; net exports of P:Os were up
150,000 tons in 1974-75. Exports were destined mainly for
developing countries: 97% of the urea, 93% of the ammonium
sulfate, 76% of the ammonium nitrate, 72% of the phosphoric
acid, 91% of the triple superphosphate, and 88% of the
ammonium phosphate; but, only 28% of the phosphate rock
and 21% of the mixed fertilizers went to developing countries.
Export prices, as reported to the Office of Export Administra.
tion were (weighted average/ton) $37 for phosphate rock,
$423 for ammonia, $303 for urea, $246 for triple super
phosphate, and $303 for diammonium phosphate. Producer
prices as of April 7, 1975 were $25/ton for phosphate rock,
$210 for ammonia, $175 for urea, S140 for concentrated
superphosphate and $165 for ammonium phosphate.
656 Slow United States Demand for Fertilizer Keeps Ex
ports Up. Feedstuffs 47 (27), 7,40-1 (July 7, 1975). A decline
in domestic fertilizer demand has increased the amount
available for export and kept the U.S. in the position of a net
exporter of nitrogenous and phosphatic fertilizer for the
period July 1974-March 1975. U.S. exports of nitrogenous
fertilizer totaled 846,000 content tons in July 1974-March
1975 while imports in the same period were 794,000 tons.
Export contracts for N fertilizer reported to the Department's
Office of Export Administration for April-June listed a total
of 165,000 tons. This would bring exports for the 1975
fertilizer yr to 1,011,451 tons compared with 1,184,000 tons
in the 1974 fertilizer yr. U.S. exports of phosphatic fertilizer.
July 1974-March 1975, were 1,345,382 tons compared with
 WORLD TRADE
1.218,083 tons a yr earlier. Imports were 182,659 tons in the
first three quarters of the fertilizer yr compared with 203,489
tons in the period a yr earlier.
657 United States Ships Phosphate Rock to China. Pit
Quarry 66 (7), 40, 42 (Jan. 1974). International Mineral Corp.
has shipped a load of Florida phosphate rock to Communist
China. This represents the first shipment of its kind. The vessel
transported 20,000 tons of rock from Tampa to Shanghai,
where Chinese technicians will experiment with processing it
into fertilizer. A spokesman for the firm said negotiations for
the sale to China was started over a yr ago when phosphate
rock was not in such short supply. However, it would be
difficult to supply additional shipments without the opening
of new rock mines in Florida.
658 United States Phosphate Exports to Europe Forecast.
Fert. Int. No. 93, 1 (Mar. 1977). The large increases in triple
superphosphate exports from the United States in 1976 can
largely be accounted for by the high level of deliveries to West
Europe, particularly West Germany and France. With the
approach of the spring planting season in Europe the question
is whether this level of shipments will be repeated in 1977. At
first sight it does not appear likely. France has imposed an
unofficial restriction on imports of North American product
while demand has been reduced as a result of the increase in
concentrated phosphate prices since the turn of the yr. This of
course applies equally to U.S. exports of diammonium
phosphate. Furthermore, if present U.S. prices are maintained,
for example, at around $135-140/ton f.o.b. in bulk for
diammonium phosphate and $95-100 for triple superphos
phate the appeal of these products as intermediates for
compound fertilizer manufacture, or blending, in Europe will
be diminished and European producers are likely to be able to
operate competitively using imported North African rock, or
possible phosphoric acid, as raw materials for compound
fertilizer manufacture.
659 United States Exports Phosphoric Acid to Brazil. Chem.
Mark. Rep. 210 (12), 36 (Sept. 20, 1976). A major cargo of
phosphoric acid was shipped to Brazil from the port of Uncle
Sam, Louisiana. The product was manufactured by Freeport
Chemical Company, which operates the largest wet phosphoric
acid complex in the world. International Commodities Export
Company (ICEC), a major fertilizer export marketing firm,
was the shipper. The ship flies the Norwegian flag, and is
specially fitted with stainless steel tanks that give it the
capacity to carry 27,000 tons of phosphoric acid. The exact
size of the shipment could not be determined, but it was said
to be close to the ship's capacity. Brazil's days as a phosphate
importer could be numbered, however. Preliminary research
indicates that a phosphate reserve of at least 100 million tons
has been discovered in the interior state of Minas Gerais. Plans
are said to be under way to mine the deposit using federal,
state, and private capital.
660 Florida to Continue Lead in Liquid Phosphoric Acid
Exports. Fla..J. Comm. 17 (5), 8, 9 (May 1975). Domestic
markets will consume most of expanding U.S. production in
dry products, with African nations gaining the big share of
world trade. Florida is well ahead in trend toward phosphoric
acid in long-haul shipments, according to lengthy study. In
1973, seaborne shipments of phosphoric acid totaled only
9.25,000 tons worldwide. By 1980, seaborne shipments are
expected to reach 6,300,000 tons, representing about 94% of
the total phosphoric acid trade. This is due to economics
achieved in shipping the liquid acid rather than dry bulk over
long distances. Morocco will be the big gainer in phosphate
rock shipments while the United States (Florida) will lead the
way in export of phosphoric acid. By 1980, Florida will be
exporting approximately 1,400,000 tons of phosphoric acid
annually; Morocco will trail with approximately 1,000,000
tons of acid at that time.
661 Forecast of United States Fertilizer Exports for 1976.
Farm Chem. 139 (4), 80 (Apr. 1976). The U.S. Department of
Commerce predicts that fertilizer exports for crop yr 1976.
probably will drop sharply from crop yr 1975. The Depart
ment reports that July-September 1975 exports of N fertilizer
totaled about 320,000 content tons compared with approxi
mately 250,000 content tons in the same period a yr earlier.
However, contracts for October 1975-June 1976 total only
200,000 content tons—well below the 850,000 content tons
exported in the same months of the previous yr. In phosphate
fertilizers, about 640,000 content tons were exported during
July-September 1975 compared with 490,000 content tons for
the same period in 1974. However, export contracts for
phosphate fertilizer in October 1975-June 1976 totaled less
than 500,000 content tons, while actual exports for the same
9-month period in crop yr 1975 were almost 1.4 million
content tons. Phosphate fertilizer exports in crop yr 1975
represented about 23% of total production.
662 Russian Chemical Exports. Chem. Age (London) 111
(2939), 11 (Nov. 14, 1975). Figures have been published by
the Bonn specialist news service Die Wirtschaft des Ostblocks
on the development of major Soviet chemical exports in 1974.
Increases in tonnages were recorded for urea, from 317,600 mt
in 1973 to 540,300 mt in 1974.
663 Soviet Ammonia for France. Eur, Chem. News 26 (657),
6 (Oct. 11, 1974). Gazocean is to ship 12-15,000 tons of
Soviet ammonia into France in the next 3 months to offset the
shortage there which has been accentuated by plant operating
problems. The ammonia will be railed to the Finnish port of
Uusikaupunki for shipment.
664 USSR Supplies French with Nitrogen. Green Markets 1
(29), 6 (Aug. 29, 1977). The Soviet Union will supply about
10% of France's N needs in the 1980's as a result of a 10-yr
agreement between Intsel, France, and subsidiary of the
French metal company Pechiney Ugine Kuhlman (PUK), out
of the Soviet export agency, Soyuzhimexport. A spokesman
for PUK says the company expects delivery of
150,000-200,000 mt/yr of ammonia to start in 1979 or 1980.
Total N consumption in France was 1.7 million mt in 1975-76.
665 Soviet Urea for India. Chem. Age (London) 113 (2982),
3 (Sept. 10, 1976). The Soviet Union will supply India with
215,000 mt of urea worth about Rs 280 million in 1976. An
agreement to this effect has been concluded between the
Minerals and Metals Trading Corp. and Soyuzpromexport, the
Soviet Official trade organization. Last yr the Soviet Union
supplied 180,000 mt of urea to India.
666 Fertilizer Sales in Venezuela. Fert. Int. No. 76, 1 (Oct.
1975). Sales of fertilizers in Venezuela increased by 29% in
1974 to total more than 300,000 mt. The largest increase was
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 WORLD TRADE
registered in the sale of NPK fertilizers which rose 59% to
210,000 mt, 69% of total fertilizers sold. Sales of urea nearly
doubled over the 1973 level reaching 36,000 mt but purchases
of ammonium sulfate fell by more than one-half. Exports in
1975 were initially expected to exceed 180,000 mt with Peru
buying 80,000 mt and the United States and China 40,000 mt
each, but output fell well below the planned target and export
Sales were limited.
667 West Germany to Maintain High Fertilizer Exports in
1974-75. T. L. Oyloe. Foreign Agr. 12 (45), 10-12 (Nov. 11,
1974). West Germany regularly ranks as one of the world's top
10 fertilizer manufacturing countries. It has been a net
exporter of fertilizer for a decade and, unless it is cut off from
supplies of imported raw materials, is expected to maintain
overseas shipments in 1974-75 and 1975-76 equal to or greater
than in 1973-74. It has large deposits of potash, but is heavily
dependent on foreign sources for other raw materials. Produc
tion, consumption, export, and import of N, P, and K
products are given for each yr (1966-73) and projected for
1973-76. Raw material supplies and product pricing is
described.
668 Yugoslavian Fertilizer Exports. Chem. Age (London)
106 (2791), 16 (Jan. 12, 1973). Yugoslavia estimates 1972
fertilizer exports at some 400,000 mt with production
reaching 2.5 million mt/yr. It is anticipated that exports will
increase to more than 600,000 mt in 1973.
669 World Phosphate Rock Export Slump in First Half
1975. Phosphorus Potassium No. 79, 5-7 (Sept.-Oct. 1975).
Now that the northern hemisphere summer months, seasonally
the lowest procurement period, are past and a new fertilizer yr
has started, a credible estimation of the likely duration of the
present phosphate rock/P, Os slump is being sought. In
1974-75 demand has been affected by a combination of
adverse factors including weather, widespread advice by
Government extension services to cut back on P. Os fertiliza
tion given at a time of presumed shortage, the sharp increase in
fertilizer prices reflecting higher raw material costs, the decline
in farm incomes, and the world-wide economic recession. Now
there is every prospect of an early recovery of the movement
of P;Os fertilizers from the plant to the land and of
phosphate rock from the mines to the manufacturing plants.
670 World Exports of Potash Increase 9%. Phosphorus
Potassium, No. 65, 5, 19 (May-June 1973). The amount of
potash traded throughout the world in 1972-73 reached 8.14
million mt K2O, an increase over the previous yr of 700,000
mt K2O. The bulk of the growth in the tonnage sold was
supplied from two sources—West Germany and the United
States. To a lesser extent, France-Congo, Russia, the German
Democratic Republic, and Spain also increased their exports
while Canada and Israel both suffered declines.
IMPORTS
671 Brazil to Up Fertilizer Imports. Foreign Agr. 12 (14), 13
90
(Apr. 15, 1974). If available, Brazil expects to import about
1.7 million tons of fertilizer in 1974, about 47% above the
1973 level. Combined with domestic production–expected to
climb 30% higher in 1974 to 600,000 tons—total fertilizer
utilization is expected to reach 2.3 million tons. FECOTRIGO,
Brazil's large wheat producers cooperative, has arranged with
domestic fertilizer producers to hold prices steady until after
July when the last of the new crop wheat will be sown. Present
fertilizer prices are guaranteed at about $305/ton, some 160%
above those of early 1973.
672 Brazil Phosphate Imports. Phosphorus Potassium No.
78, 8-9 (July-Aug. 1975). Total imports of P fertilizer,
excluding phosphate rock, amounted to 802,900 mt P2 Os in
1974, an increase of 49% over 1973. Phosphate fertilizers by
type (thousand mt product) in 1974 were: single superphos.
phate, 196; triple superphosphate, 540; and ammonium
phosphates, 407. The major source of supply was the United
States. In the future, imports of fertilizers into Brazil will be
taxed unless the buyer can provide proof of purchase of a
certain quantity of Brazilian produced fertilizer. The quantity
of domestic product to be bought varies with nutrient content
and region.
673 Canadian Industries Import Sulfuric Acid. Chem. Mark.
Rep. 211 (19), 4 (May 9, 1977). Canadian Industries, Ltd.,
signed a 2-yr contract from January 1, 1977, with a
Venezuelan company, Tripol Iven CA, for the supply of
sulfuric acid. The contract calls for a quantity of up to 60,000
tons of acid over the 2-yr period. The acid will be used in the
manufacture of polyphosphates. An initial shipment of 6000
tons was made from Belledune, New Brunswick, im mid-April
to Puerta Cabello in Venezuela. Manufactured at CIL’s plant in
Copper Cliff, Ontaria, the acid was carried to Belledune on a
Seventy-two-car unit train for ship-board loading.
674 China Buys Phosphate Rock from United States. Chem.
Week 113 (21), 13 (Nov. 21, 1973). Mainland China has
placed its first order for U.S. phosphate rock with Sobin
Chemicals (Boston). The company will supply 50,000 tons of
medium-grade (70-75%) Cas (PO4)2 on a delivery schedule
extending into 1974. The sale was over $1 million, f.o.b.
Tampa. Mainland China consumes 3.5 million mt/yr of
phosphate rock, of which nearly 40% is imported.
675 China Orders Fertilizer From Japan. Chem. Week 116
(10), 34 (Mar. 5, 1975). A trade, covering the period from
March to July 1975, calls for shipment of 555,000 mt tons of
urea, 50,000 mt of ammonium sulfate, and 210,000 mt of
ammonium chloride. Although prices were not disclosed, the
urea and ammonium sulfate is reportedly valued at $170
million and the ammonium chloride at $30 million. This brings
Japanese shipments to China in fertilizer yr 1974 to 955,000
mt of urea, 180,000 mt of ammonium sulfate, and 410,000 mt
of ammonium chloride.
676 Increase in Imports to Colombia. Nitrogen, No. 86, 10
(Nov.-Dec. 1973). Imports of urea into Colombia during 1972
rose to a record 71,000 mt compared to under 19,000 mt in
1972. With domestic production of urea rising to 87,000 mt.
the total availability of urea for 1972 was 158,000 mt. A
further surprising feature of the 1972 season was the large
 WORLD TRADE
import of ammonia. In 1971 only 14,000 mt were purchased,
from Aruba and the United States, but 1972 saw imports
increasing to almost 50,000 mt.
677 Egyptian Urea-Ammonium Nitrate Import. Fert. Int.
No. 96, 2 (June 1977). In an Egyptian tender awards were
made for urea and ammonium nitrate, but not for ammonium
sulfate. Unifert recorded another tender success with sales of
both products, 30,000 mt of urea at between $114.75 and
Sl 19/mt c.&f. in polyethylene bags, and 15,000 mt of
ammonium nitrate at $95/mt c.&f. in polyethylene bags.
Danubiana of Romania will supply the remaining ammonium
nitrate, 30,000 mt at $95 and 30,000 mt of urea at $119.
678 Mexican Company Sells French Phosphoric Acid to
Europe, Eur. Chem. News 23 (579), 8 (Apr. 13, 1973).
Compagnie Francaise de L’Azote (COFAZ) and the Mexican
Fertilizantes Fosfatados Mexicanos (FFM) have come to an
agreement by which FFM will purchase, over a period of 10
yr, one-third of the production of the 380,000 ton/yr
phosphoric acid plant now under construction by COFAZ at
Le Havre, France and due onstream in late 1974. FFM will
market the bulk of its share of the 54% P2O5 phosphoric acid
in Europe. Western Europe produced 2.6 million tons of
phosphoric acid in 1972, against consumption of 3 million
tons. Around 400,000 tons were imported from Mexico,
Israel, USA, and Tunisia. French imports alone, from other
European sources and elsewhere, totalled 220,000 tons in
1972.
67.9 Fertilizer Imports Flood Into Europe. Eur. Chem. News
28 (727), 8 (Mar. 12, 1976). French fertilizer producers have
complained to the EEC Commission about an influx of low
priced nitrogen fertilizers from Eastern Europe. With ship
ments running into hundreds of thousands of tons, the French
market is probably affected the most in Europe but German
and Italian producers are known to be nursing similar feelings.
Calcium ammonium nitrate and urea from Hungary, Czecho
slovakia, Poland, and Romania are causing particular concern
with prices said to be 10-12% below domestic levels. Unofficial
estimates in Germany are that imports could account for up to
250,000 ton of 1975-76 nitrogen consumption, with around
half coming from eastern Europe. Producers fear that many
German. plants may have to close down temporarily in a few
weeks time as the depressed world market offers no chance of
taking up the slack. Meanwhile fertilizer producers in the
Netherlands and France have been ordered to cut their prices
for phosphate fertilizers following the price cuts on phosphate
rock earlier this yr. Per unit of P., Os, Dutch prices have now
fallen about 38% from October 1 last yr, reflecting the decline
in the dollar price of Moroccan phosphate since then. French
phosphate prices were reduced 10-15% on March 1, corres
ponding to the new phosphate rock list price. French
producers say the cuts came far too late to cause any
improvement in consumption and are privately forecasting a
further decline from about 1.7 million ton to 1.6 million ton
in 1975-76. Last yr French consumption fell about 26%.
680 Import—Production in France. Fert. Int., No. 71, 9
(May, 1975). The Port of Rouen recorded a 37% increase in
the import of phosphate rock in 1974 bringing the total to
1.75 million mt, nearly one-third of French phosphate rock
imports for the yr. The increase of 470 000 mt partly reflects
the commissioning of new phosphoric acid production facili
ties by APC at Grand Couronne. Phosphate fertilizer produc
tion in France increased by 7.9% during 1974 rising to 1.38
million mt P20s. The production of ammonia, sulfuric acid,
and nitrogen fertilizers grew by 9.9%, 7.0%, and 10.7%,
respectively. The production of complex fertilizers, however,
expanded by only 3.9% to 8.9 million mt.
681 Hungary Contracts Fertilizer Import Requirements.
World Fert. Rev., No. 30, 21 (Mar. 1974). Hungary has signed
a series of contracts which will meet its requirements for
phosphate rock and fertilizers during 1974. It will require
400,000 tons of phosphate rock which will be supplied by
Algeria (100,000), Morocco (50,000), and the U.S.S.R.
(250,000). The fertilizer complex under construction at Pet,
due on-stream in 1975, includes an NPK plant of 726,000
tons/yr capacity. The raw material required for this plant will
be met by phosphate rock from Morocco, for which a 5-yr
agreement has been signed. Hungary’s P fertilizer capacity of
200,000 tons/yr (P. Os) was operated at a record level in
1973, and in the absence of new capacity production can not
exceed this figure. To meet its requirements, Hungary will
import 120,000-150,000 tons P20s. The supply of some
50,000 tons has been negotiated with the U.S.S.R., Yugo
slavia, and North Africa. During 1974, Hungary will import
1,159,000 tons of fertilizers and fertilizer raw materials from
the U.S.S.R.
682 Indian Fertilizer Imports. Eur, Chem. News 23 (571), 8
(Feb. 16, 1973). The Indian Minerals and Metals Trading Corp.
(MMTC) is to import 100,000 tons of urea from Bulgaria. The
contract is a long-term agreement with Bulgaria through which
India will import 460,000 tons of urea from Bulgaria between
1973 and 1975. Poland is now expected to supply India with
around 200,000 tons of urea while the U.S.S.R. has already
contracted to supply 55,000 tons of urea and 35,000 tons of
potash. India will also import 150,000 tons of potash from
East Germany and 175,000 tons of calcium ammonium nitrate
from Romania in 1973. India has now contracted for the
import of 515,000 tons of fertilizers this yr against demand
estimated at 1.3 million tons.
683 India to Suspend All Fertilizer Imports. Fert. Int. No.
73, 1 (July 1975). As a result of the growing stockpiles of
fertilizer throughout the country, the Government of India has
decided to stop the importation of all fertilizer at the end of
1975. Officials from the Ministeries of Agriculture and the
Petroleum and Chemicals Industries came to this decision
following a review of the fertilizer situation within the country
which showed ample material would still be available after the
needs of the Kharif crop and the next Rabi crop are met.
684 Indian Nitrogen Imports. Fert. Int. No. 81, 1, 10 (Mar.
1976). India is believed to have bought 0.5 million mt of urea
at prices as low as $90/mt bulk fob U.S. and $11.2/mt có.f
bagged. The purchases follow a tour of the Middle East,
Europe, and North America by a delegation from the Minerals
& Metals Trading Corp. In the yr ending June 1975, India
imported over 1.25 million mt of urea, and nearly 0.5 million
mt N in total. Japan was the largest single supplier with over
0.5 million mt product while East Europe sold India 440,000
mt. It is understood that in the MMTC negotiations with East
European suppliers urea was the main product being sought
and India is not expected bo buy as much calcium ammonium
nitrate as last yr when almost 100,000 mt N was purchased
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 WORLD TRADE
(total), two-thirds of which came from Romania.
685 Indian Urea-Nitric Phosphate Imports. Eur, Chem. News
23 (569), 8 (Feb. 2, 1973). Nitrex has concluded contracts
with India on the export of 120,000 tons of urea and over
250,000 tons of nitric phosphates. Deliveries will be made by
Nitrex throughout 1973 and early 1974.
686 Fertilizer Imported by India. Fert. News (India) 22 (5),
25 (May 1977). Estimated agronomic requirements for fertili
zer in India indicate a probable increase in imports for
1977-78. The Ministry of Fertilizers and Chemicals has
estimated those chemical requirements to be 31.30 lakh mt of
nitrogen, 8.71 lakh mt of phosphate, and 4.10 lakh mt of
potash
687 India Secures Nauru Phosphate Rock. Eur, Chem. News
25 (626), 4 (Mar. 8, 1974). A 3-yr contract, starting June
1974, has now been signed providing India with 250,000 tons
of phosphate rock. About 50,000 tons will be delivered this
yr, followed by 100,000 tons in each of the following years.
Nauru rock is high-grade, averaging 83% phosphate compared
with 74% and 73%, respectively, in Tunisian and Jordanian
material. Rock grading 95% will become available next yr,
when a calcination plant goes into operation. Nauru produces
about 2.3 million tons of phosphate rock per yr.
688 India Orders United States Diammonium Phosphate.
Ag-Chem Newslett. No. 77, 1 (Apr. 1, 1973). India has just
contracted to buy 285,000 tons of diammonium phosphate
from U.S. fertilizer suppliers. The material is for shipment
during the off-season, June and July. This big transaction
should lend considerable added strength to the phosphate
fertilizer market, stabilizing prices.
689 Bulk Fertilizer Deal for India. Chem. Age (London) 1 10
(2916), 10 (June 6, 1975). Sweden has given India a 10,000
mt consignment of calcium ammonium nitrate. This shipment,
which was recently unloaded at Kerala, was the first trial
shipment of this material in bulk. If fertilizer imports into
India remain at the present level for the next 3 yr, it is
estimated that at least 2 million mt of fertilizer will be
received in bulk every yr. Savings through the bulk shipments
are estimated at $30 million during that period. The Indian
government has provided for $1 billion for the import of
860,000 mt of fertilizers in 1975-76.
690 Iran-Senegal in Phosphate Trade. Fert. Int., No. 66, 2
(Dec. 1974). Iran is to take a holding in Senegal's newly
discovered Tobene phosphate reserves which require CFA
Fr25 million investment. In exchange for phosphate exports to
Iran, Senegal will receive crude oil for its refineries. In 1973
Senegal exported 1.67 million mt of phosphate rock,
compared with 1.55 million mt in 1972–none went to Iran.
Senegal's main markets were France, the United Kingdom, the
Netherlands, and Greece.
691 Japan Imports Ammonium Phosphate from United
States. Jap. Chem. Week 14 (708), 5 (Nov. 22, 1973). At the
request of ammonium phosphate manufacturers, National
Federation of Agricultural Cooperative Associations has preceding yr. Such drastic reduction reflects the accumulation
contracted for the import of some 45,000 tons of ammonium of stocks in Japan.
92
phosphate from the U.S. for 1973 fertilizer yr. The demand
and supply position of phosphoric acid is stringent. The
United States, a traditional exporter, is limiting exports, and
export price is rising sharply accordingly. Under the circum
stances, there will be no additional import contract for 1973
fertilizer yr.
692 Japanese Ammonium Phosphate Imports. Jap. Chem.
Week 15 (727), 1 (Apr. 4, 1974). Japan's imports of
ammonium phosphate in 1973 aggregated 101,854 tons, a
two-fold increase over 1972, according to Japan Phosphatic &
Compound Fert. Manufacturers Association. Major suppliers
were the United States, with 81,786 tons; South Korea, with
6000 tons; and Canada, 3968 tons.
693 Japanese Ammonium Phosphate Import. Jpn Chem.
Week 18 (907), 5 (Sept. 8, 1977). Imports of ammonium
phosphate in fertilizer yr 1976 ending this June increased
rapidly to 230,835 tons. The United States was the largest
Supplier with exports of 202,957 tons, followed by Korea,
Morocco, and Belgium. Imports in August and September
exceeded 30,000 tons because international market rates
touched bottom and domestic importers rushed into specula.
tive buying due to the planned tariff quota system.
694 Japanese Phosphate Rock Imports. Jap. Chem. Week 15
(755), 5 (Oct. 17, 1974). According to the Fertilizers and
Pesticides Department of Zen-Noh (the National Federation of
Agricultural Cooperative Associations), import of phosphate
rocks from eight sources such as Florida and Morocco in 1974
fertilizer yr is estimated at some 3,350,000 tons. Phosphate
rock from Florida (U.S.) is estimated at 1,850,000 tons,
followed by Morocco 600,000 tons (or 700,000 tons), Sahara
300,000 tons, Jordan 250,000 tons, Nauru 200,000 tons,
Togo 100,000 tons, and Israel 50,000 tons.
695 Japanese Rock Phosphate Imports Down in 1976. Jpn.
Chem. Week 18 (889), 8 (May 12, 1977). Imports of rock
phosphate in 1976 decreased sharply to 2,335,000 tons, down
569,000 tons from the preceding yr, due to business slump in
the phosphate fertilizer industry. Sluggish purchase of the
foreign product reportedly represents a reactionary fall from
extraordinary import of as much as 3,890,000 tons in 1974.
696 Japanese Import of Soviet Potash. Jpn. Chem. Week 17
(839), 4 (May 27, 1976). The Federation of Agricultural
Cooperative Associations has agreed with the Soviet Union on
potash import for the fiscal yr 1976. Contract amounts and
import prices were reduced considerably as in the case of
Canadian potash, reflecting a sluggish domestic demand for the
product. It is reported that contract quantity was cut back to
some 150,000 tons from the preceding year's level of 250,000
tons and price decreased to the $60/ton level, nearly equi
valent to that of the Canadian product.
697 Japanese Potassium Import. Jpn. Chem. Week 17 (821),
1 (Jan. 22, 1976). Japan has concluded negotiations with Kali
Export Gesellshaft for the import of potassium in 1976.
Imports of the European product are estimated at
120,000-130,000 tons compared with 200,000 tons in the
 WORLD TRADE
698 Japan Estimates Sulfur Imports for 1974. Jap. Chem.
Week 15 (733), 7 (May 16, 1974). Sulfur import in fiscal 1974
is estimated at 50-60,000 tons, almost the same as the
preceding fiscal yr. In the latter half of fiscal 1973, S import
had been suspended because of a considerable mark-up, which
boosted the price to over $50/ton; 43,000 tons of the product
were imported from Canada and Mexico in the first half.
Sulfuric acid price will be nearly doubled when S of some
S100/ton is used as material. Consequently, manufacturers
hope for stabilization of mounting international S price
because they cannot start importing the product immediately.
699 Japan's Sulfuric Acid Imports: Fiscal Year 1973. Jap.
Chem. Week 14 (708), 5 (Nov. 22, 1973). According to the
customs clearance statistics of the Finance Ministry, imported
sulfuric acid totaled 27,042 tons in the April through August
period, surpassing largely the original estimate of the Ministry
of International Trade and Industry. Imports in the
September-March term are estimated at 27,000 tons. Users of
the product are mainly fertilizer manufacturers such as
Ishihara Sangyo Kaisha, Ltd., Mitsubishi Chemical Industries,
Ltd., and San Kagaku Kogyo Co., which had manufacturered
sulfuric acid for self-consumption by roasting sulfide ore
before intensive import activities took place.
700 Pakistan Looks for Fertilizer in United States. Eur.
Chem. News 23 (585), 8 (May 25, 1973). Pakistan is seeking
to import over 200,000 tons of urea and 90,000 tons of
ammonium sulfate this year. Representatives of the Karachi
trading company, Traderal International, are currently in the
U.S.A. with Pakistan government authorization to purchase
over 120,000 tons of urea. Pakistan will spend $90.5 million
on fertilizer import in the current season, U.S. AID funds
supplying $42.4 million of this amount. Already Pakistan has
contracted for $2.42 million of fertilizers from Holland, $2
million from West Germany, $3 million from Canada, $4
million from Japan, $2 million from Romania, $5 million from
Poland, and $2 million from France.
701 Pakistan Contracts for Fertilizer Supply. Fert. Int. No.
84, 1 (June 1976). Pakistan's Ministry of Agriculture is
reported to have finalized its import requirement for the
1976-77 season. The plan calls for the import of 130,000 mt
urea, 300,000 mt of nitrophosphate (23-23-0 or 24-24-0),
130,000 mt of diammonium phosphate and 10,000 mt of
potash. The bulk of the urea required seems likely to be
supplied by Petrochemical Industries Co. (PIC) of Kuwait
which has recently concluded a contract with Pakistan to
supply up to 450,000 mt of urea over 4 and one-half yr.
702 Philippines Import Urea From Japan. Jap. Chem. Week
15 (749), 7 (Sept. 5, 1974). The Japan Urea & Ammonium
Sulphate Export Co. has recently concluded a contract with
the Philippine Planters Institute (PPI) to export 20,000 tons of
urea. The export price is said to be slightly over ¥70,000 per
ton f.o.b. The latest contract brought to 90,000 tons the total
amount of urea the company has so far contracted for export
to PPI in the July-September period.
703 The Philippines Suspend Fertilizer Imports. Fert. Int.,
No. 71, 1 (May, 1975). At the beginning of April, the
Philippine Government announced it had become necessary to
ban all fertilizer imports. The sole exception to the rule is
potassium sulfate where deliveries will be allowed to continue.
The authorities are also prepared to allow imports of product
where shipping space had been booked by 19 March. Signs of
trouble first become evident in February this yr when Planters
Products of the Philippines requested that Japanese suppliers
suspend shipments of bulk urea to the market as congestion
was building up in the ports and unloading facilities were not
adequate to handle all the material. Bagged fertilizer deliveries
were however allowed to continue. Juasia was contracted to
deliver 150,000 mt of urea to the Philippines in the first 6
months of 1975.
704 Long-Term Sulfur Supply for South Korea. Jpn. Chem.
Week 18 (911), 7 (Oct. 6, 1977). Two Japanese trading
companies (Mitsubishi Corp. and Mitsui and Co.) have signed a
contract to supply sulfur to Nam Hae Chemical Corp., South
Korea's largest fertilizer maker, over 5 yr and 9 months. The
Japanese and Korean firms will hold talks annually on the
price of sulfur to be exported under the contract. Nam Hae's
annual sulfur imports under the contract would amount to
about 200,000 tons. The Nam Hae complex is capable of
producing annually 330,000 tons of urea, 690,000 tons of
sulfuric acid, and 700,000 tons of phosphate fertilizer.
705 Turkey Imports. Chem. Mark. Rep. 209 (29), 7, 35
(June 14, 1976). Turkey's offer to buy 855,000 tons of
fertilizer, including 300,000 tons of diammonium phosphate
(DAP), has sent officers of most international fertilizer and
trading companies scurrying to Ankara. According to sources,
the government-owned Turkiye Zirai Donatin Kurumu Genel
Mudurlugu (Donatin) has been accepting bids for 300,000 tons
of DAP, 250,000 tons of ammonium sulfate, 230,000 tons of
calcium ammonium nitrate, and 75,000 tons of urea. It is the
DAP that interests American companies. The other chemicals
would either not be competitive to ship or call for specifica
tions not met in the US. Between 500,000 to 1 million tons of
DAP have been offered to the Turkish government. Several
sources seem to feel that Turkey will not buy all the fertilizer
it has asked for. Based on past performance, several independ
ent sources feel that Donatin will purchase only two-thirds of
the DAP bid upon. But even a 200,000-ton trade would be a
breath of fresh air in a market stifled by lack of demand. While
the prize remains tempting, the trail that must be negotiated
to claim it remains treacherous. Those companies that do
survive must deliver the fertilizer, in bags, to any of fifteen to
twenty ports, many of which may not have adequate facilities
to remove the material. The amount of material they do buy
will depend on how low they can drive the price when they
open their phosphate auction.
706 United Kingdom Potash Imports. Phosphorus Potassium
No. 90; 13 (July-Aug. 1977). Imports of potassium chloride
(KCl) to the United Kingdom rose from 660,000 mt (396,000
mt K, O) in 1975-76 to 713,000 mt (428,000 mt K2O) in
1976-77, an increase of 8%. Much of the increase can be
attributed to a , 21% rise in imports from the German
Democratic Republic, the United Kingdom’s largest supplier,
from 189,000 mt. KCl in 1975-76 to 228,000 mt. KCl in
1976-77. Imports from Israel rose to 84,000 mt. KCl from
68,000 mt in 1975-76. Spanish imports reached 69,000 mt
KCl compared to 36,000 mt in 1975-76. Purchases from
Belgium and the United States also increased. Potassium
chloride accounts for approximately 94-95% of total United
93
 WORLD TRADE
Kingdom potash imports in terms of K2 O.
707 United States Becomes Net Importer of Nitrogen
Fertilizers. Eur. Chem. News 27 (702), 10 (Sept. 12, 1975).
The United States became a net importer of N fertilizers by
around 95,000 short tons in the July 1974-June 1975 fertilizer
yr. United States exports of nitrogen fertilizer fell to 1.1
million short tons, against 1.28 million tons in the previous yr,
while imports rose to 1.2 million tons compared with 1.06
million in 1973-74. According to the Department of Com
merce, United States nitrogen fertilizer export contracts for
the first half of the 1976 calendar yr total only around
150,000 short tons.
708 Heavy United States Ammonia Imports Expected for
Ten Years. Oil Gas J. 75 (41), 63 (Oct. 3, 1977). Substantial
imports of ammonia into the United States are expected in
spite of the growing level of installed capacity. Such imports,
together with natural gas restrictions will hold United States
production to approximately 70% of capacity. Average pro
duction loss due to natural gas interruptions is estimated to be
approximately 500,000 tons/yr over the next 5 yr. Imports of
N will come primarily from Russia and Latin American
countries. Of the estimated imports of 3.5 million tons/yr, 1.5
million tons will come from Russia; 1.5 million tons from
Mexico and other Latin American countries; and 0.5 million
tons from Canada. These imports will have a depressing effect
on the United States Gulf Coast price from 1978 until 1980.
Average United States ammonia prices (1976-77 dollars) will
reach a low of $85/ton during fall 1977 and possibly through
1978. There will be substantial price increases in 1979 and
1980 as import prices increase.
709 United States Receives Phosphate Rock from Spanish
Sahara. Farm Chem. 136 (10), 49-50 (Oct. 1973). A bench
mark event in the history of U.S. fertilizer industry occurred
when a shipload of rock phosphate from Spanish Sahara was
delivered at two California ports. This marked the first time
that the U.S. has drawn on the vast phosphate reserves of
North Africa—a source of supply that is expected to become
increasingly important in world markets. The initial shipment
of 30,000 tons was described as experimental by the buyer,
Valley Nitrogen Producers (VNP) of Fresno. However, the
president of VNP said if this works out, they probably will
contract for additional shipments. Among the attractions of
the African phosphate is an average analysis of about 36%
P., Os, compared to 30-32% for Florida and Idaho rock. The
delivered price was very competitive. To add to the inter
national flavor of the transaction, the ship was an Irish-flag
vessel, the 565-foot bulk carrier, Irish Stardust, built in Ireland
and manned by an Irish crew, and chartered by a Norwegian
shipping firm. The 15,000 tons unloaded at San Diego will go
to the phosphate plant that VNP is building at El Centro. The
other half will be hauled from Benicia to the Bakersfield plant.
710 United States Firms Sign Dead Sea Potash Works
Accord. Chem. Age (London) 115 (3037), 2 (Sept. 30, 1977).
Nine United States companies have signed long-term contracts
with the Dead Sea Potash Works (DSPW) for the supply of
600,000 mt of accumulated stocks of pelleted potash. In the
past, the company has been able to sell only 100,000 mt/yr of
potash on the United States market. This figure will now rise
to 500,000 mt/yr. DSPW is constructing a plant to process
ordinary fine powdered potash into crystals. This plant is
94
expected to come on-stream in 1979.
711 United States Imports Potash from U.S.S.R. Fert. Int.,
No. 57, 1 (Mar. 1974). Three cargoes of U.S.S.R. potash,
totalling around 100,000 mt, have been sold by Interore to the
United States and are scheduled for prompt shipment.
Negotiations with the U.S.S.R. government, which are
expected to result in a two-way fertilizer trade, will supply
very substantial tonnages of Russian potash, ammonia, and
urea to sell in western markets.
712 Liquid Fertilizer Imports by United States. Eur. Chem.
News 30 (775), 9 (Feb. 25, 1977). Shipments of urean
nitrogenous fertilizer from UKF Netherlands is being delivered
to the United States. While the European market has shown
little interest, the product does have a good market in the
United States. The product is a liquid fertilizer composed of
about 45% AN, 34% urea, and 20% H2O. The product is
produced at UKF's Geleen complex and a contract has been
reached, with VTG Vereinigte Tanklager and Transportmitted
G.m.b.H. to ship the liquid fertilizer to Amsterdam. The first
shipment left Amsterdam in late January under a long term
agreement between Orestern and Koppel, Amsterdam. The
product is now being stored in VTG’s storage terminal in
Amsterdam Cosmas tank N.V. Cosmas has also constructed two
6000 ton coated storage tanks specificially for storage pur
poses.
GENERAL
713 Fertilizers: Booming World Commodity. W. C. White
(Fert. Inst., Washington, D.C.). Fert. Progress 4 (3), 7-8, 11,
50 (May-June 1973). Fertilizers produced in the U.S. are
shipped to more than 50 countries around the world. Over
25% of the N and P2 Os used in the world originates in the
U.S. The N situation is fluid and the U.S. likely will become a
net importer of N. Fertilizer exported from the U.S. in 1972
was valued at $340 million. This was made up of $91.6 million
from diammonium phosphate, $90,9 million from rock phos.
phate, $33.1 million from concentrated superphosphate, and
the balance from potash, urea, and other fertilizers.
714 International Trade in Ammonia May Rise Sharply.
Chem. Eng. News 52 (31), 13-14 (Aug. 5, 1974). A marketing
study by Bureau d’Etudes Industrielles et de Cooperation
shows that international trade in anhydrous ammonia now
accounts for about 5% of total global demands. The 2.9
million mt shipped in 1973 was double shipments in 1966,
intra-European trade accounted for more than 1 million tons
and U.S.-to-Europe for another 0.6 million tons. Eastward
transatlantic shipments are expected to slow down as the U.S.
seeks supplies to overcome its present deficit of 0.7 million
tons. This deficit could grow to 5 million tons by 1980.
Venezuela, the Soviet Union, and Middle Eastern countries are
expected to develop as major world suppliers. Prices have risen
sharply, from $30/mt in 1972 to $65 in 1973 and as high as
$220 this yr (Gulf Coast basis). Growth in global demand is
estimated at 6.0-8.5%/yr and in the U.S. at 5%/yr.
 WORLD TRADE
715 Cooperation and Developing World Resources for
Making Fertilizers C. F. Fogarty. Milling Feed and Fert. 160
(11), 19 (Nov. 1977). Fertilizer industry data illustrate a
substantial difference in the number of nations which produce
versus those which consume fertilizer products. Deposits of
natural gas, phosphate, potash, and sulfur are found in
relatively few countries. Over 60% of the known reserves of
natural gas deposits are found in three countries, the U.S., the
USSR, and Iran. The U.S. and Morocco produce over 70% of
the world's phosphate rock. Similarly over 94% of the world's
reserves of potash and 40% of the world's sulfur is produced in
four countries. The demand for these materials or their
finished fertilizer derivatives is widespread. The latest United
Nations report indicated that nearly 150 countries consume
nitrogen and phosphates and 125 use potash. These data
illustrate the need for increased cooperation between those
few nations which produce the essential raw materials and
those which require fertilizer (especially in developing nations)
in order to produce the food and fiber essential for man's basic
needs.
716 Trade in Fertilizers and Phosphate Rock and the
Implication for Regional Plant Capacity. L. L. Blakeslee
(Washington State Univ., Pullman), E. O. Heady, and C. F.
Framingham. In World Food Production, Demand and Trade.
Ames, Iowa: Iowa State Univ., pp. 327-51 (1973). In chapter
15 of this book fertilizer use projections presented in chapter
12 and specifications of 1975 fertilizer and phosphate rock
plant capacities presented in chapter 13 provide a basis for an
analysis of future trade in fertilizer and phosphate rock and
the utilization and expansion of fertilizer and phosphate rock
plant capacities throughout the world. Trade and productive
capacity analyses were conducted for a 38-region model
including demand of 96 nations. The projection periods of the
analysis are for 1975, 1985, and 2000. (4 fig, 8 tables)
717 World Phosphate Trade Forecast. Eur, Chem. News 27
(674), 10 (Feb. 14, 1975). A report by Westinform, the
international shipping consultants, predicts dynamic growth in
world seaborne phosphate rock and phosphoric acid trade in
the period to 1980. The company estimates that, based on
1973 levels, seaborne exports of phosphate rock will increase
by 74% to over 78 million ton by 1980, despite an
accompanying upsurge in seaborne phosphoric acid movement.
The main reason for this growth is an estimated three-fold
increase in demand in Eastern Europe, according to the report.
The massive phosphoric acid investments planned by rock
exporters during this decade will increase acid trade from 1
million ton at present to over 6 million ton in 1980. Around
37% of total acid exports in 1980 will come from entirely new
suppliers and over 35% of total seaborne trade will be directed
to new importers.
718 World Phosphoric Acid Trade 1975. Phosphorus Potas
sium No. 84, 20-3 (July-Aug. 1976). World trade in phos
phoric acid in 1975 showed some reduction relative to 1974,
in line with the general recession in the phosphate fertilizer
industry. A 28% decrease in import demand from Europe was
shown. Producers reduced capacity utilization rates in accord
with the decline in demand, yet some exporters still experi
enced difficulties in disposing of their acid. Prices fell steadily
throughout the yr from $400-470/mt phosphoric acid f.o.b.
U.S. Gulf in January 1975 to $250-280 in December.
:
719 Phosphoric Acid Trade in 1976. Phosphorus Potassium
No. 88, 21-6 (Apr. 1977). World trade in phosphoric acid
received a substantial boost in 1976 Total sales increased by
Some 40% surpassing 1 million mt P. Os. Major increases in
supply were in the United States, where the IMC Corp. plant
at Mulberry, Florida, had its first full yr of operation and
where Gardinier Inc. and Beker Industries Corp. entered the
offshore acid market for the first time, and from Tunisia,
where Industries Chimiques Maghrebines was able to operate
both its plants at close to full capacity. Fosforico Espanol was
also able to boost its deliveries substantially, meeting demand
from customers of Office Cherifien des Phosphates pending
the start-up of Morocco's own export phosphoric acid capa
city. Shipments out of Morocco did not start until September
and averaged less than 15,000 tons/month P. Os for the 4
months of commercial operation. Fertilizantes Fosſatados
Mexicanos recorded a modest increase in overall sales but was
unable to maintain deliveries out of Mexico itself at the
previous yr level. The major increases in import demand
occurred in Brazil, the Mediterranean (particularly Turkey)
and, to a lesser extent, Northwest Europe and India. At the
start of 1977, there is a prospect for a further substantial
boost in supply, particularly from the Maroc Phosphore plant,
which had only been in commercial operation for a part of the
previous yr, and from South Africa, where Triomf and Fedmis
both started up export phosphoric acid plants near the end of
1976. United States exports could also increase and continued
cooperation between Fosforico Espanol and Office Cherifien
des Phosphates should ensure a market for Spain's surplus.
Tunisia will have less acid for export sale, however, following
the commissioning in the second half of 1976 of monoammo
nium phosphate and sodium tripolyphosphate plants at Gabes
which will provide a domestic outlet for part of ICM.s
production. Demand growth in 1977 can be expected from
most of the major markets including Brazil, India, Turkey, and
Northwest Europe. Poland and Japan will be added to the list
of importers for the first time as a result of contracts
concluded with Morocco and South Africa, respectively.
720 Raw Material Exchange United States—Russia. Eur.
Chem. News 30 (791), 4 (June 1977). A second massive trade
deal involving bilateral exchanges of fertilizer raw material is
presently under discussion between the USA and the Soviet
Union. The U.S. company taking part is Agrico Chemical, the
fertilizer subsidiary of the Williams Companies of Tulsa, which
is a major supplier of phosphates and finished fertilizers from
its plants in Florida and Louisiana. Under consideration is a
10-yr agreement similar in concept but smaller in scale, to the
one negotiated with the Russians by Dr. Armand Hammer of
Occidental Petroleum. The USSR would supply Agrico
annually with one million ton of potash in exchange for about
a quarter of a million ton of P, Os, probably in the form of
triple superphosphate. Based on these quantities, each part
ner’s exports would amount to about $50 million/yr, putting
the whole deal into the $1 billion class. Current prices for
Soviet potash and U.S. triple superphosphate are about
S50/ton and $90-95/ton f.o.b. respectively.
721 U.S.S.R. Agreement With Morocco on Phosphate
Development. Chem. Age (London) 109 (2891), 10 (Dec. 13,
1974). The Soviet Union has agreed to supply Morocco with
all the specialists and equipment needed for a phosphates
complex in Southern Morocco as part of a long-term arrange
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 WORLD TRADE
ment under which the Soviets will buy Moroccan phosphates.
The mine, which is estimated to have 8000 million m' of
phosphate reserves in the first 10 m of depth, is expected to
produce some 10 million tons/yr of phosphates for export to
the Soviet Union. The mine is due to have an initial output of
3 million tons/yr which will be progressively increased to 10
million tons/yr. The U.S.S.R. has told Morocco that it will
require 5 million tons/yr of Moroccan phosphates between
1980 and 1990 and 10 million tons/yr from 1990. The
Moroccans for their part have said that they will require 83.50
tons/day of sulfur, 1500 tons/day of ammonia, 1000 tons/day
of urea, and more than 7700 tons/day of crude oil between
1974 and 1990.
722 Bigger Share of Foreign Agriculture Market Should be
United States Goal, Too. Clayton Yeutter (Nelson, Harding,
Yeutter, Leonard and Tate, Lincoln, Nebraska). Fert. Solu
tions 21 (6), 116, 118-20, 122 (Nov.-Dec. 1977). There is no
more dramatic proof of the worth of chemical fertilizers than
the yields obtained today versus 30 yr ago. The United States
therefore is in an ideal situation to supply the rapidly
expanding markets of developing nations. These nations will
no doubt be our major customers for food, and thus,
secondarily for fertilizers and fertilizer products. Although the
United States presently spends considerable sums for food in
other countries, long term food demand can only be met
through increased agricultural production. Herein lies the vast
opportunities for United States fertilizer industry trade and
expansion abroad.
723 More United States Rock for Foreign Markets. Chem.
Week 119 (23), 15-16 (Dec. 8, 1976). Looking beyond the
relatively steady growth of demand in their domestic markets,
U.S. producers of phosphate rock see enough promise in
overseas markets to justify new mining and beneficiation
projects that within the 1975-1985 decade will enable them to
increase their combined output 75%, to 81 million tons. The
wave of expansions, which could easily soak up more than Sl
billion in new capital investments, is already well advanced.
Global competition is clearly on the rise. Morocco, whose
known phosphate rock reserves exceed those of all other
nations in toto, by 1980 is expected to boost its production
capacity to 30 million tons/yr, up from its 1974 rating by
43%. At the moment, of course, phosphate rock and its
various derivatives are generally plentiful. The longer-term
outlook is another matter. It’s dominated, say some market
analysts, by an inexorable rise in global demand, generated by
a growing world population's unrelenting quest for ever-greater
quantities of higher-quality food and fiber products from plant
and animal crops that cannot be grown without adequate
amounts of phosphorus. Foreign consumers of phos rock are
keenly interested in U.S. reserves, even though North African
mines represent a much closer source of supply. At least five
companies are in line to become new entrants in phosphate
mining. Those companies all expressed confidence that their
go-aheads will come within 2 yr or less. If so, the U.S.
industry’s biggest round of expansions may well be completed
in time for the big spurt expected in world demand for
phosphate rock.
724 Fertilizer Imports Bolster Fertilizer Exports. Chem.
Week 122 (2), 20-1 (Jan. 11, 1978). United States imports of
ammonia and urea in 1977 totaled over two million tons,
worth approximately $250 million. In 1978, even assuming no
96
increase in urea exports, this total could easily reach over three
million tons. To some, these imports might seem to be an
additional minus charge in the U.S. balance of trade deficit.
On the other hand fertilizer industry leaders cite several ways
in which the nitrogenous imports will help sustain U.S.
exports. One instance concerns the Soviet ammonia shipments
scheduled to begin this yr. The arrangement calls for the U.S.
to purchase 33.3 million mt of ammonia and 18.5 million mt
of urea. In return the Soviets have agreed to purchase 18.49
million tons of superphosphoric acid from the U.S. Moreover
much of the ammonia will be used in U.S. plants to
manufacture diammonium phosphate (DAP). The U.S. is
presently the world's largest producer of DAP with exports
adding roughly $300 million/yr to the U.S. trade balance.
Another plus item for the U.S. trade balance is the $20
billion/yr food and fiber exports made possible partially from
these nitrogenous imports.
725 German-French Concern Over Romanian Exports.
Chem. Age (London) 112 (2966), 1, 9 (May 21, 1976).
Germany and France are the countries affected most by the
Romanian exports, and reports from both countries indicate
that substantial quantitites of material is being sold at prices
25% or more below the domestic price. Sources in both
countries are sure that the Romanian activity represents a clear
case of dumping. The EEC Commission is also concerned
about the activities in Europe of Phosrock and Phoschem, the
US phosphate rock and phosphatic fertilizer export cartels.
The German fertilizer industry in particular is looking for
some positive action from the EEC. Between July 1975 and
March 1976, 70,000 mt of straight nitrogen was imported
from Eastern Europe at prices 20-25% below domestic prices.
Of this, about half, or 35,000 mt was imported from Romania.
The German industry is worried that there are considerable
quantities of materials in the pipeline to be dumped in the
market between now and the end of the season. The French
fertilizer is going through an equally torrid time as a result of
East European N imports. Since October, about 70,000 mt of
nitrogen has been imported into France from the Eastern Bloc.
at prices 20-30% below domestic prices. Furthermore, the
industry is anticipating a further 30,000 mt being imported
before the end of the season in July. This 100,000 mt will
represent about 15% of French consumption.
726 Import Controls in Japan. Jpn. Chem. Week 18 (875), I
(Feb. 3, 1977). Japan Phosphatic & Compound Ferts. Manu
facturer's Association recently held an urgent Board of
Directors meeting to examine the industry’s policy designed to
import raw materials for phosphoric acid. They have reached
the following agreement: (1) primary phosphoric acid manu
facturers do not import phosphoric acid in principle, (2) when
a manufacturer is compeled to import phosphoric acid from
the point of plant site, the manufacturer must obtain the
industry's consent, (3) on the basis of this agreement, the
industry will ask the Government to provide administrative
guidance, and (4) the industry will strongly request ammo
nium phosphate importers and secondary manufacturers to
practice self-control on ammonium phosphate imports.
727 India and Iran to Buy Fertilizer Plants from Japan. Jap.
Chem. Week 15 (716), 5 (Jan. 17, 1974). Mitsui Toatsu
Chemicals, Inc. and Toyo Engineering Corp. are expected to
conclude contracts with India and Iran by this summer to
export fertilizer plants and technical know-how on fertilizeſ
 WORLD TRADE
production to the nations. The two companies have jointly
been negotiating with India on the export of three urea plants,
each with a daily capacity of 1000 tons. Likewise, the two
firms are now engaged in talks with Iran on the sale of a urea
plant with daily production capacity of 1500 tons. The two
Tokyo-based companies have so far exported fertilizer plants
and techniques to 21 countries including China.
728 Japan to Export Four Ammonia Plants to Russia. Wall
St. J. (East Edition) 187 (41), 4 (Mar. 1, 1976). Mitsui & Co.
said it signed a contract to export four ammonia:
manufacturing plants valued at the equivalent of $264.7
million to the Soviet Union. According to the contract
concluded between Toyo Engineering Co. and the Mitsui
group and the Soviet government-owned Techmashimport; the
four plants will be built in the suburbs of Minsk, Kharkov,
Moscow, and Kiev. Each will be capable of producing 1500
tons of ammonia/day. They will be completed by 1980.
729 Export of Ammonia-Urea Plants to U.S.S.R. Jpn. Chem.
week 16 (773), 1 (Feb. 20, 1975). Toyo Engineering Corp.
revealed recently that it has reached basic agreement with the
All-Soviet Technology and Machinery Import Corporation (v/o
Techmachimport) on the export of four huge ammonia plants.
A formal contract was to be signed with the Soviet
Corporation soon. It also disclosed that the company expects
to reach agreement with the Soviet Corporation on the export
of two urea plants soon. According to the Tokyo company,
two of the four ammonia plants would be shipped to the
Soviet Union within 2 yr of the conclusion of a formal
agreement and the remaining two within 4 yr. The ammonia
plants will have a daily capacity of 1360 tons each and the
urea plants, 1500 tons each.
730 Fertilizer Export: Crisis in the Making. Farm Chem. 140
(2), 50, 53 (Feb. 1977). The apparent stability of the American
export market in recent years disguised to some extent the
forces already impeding U.S. expansion of markets in
developing nations. These factors are analyzed and suggested
measures to counteract them are given. During the past 2-3 yr
the level of usage has stagnated at relatively low thresholds in
such countries as India, Indonesia, Kenya, Algeria, Ecuador,
and Peru. Agency for International Development sponsored
schemes have helped raise this threshold, but these are
short-term measures and are under-utilized. In 1974-75 only
24% of the nutrients exported by the U.S. went to AID
supported countries. A return to the 1972-73 position, when
50% of all fertilizer exported were destined for countries with
AID programs is highly desirable.
SUPPLY AND DEMAND
PRODUCTION-CONSUMPTION STATISTICS
731 Argentina Supply-Demand. Fur. Chem. News 80 (787),
44 (May 20, 1977). Demand for fertilizers in Argentina is
expected to increase to 183,000 ton N, 239,000 ton P. Os,
and 150,000 ton K, O in 1980 from 51,000 ton N, 30,000 ton
P., Os, and 10,000 ton K2O in 1975. New projects planned to
be completed by the end of this decade include those for urea
(1000 ton/day), diammonium phosphate (185,000 ton/yr),
triple superphosphate (105,000 ton/yr), and NPK (90,000
ton/yr). Exports by this time are expected to be valued at
$800 million compared with present imports of $400 million.
732 Chemical Fertilizers. Fourth Edition, Dept. Primary
Industry, Canberra, Australia; 42 pp. (1977). A statistical
review of the fertilizer situation in Australia is given. Included
are all major fertilizer products and trace elements consump
tion, production, import, and export data through 1976.
733. The Phosphate Fertilizer Industry in Brazil. Phosphorus
Potassium No. 75, 26-33 (Jan.-Feb. 1975). The phenomenal
growth of the Brazilian fertilizer market during the past few
years has been one of the main causes of the current world
shortage of all types of phosphate product. Although Brazil's
production has risen rapidly to over 400,000 mt P;Os in
1973–an increase of nearly 50% in 2 yr—the local industry has
not been able to keep pace with increasing demand. During
1972 and 1973, imports, not including phosphate rock,
totalled 920,000 mt P:Os. Imports of phosphate rock itself
surpassed 1 million mt product in 1973 alone, supplementing
the 200,000 mt produced in Brazil. Current forecasts point to
a demand of up to 2 million mt P. Os by 1980. It is hoped
that the bulk of this could be produced locally. If this hope is
to be realized, Brazil must not only increase its own phosphate
rock production tenfold, but will also be looking for a major
increase in imports of phosphate rock, phosphoric acid, and
sulphur.
734 Potash Production and Sales Show Increase for 1972.
Potash Report (Province of Saskatchewan) (Dec. 1972). This
report on potash indicates an increase in production for
calendar yr 1972 of 10% and a sales increase of 2.7%.
Production of all potash for the yr totaled 4.33 million tons
while sales were slightly more than 4 million tons. Inventories
at points of production were higher than closing of the
previous yr.
735 Canadian Potash 1973. Saskatchewan Monthly Potash
Rep. Dep. Min. Resources; 17 pp. (June 1973). For the
fertilizer yr 1973 ending June 30, the sales of Canadian potash
world wide increased approximately 12.4% from a total of
2,542,324 tons in 1972 to 2,857,458 tons in 1973. The
increase throughout the world including the U.S. was about
the same. Domestic sales in Canada decreased about 25%.
Closing inventories were down 22.5% from approximately
728,000 tons in 1972 to 564,000 in 1973.
736 Canadian Potash Production and Sales 1974. Mon.
Potash Rep. (Saskatchewan Dept. Min. Res.) 21 pp. (Dec.
1974). Potash produced July 1 through Dec. 31, 1974,
amounted to 2,852,528 tons or slightly more than sales of
2,787,203 tons for the same period. In the calendar yr 1974,
production of potash totaled 6,058,000 tons compared to
4,700,000 tons for 1973. This is an increase of 21% for 1974.
During the same period of time sales increased from 5,414,844
tons to 6,317,761 tons which amounted to a 14% increase.
The closing inventory as of December 1974, amounted to
268,000 tons compared to 522,768 December 1973. This is a
reduction of 51% for the calendar yr 1974.
737 Canada Increases Fertilizer Consumption. Green
Markets 1 (31), 2 (Sept. 12, 1977). Canada increased both its
production and domestic consumption of fertilizer last yr.
97
 SUPPLY AND DEMAND
Total plant food shipments increased 18% for the yr ending
June 1977 over the previous yr. Total N production increased
nearly 20% to 967,000 short ton while P output increased by
6.2% to 698,000 short ton. Potash shipments were up 21.4%
to 5.8 million short tons. Shipments of N to Canadian dealers
were 626,000 short ton, an increase of 13.9% while domestic
phosphate consumption was up 1.8% to 444,000 short ton.
Potash consumption increased 33.4% to 292,000 short ton.
738 Fertilizer Consumption in China Still Low. Eur. Chem.
News 24 (594), 6 (July 27, 1973). Production of N and P
fertilizers in China totalled 17 million tons in 1972. Another 6
million tons were imported, 3.5 million tons from Japan.
739 China Boosts Fertilizer Output. Eur, Chem. News 25
(619), 8 (Jan. 18, 1974). Chinese chemical fertilizer produc
tion increased by almost 26% in the January-November period
of 1973, according to the New China News Agency. Western
estimates suggest that the increase raised Chinese output to
around 21 million ton, of which small local plants still
contributed 54% in terms of ammonia production. Four large
new fertilizer plants are scheduled to go into production soon
and capacity expansions are due to be introduced at four others.
Operation of the large fertilizer plants is said to be 50% above
that in 1972. New fertilizer plants recently ordered from the
west will add another 12 million ton/yr to China's fertilizer
capacity.
740 Comecon Increases Fertilizer Production. Eur. Chem.
News 28 (739), 12 (June 4, 1976). Total production of
mineral fertilizers in Comecon countries increased by almost
14% in 1975 from 28.79 million ton of nutrient in 1974 to
32.5 million, according to recent figures released by Economi
cheskaya Gazeta. The greatest increase in production was seen
in Bulgaria which managed to produce almost 24% more
mineral fertilizers during 1975.
741 Communist World Sulfur Use Increases. Sulphur No.
133; 7 (Nov.-Dec. 1977). Both production and consumption
of sulfur in-all-forms in the Communist World is estimated to
have increased in 1977. Production totaled 19.3 million mt, an
increase of 4.4% including 8.7 million mt of brimstone. The
increase in brimstone reflects a higher rate of production in
the U.S.S.R. Sulfur demand is estimated at 17.5 million mt,
some 7.5% above the 1976 level. This increase in consumption
primarily reflects increased use in East Europe and the
U.S.S.R.
742 Comecon Sulfuric Acid Output Increases. Chem. Age
(London) 107 (2839), 16 (Dec. 14, 1973). Production of
sulfuric acid will rise to 22.5 million tons in Comecon
countries during 1973, according to output data through the
first 9 months of the yr. The U.S.S.R. reports output close to
11 million tons in the January-September period, up 8% from
the same period of 1972. Hungary, Poland, and Bulgaria are
also increasing output appreciably.
743 Finland Reduces Fertilizer Consumption. Fert. Int. No.
101; 4 (Nov. 1977). Nutrient consumption in Finland fell 18%
during the 1976-77 fertilizer yr as compared to the previous yr
and 29% compared to the record yr of 1974-75. Finland has
for several yr suffered from excessive agricultural surpluses,
particularly of wheat, feed grains, and dairy produce. The
Finnish Government has attempted various remedies to reduce
98
agricultural surpluses including the restriction of credit facili- -
ties and a gradual reduction of fertilizer subsidies. Total
nutrient consumption in 1976-77 amounted to 422,000 mt of
which over 80% was in the form of NPK and PK. The most
important nutrient in terms of usage continues to be N.
Although production has also declined since 1974-75, produc
tion still exceeded consumption in 1976-77 by 14%.
744 Holland Shows Fertilizer Production Increase. Eur
Chem. News 24 (592), 8 (July 13, 1973). The production of N
fertilizers in Holland in the period July 1, 1971 to June 30,
1972 increased by 40%. Production of phosphate rose by 7%
to a total of 294,800 tons of P20s. Practically 70% of the
figure given for domestic sales of N fertilizers for 1971-1972
was in terms of calcium ammonium nitrate and 18% was of
compound fertilizers. These percentages are slightly lower, 71
and 17% respectively, than the previous yr. Among phosphatic
fertilizers, 8% of domestic sales were of superphosphate
compared with 17% the previous yr. Sales of concentrated
superphosphate rose from less than 1% the previous yr to 5%
in 1971-1972. Basic slag accounted for 22% of sales and
compound fertilizers for 58%. Of the sales of potassic
fertilizers 30% were potassium salt 40, 12% potassium salt 60,
and compound fertilizers accounted for 38%.
745 Fertilizer Statistics 1971-72. Editor, T. M. Alexander.
New Delhi, India: Fertilizer Association India; 695 pp. (1972)
Price Rs. 25. This edition brings up-to-date the statistical data
furnished in the previous 17 annual editions since 1956. It is
divided into three parts. Part I, page 1-464, provides informa
tion on capacity, production, distribution, consumption, and
prices of fertilizers in India. Data on plant nutrients removed,
soil testing, and use by district and region are given. Part II,
page 465-577, deals with Indian agricultural and allied
statistics. It gives data on land utilization, production of crops
per area, and agricultural programs. Statistics on population
and agricultural economy are given. Part III, page 579-616,
contains fertilizer and agricultural statistics of production and
consumptions in countries other than India. A large number of
maps and tables are included throughout the book.
746 Fertilizer Statistics 1972-73. C. Sahai, A. N. Kulkarni,
and K.S.K. Talwar. New Delhi: Fert. Ass. India; 670 pp. (Dec.
1973). Price Rs 25.00. This eighteenth issue of Fertilizer
Statistics provides the latest basic information of fertilizer
production, imports, consumption, and agricultural statistics
in India. The book is presented in three parts: Part One gives
data on capacity, raw materials used, production, imports,
consumption, and prices of the primary nutrients. Other data
Such as plant nutrients removed from soil, soil testing
laboratories, fertilizer recommendations, and railway freight
rates are included in this section. Part Two provides data on
Indian agricultural and allied statistics such as land utilization,
crop production, special programs, and population and
agricultural economy. Part Three gives data on fertilizer and
agricultural production and consumption in other countries.
This book is useful to those who are interested in economic
development in India through intensive agriculture in which
fertilizers play a key role.
747 Indian Fertilizer Supply-Demand. Chem. Age (London)
108 (2864), 10 (June 14, 1974). Output of fertilizers in India
this yr is unlikely to reach more than 50% of requirements
despite frantic attempts by the petrochemical industry to
 SUPPLY AND DEMAND
boost production. Latest figures estimate production at 1.78
million mt in 1974-75 against expected demand of 3.6 million
mt. Production of nitrogenous fertilizers was 1.06 million mt
in 1973-74 and 317,000 mt of phosphatic fertilizers were also
produced. Imports this yr will total 1.7 million mt. Capacity
will be raised from 2.2 million to 2.8 million mt/yr, it is
hoped. Fertilizer companies will not be allowed to make vast
profits from the increased pool prices. The Department of
Chemicals is expected to use the increase as an opportunity to
rationalize the price system.
748 Indian Fertilizer Demand. Eur, Chem. News 27 (706),
27 (Oct. 10, 1975). The reduction of fertilizer prices an
nounced over a month ago has failed to make any impact on
stockpiles, according to the Fertilizer Corporation of India
(FCI). The latest report from the Fertilizer Association of
India (FAI) states that demand for fertilizers dropped by 3.3%
during 1974-75. Consumption of phosphates fell by 17.2% and
nitrogenous and potassic fertilizers experienced only a margi.
nal increase in demand, of 0.5 and 2.8% respectively. For the
same period production increased by over 10%. Output of
nitrogenous fertilizers rose from 1.050 to 1.186 million ton,
an increase of 13%.
749 Annual Review of Fertilizer Consumption and
Production—1976-77 India. Fert. Mark. News (India) 8 (7),
2-24 (July 1977). The Indian fertilizer situation in 1976-77 is
reviewed. Consumption shows a resurgence, thus reversing the
trend of a yr earlier. Production recorded substantial increase
for the second yr in succession. Nitrogen fertilizer consump
tion for the yr totaled 2,457,000 mt. Production of nitrogen
fertilizer was 1,857,000 mt. Consumption of P. Os increased
to 653,000 mt and production totaled 478,000 mt. India
produced no K2O for 1976-77 but consumed 319,000 mt.
This review gives nutrient consumption for each of the five
regional zones.
750 Fertilizer Consumption in India. Fur. Chem. News 30
(780), 12 (Apr. 1, 1977). Consumption of fertilizers in India
during the fertilizer yr 1976-77, showed an increase of 27%
over the previous yr reaching 3.490 million ton compared with
2.744 million ton. Though this was the highest consumption
level recorded, it still fell about 110,000 ton short of the
government target. The most marked increase was in phos.
phatic fertilizer consumption which increased by more than
50% from 443,000 ton in 1975-76 to 683,000 ton. Nitrogen
consumption grew by 25% from 1.992 million ton to 2.479
million ton and potash consumption was also up from 266,000
ton to 328,000 ton. Observers in India attribute the incleased
consumption to several factors.
751 Fertilizer Supply-Demand in Indonesia. Chem. Age
(London) 111 (2939), 11 (Nov. 14, 1975). A major increase in
overseas fertilizer purchases was the prime reason behind a
178% increase in Indonesian chemical imports during 1974 to
some $A589 million. Fertilizer imports rose from $A107
million to $A398 million. During the past 5 yr chemical
imports into the country have increased an average of 58%/yr.
This trend is expected to continue at least for a further 5 yr
until projected fertilizer and petrochemical facilities begin
production. Indonesia is currently consuming a total of 2
million mt of fertilizer/yr. Some 1.2 million mt is urea, about
100,000 mt ammonium sulfate, and 400,000 mt of triple
superphosphate. Current local production stands at 200,000
mt/yr of urea and 110,000 mt/yr of ammonium sulfate. World
scale fertilizer facilities are now under construction at Pusri
and the national oil company Pertamina is having two floating
fertilizer plants built for operation around the Indonesian
COaSt.
752 Israel Upping Fertilizer Output to Capitalize on World
Demand. D. B. Douglas (U.S. Agr. Attache, Tel Aviv, Israel).
Foreign Agr. 12 (38), 11, 16 (Sept. 23, 1974). Production of
KCl from Dead Sea brine was 955,000 mt in 1973. This will be
increased to 1.2 million-1.5 million tons in 1974. About
100,000 tons will be used in Israel and the remainder
exported. Additional production does not increase energy
requirements significantly because the sun fuels the basic
production process. New phosphate rock reserves will be used
in increasing production of this fertilizer raw material from
about 900,000 mt (1973) to 1 million tons in 1974 and
possibly 2 million tons in 1975. About 160,000 tons are used
in domestic processes and the remainder is exported. Complex
fertilizers also are produced, including KNO. Production of
this fertilizer started in 1970 and should reach 100,000 mt in
1974. Domestic consumption accounts for 1500-1800 tons
and the remainder is available for export.
753 The Italian Fertilizer Market: Consumption and Prices.
Eur, Chem. News (Italian Survey), pp. 35-6 (Dec. 7, 1973).
For the past few yr the Italian fertilizer market has tended to
stagnate after a remarkable growth period. Most of the
fertilizer production is controlled by two companies with
plants located in Priolo and Ravenna. The entire N capacity
totals about 2 million tons/yr of N, much of which is used in
the northern part of the country. Phosphate production has
failed to meet the demand since 1970 and material is being
imported into the country. The first production of potash
began in Sicily in 1964 and its consumption has grown rapidly.
A new potassium sulfate refinery at Pasquasia began produc
tion in June 1973 with 100,000 tons scheduled for production
through Dec. 1973. At present the Italian fertilizer industry is
experiencing a chronic shortage of fertilizer, brought about by
the unrealistic pricing policy of the government.
754 Japanese Ammonia Production. Jpn. Chem. Week 18
(894), 1 (June 16, 1977). Ammonia production in fiscal 1976
ending in March dropped below the 2,500,000 tons line to
2,471,000 tons, bringing the average operating rate down to
55%, the lowest in the history of the industry. Fertilizer
consumed was 637,000 tons. During the fertilizer yr ending in
June 1977, fertilizer use will be larger because of the export to
China but production as a whole will remain at the same level
as during the fiscal yr. The continued reduction in ammonia
production over the last few yr has resulted from the
drastically reduced urea export. This has forced the shutdown
of the large ammonia plants of Nihon Ammonia Co. and Ube
Ammonia Co. since last summer and has also forced Mitsui
Toatsu Chemicals, Inc., Nippon Kasei Chemical Co., and
Mitsubishi Chemical Industries Ltd. to conduct major modifi
cations in their plants.
755 Japanese Phosphate Supply-Demand. Jpn. Chem. Week
16 (775), 5 (Mar. 6, 1975). Demand for fertilizers in 1974
fertilizer yr has been on the increase, surpassing the expecta
tions. Production of phosphate fertilizers amounted to
409,000 tons (P20s), and increase of 19.1% over the
corresponding period of the previous yr, and domestic demand
99
 SUPPLY AND DEMAND
came to 367,900 tons, a mcrease of 15.6%, showing an
unprecedented growth rate. Meanwhile, export declined
sharply to 9300 tons, a decrease of 47.5% from the same
period of the previous yr, due mainly to the Government's
policy of giving priority to the fulfillment of domestic
demand.
756 Japan's High-Analysis Compound Fertilizer Supply
Demand. Jap. Chem. Week 14 (686), 8 (June 21, 1973).
Supply and demand position of fertilizers has taken a
favorable turn worldwide, and N fertilizers have already
become insufficient. Demand for phosphate fertilizers are also
upswinging, and a major phosphoric acid center construction
plan is recently proposed. Thus, the prospects of demand for
complex fertilizers have become bright. Japan Phosphatic &
Compound Fert. Manufacturers’ Association recently esti
mated demand for high-analysis compound fertilizers for 1973
fertilizer yr at 2,775,400 tons, an increase of 5.1% over 1972
fertilizer year’s high-analysis compound fertilizers production
estimate of 2,641,400 tons.
757 Japan's 1973 Sulfuric Acid Supply-Demand. Jap. Chem.
Week 15 (718), 7 (Jan. 31, 1974). Demand and supply of
sulfuric acid in 1973 are estimated by Sulphuric Acid
Association of Japan at 7,033,000 tons for production, up 3%
over the preceding yr, and 7,050,000 tons for demand, up a
little less than 4.9% surpassing the level of 7 million tons for
the first time. Installed production capacity at the end of 1973
totaled 24,392 tons/day, an increase of 1,726 tons over the
beginning of the yr. The smelter gas accounted for 60% of
overall material of sulfuric acid as against 57% for last yr.
Demand including import of 60,000 tons presumably topped
production because fertilizer, fiber, and inorganics industries
enjoyed brisk demand. Sulfuric acid supply is likely to be
short by more than 120,000 tons in the current fiscal yr, if its
demands continues active hereafter.
758 Japan's Sulfuric Acid Supply-Demand. Jap. Chem. Week
15 (742), 1, 5 (July 18, 1974). Demand and supply of sulfuric
acid in fiscal 1974 is estimated by the fertilizer industry at
7,442,000 tons. Installed capacity of the product is estimated
at 8,699,000 tons. Ishihara Sangyo Kaisha, Ltd., is scheduled
to start again 500 tons/day sulfuric acid production in
November, while Toagosei Chemical Industry Co. will increase
production by 570 tons/day in December and The Dowa
Mining Co. by 1200 tons/day in September. They all produce
sulfur dioxide, raw material for sulfuric acid, by roasting
sulfides. Sulfuric acid supply may seem sufficient in view of
estimated production capacity, although the demand and
supply position of the product in the current fiscal yr cannot
be accurately predicted. Sulfuric acid was imported last yr to
alleviate short supply of the product in Japan. The import is
expected to continue also this fiscal yr.
759 Japanese Sulfuric Acid Demand. Jpn. Chem. Week 16
(800), 5 (Aug. 28, 1975). Demand for sulfuric acid in fiscal
1975 was recently estimated by Sulphuric Acid Association of
Japan at 6,019,000 tons, down 13% from the previous year's
level. A marked decline is seen particularly for fertilizer use
(19%). Despite the 13% decrease on a yearly basis, demand for
the product in the latter half is expected to increase 14.8%
over that of the first half.
760 Sulfuric Acid–Japan. Jpn. Chem. Annual 1977. 44
100
(1977). Production of sulfuric acid in fiscal 1976 totaled .
6,134,537 tons, up 3.2% over the previous yr. Consumption º
also increased by 2.2% to 6,122,565 tons. The fertilizer
industry’s demand totaled 1,883,324 tons, a decrease of 6.8%.
Ending inventories were up 2.1% over a yr earlier to 245,990
tonS.
761 Jordan Phosphate Production. Eur, Chem. News 26
(659), 4 (Oct. 25, 1974). Reopening of the Suez Canal in May
next yr has spurred Jordan in a massive phosphate rock
expansion program. Production at the high grade 73-75% El
Hassa mine will be expanded from 1.65 million tons in 1974
to 5 million tons in 1976.
762 Jordan Phosphate Rock–1976. Miner. Trade Notes 74
(8), 16 (Aug. 1977). Production and exports of Jordanian
phosphate rock reached record highs in 1976. Total produc.
tion reached 1,701,800 mt nearly 26% greater than in 1975.
Exports for the same period increased 49% to 1,653,142 ton
from the 1975 level of 1,111,877 tons. On the other hand,
revenues declined to JD20.694 million (U.S. $62.5 million) in
1976 from JD21.182 million (U.S. $64.2 million) in 1975.
This was due to a steady decline in the price of raw phosphate
on the international market.
763 Fertilizer Production in Mexico. Fert. Int. No. 83, 4
(May 1976). Total output of fertilizers in Mexico increased to
over 2.8 million mt product in 1975. This chiefly consisted of
anhydrous ammonia (27%), ammonium sulfate (20%), and
single superphosphates with just over 19% of the total. Output
of all individual products increased, with the exception of
urea. The most significant increase in production was recorded
for anhydrous ammonia which rose by over 42% to 779,000
mt, the next was for ammonium phosphate (17%) with an
output of 136,000 mt. Production of compounds increased by
13% to 313,000 mt and output of ammonium nitrate at
153,000 mt, rose by around 4% over the total for the
preceding yr. Mexico is the largest consumer and producer of
fertilizer in Central America and despite exporting both
nitrogenous and phosphatic fertilizer, still remains a net
importer.
764 Moroccan Phosphate Production. Chem. Age (London/
1 / 1 (2933), 7 (Oct. 3, 1975). Moroccan production of
phosphate rock is now expected to be down 25% in 1975 from
the 1974 level, falling by 6.6 million mt to about 16.2 million
mt. This compares with the official forecast of 24.8 million m!
originally set for 1975. Overall, deliveries in the first half were
down by 14% over the same period 1974, but in the second
quarter, deliveries were down by 27%. The Phosphate Rock
Export Association has announced new prices for phosphate
rock effective January 1, 1976. Four grades of rock. 75, 72.
68, and 66% BPL, will be offered, and the respective prices
will be S58, S52, S44. and S40'mt loaded vessel, dry wi.
765 North American Potash Production Increases. Phos
phorus Potassium No. 90; 14 (July-Aug. 1977). In fertilizer y!
1976-77, the North American potash industry made a signifi.
cant recovery although the record levels of 1974-75 were not
repeated. Production in 1976-77 rose by 11% from 7.06
million mt K2O to 7.84 million mt K2O and total sales
reached 7.94 million mt K2O. North American producers
started the yr with higher inventories than the previous
yr-96,000 mt in Canada and 483,000 mt in the United States.
 SUPPLY AND DEMAND
Canadian producers experienced favorable market conditions
throughout the yr and total disappearance rose to 5.58 million
mt K-O from 4.49 million, an increase of 24%. Total North
American disappearance rose by only 10% as the increase in
production was totally due to Canadian output.
766 North Vietnam-Large Fertilizer Use Potential. Fert.
Int., No. 52, 5 (Oct. 1973). The current level of fertilizer
consumption in North Vietnam is estimated to be 31,000 mt
N. 96,000 mt P2 Os, and 11,000 mt K20. The prime necessity
of increasing rice production from the level of about 4.1
million mt, which is believed to have been the average of the
last few years to the 1959-60 figure of nearly 5.2 million mt
will call for a greatly increased fertilizer application. By
1975-76 it is thought possible that North Vietnam may be
using 50,000 mt N, 120,000 mt P., Os, and 25,000 mt. K2O
and that by 1980-81 something like 260,000-280,000 mt of
nutrients could be consumed.
767 Fertilizer Production in Poland—1976. Fert. Int. No. 95,
9 May 1977). Data released on Polish fertilizer production in
1976 shows that output of both nitrogenous and phosphate
fertilizers remained close to 1975 levels, at 1,546,000 mt N
and 927,000 mt P20s. However, significant changes were
ſecorded in both imports and exports. Total nutrients rose
above 1 million mt, a level almost three times as high as in
1975. Imports were also up in 1976 at 2,857,000 mt nutrient,
40% higher than the previous yr. Potash salts comprised the
bulk of Polish imports while exports are largely accounted for
ty nitrogenous fertilizers especially urea and calcium ammo
Illum nitrate.
768 Portuguese Fertilizer Consumption—1976-77. Fert. Int.
No. 100; 4 (Oct. 1977). Latest reports from Portugal indicate
that fertilizer consumption in 1976-77 reached a new high
level. Total consumption stood at 138,000 tons N, 76,000
tons P, Os, and 33,000 tons K. O. Calcium ammonium nitrate
continues to be the major straight N fertilizer used in Portugal;
iſ accounted for 41% of total N consumption in 1976-77.
Single superphosphate, although declining in use, is still the
dominant form of straight P. Os; compounds represent three
fourths of P. Os consumption.
769 Fertilizer Supply-Demand in Romania. Nitrogen, No.
92, 10 (Nov.-Dec. 1974). Over the 1970-75 period more than
ºne-quarter of the planned level of investment in the
Romanian chemical process industries has been allocated to
stepping up fertilizer production, with emphasis being placed
on the output of multinutrient products. Nitrogen is the most
widely applied nutrient in Romania, with 420,000 mt being
consumed in 1973. By 1975 the Development Plan aims to
boost N usage to as much as 1.3 million mt. In 1975 very
substantial additions to installed capacity are due on-stream
With the commissioning of the important new complex at
Aſad, which is to include a 250,000 ton/yr ammonia plant and
a 900,000 tons/yr multinutrient facility. Similar facilities are
under construction at Turna Magurele, and these should also
in 1975. Yet another similar complex
* completedcompleted is due to
he partially at Craiova in the south, although the
immonia plant there will not be commissioned until the
Iºllowing yr. An ammonia-urea complex is also to be built at
Tºuci, and another such complex is nearing completion at
Slobozia. In 1975 it is planned that N production should
ºxceed consumption by 670,000 mt. While trade within
Eastern Europe is expected to absorb much of this surplus,
shipments to developing countries will probably rise
considerably.
770 Russia Increases Fertilizer Capacity. Chem. Eng. News
52 (5), 6 (Feb. 4, 1974). The Soviet Union plans to increase
fertilizer capacity in 1974 by 10.5 million tons. Facilities for
making 9.5 million tons/yr began operating in 1973. Output of
fertilizer is expected to reach 80 million tons this yr and rise
to 90 million tons in 1975, up 60% from 1970.
771 South Korean Fertilizer Demand. Fert. Int No. 84, 4
(June 1976). Fertilizer consumption in South Korea continued
to increase in 1975. In terms of total product, consumption
rose 9% to reach more than 1.9 million mt. The N and K2O
nutrient content both increased by 7.5%, compared with a
much lower 2.5% for P; Os. A 16% growth in consumption of
straight fertilizers was partly offset by a 5% reduction in that
for compounds. As a result, the share of straight fertilizers in
total consumption grew to 71% from 66% in 1974. Urea
continued to be the main product in demand, comprising 56%
of straight fertilizers and 40% of the total. Its consumption
increased by 9% in 1975, which is low compared to the very
big increase of 192% in ammonium sulfate.
772 Spanish Fertilizer Production. Eur. Chem. News 27
(701), 10 (Sept. 5, 1975). Despite sharp increases in produc
tion costs and a slight decline in domestic demand, Spanish
fertilizer output continued to increase during the yr ended
June 30. Consumption (as tons N) fell by 2.9% to 707,100 ton
but production rose by 4.8% to reach 807,600 ton. Urea
production soared by 30% to 121,000 ton. After reaching a
balance in domestic consumption and production in 1970-71,
Spain had a positive foreign trade surplus in fertilizers worth
Ptas 2200 million last yr. Spain's fertilizer industry now ranks
thirteenth in the world in output terms.
773 Spanish Nitrogen Fertilizer Supply-Demand. Eur, Chem.
News 30 (778), 12 (Mar. 18, 1977). Spanish N fertilizer
production increased by 51,245 ton, 5.8%, in 1976. Domestic
consumption was about 24% below production and exports
increased from 90 ton in 1970 to 73,519 ton last yr. Imports
of N fertilizers have dropped from 83,203 ton to only 13,129
ton in the same period.
774 Fertilizer Surplus in Spain. Eur, Chem. News 31 (811),
8 (Nov. 11, 1977). Over capacity and stagnating demand head
the list of ills currently besetting the Spanish fertilizer
industry. Several big new plants have been commissioned but
demand has effectively remained the same since 1973.
Capacity utilization rates stand at 51% for ammonium sulfate,
70% for ammonium nitrate, 37% for urea, 40% for superphos
phates, and 60% for complex fertilizers.
775 Spanish Nitrogen Output increased. Fert. Int. No. 102;
4 (Dec. 1977). Spanish N fertilizer production increased 9.7%
during 1976-77. The largest single product increase was for
urea, 23.6% from 168,000 mt last yr to 208,202 mt.
Ammonium nitrate and complex fertilizer manufacture in
creased also by 10.1 and 20.3%, respectively. Consumption
reflected a similar trend during 1976-77 with an 8.7% rise in
demand over the previous yr.
776 United Kingdom Fertilizer Consumption Growth.
101
 SUPPLY AND DEMAND
Chem. Age (London) 108 (2860), 12 (May 10, 1974). Overall
growth in fertilizer consumption in the U.K. during 1972-73
was only 2%, according to figures released by the Fertiliser
Manufacturers’ Association. Nitrogen consumption rose by
3.0%, phosphate by 1.8%, while potash consumption remained
static. Use of compound fertilizers continues to decline. In the
1966-67 season, three-quarters of the total was accounted for
by compounds, but in 1972-73 this fell to two-thirds. For
example, N consumption is now 51% in the form of
compounds and 49% in straight form. The increase in the
usage of straight N is to be explained by more intensive
cultivation of grassland.
777 United Kingdom Fertilizer Consumption. Eur, Chem.
News 27 (698), 15 (Aug. 8, 1975). Fertilizer consumption on
United Kingdom farms remained almost static in 1974,
compared with 1973, showing an increase of only 0.2%. A
total of 1,839,000 tons of inorganic fertilizers was used on
British farms during the 1973-74 fertilizer yr, compared with
1,834,000 ton the previous yr, according to annual statistics
just released by the Fertilizer Manufacturers' Association. Of
the total fertilizers consumed, there was a 3.5% increase in the
use of N and a 1% increase in K. This helped to offset the 6.8%
drop in P, from 474,500 ton in 1972-73 to 442,000 ton last
yr. This drop has come about mainly as a result of the reduced
availability of basic slag, due to the growing modernization of
steelworks. In 1972-73, 84,500 ton of basic slag was used and
in 1973-74 this fell to 50, 100 ton.
778 United Kingdom Sulfuric Acid Output Down 17% in
1975. Chem. Age (London) 112 (2951), 9 (Feb. 13, 1976).
United Kingdom consumption of sulfuric acid was down by
18.1% during the fourth quarter of 1975, to 819,196 mt,
while consumption for the whole of 1975 was down by 16.8%
to 3.45 million mt, according to figures from the National
Sulphuric Acid Association. Production of new acid in the
fourth quarter was 20.4% down on the same period of 1974 at
777,695 mt, representing a capacity use of 67.6%. This
compares with capacity use of 62.7% in the third quarter and
72.1% in the second quarter. Imported sulfur accounted for
91.2% of the total sulfuric acid production with 237,040 mt
being consumed. Consumption of sulfuric acid from the largest
sector, fertilizers and agricultural, was down by 14.1% over the
same period of last yr, to 279,000 mt.
779 United Kingdom Fertilizer Demand. Eur. Chem. News
29 (765), 16 (Oct. 1, 1976). Total fertilizer consumption in
the United Kingdom for the yr 1974-75 reached about 1.776
million ton in terms of nutrient, a drop of 5% compared to the
previous yr, according to estimates by the United Kingdom
Fertilizer Manufacturers' Association. Total phosphate sales
declined by 12% to 395,000 ton. The higher potash prices also
affected sales, which were down by 9.6% to 397,000 ton.
Nitrogen fertilizers, on the other hand, saw a marginal increase
in sales, by about 0.4% from 980,300 ton in 1973-74 to
984,000 ton in 1974-75. Compound fertilizer consumption
fell more than straight fertilizers, with total compound
consumption falling from 1.263 million ton in 1973-74 to
1.149 million ton in terms of nutrient, a drop of 9%, with all
components declining (nitrogen—5.3%; phosphate—12.3%;
potash–10.6%).
780 United States Fertilizer Industry Capacity Rates. Chem.
Age (London) 115 (3041), 8 (Oct. 28, 1977). The United
102
States fertilizer industry ran its ammonia plants at a rate of
89.3% capacity during the first half of the yr. Solid urea plants
were run at 88.8% capacity and liquid urea plants at 94.4%.
Wet process phosphoric acid plants ran at 86.6% of capacity
and diammonium phosphate plants were up to 85.7%. Phos
phate rock producers were working at 80.4% of capacity while
potash producers from 67.9% for standard muriate to 95.2%
for granular muriate. Capacity increases planned by the
industry shows that United States ammonia capacity will be
increased to 20.2 million mt/yr by the end of 1978 and 21.5
million mt/yr by 1979.
78.1 Nitrogen Supply-Demand United States. Feedstuffs 47
(39), 3 (Sept. 22, 1975). Nitrogen supplies for the current
fertilizer yr are expected to be slightly below that of 1974-75,
according to a government interagency fertilizer task force.
Survey results showed anhydrous ammonia production would
be reduced by an estimated 670,000 tons from July 1975,
through June 1976. The projected drop in the July-December
period is about 250,000 tons, with about a 380,000 ton
decline for the first quarter of 1976. The decline during the
April–June 1976, quarter is expected to total less than 40,000
tons. The task force reported that about 554,000 tons, or 83%
of the reduction in tonnage, will be in plants served by
distributors dependent on natural gas supplied by interstate
pipelines. Inventories of anhydrous ammonia at the beginning
of the fertilizer yr were the largest on record. These will tend
to counter losses in production resulting from natural gas
curtailments. Hence, by holding net trade unchanged in the
task force projection, net domestic supplies of N available for
farm use in the 1975-76 yr are expected to be slightly below
those of last yr.
782 United States Production. Chem. Week 118 (11), 26
(Mar. 17, 1976). Ammonia producers operated at 92% of
capacity in the second half of 1975, says The Fertilizer
Institute. Production was 7.38 million tons. Urea producers
ran at 72.9% of capacity, turning out 1.21 million tons of solid
material. Phosphate rock output of 22.83 million tons was
91.8% of capacity, and diammonium phosphate makers
operated at 101.7% of capacity, turning out 4.02 million tons.
But output of normal superphosphate, at 497,000 tons,
slumped to 35.5% of capacity, and concentrated superphos.
phate production of 1.79 million tons was 65.2% of capacity.
Output of standard muriate of potash was 2.2 million tons
(60.4% of capacity), coarse muriate, 1.99 million tons (72.6%
of capacity). Granular muriate output was 1.31 million tons
(78.4% of capacity).
783 Chemical Profile-Phosphorus. Chem. Mark. Rep. 213
(2), 9 (Jan. 9, 1978). Total combined production capacity for
phosphorus by United States manufacturers is rated at
564,500 tons/yr. Growth in demand for 1967-76 was minus
2.2%/yr. Estimated future growth is minus 3-4%/yr through
1981 and a flat 0.1%/yr thereafter. Phosphorus prices during
the period 1952-76 reached a high of 61 cents/lb for white or
yellow in tanks, and a low of 17 cents/lb, same basis. The
current price is 61 cents/lb. Eighty-five 94 of P is used for
phosphoric acid, 8.5% for nonacid chemicals, and 6.5% is
exported. Total demand for P in 1977 was 470,000 ton.
Projected demand in 1978 is 450,000 ton and 370,000 tons in
1982.
784 Phosphate Rock: 1972 Review. Pit Quarry 65 (5), 113
 SUPPLY AND DEMAND
(Dec. 1972). Through the 1972 crop year (July 1, 1971-June
20, 1972) production of marketable phosphate rock rose
nearly 3% over the preceding crop yr to the level of 39.9
million tons with a value of more than $206 million. The
marketable rock sold or used by producers amounted to 39.9
million tons, an increase of 7.3%. Export tonnage and value
was reported to have increased 15% and 13%, respectively;
while apparent consumption is stated to be nearly 4% above
the 1971 level. The average price/ton of marketable pro
duction is reported by the Bureau of Mines as $5.18—a drop of
1% from the prior yr.
785 United States Phosphate Rock Production. Pit Quarry
66 (7), 111-12 (Jan. 1974). Production of marketable phos
phate rock increased 4.9% in crop yr 1973 (July 1, 1972-June
30, 1973) compared with the 1972 crop yr production,
according to the Bureau of Mines. Tonnagewise, marketable
phosphate rock production rose from 39.9 million tons in
1972 to 41.9 million tons in 1973. During this same period the
value of marketable production increased from $206.7 million
to $223.1 million, which amounted to 8%.
786 United States Phosphate Rock Production. Eng. Mining
J. 175 (3), 91-2 (Mar. 1974). The United States set a record in
1973 in production of marketable phosphate rock, reaching
about 42.6 million tons. The U.S. phosphate industry—which
accounts for about 42% of world production—had consider
able difficulties in producing sufficient rock to meet domestic
and export markets. Due to such production and shipping
difficulties, U.S. exports of phosphate rock increased by only
2.8% during the 1973 fertilizer year (July 1, 1972 to June 30,
1973), even though the output of phosphate rock was almost
5% above the previous yr. The consensus is that the U.S.
phosphate rock industry will experience more shortages and
higher prices in 1974.
787 Phosphate Production Increases. Pit Quarry 67 (7), 76
(Jan. 1975). There was a 3.6% increase in production of
marketable phosphate rock in the crop yr 1974 (July 1,
1973-June 30, 1974). During this period marketable produc
tion increased from 41.9 million tons in 1973 to 43.4 million
tons in 1974. Substantially larger amounts of phosphate were
imported in 1974 when 162 thousand tons of foreign product
was imported by the U.S. This is almost four times the amount
imported in 1973. Exports were down slightly, however,
dropping from 13.9 million tons to 13.6 million tons during
this same period. Over 81% of the phosphate rock is used for
fertilizer production. The remaining 19% went toward the
making of elemental phosphorus, defluorinated rock, and
other uses. Florida and North Carolina provided about 92% of
the phosphate rock production.
788 Florida Phosphate Output. Feedstuffs 47 (17), 50 (Apr.
28, 1975). Phosphate production in Florida is expected to
increase by 11% this yr and the increase will continue into
next, according to the Florida Phosphate Council. The council
estimated that about 42 million tons of phosphate will be dug
this yr and increased production will increase output by about
28%. The council said there are four new plants in operation,
and three new mines will be in operation in the next several
months.
789 Phosphate Rock Output increases–Value Declines.
Green Markets 1 (33), 3 (Sept. 26, 1977). Production,
consumption, and export tonnage of United States phosphate
rock showed increases in crop yr 1977 but the unit values of
all three categories declined substantially from 1976 levels.
According to the latest U.S. Bureau Mines figures, production
for the yr rose slightly from 49.2 million short ton in 1976, to
49.5 million short ton last yr. During the same time
marketable rock jumped 6.8%, from 45.3 million short ton to
48.4 million short ton. The value of the rock dropped almost
25%, from $21.39% short ton in crop yr 1976, to
$16.71/short ton in 1977. The decrease reflected lower unit
values for rock from all three U.S. producing areas. The trend
of lower prices for greater vol extended to the export market
as well. Offshore shipments of phosphate rock increased about
2.6% to 11.8-million short ton last yr, while the unit value
decreased from $31.32/short ton in 1976, to $21.98/short ton
in 1977. Consumption showed a similar pattern, a yearly
increase in tonnage to 36.6 million short ton, from the 33.8
million short ton a yr ago. The value of phosphate rock
dropped from $18.03/short ton in 1976, to $15.05/short ton
in 1977.
790 United States Phosphate Rock Output Increases. Green
Markets 2 (9), 8 (Feb. 27, 1978). United States production of
phosphate rock in 1977 totaled 51.2 million short tons, 5.1%
ahead of 1976 production levels. Phosphate rock sold or used
increased 14.3% over the 1976 period to 52 million short ton.
The annual rate of consumption was 36.8 million short ton
compared with 34.6 in 1976. Exports totaled 11 million short
tons, an increase of 40%.
791 Phosphate Supply in United States. Chem. Mkt. Rep.
203 (19), 22 (May 7, 1973). Phosphoric acid availability in the
U.S. won't change much this yr, USDA says. Exports should
drop sharply, by about 46%; imports should rise, by 32%.
Total supplies of domestic normal and enriched superphos
phate will be the same as last yr, 678,000 tons. Imports will be
negligible, USDA says, and exports will amount to about 7000
tons. Domestic capacity for producing normal superphosphate
is about 1.1 million tons. Concentrated superphosphate
capacity appears to total about 2.1 million tons, 16% more
than it was last yr. Ammonium phosphate capacity in primary
plants is now about 3.2 million tons of P, Os, up 14% from
last yr. Wet-process phosphoric acid capacity in operating
plants is about 6.3 million tons of P20s, up 10% from last yr.
The department said three plants have reopened and others
increased capacity.
792 Potash Production—Consumption. Pit Quarry 65 (5),
| 13 (Dec. 1972). According to government figures on the
1972 crop yr, the production of 4.5 million tons of market
able K salts was 4% under the pace of 1971. Sales of 4.4
million tons were about 8% below the prior yr, and 20% less
than the record yr of 1967. While apparent consumption of
marketable salts has been indicated as the highest on record,
imports for consumption were also the largest ever reported,
and exceeded domestic production for the first time in many
yr.
793 U.S. Potash Production. Eng. Mining J. 174 (3), 161-2
(Mar. 1973). Performance of the North American Potash
industry continued to improve in 1972. The impact of the
Saskatchewan potash prorationing program could be seen in
the stability of prices realized by U.S. producers and by the
return to seasonal pricing. For the first time in 4 yr, an
103
 SUPPLY AND DEMAND
increase (5%) in domestic production was reported—from
2,587,000 tons in 1971 to 2,705,000 tons in 1972. The
estimated 1972 output value was $108 million. An annual
growth rate of 3.9% to the yr 2000 is forecast for potash
demand. World reserves, at slightly higher prices, are estimated
to have over a 100-yr life. There are no substitutes for
potassium as a plant nutrient, and any substitutes for chemical
uses in the future should not prove significant to the industry.
The 1973 outlook for the business conditions of the North
American potash industry is good. Continued growth of
demand and stability of average prices can be expected. Based
on present trends in the industry, the current world-wide
production oversupply will probably extend through 1976.
Whether oversupply will continue to exist beyond 1976
depends largely on one factor—possible large-scale shipments
of potash products from the U.S.S.R. once that country's own
demand has been met.
794 Chemical Markets. Agricultural Chemicals—Potash. J.
Commerce 355 (24, 142), 5 (Feb. 9, 1978). Domestic (U.S.)
production of potash in 1977 totaled 2.3 million short tons
K2O and was valued at $200 million. This represents a 3%
decline compared to the 1976 level. Potash demand increased
9% to 6.7 million tons. Imports also increased by 13% to 5.2
million short tons with 96% coming from Saskatchewan,
Canada. Net imports equaled 62% of U.S. consumption while
ten firms continued to operate eleven production facilities last
yr. Exports increased 5% to one million short tons K. O.
795 Sulfur in 1974. R. W. Merwin. Mineral Industry Surveys:
16 pp. (July 9, 1975) Washington D.C.: U.S. Bur. Mines.
Production of S in all forms in 1974 reached an all time high,
being 5% greater than that of 1973. It was produced by 68
companies at 178 operations in 31 states, with 10 companies
with 56 operations accounting for 82% of the output.
Production was concentrated in Texas and Louisiana. These
two states accounted for 83% of the total output. Distribution
of production was: frash S 69%, recovered elemental S 23%,
and the contained S in other products 8%. Production of all
forms was 11, 419,000 long tons S in 1974. The apparent
consumption was 10,880,000 tons S. Exports were 2,601 000
long tons and imports were 2, 150,000 long tons. There was a
marked increase in S prices in 1974 as compared to 1973. The
average net shipment value f.o.b. mine-plant for frasch and
recovered elemental (92% of total shipments of S in all forms
in 1974) increased from $ 17.84/long ton in 1973 to
$28.88/ton in 1974. Sulfur prices rose steadily during 1974,
therefore, the average prices during 1974 did not fully reflect
the higher prices that prevailed at year end 1974. (14 tables)
796 Sulfur Sets New Highs as Market Tightens. Chem. Eng.
News 52 (2), l l (Jan. 14, 1974). Production and shipments of
S from U.S. producers rose to record levels last yr, due largely
to a substantial increase in demand from fertilizer makers.
Sulfur markets are now extremely tight, not only in the U.S.
but worldwide, according to industry officials; 1974 should be
another strong sales yr. Expansions now under way among
producers of phosphate fertilizer materials promise to keep
demand for S high for the next 2 or 3 yr. With production at
its highest level in the year's final quarter, a total of about ll
million long tons of S were produced in the U.S. in 1973,
according to preliminary Bureau of Mines figures, up 8% from
1972. U.S. consumption of S increased by about 6% in 1973,
the Bureau of Mines estimates, to 10.4 million long tons.
104
Shipments were up only about 4% to 10.9 million long tons.
This relatively small gain largely reflects a decline in exports.
797 Nitrogen-Phosphate-Potash: The Fertilizer Supply
1972-73. J. N. Mahan. Agr. Stabilization Conservation Serv.,
U. S. Dep. Agr., Washington, D. C. 24 pp. (Apr. 1973).
Domestic supplies of fertilizer materials in 1972-73 are
expected to total 19.0 million tons of plant nutrients—
8,993,000 tons of N, up 3%; 5,303,000 tons of P, Os, down
2%; and 4,699,000 tons of K2O, down 3%. Production rates
for the first 6 months compared with last yr were as follows:
anhydrous ammonia, near the same; ammonium nitrate, up
2%; ammonium sulfate, down 2%; urea, N solution, and NP
materials ranged 10-17% up; wet-process acid, up 2%;
ammonium phosphate, up 1.1%; and concentrated superphos
phate, down 4%. About two-thirds of KCl domestic supply is
expected to be imported and the supply will be up 2%.
Included in tables are: nitrogen estimated supply 1970-73;
phosphate estimated supply 1970-73; potash estimated supply
1970-73; ammonium phosphate consumption in U.S. 1966-71;
inventories of selected materials, U.S., end of December,
February, and June 1970-72; U.S. imports of selected
materials, by country of origin, 1971-72; U.S. imports of
selected materials 1967-72; U.S. exports of selected materials,
by country of destination, 1971-72; U.S. export of selected
materials, 1967-72; percentage of U.S. exports going into
countries with AID programs, 1967-72; U.S. imports of
primary plant nutrients, 1951-73; and nitrogen-phosphate
potash production, consumption, and foreign trade by leading
countries, 1970-71.
798 Nitrogen—Phosphate–Potash: The Fertilizer Supply
1974-75. J. N. Mahan and H. L. Stroike. Washington, D.C.:
U.S. Dep. Agric., Agric. Stabilization Conservation Service; 22
pp. (Apr. 1975). Net domestic supplies of fertilizer materials
in 1974-75 are expected to total 23.2 million tons of plant
nutrients–N, P:Os, and K2O. This is 10% more than last yr
supply and also 22% more than 2 yr ago. Estimated supplies of
N total 10,750,000 tons, up 8% from last yr and 22% from 2
yr ago; P:Os, 6,053,000 tons, up 13% from a yr ago and 15%
from 2 yr ago; and K2O, 6,441,000 tons, up 1.1% from a yr
ago and 30% from 2 yr ago. Nitrogen and phosphates are likely
to continue in a tight supply position. The supply situation
tends to be distorted by uncertainty of available supply, and
competition to obtain those supplies that are available. Total
imports of N, P:Os, and K2O are expected to be up 10% over
last yr. Nitrogen and K, O imports are estimated to be up 14
and 11%, respectively, P:Os imports down 15% from a yr ago.
Exports of N, P:Os, and K2O are expected to be 9% lower
than last yr, with N and K2O down 21 and 16%, respectively,
and P3Os up 4% from a yr ago.
799 Nitrogen --Phosphate–Potash—The Fertilizer Supply
1975-76. J. N. Mahan and H. L. Stroike. U.S. Dep. Agric.,
Agric. Stabilization Conservation Service, Washington, D.C.,
21 pp. (Apr. 1976). Net domestic supplies of fertilizer plant
nutrients in the 1975-76 fertilizer yr (July 1-June 30) are
expected to total 20.3 million tons-nitrogen (N), phosphate
(P. Os), and potash (K2O). This is 2% more than last yr but
5% less than 2 yr ago. Estimated supplies of N total 9,868,000
tons, up 3% from last yr and about the same as 2 yr ago.
Production of nitrogenous fertilizers is expected to continue at
levels slightly above last yr. Phosphate supplies are expected to
total 5,732,000 tons of P., Os, up 13% from a yr ago and 2%
 SUPPLY AND DEMAND
more than 2 yr ago. Movement of phosphatic materials during
the second half of the fertilizer yr will determine if production
can be maintained or increased above the rate of the first half
of the yr. Potash supplies are expected to total 4,680,000 tons
of K 2 O, 12% less than a yr ago and 19% less than 2 yr ago.
Imports of potassium chloride, primarily from Canada, are
expected to supply about 77% of needs for this material.
Supply from domestic production is expected to be 12% less
than last yr. Potassium sulfate supplies are expected to be
down 6% from yr-ago levels. Beginning inventories on July 1,
1975, were at record levels for virtually all kinds of fertilizer.
Production rates the first 6 months were influenced by
inventory levels. This has made it possible for companies to do
maintenance work and repairs on plants which had been
postponed where possible during the fertilizer shortage period
of recent years.
800 Nitrogen-Phosphate-Potash—The Fertilizer Supply
1976-77. J. N. Mahan and H. L. Stoike. U.S.D.A., Agric.
Stabilization Conservation Service, Washington D.C.; 23 pp.
(Apr. 1977). Net domestic supplies of fertilizer plant nutrients
in the 1976-77 fertilizer yr are expected to total 21.8 million
tons—nitrogen (N), phosphate (P2 Os), and potash (K2O). This
is 5% more than last yr supply. Estimated supplies of N total
10,870,000 tons, up 5% from last yr. Production of N
fertilizers is expected to increase over last yr for all materials
except solid ammonium nitrate and ammonium sulfate.
Phosphate supplies are expected to total 5,262,000 tons of
P2 Os, up 4% from a yr ago. Capacity for producing
concentrated phosphatic material is adequate. Potash supplies
are expected to total 5,703,000 tons of K2O, up 7% from a yr
ago. Imports of potassium chloride, primarily from Canada are
expected to supply about 79% of needs for this material.
Supply from domestic production is expected to be 9% above
last yr. Potassium sulfate supplies are expected to be up 7%
from last yr. Beginning inventories on July 1, 1975 and 1976
were larger than usual for most kinds of fertilizers. (12 tables).
801 Fertilizer Summary Data 1972. N. L. Hargett
(Tennessee Valley Authority, Muscle Shoals. Ala.). Tennessee
Valley Authority, National Fertilizer Development Ctr., Muscle
Shoals, Ala., Bull. Y-53; 126 pp. (Jan. 1973). This biennial
revision summarizes U.S. consumption of plant nutrients
through fiscal yr 1972. Fertilizer use patterns are detailed for
individual states, nine regions, and continental U.S. Summary
includes tons of N. P., Os, and K2O with average analyses of
mixtures: tons of 10 selected materials used for direct
application; consumption of dry and fluid materials; and
seasonal consumption for the period 1945 through (prelimi
nary) 1972. Other data given are the 10 leading grades of
mixed fertilizer for 1950, 1960, 1965, 1970, and 1971 :
harvested acreage and average rate of fertilization, lime needs
and use, and farm income and expense.
802 Fertilizer Summary Data 1974. N. L. Hargett. Muscle
Shoals, Alabama: Tennessee Valley Authority National Ferti
lizer Development Center. Bull. Y-86; 132 pp. (Jan. 1975).
This biennial revision summarizes U.S. consumption of ferti
lizers and plant nutrients through fiscal year 1974. Use
patterns are detailed for the continental United States, nine
regions, and individual states. Included for the first time are South Atlantic, East South Central, West South Central,
Alaska, Hawaii, and Puerto Rico. The distribution of fertilizer
material by TVA for the industry demonstration program for used with 3.4 million tons. Primary plant nutrient usage, at
fiscal years 1971 through 1974 are also included. Summary 17.2 million tons, was the same as 1971. Nitrogen usage was
includes tons of N, P:Os, and K2O with average analysis of
mixtures; tons of 10 selected materials used for direct
application; consumption of dry and fluid materials; and
Seasonal consumption for the periods 1950, 1955, 1960, 1965,
1970, 1972, and 1973. Other data given are the 10 leading
grades of mixed fertilizer for 1950, 1960, 1965, 1972, and
1973; acreage harvested and plant nutrients used for two of
the leading crops; and farm income and expense.
803, Fertilizer Summary Data 1976. N. L. Hargett. Muscle
Shoals, Ala.: TVA, National Fertilizer Development Center.
Bull. Y-112; 132 pp. (Mar. 1977). This biennial revision
summarizes U.S. consumption of fertilizer and plant nutrients
through fiscal yr 1976. Use patterns are detailed for the U.S.,
nine regions by states; Alaska, Hawaii, and Puerto Rico are
included. The distribution of fertilizer material by TVA for
the industry demonstration program for fiscal years 1973-76
is also included. Summary includes tons of N, P, Os, and
K2O with average analysis of mixtures; tons of 10 selected
materials used for direct application; consumption of fertilizer
by class; and seasonal consumption for the periods 1955,
1960, 1965, 1970, 1973, 1974, 1975, and (prelim.) 1976.
Other data given are the 10 leading grades of mixed fertilizer
for 1960, 1965, 1970, 1974, and 1975; acreage harvested and
plant nutrients used for two of the leading crops where data is
available; and farm income and expense.
804 Commercial Fertilizers—Consumption of Commercial
Fertilizers, Primary Plant Nutrients, and Micronutrients.
U.S.D.A. Statistical Rep. Service, Crop Rep. Board, Washing.
ton D.C., Statistical Bull. No. 472; 64 pp. (Nov. 1976). This
report contains statistics of commercial fertilizer consumption
from 1850 through 1975. Eight United States tables give: (1)
total fertilizer consumption, primary nutrient consumption,
and average nutrient content, 1850-1975; (2) primary nutrient
consumption and average nutrient content in mixed fertilizers
and primary nutrient materials, 1965-1975; (3) total fertilizer
consumption and percentage of total by kinds, 1965-1975; (4)
fertilizer consumption by class-bagged, bulk, and fluid,
1967-1975; (5) direct application nitrogen materials consump
tion, 1960-1975; (6) direct application phosphate and potash
materials consumption, 1960-1975; (7) consumption of
selected N-P grades, 1955-1975; (8) consumption of 15
principal grades, 1955-1975. Four state tables give: (1)
consumption of fertilizers and plant nutrients, by states,
1965-1975; (2) direct application nitrogen materials consump
tion by states, 1965-1975; (3) direct application phosphates
and potash materials consumption, by states, 1965-1975; (4)
fertilizer consumption by class-bagged, bulk, and fluid, by
States 1967- 1975.
805 Consumption of Commercial Fertilizers in the United
States for Fiscal Year Ended June 30, 1972. U.S. Dep. Agr.,
Washington, D.C.; 26 pp. (May 8, 1973). Fertilizer consump
tion in the 50 States, District of Columbia, and Puerto Rico
during the yr ended June 30, 1972 is placed at 41.2 million
tons by the Crop Reporting Board. This is the first yr since
1961 that consumption has not shown a significant increase
over the previous yr. Regions in the 48 contiguous States
showing increased consumption over the previous yr were the
Mountain, and Pacific. California was the leading State in tons
105
 SUPPLY AND DEMAND
placed at 8.0 million tons, down 1%. Phosphoric acid at 4.9
million tons was up 1% and potassium oxide at 4.3 million
tons was up 2% from the previous yr. Mixed fertilizer
accounted for 52.2% of the total fertilizer consumption. The
average analysis was 9.92% N, 18.61% P20s, and 12.92%
K2 O. The total analysis of plant nutrients in mixed fertilizer
was 41.45 compared with 40.92 a yr earlier. The use of all
direct application materials totaled 19.7 million tons during
the 1972 fertilizer yr, up slightly from 1971. Primary nutrient
materials (N, P20s, K2O) usage at 18.4 million tons was only
slightly less than a yr earlier. Secondary and micronutrient
materials totaled 1.3 million tons compared with 1.2 million
tons the previous yr. Data were collected from all known
primary producers of selected micronutrients. Summary tables
of the report indicate usage by regions, states, plant nutrients,
mixed and direct application, and various kinds of fertilizer
materials.
806 Commercial Fertilizers Consumption in the United
States Year Ended June 30, 1973. U.S. Dep. Agr. Washington
D.C.; 26 pp. (May 7, 1974). Fertilizer consumption in the
United States and Puerto Rico during the yr ended June 30,
1973 is placed at 43.1 million tons, an increase of 4% above
the 41.2 million tons consumed during the 1972 fertilizer yr.
Consumption of primary nutrients (N, P.O.s, and K2O) was
17.8 million tons compared with 17.2 million tons/yr earlier.
Nitrogen consumption increased 2% to 8.2 million tons,
phosphate usage increased 4% to 5.0 million tons; and potash
at 4.6 million tons was up 7%. Mixed fertilizer accounted for
52.0% of the total fertilizer consumption. Primary nutrient
direct application materials accounted for 44.6% of total use,
and secondary and micronutrient materials represented 3.4%.
The five leading States in order of total fertilizer consumption
and the change in consumption from last year are: California,
up 3%, Illinois, down 1%; Iowa and Texas, up 2%; and
Georgia, up 8%. Consumption of mixed fertilizers containing 2
or more primary plant nutrients was 22.4 million tons for the
1973 fertilizer yr, and increase of 4% over the preceding yr.
The average analysis of all mixed fertilizer was 10.19% N,
18.66% phosphate, and 12.78 % potash. This compares with
an analysis of 9.91-18.58-12.93 for the 1972 fertilizer yr. The
total analysis of plant nutrients in mixed fertilizer was 41.63
compared with 41.42 a yr earlier. The use of all direct
applications materials increased 5% during the 1973 fertilizer
yr to 20.7 million tons. Primary nutrient materials (N, P., Os,
K2O) totaled 19.2 million tons, compared with 18.4 million
tons a yr ago. Secondary and micronutrient materials increased
from 1.3 million tons in 1972 to 1.5 million tons in 1973.
Nitrogen materials (excluding organics) used for direct applica
tion increased one-half million tons to 13.3 million tons.
Nitrogen solutions accounted for most of the increase.
Phosphate materials totaled 2.3 million tons, 2% less than the
previous yr, and all potash materials at 3.0 million tons were
up 13% from last yr. Tonnages of natural organics used were
virtually unchanged at 0.5 million tons.
807 Commereial Fertilizers—Dry Bagged, Dry Bulk,
Liquid–Year Ended June 30, 1973. U.S. Dep. Agr. Statistical
Reporting Service. Crop Reporting Board, Washington, D.C.; 7
pp. (June 7, 1974). Consumption of mixed fertilizer, direct
application materials, and mixtures and direct application
materials is reported by class and states for the title period.
The average nutrient content of liquid fertilizers consumed as
mixtures and materials, by states, for year ending June 30,
106
1973 is given. Consumption of fertilizer in the United States
consisted of 48% dry bulk, 25% dry bagged, and 27% liquid;
these values compared with 44%, 29%, and 27%, respectively,
for the previous yr. Dry bulk fertilizer consumption totaled
20.1 million tons, dry bagged 10.5 million tons, and liquids
11.0 million tons. About 0.8% of all fertilizer used in 1972-73
contained pesticides.
808 Commercial Fertilizers—Consumption in the United
States Year Ended June 30, 1974. U.S. Dept. Agric., Washing.
ton D.C.; 29 pp. (May 1975). Fertilizer consumption in the
United States and Puerto Rico during the yr ended June 30,
1974, is placed at 47.1 million tons, an increase of 9% above
the 43.3 million tons consumed during the 1972-73 fertilizer
yr. Primary nutrient content (nitrogen, N, phosphate, P;Os:
and potash, K2O) was 19.3 million tons, up 7% from a yr
earlier. Nitrogen consumption increased 10% to 9.2 million
tons; phosphate usage was virtually unchanged at 5.1 million
tons; and potash at 5.1 million tons was up 9%. The total
analysis of plant nutrients decreased from 43.11 a yr earlier to
43.01% in 1974. The five leading States in order of total
fertilizer consumption and the change in consumption from
the preceding yr are: California, up 20%; Illinois, up 1.2%;
Iowa, up 10%; Texas, up 14%; and Indiana, up 11%. Mixed
fertilizer accounted for 51.1% of the total fertilizer consump
tion. Primary nutrient direct-application materials accounted
for 44.4% of total use, and Secondary nutrient and micro
nutrient materials represented 4.5%. About 34% of total
mixtures and 39% of total material tonnages were consumed
during the first 6 months of the 1973-74 fertilizer yr.
Percentages for the preceding yr were 26 and 31, respectively.
Consumption of mixed fertilizer containing 2 or more primary
plant nutrients was 24.1 million tons for the 1973-74 fertilizer
yr, and increase of 7% over the preceding yr. The average
analysis of all mixed fertilizer was 10.10% N, 17.75%
phosphate, and 12.66% potash. The analysis for the preceding
yr was 10.21 – 18.79 - 12.76. The total analysis of plant
nutrients in mixed fertilizer was 40.5 ! compared with 41.76 a
yr earlier. Usage of all direct-application materials increased
| 1% during the 1973-74 fertilizer yr to 23.0 million tons.
Primary nutrient materials (N, P:Os, K2O) accounted for 20.9
million tons of the total compared with 19.3 million tons a yr
ago. Secondary nutrient and micronutrient materials increased
from 1.5 million tons in 1973 to 2.1 million tons in 1974.
Most of this change was due to increased gypsum consumption
in California. Nitrogen materials (excluding organics) used for
direct-application increased 1.1 million tons to 14.6 million
tons. Anhydrous ammonia, up 23% from the previous yr.
accounted for the majority of the increase. Phosphate mate.
rials totaled 2.4 million tons, 3% more than the previous yr.
and all potash materials at 3.5 million tons were up 15% from
last yr. Tonnages of natural organics used were virtually
unchanged at .5 million tons. Sales of selected micronutrients
for use in fertilizer were obtained from known primary
producers. These tonnages indicate increased Cu and Mn, and a
decrease for Fe and Mo. Zinc which has the largest micro
nutrient tonnage was virtually unchanged from a yr earlier.
809 Commercial Fertilizers: Consumption by Class Dry
Bagged, Dry Bulk, Liquid–Year Ended June 30, 1974. U.S.
Dep. Agric. Statistical Reporting Service, Crop Reporting
Board Washington, D.C.; 11 pp. (June 6, 1975). Consumption
of mixed fertilizer, direct application materials, fertilizeſ
mixtures, and direct applications materials, and average pri.
 SUPPLY AND DEMAND

mary nutrient content of liquid mixtures and direct applica form decreased 5% to 8.8 million tons and comprised 44% of
tion material is reported by class and states for the fertilizer all direct application materials. The downward trend of dry
years 1973-74. Fertilizer consumption by class and the average bagged fertilizer consumption continued during the 1974-75
nutrient content of liquid fertilizer consumed as mixtures and yr with tonnages amounting to 9.0 million tons, a decline of
materials are given for each yr 1967-74. Consumption of 14%. Mixed fertilizer in bags was 33% of total mixed fertilizer.
fertilizer containing one or more primary nutrients was 45.0 Direct application material in bags at 2.1 million tons dropped
million tons in the United States and Puerto Rico during the 12% and accounted for 11% of all primary nutrients direct
yr ended June 30, 1974, an increase of 8% above the 41.8 application materials. Fluid fertilizer (liquids, gases and sus
million tons consumed during the 1973 fertilizer yr. The total pensions) used as mixtures and direct application materials
tonnage consisted of 49% dry bulk fertilizer, 23% dry bagged, totaled 12.2 million tons for the 1974-75 fertilizer yr, down
and 28% liquid fertilizer. The breakdown for the previous yr 4% from the previous yr. Consumption of fluid mixtures
was 48% dry bulk, 25% bagged, and 27% liquid. Dry bulk containing two or more primary nutrients dropped 8% to 3.2
fertilizer totaled 21.8 million tons, an increase of 8% from a yr million tons and represented 15% of total mixed fertilizers.
ago and a continuation of the upward trend of dry bulk The average analysis of fluid mixes was 8.6% N, 14.8%
consumption. Mixed fertilizer in the dry bulk form at 12.5 phosphate, and 8.9% potash. The analysis for the preceding yr
million tons was up 10% and accounted for 52% of total was 8.6-14.7-9.2. Fluid direct application materials at 9.0
primary nutrient mixtures. Direct-application materials in the million tons showed a 2% decrease and accounted for 45% of
dry bulk form increased 6% to 9.3 million tons and comprised all direct application materials. The average nutrient content
44% of all direct-application materials. The downward trend of of fluid materials was 51.7% N, 0.2% phosphate, and 0.1%
dry bagged fertilizer consumption continued during the potash compared with 52.6-0.2-0.0 the previous yr. Fluid
1973-74 fertilizer yr with tonnages ammounting to 10.5 materials include anhydrous ammonia, aqua ammonia, nitro
million tons, a decline of 1%. Mixed fertilizer in bags totaled gen, phosphoric and potassic solutions and other miscellaneous
8.1 million tons, up slightly from the 7.9 million a yr earlier. primary nutrient materials applied directly to the soils in fluid
Mixed fertilizer in bags was 34% of total mixed fertilizer. form. About 1.2% of all fertilizer used in 1974-75 contained
Direct-application materials in bags 2.4 million tons dropped pesticides. This does not include quantities of pesticides that
7% and accounted for 12% of all direct-application materials. may have been added to fertilizer prior to application.
Liquid fertilizer used as mixtures and direct-application
materials totaled 12.6 million tons for the 1973-74 fertilizer 811 Commercial Fertilizer–Final Consumption for Year
yr, up 14% from the previous yr. Consumption of liquid Ended June 30, 1975. U.S. Dep. Agric., Washington, D.C.; 30
mixtures containing 2 or more primary nutrients increased 8% pp. (May 1976). Fertilizer consumption in the United States
to 3.5 million tons and represented 14% of total mixed and Puerto Rico during the yr ended June 30, 1975 is placed
fertilizer. The average analysis of liquid mixes was 8.6% N, at 42.5 million tons, down 10% from the 47.1 million tons
14.7% phosphate, and 9.2% potash. The analysis for the consumed during the 1973-74 fertilizer yr and 2% less than the
preceding yr was 8.7-15,6-8.5. Liquid direct-application ma 1972-73 tonnage. Primary nutrient content N, P20s, and K2O
terials at 9.2 million tons showed a 16% increase and was 17.6 million tons, down 9% from a yr earlier. Nitrogen
accounted for 44% of all direct-application materials. The consumption decreased 6% to 8.6 million tons; phosphate
average nutrient content of liquid materials was 52.6% N and usage dropped 12% to 4.5 million tons; and potash, also at 4.5
0.2% phosphate compared with 51.2 N and 0.4 P30s the million tons, was down 12%. The total analysis of plant
previous yr. Liquid materials include anhydrous ammonia, nutrients increased from 43.01 a year earlier to 43.25 in 1975.
aqua ammonia, nitrogen, phosphoric and potassic solutions The five leading states in order of total consumption and the
and other miscellaneous materials applied directly to the soils change in consumption from last yr are: California, down 6%;
in liquid form. Illinois, down 3%; Iowa, up 2%; Texas, down 24%; and
Georgia, down 8%. Mixed fertilizer accounted for 48.6% of the
810 Commercial Fertilizers: Consumption by Class for Year total fertilizer consumption. Primary nutrient direct applica
Ended June 30, 1975. U.S. Dep. Agric. Statistical Reporting tion materials accounted for 47.0% of total use, and secondary
Service, Crop Reporting Board, Washington, D.C.; 11 pp. nutrient and micronutrient materials represented 4.4%. About
(June 3, 1976). Consumption of mixed fertilizer, direct 38% of total mixtures and 41% of total material tonnages were
application materials, fertilizer mixtures, and average primary consumed during the first 6 months of the 1974-75 fertilizer
nutrient content of liquid mixtures and direct application yr. Percentages for the preceding yr were 34 and 39,
respectively. Consumption of mixed fertilizer containing two
material is reported by class and states for the fertilizer years
1974-75. Fertilizer consumption by class and the average or more primary plant nutrients was 20.7 million tons during
nutrient content of liquid fertilizer are given for each yr the 1975 fertilizer yr, 14% less than the preceding yr. The
1967-75. Consumption of fertilizer containing one or more average analysis for mixed fertilizer was 10.17% N, 18.00%
primary nutrient was 40.6 million tons in the United States phosphate, and 12.49% potash. The analysis for the preceding
and Puerto Rico during the yr ended June 30, 1975, a decrease yr was 10.10-17.75-12.66. The total analysis of plant nutrients
of 10% from the 45.0 million tons consumed during the 1974 in mixed fertilizer increased from 40.51%/yr earlier to 40.66
fertilizer yr and 3% less than the 1972-73 tonnage. The total in 1975. Usage of all direct application materials decreased 5%
tonnage consisted of 48% dry bulk fertilizer, 22% dry bagged, during the 1974-75 fertilizer yr to 21.9 million tons. Primary
and 30% fluid fertilizer. The breakdown for the previous yr nutrient materials (N. P., Os, K2O) accounted for 20.0 million
was 49% dry bulk, 23% bagged, and 28% fluid. Dry bulk tons of the total compared with 20.9 million tons a yr ago.
fertilizer totaled 19.4 million tons, a decrease of 11% from a Secondary nutrient and micronutrient materials decreased
yr ago. Mixed fertilizer in the dry bulk form at 10.6 million from 2.1 million tons in 1974 to 1.9 million tons in 1975.
tons was down 16% and accounted for 51% of total primary Nitrogen materials (excluding organics) used for direct applica
nutrient mixtures. Direct application materials in the dry bulk tion decreased 3% to 14.2 million tons. Phosphate materials

107
 SUPPLY AND DEMAND

totaled 2.2 million tons, 7% less than the previous yr, and all of fluid mixes was 8.9% N, 15.3% P, and 9.6% K. Fluid
potash materials at 3.2 million tons were down 85% from last direct-application material at 11.7 million tons showed a 3%
yr. Tonnages of natural organics dropped 23% to 0.3 million increase and totaled 47% of all direct-application material
tons. Sales of selected micronutrients for use in fertilizer were tonnage. The average nutrient content of fluid materials
obtained from known primary producers. These tonnages consumed in 1977 was 50.8% N, 0.2% P, and 0.1% K. Dry
indicate increased tonnages for Fe and Mo, and a decrease for bulk fertilizers used as mixtures and direct application
Cu, Mn, and Zn. materials totaled 25.1 million tons for the yr, up 7% from last
yr. Mixed fertilizer in dry bulk form at 13.7 million tons
812 Commercial Fertilizer–Final Consumption for Year increased 8% and accounted for 57% of total primary nutrient
Ended June 30, 1976. U.S. Dep. Agric., Washington, D.C.; 30 mixes. Dry bulk direct-application material increased 7% to
pp. (Apr. 1977). Fertilizer consumption in the United States | 1.4 million tons. During the 1976-77 fertilizer yr dry bagged
and Puerto Rico during the yr ended June 30, 1976 is placed fertilizer tonnage decreased 3% but accounted for 17% of total
at a record 49.1 million tons, up 16% from the 42.5 million consumption. Mixed fertilizer in bags totaled 6.4 million tons,
tons consumed during the 1975-76 fertilizer yr and 4% more a decrease of 4% from last yr. Direct-application materials in
than the previous record of 47.1 million tons consumed in bags at 1.9 million tons declined 1% and accounted for 7% of
fiscal yr 1974. Primary nutrient content was 20.8 million tons, all primary nutrient direct-application materials.
up 18% from a yr earlier. Nitrogen consumption increased 21%
to 10.4 million tons; phosphate usage increased 16% to 5.2 814 Commercial Fertilizer–Final Consumption for Year
million tons; and potash, also at 5.2 million tons was up 16%. Ended June 30, 1977. U.S. Dep. Agric., Washington, D.C.; 30
The five leading states in order of total consumption and the pp. (Nov. 1977). Fertilizer consumption in the United States
change in consumption from last yr are: California, up 10%; and Puerto Rico during the yr ended June 30, 1977 is placed
Illinois, up 17%; Iowa, up 22%; Texas, up 17%; and Indiana, at a record 51.6 million tons, up 5% from the 49.2 tons
up 26%. Mixed fertilizer accounted for 47% of the total consumed during the 1975-76 fertilizer yr. Primary nutrient
fertilizer consumption. Primary nutrient direct application content was 22.1 million tons, up 6% from a yr earlier.
accounted for 48% of total use and secondary nutrients and Nitrogen consumption increased 2% to 10.6 million tons;
micronutirent materials represented 5%. About 31% of total phosphate usage increased 8% to 5.6 million tons; and potash,
mixtures and 37% of total material tonnages were consumed at 5.8 million tons was up 12%. The five leading states in order
during the first 6 months of the 1975-76 fertilizer yr. of total consumption and the change in consumption from last
Percentages for the preceding yr were 38 and 41, respectively. yr are: California, up 7%; Illinois, up 8%; Iowa, down 12%;
Consumption of mixed fertilizer containing two or more Indiana, up 23%; and Texas, up 5%. Consumption of mixed
primary plant nutrients was 23 million tons during the 1976 fertilizer containing two or more plant nutrients was 24.1
fertilizer yr, up 11% from the preceding yr. The average million ton during the 1977 fertilizer yr, up 5% from 1976.
analysis for mixed fertilizer was 10.54% N, 19.29% phosphate, The average analysis for mixed fertilizer was 10.58% N,
and 12.50% potash. The analysis for the preceding yr was 19.87% phosphate, and 12.78% potash. The analysis for the
10.17-18.00-12.49. The total analysis for plant nutrients in preceding yr was 10.54-19.29-12.50. Usage of all direct
mixed fertilizer increased from 40.66%/yr earlier to 42.19 in application materials increased 5% during the 1976-77 fertili
1976. Usage of all direct application materials increased 19% zer yr to 27.5 million tons. Primary nutrient material (N,
during the 1975-76 fertilizer yr to 26.1 million tons. Primary P:Os, K2O) accounted for 25.0 million tons of the total.
nutrient materials (N, P., Os, K2O) accounted for 23.8 million consumption compared with 23.9 tons a yr earlier. Secondary
tons of the total compared with 20.0 million tons a yr ago. and micronutrient materials increased from 2.3 million tons in
Secondary nutrient and micronutrient materials increased 1976 to 2.5 million tons in 1977.
from 1.9 million tons in 1975 to 2.3 million tons in 1976.
Nitrogen materials (excluding organics) used for direct applica 815 The Soviet Fertilizer Industry in 1975. Fert. Int. No.
tion increased 22% to 17.2 million tons. Phosphate materials 81, 7-8 (Mar. 1976). If world fertilizer production shows a net
totaled 2.1 million tons, 3% less than the previous yr, and all gain in 1975 it will be due in no small measure to the U.S.S.R.
potash material at 4.0 million tons were up 25%. Tonnages of It has succeeded in expanding its output by 8.8% to reach 22
natural organics increased 19% to 413 thousand tons. Sales of million mt of primary nutrients at a time when many of the
selected micronutrients for use in fertilizer were obtained from other major producers of primary nutrient have had to reduce
known primary producers; these tonnages indicate increased their output in the face of a declining market. This total is
tonnages for Cu and Zn and a decrease for Fe, Mn, and Mo. equivalent to 90.2 million mt of standard fertilizer units and
marginally exceeds the 90 million mt plan target for the yr,
813 Commercial Fertilizer—United States Consumption by which was also the final yr of the Ninth 5-yr Plan. In this way
Class for Year Ended June 30, 1977. U.S.D.A. Statistical Rep. the fertilizer industry has succeeded in meeting the Plan target,
Service, Crop Rep. Board, Washington D.C.; 15 pp. (Dec. which was originally announced in 1971. For 1976 the
1977). Consumption of fertilizers containing one or more fertilizer industry has set a production target of 94.5 million
primary nutrients was 49.1 million tons in the United States mt, which represents a relatively modest increase on 1975 and
and Puerto Rico during the yr ended June 30, 1977. This may reflect the spirit of the Tenth 5-yr Plan which emphasizes
amount represents a 5% increase over consumption during the quality and efficiency as much as the traditionally important
1976 fertilizer yr. Total tonnage consisted of 51% dry bulk, quantitative targets.
32% fluid, and 17% dry bagged fertilizer. Fluid fertilizers
totaled 15.7 million tons, an increase of 5% from the previous 816 Soviet-German Potash Production. Eur. Chem. News 28
yr. Consumption of fluid mixes containing two or more (741), 23 (June 18, 1976). The Soviet Union accounted for
primary nutrients increased 10% to 4.0 million tons and almost 33% of the world production of potash in 1975, and it
represents 17% of total mixed fertilizer. The average analyses increased its potash fertilizer production by 1.2 million ton to

108
 SUPPLY AND DEMAND
7.8 million ton. Total Comecon potash production showed an
increase of around 2%, while the noncommunist world output
dropped by about 7%. The growth in Soviet production is
primarily attributed to new recovery and processing facilities
in Siberia. In the Urais region production reached 3.9 million
ton in 1975 and Byelorussia produced 3.5 million ton. In the
German Democratic Republic (GDR)—which is the third
producer after the Soviet Union and Canada—production went
up by 5% to reach 3 million ton. The GDR exports over 60%
of its potash and the Soviet Union around 33%.
817 Fertilizers for Vietnam. Fert. Int. No. 89, 4, l l (Nov.
1976). According to a recent report from Ho Chi Minh City,
formerly Saigon, a total of 207,500 mt of chemical fertilizers
have been produced and supplied to farmers in Vietnam during
the first 8 months of 1976. About 10% of this was produced
in the south of the country. The manufacture of nitrogenous
fertilizer for the first time in Vietnam was also announced in a
recent radio broadcast. This is assumed to be urea from the
54,000 tons/yr plant at Ha Bac, near Hanoi, which was
rehabilitated and brought on-stream early this yr. The urea
plant has a capacity to produce 1 10,000 tons/yr urea. The
largest project in prospect is the 189,000 tons/yr phosphoric
acid plant in the north which, when built by Hitachi
Shipbuilding & Engineering, will be able to produce 90,000
tons/yr of diammonium phosphate. An 830 tons/yr sulfuric
acid plant is an integral part of the complex to be erected.
Completion of the project is expected to be in late 1978 or
early 1979.
818 Development of Nitrogen Usage in Western Europe
Since 1964. L. Padmos. Stikstof, No. 17, 2-21 (May 1974). In
the 7 yr between 1964-65 and 1971-72, N use/ha increased
(, 2% for 13 countries in Western Europe. The Netherlands still
ranks first in using the most N/ha, up from 124 kg/ha in
: )(4-65 to 175 in 1971-72. Denmark has moved into second
place with 113 kg N/ha due to the shift from leguminous to
Synthetic N. Lowest rates of N use are in Ireland (25 kg N/ha)
and Italy (31 kg N/ha). Total N consumption for the 13
countries increased 2.35 million tons during the period to 5.85
million tons in 1971-72. Use of N at the optimum rate would
require 8.42 million tons.
819 West German Nitrogen Fertilizer Supply-Demand. Eur.
Chem. News 26 (662), 8 (Nov. 15, 1974). West German orders
for nitrogenous fertilizers are running at far higher levels than
in the 1973-74 fertilizer yr, which ended in June. Imports in
1973-74 fell by 20% down to 227,000 ton N. Imports from
the East Bloc, included in this figure, slumped by 46% to
82,000 ton N, accounting for only 7% of West German N
consumption against 13% in the previous yr. With a vol
production of 1473 million ton N. West German output in the
1973-74 yr remained roughly in line with the previous yr.
820 West German Potash Industry—1976. Miner. Trade
Notes 74 (8), 17 (Aug. 1977). Production of marketable
potash in 1976 fell 87% to 2.04 million mt K2O from 2.22
million tons in 1975. Utilized plant capacity declined for the
second consecutive yr from 73% in 1975 to 68% in 1976.
Exports decreased 6% to 866,400 tons K2O from 922,800
tons during the previous yr. These shipments to other
countries represented 40% of the industry’s total sales.
I...ports continued to be insignificant; about 63,000 tons of
K2O was imported in 1976 compared to 45,000 tons in 1975.
821 West Germany Fertilizer Supply–Demand. Eur, Chem.
News 27 (682), 4 (Apr. 11, 1975). West German agriculture
was adequately supplied with fertilizers during the recent
critical shortage, according to a new statement from the
Fachverband Stickstoff-Industrie. From July 1974 to January
1975, a total of 973,000 tons of N was supplied to German
agriculture, 9% more than in the previous yr. Around 852,000
tons of N came from West German producers, while imports
supplied 121,000 ton. Supplies from domestic production
sources increased by 14%.
322 Western World Sulfur Demand. Sulphur No. 131; 5-8
(July-Aug. 1977). The demand in Western World sulfur gained
definite momentum at the beginning of 1977 and is continuing
throughout the yr. The main impetus has come from the
fertilizer industry. In 1975 Western World sulfur consumption
for fertilizer use totalled 13.55 million mt compared to 15.36
million mt a yr earlier; in 1976 the total was 13.92 million mt.
In 1977, given the recovery in fertilizer demand and produc
tion, sulfur consumption for fertilizers is expected to total
15.2 million mt. Almost all the improvement in Western World
sulfur demand in 1977 is being focused on brimestone. This
improvement is evidenced by the growth of exports in the first
half of 1977. During this period suppliers exports were over
one-third above the level reached in 1976. Most of this growth
is concentrated in the export-oriented phosphoric acid and
fertilizer developments in North and South Africa.
823 Annual Fertilizer Review 1972. Rome, Italy: Food and
Agriculture Organization of the United Nations; 190 pp.
(1973). Price $6.50. World production of chemical fertilizers,
N, P:Os, and K2O in 1971-72 was estimated at slightly less
than 77 million tons, an increase of about 8% over last yr.
World production achieved a relative increase of 140%
compared to 1961-62 with a 9% rate of growth, thereby
doubling in the last 8 yr. Nitrogen accounted for 40% of the
5.4 million tons increase in 1971-72, while phosphate and
potash accounted for 31% and 29%, respectively. World
consumption of chemical fertilizers in 1971-72 was up by 6%
compared with the previous yr. The higher growth rate of
about 9% achieved over the last decade was influenced by the
big increases during the early sixties. World consumption
doubled in the last 8 yr and rose by 1.36% compared with
1961-62. Nitrogen remained by far the most widely used
fertilizer, contributing 47% to world consumption of all
fertilizers, followed by phosphate 29% and potash 24%,
indicating an overall ratio of N:P2 Os: K2O of 1:0.6:0.5.
According to the 1971-72 preliminary figures total exports
went up by about 130 thousand tons representing a growth
rate of 2%. The centrally planned countries recorded very high
rates of growth and the developed countries were rather
modest or even negative, the amounts exported from the
former represented only about 16% of world trade while for
the latter it amounted to about 78%. The negative growth rate
registered this yr for the developed countries is largely
explained by reduction in exports in France (28 thousand
tons), the Federal Republic of Germany (113 thousand tons),
the United States (42 thousand tons),and Japan (137 thousand
tons). The developing countries imported 50% of their needs
while this percentage was as high as 84% 5 yr ago. The
developing countries continued to be net importers. China, the
largest importer, continued to import about 50% of its
consumption.
109
 SUPPLY AND DEMAND
824 Annual Fertilizer Review 1973. Rome, Italy: Food
Agric. Organization United Nations; 194 pp. (1974). A review
of the state of fertilizer is given for the world. The world
production, consumption, and trade is given for countries,
continents, and regions. (22 tables)
825 Annual Fertilizer Review 1974. Rome Italy: Food
Agric. Organization United Nations; 205 pp. (1975). A review
of the world fertilizer industry is given. The world production,
consumption, and trade is given for countries, continents, and
regions. World production of chemical fertilizers, nitrogen (N),
processed phosphate (P. Os), and potash (K. O) amounted in
1973-74 to 87.9 million tons; an increase of 8% over last yr.
Nitrogen production estimated at 40.5 million tons accounted
for about 44% of the 6.7 million tons increase in all fertilizers,
while phosphate and potash accounted for 23 and 33%
respectively with their production reaching 25.1 and 22.2
million tons. Worth noting is that the rate of growth in
1973-74 was slightly lower than the average annual compound
growth rate achieved over the last 10 yr. World consumption
of chemical fertilizers totalled 83.6 million tons with an 8%
increase over 1972-73. This growth rate is consistant with the
average annual growth rate over the last decade. Nitrogen
remained by far the most widely used fertilizer contributing
about 46% to world consumption, followed by phosphate,
29%, then potash, 25%, indicating an overall ratio N.P., Os:
K2O of 1.0:0.63:0.54. Growth rate of world exports after 2
successive yr of impressive performance fell by 10% to 7%.
This was explained by the decline in growth rate of exports of
the developed countries and the negative rates experienced by
the developing and the centrally planned countries. (28
tables).
826 Annual Fertilizer Review—1975. Rome, Italy. FAO
United Nations: 205 pp. (1976). World production of chemical
fertilizers, nitrogen (N), processed phosphate (P. Os) and
potash (K2O) in 1974-75 amounted to 91.7 million tons, an
increase of 4.3% or about 3.8 million tons over last yr. This
rate of increase was lower than any rate achieved during the
last decade. This is attributed to the marginal decrease in total
output of fertilizers in the developed countries while, in
contrast to this, the centrally planned countries continued
their vast expansion. The high increases in the developing
countries did not affect the world situation. Nitrogen contri
buted about 46% to the increase in world production of all
fertilizers, followed by potash with 40% while phosphate
ranked last contributing only 14%. World consumption of
chemical fertilizers fell by 2.6% to 81.6 million tons, a
decrease of more than 2 million tons. The slight increase of
120,000 tons in N consumption was more than offset by the
1.3 million tons decrease in P. Os and 922,000 tons decrease
in K2O. The negative growth rate of world consumption was
due to a marked decline in fertilizer use in developed
countries, estimated at more than 4 million tons and a reduced
growth rate in the developing countries due to high prices
experienced in the last 3 yr. Nitrogen remained by far the
most widely used fertilizer, contributing about 48% to world
consumption followed by phosphate 28%, then potash 24%
showing an overall ratio of N.P., Os: K2O of 1.00:0.59:0.51.
827 Nitrogen, Phosphorus, and Potassium Supply-Demand.
Ceres 9 (3), 11 (May-June 1976). The total supply of
fertilizers produced and available in the world in 1974-75
amounted to 86.8 million tons an increase of 3.2% over the
1 10
previous yr. The rate of increase was much lower than the
1973-74 rate increase (8.6%) and was unequally distributed.
Nitrogen had an increase of 4.3% and phosphate and potash
increased respectively 2.2 and 2.4% in 1974-75. Consumption
fell by 2.5% in relation to that of 1973-74, which amounted to
more than 86 million tons. Nitrogen consumption showed a
slight increase (110,000 tons) with phosphate decreasing 1.2
million tons and potash 923,000 tons. Consumption decreased
in the industrialized countries (North and Central America,
Europe, and Oceania), while the three developing continents
increased theirs. A table of consumption-production of nitro
gen, phosphorus, potassium for 1974-75 by continents is
given. The highest utilization rate was, by far, in Europe, with
192 kg/ha as compared with 65 in North and Central America.
The volume of world trade in all fertilizers amounted to 25.5
million tons representing approximately 31.3% of world
consumption.
828 Nitrogen World Supply-Demand. Chem. Mkt. Rep. 203
(2), 30 (Jan. 8, 1973). Ruhr-Stickstoff AG, West Germany’s
leading sales organization for fertilizers, states that at mid
1972, world N capacities, including technical N, stood at
around 60 million mt of N, due to rise to some 70 million tons
of N by 1978. World production of N fertilizers in 1971-72
increased 6% to total 33.5 million tons of N while
consumption showed a similar rise.
829 Ammonia Statistics—1975. ISMA Ltd. (Paris, France),
A/F/77/73; 7 pp. (1977). World ammonia production and
consumption statistics are given for the 1975-76 fertilizer yr
for major producing countries in West Europe, North America,
Latin America, Africa, and Asia. Import and export statistics
for ammonia in 1975 are also given by country and destina
tion.
830 Ammonia-Phosphate: World Supply-Demand. Chem.
Mkt. Rep. 206 (9), 5, 12 (Aug. 26, 1974). World trade in
ammonia has been determined by supply rather than demand.
According to the International Superphosphate & Compound
Fertilizer Manufacturer’s Association (ISMA), this was due to
the acute shortage which emerged in 1973. In a report on
world ammonia trade statistics from 1966 to 1973, ISMA says
that world trade rose from 947,000 tons in 1966 to a
temporary peak of 2.82 million tons in 1970, falling to 2.46
million tons in 1971. It rose again in 1972 to a new record
level of 3.04 million tons, but again decreased in 1973 when
the total was 2.94 million tons. Another ISMA special
committee has completed a survey of supply and demand
prospects for phosphate fertilizers and phosphoric acid. The
results indicate a total P:Os consumption rate of increase
between 1971-72 and 1975-76 of around 7%/yr. The ISMA
feeling is that a substantial increase in phosphate rock
production may occur between 1973 and 1978 but that the
growth of P. Os consumption could be restricted by rock
availability in 1974-75 after which the situation should ease
progressively. The projected surplus of phosphoric acid
capacity in 1975-76 may be limited by the availability of
phosphate rock. Potential production of acid in 1975-76 is put
at 18.8 million mt, 7.9 million of which will be in North
America and 3.8 million in West Europe. Consumption is
forecast at 17.2 million tons with a margin of error of plus 4%
to minus 12%.
831 World Production of Phosphates Down. Chem. Age
 SUPPLY AND DEMAND
(London) 114 (3023), 4 (June 1977). World production of
phosphate rock in 1976 reached 117.75 million ton, according
to the preliminary report of the International Phosphate
Industry Association. This compares with 1 18.35 million ton
in 1975, 120.25 million ton in 1974. The USSR's production
reached 26.68 million, while Morocco produced 16.86 million
ton. Morocco was the world’s leading phosphate rock
exporter, with 16.15 million ton. Meanwhile the latest figures
for U.S. production show that output during the first three
months was at an annual rate of 45.9 million ton, 5.7% down
on the 48.7 million ton produced in the U.S. However, the
annual rate of phosphate rock sold or used in the first three
months shows that the rate of 47.6 million ton in 1977, was
4.4% more than the 45.6 million ton of 1976.
332 Phosphate Fertilizers Production, Imports, Exports, and
Consumption. ISMA Ltd. (Paris, France), A/F/77/91; 68 pp.
(June 1977). Phosphate fertilizers production, imports,
exports, and consumption data for 51 countries and a world
summary for yr 1973-75 is reported. Data also includes ground
rock phosphates for direct application.
833 Industrial Minerals Review—1972: Phosphate Rock. G.
D. Emigh. Mining Eng. 25 (1), 42-5 (Jan. 1973). After 5 yr of
over capacity and depressed prices, 1972 was the yr the United
States and world phosphate rock industry began turning
around. United States rock production for fertilizer yr
1970-71 was 38.9 million tons; Florida and North Carolina
32.15, Tennessee 2.57, and western States 4.16 million tons.
Production for fertilizer yr 1971-72 increased to 41.8 million
tons. Activities on world rock are discussed with emphasis on
new development. Activities are discussed in detail for the
following countries: United States, Brazil, Peru, Australia,
U.S.S.R., Tunisia, Iran, Algeria, Mexico, Spain, Israel,
Morocco, and Saudi Arabia. Potash J. A. Beck. Ibid. pp. 45-6.
Total world production of potash in the 1971 calendar yr was
20.9 million tons K2O, up 2% from the previous yr.
Production was significantly higher in Canada, U.S.S.R., Israel,
and the Congo; down in the United States, West Germany, and
Spain. The 1971-72 fertilizer yr was the second yr of the
Saskatchewan potash prorationing program. The impact of this
program can be seen in the stability of prices realized by U.S.
muriate of potash producers and by the return of seasonal
pricing.
834 Phosphate Rock Capacity. Phosphorus Potassium No.
62, 3-5 (Nov.-Dec. 1972). World phosphate rock production
capacity in 1972 totalled 103 million tons/yr in terms of
Saleable products. The actual level of output in 1972 is
expected to correspond to an overall level of capacity
utilization of 90%; however, there remain considerable varia
tions in the degree of employment of capacity in individual
producing countries. The effect of the sharp increase in
demand for phosphate rock in 1972 has been to force the
largest and best established producers to operate full out to
cover the new level of market requirements. Even the Florida
phosphate mining industry claims to have no surplus capacity
available with which to supply additional material to export
markets. According to the Fertilizer Institute index, the
average rate of capacity employment in the United States
phosphate mining industry rose to 89% in first half of 1972,
compared with 72% in the same period twelve months before.
The additions to world phosphate mining capacity totalled 4.''
million mt in 1972, with a further 5.2 million mt following in
1973. Most of these increases are represented by developments
in North Africa, such as Morocco and Spanish Sahara, and in
the U.S.S.R. There have only been marginal changes in
capacity levels in the United States, while the growing interest
in the construction of new mines in Florida is unlikely to
result in effective capacity before 1975.
835 World Phosphate Rock Supply-Demand. Chem. Mkt.
Rep. 205 (17), 7, 29 (May 6, 1974). World phosphate rock
production and deliveries both increased to new record levels
in 1973 and, for the fourth yr in succession, deliveries
exceeded production, reaching 100.6 million mt against a
production total of 97.4 million tons. The biggest increase in
both production and deliveries originated in Morocco where
output was up 2.1 million tons and deliveries by 2.5 million
tons as compared with 1972. In both the U.S. and the Soviet
Union production levels rose in 1973, but increased deliveries
to the home markets in each case entailed a reduction in
export shipments. However, Canada the biggest market for the
American phosphate rock, expanded while the East European
markets received smaller shipments from the U.S.S.R. than in
1972. Production by the three island producers, Christmas,
Ocean, and Nauru Islands, expanded by a combined total of
1.6 million tons in 1973 and exports rose by the same total,
with most of the extra shipments earmarked for Australia.
Higher production was also seen both in Algeria and Tunisia.
West Europe was the major market for phosphate rock last yr,
accounting for almost half of all world trade. West Germany
imported 3.2 million tons, while the Netherlands and the U.K.
each received 2 million tons and Spain 2.2 million tons.
Austria, Belgium, and Italy each showed lower imports in
1973, their combined receipts amounting to 4.7 million tons
or some 150,000 tons lower than in 1972.
836 Phosphate Rock: Demand Rose 12 Million Tonnes in
1974. Phosphorus Potassium No. 76, 3-7 (Mar.-Apr. 1975).
The pressure continues on phosphate rock suppliers as
evidenced by a record 12 million mt increase in demand in
1974. The demand increase was matched by a 12.5 million mt
increase in production but a shortage of supply remained a
feature of the market as withdrawals from producers stocks
was shown for the fourth successive yr. Import demand rose
6.5 million mt in 1974 and the burden of supplying this new
requirement fell most heavily on the producers in Northwest
Africa and the Near East. Morocco now accounts for 34% of
international trade. Export by country is given for 1973 and
1974. Import by continent is given for 1973 and 1974.
837 Phosphate Rock–Production Down 4% in 1975. Phos
phorus Potassium No. 81, 5-6 (Jan.-Feb. 1976). The yr 1975
brought the world phosphate rock market from a situation of
light supply to one of relative weakness, with production and
demand both down from the previous yr levels. A preliminary
assessment of the phosphate industry’s performance in 1975
indicates a world production of 105 million mt and sales of
103 million mt. Production in millions of mt were: U.S. 43.9,
U.S.S.R. 24.1, Morocco 13.5, Communist Asia 5.2, Tunisia
3.5, Sahara 2.7, South Africa 1.7, Nauru 1.5, Senegal 1.6,
Christmas Island 1.3, Togo 1.2, Jordon 14, Israel 0.7, Algeria
0.7, others 2.3. International phosphate fertilizer prices fell
sharply in the first half of 1975, stabilized in the third quarter,
but weakened again in October; for example, triple superphos
phate prices, which started the yr at above $300 fob, had
fallen to $150 by June, and then slipped further to $120 in
1 11
 SUPPLY AND DEMAND
October.
838 World Potash Supply–Demand. F. D. Lyon. Eng. Min.
J. 176 (3), 199-201 (Mar. 1975). The current worldwide
potash shortage is expected to continue through the 1974-75
fertilizer yr. The determining factor in the world potash
supply-demand situation will be Canadian output. Although
the Canadian producers are free to turn out all they can in
1974-75, labor shortages and government policies will prevent
the addition of new capacity and may cause delays in making
existing operations fully productive. Until policies on the
control and taxation of the Canadian industry are clarified,
potash will likely remain in tight supply. Potash production in
the US and Canada totaled 8.2 million tons of K2O in the
1973-74 fertilizer yr–up 18.6% from the 1972-73 total of 6.9
million tons. US and Canadian shipments, including exports,
totaled 8.6 million tons of K2O in 1973-74, and July 1 plant
inventories fell to a record low of 271,646 tons of K2O. The
US capacity to produce potash in the 1974-75 fertilizer yr will
probably remain at about 3.0 million tons of K2O. Actual
production for the yr ended June 30, 1974, was approxi
mately 2.6 million short tons of K2 O. Due to debottlenecking
and some new capacity coming on-stream, output in 1974-75
might reach 2.7 million tons, or about 90% of design capacity.
World capacity to produce potash was an estimated 29.4
million short tons of K2O in the 1973-74 fertilizer yr.
However, actual production totaled only 22.7 million tons of
K;0–77% of capacity. Production is expected to total 23.8
million tons in 1974-75, up about 5% from 1973-74. Potash
demand in the remaining countries of the Free World is
expected to increase from 16.6 million tons of K2O in
1973-74 to 17.4 million tons in 1974-75. Potash demand in
the Communist countries, which totaled 7.4 million tons of
K2O in 1973-74, is expected to increase to 7.8 million tons in
1974-75.
839 Potash—World Production up 2% Thanks to U.S.S.R.
Performance. Phosphorus Potassium No. 81, 7, 19 (Jan.-Feb.
1976). The slump in world demand for fertilizers hit potash
producers hard in 1975. The U.S.S.R. remains unchallenged as
the world's largest potash producing country, accounting for
7800 mt of a world total of 24,000 mt. Other preliminary
totals for 1975 were in mt: Canada 5450, German Democratic
Republic 3000, United States 2300, West Germany 2200,
France 1900, Israel 500, Congo 250, and others 600. Despite
the moderate commercial policy of the major potash pro
ducers, they have come under pressure to reduce prices.
840 World Marketable Potash. Mineral Trade Notes 73 (6),
15-16 (June 1976). Almost a 6% decline in 1975 was noted in
the world production of marketable potash from a yr earlier.
Among the principal producing countries, France, Canada, and
West Germany recorded the largest drop in output. Production
is given for 1973, 1974, and 1975 for Canada, Chile, China,
Congo, France, Germany, Israel, Italy, Spain, U.S.S.R., and
the United States.
841 Potash Statistics 1976. ISMA Ltd. (Paris, France),
A/F/77/121; 19 pp. (Aug. 28, 1977). This is the final 1976
report issued by the Potash working party. It includes five
tables of data with headings as follows: (1) production of
potash and deliveries in major producing countries, (2) potash
trade, (3) exports of potassium chloride, (4) exports of 846 Raw
potassium sulfate, and (5) exports of potassium magnesium
112
sulfate.
842 World Potash Demand. Phosphorus Potassium No. 90;
8-10 (July-Aug. 1977). During the past fertilizer yr, potash
demand in all the major and most small markets increased. .
Based on preliminary data, total world demand is indicated at
22.4 million tons K2O. This represents an increase in world
potash consumption in 1976-77 of about 1.2 million tons K2O
(5.7%) over the preceding yr. Increase production in several
countires largely contributed to this increase. Production in
West Germany rose by 10% to 2.15 million mt K2O. This
increase reflects the higher level of domestic demand as well as
that obtained on the export markets in Europe. Spain's
production also increased measurably in 1976-77 from
510,000 mt to 560,000 mt K2O. In North America produc.
tion for the same period rose to a level of 7.84 million mt K30
from 7.06 million tons in 1975-76. Communist world pro
ducers continued to dominate the world potash market in
respect to both supply and demand. Production by Com
munist world producers rose by 4.5% in 1976-77 while
consumption in East Europe also rose by 4.5% so that some
40% of total potash consumed in the world was used in this
region. The sustained growth experienced by the world potash
industry is expected to be maintained and, in some instances
exceeded in fertilizer yr 1977-78.
843 World Production of Potassium Sulfate. Sulphur No.
! 18, 30-1, 33 (May-June 1975). Potassium sulfate is the most
widely used of all the chloride-free fertilizers. It commands a
higher price than potassium chloride (in the order of
$30-40/mt). In 1973-74 Belgium led in the production of
potassium sulfate 269,000 mt. West Germany 255,000 mt. and
the U.S. 232,000 mt. The world demand for potassium sulfate
is expected to increase 25% by 1980-81. Two methods of
production are used; potassium chloride is treated with
sulfuric acid or the refining of potash ores. Sulfuric acid attack
on potassium chloride accounted for 40% of the production
over the last 2 yr; however, the increase in production is
expected to come through the refining of potash ores.
844 Preliminary Sulfur and Sulfuric Acid Statistics 1973.
London, England: The British Sulphur Corp., Ltd.; 20 pp.
(1973). Statistics compiled in this report include tonnages of
sulfur and sulfuric acid from all sources for 1973. These
materials amount to approximately 49 million mt of sulfur, an
increase of 9% for the yr. Of this total, 62% was produced
from brimstone, 22% from pyrite, and 16% from other
sources. Of the total tonnage produced, 70% came from the
western world, while 30% came from communist countries.
The world total shows 108 million mt of sulfuric acid
produced, with 74% being produced in the western world and
26% in communist countries.
845 1975–A Critical Year for the World Sulfur Industry.
Sulphur No. 116, 5-9 (Jan.-Feb. 1975). Prolonged periods of
slumps and booms in the S industry have punctuated its
history. New features reflect the relative importance of the
component parts of the S industry in respect to supply and
demand. The pattern of world S production and consumption
in all forms for the Western World and Communist World is
presented for the period 1970-74.
Materials Supply 1975-Fertilizer Trade
1974-75 Statistical Supplement. London England: British
 SUPPLY AND DEMAND
Sulphur Corp. Ltd. No. 13, 28 pp. (May-June 1976). Data on
ſaw materials supply and demand and on fertilizer trade up to
and including 1975 and 1974-75 respectively is presented by
region and country. World production of sulfur-in-all-forms
dipped in 1975, decreasing by 1% to 514 million mt. In the
western world production decreased by 5%, although there
was an increase of 8% in the communist world. Western world
consumption of sulfur decreased by 10% in 1975 compared
with an increase of 5% in 1974. Sulfuric acid production
decreased in 1975, 107.4 million mt were produced a decrease
of 7%, compared with an increase of 7% in 1974. World
output of phosphate rock fell in 1975. Production decreased
by 3.8% compared to 1974 while export sales dropped by
21.9%. The growth rate of world trade in finished fertilizers
(in terms of total nutrients N + P. Os + K2O) continued to
decline in 1974-75 increasing by only 4.4% compared to 7.5%
the previous yr and 9.4% in 1972-73. (10 tables).
847 Statistical Supplement—Raw Materials Supply and
Demand 1976–Fertilizer Supply and Demand 1976-77. Lon
don, England: British Sulphur Corp. Ltd., No. 16; 20 pp.
(Nov.-Dec. 1977). This publication, the sixteenth statistical
supplement of journals Sulphur, Nitrogen and Phosphorus and
Potassium presents data on raw materials supply and demand
for 1976 and total world fertilizer supply and demand for
1976-77 by region and country.
848 Statistical Supplement: Raw Materials Supply-Demand
1975-Fertilizer Supply-Demand 1975-76. London England:
British Sulphur Corp. Ltd., No. 14; 20 pp. (Nov.-Dec. 1976).
Statistical data for regions and/or countries are given by yr
(1973-75) for fertilizer raw materials and products production
and consumption. (18 pp. tables). World production of S (all
forms) increased only 0.3% in 1975. Western world consump
tion of S decreased by 9.3% against a 4.8% increase in 1974.
World production of phosphate rock exceeded apparent
consumption by about 6 million mt in 1975. Apparent
consumption was reduced by over 10% compared with 1974
level. Preliminary estimates of finished fertilizer production
and consumption in 1975-76 indicate increases of 1% and 8%
respectively in terms of total nutrients (N + P20s + K2O).
849 Inorganic Fertilizer Materials and Related Products.
Washington, D.C: U.S. Dept. Commerce, Bureau of Census,
M28b077)-11; 6 pp. (Jan. 1978). This publication lists
Statistics based on a survey of manufacturers representing total
United States production and stocks of nitric acid, sulfuric
acid, ammonia, and phosphatic fertilizer materials for yr
1975-77.
850 Fertilizer Output and Use Records Set. Foreign Agric.
16 (2), 10 (Jan. 9, 1978). World production of chemical
fertilizers–nitrogen, processed phosphate, and potash in
1975-76 amounted to 92.2 million mt; the highest production
ever recorded. While the total United States fertilizer produc
tion expanded to more than 18 million tons, the USSR for the
first time surpassed United States production with 20.5
million ton. Total world consumption of N, P, and K also
reached a new high in 1975-76 of 88.7 million tons. This total
represents a 9.6% increase from that of the previous yr.
851 1977 Fertilizer Situation. Econ. Res. Serv., USDA, Rpt.
FS-7; 26 pp. (Jan. 1977). U.S. fertilizer manufacturers'
inventories during the fall of 1976, although below year-earlier
levels, were generally abundant. Large increases are scheduled
in U.S. anhydrous NH 3 capacity during 1977, and wet-process
His PO4 capacity will increase slightly. If production holds
steady, supplies will be adequate for 1976-77 and prices paid
by farmers should be steady to lower. Mid-April 1976 prices
for fertilizers were as much as 30% below year-earlier levels.
U.S. farmers reacted by increasing purchases, fertilizing more
acres, and increasing application rates. Fertilizer use increased
15% to a record-high 49 million tons in 1975-76. Anhydrous
NH3 production capacity held steady at about 18.8 million
tons during 1976. The opening of several new plants during
1977 should increase capacity by close to 3 million tons by
January 1, 1978. Domestic capacity to produce wet-process
acid fell by 300,000 tons during 1976 to about 8.7 million
tons. Two new facilities are scheduled to begin operation in
1977, bringing annual U.S. production capacity close to 9.2
million tons. U.S. capacity to produce potash was slightly over
3.1 million tons on January 1, 1977, down from the 3.3
million tons recorded a year earlier. North American produc
tion capacity was up slightly from 1 1.6 million tons on
January 1, 1976, to 11.8 million tons a year later. The
import-export picture was mixed during 1975-76, as the world
market for fertilizers softened. The declared value of U.S.
fertilizer exports declined from over $1.6 billion in 1974-75 to
slightly more than $1.3 billion in 1975-76. International
fertilizer prices fell by as much as two-thirds between the third
quarter of 1974-75 and the end of the 1975-76 fertilizer year.
The U.S. Agency for International Development financed the
export of 451,000 tons of fertilizer in 1975-76, representing
8% of total U.S. exports. World use of N in 1975-76 totaled
around 46.5 million tons, up 9% from a year earlier. A smaller
gain is indicated in 1976-77. With new production capacity
coming onstream, the supply of N could exceed 50 million
tons in 1976-77, and world prices will likely average steady to
lower. World use of P. Os fertilizers rose 4% to an estimated
26.2 million tons in 1975-76. A further modest gain is
expected in 1976-77. World production capacity is expanding,
and 1976-77 supply is estimated at 33 million tons. World
prices for phosphate fertilizers are expected to be steady to
lower in 1976-77 World use of K2O in 1975-76 is estimated
to be 23 million tons and is expected to rise slightly in
1976-77. But world potash production capacity will likely
increase to around 35 million tons in 1977. The pace of
future world capacity increases will in large part be governed
by the nationalization policies of the Saskatchewan provincial
government.
FORECASTS AND TRENDS
852. Fertilizer Nitrogen. J. D. Beaton (Cominco Ltd., Cal
gary, Alberta, Canada), W. E. Janke, and S. S. Blair. In Proc.
Western Canada Nitrogen Symp. (held Jan. 20-21, 1976,
Calgary, Alberta, Canada.) Edmonton, Alberta, Canada:
Alberta Soil Sci. Workshop; pp. 219.73 (1976). Consumption
of fertilizer nitrogen in western Canada was traced for selected
years between 1938 and 1975. During this period nitrogen
usage rose from about 1000 tons to over 330,000 tons
annually. Before the 1970's the ammonium phosphates were
predominant sources of nitrogen and they still provide slightly
113
 SUPPLY AND DEMAND
more than one-third of the total nitrogen consumed in western
Canada. Anhydrous ammonia consumption has increased
rapidly since 1970 and is nearly equal to ammonium nitrate as
a source of N. There has been significant growth in the use of
urea and nitrogen solution during the period 1968-75. Both
approximate existing and projected future production capa
cities in western Canada for anhydrous ammonia, urea,
ammonium nitrate, and ammonium sulfate were discussed.
Within the next 15 months anhydrous ammonia capacity will
be greatly expanded from the current capability of about
800,000 tons/yr to slightly more than 2 million tons, an
increase of nearly 150%. In about 12 months, capacity for
urea manufacture will rise from about 215,000 tons/yr to
almost 1.2 million tons, an increase of more than 450%.
Western Canada’s nitrogen fertilizer production capabilities
were related to estimates of production and consumption of N
in the U.S. The U.S. forecasts suggest that the need during
1976 to 1980 for Canadian N supplies will not be as great as
was anticipated 2-3 yr ago. Energy requirements for nitrogen
fertilizer production and the impact of increasing prices for
hydrocarbon feedstock on fertilizer production costs were
reviewed. The requirements of natural gas for the manufacture
of anhydrous ammonia in 1977 and 1980 are equivalent to less
than 5% of the 2.26 trillion ft” of natural gas produced in
Alberta in 1974. The major agronomic features of anhydrous
ammonia, urea, ammonium nitrate, ammonium sulfate, and
nitrogen solution were considered. Both anhydrous ammonia
and urea have the unique properties of forming ammonium
and temporarily alkalizing soils in the vicinity of the point of
application. Various aspects of shipping, storing, and applying
the major nitrogen fertilizers in western Canada were
described.
853 Fertilizer Supplies in the Late 1970's: The Outlook for
Nitrogen. J. F. Anderson. In TVA Fertilizer Conference, held
July 31-Aug. 1, 1974, Louisville, Kentucky, Bull. Y-78; pp.
13-18 (Aug. 1974). Muscle Shoals, Ala.: Tennessee Valley
Authority, National Fertilizer Development Center. The
supply of N fertilizer material will be tight during 1975-76
because of unfilled 1974 demand, a nominal increase brought
on by intensive farming practices, requirements to refill
distribution systems and inventory, and increased demand in
industrial markets. A balance will be achieved in the late
1970's and into the early 1980's; then the U.S. will revert to
an oversupply position. The extent of the oversupply will be
governed by the expansion decisions currently being made. A
plant capacity listing showing production and expected
production of ammonia in the United States and Canada for
the period 1972 through 1980 is given.
854 World Nitrogen Forecasts. Chem. Week 115 (20), 23
(Nov. 13, 1974). World shortages of nitrogen fertilizers for the
next several years are being predicted by the State University
of New York (Buffalo) and by a U.S. Agriculture Dept.
economist. At the Asia-Pacific Food Production Conference in
Tokyo, sponsored by International Minerals & Chemical Corp.,
it was predicted that world ammonia capacity will rise only
6.6%/yr for the next several yr, compared with a 7.7%/yr
increase in demand. The U.S. Dept. Agr. fertilizer outlook for
1975, 1976, and 1980, reached a similar conclusion. The
world nitrogen supply is estimated to be 46.7 million mt in
1976 and consumption 45.5 million. It was pointed out, that
the anticipated edge of supply over demand was less than the
desired level of 5% and could be wiped out by operating
114
problems. The margin of supply over demand will be thinner
by 1980. Analysts foresaw less of a bind in supplies of
phosphates and potash than of nitrogen.
855 World Wide Nitrogen Surplus Shaping Up By 1980.
Chem. Mkt. Rep. 206 (19), 5, 19 (Nov. 4, 1974). A marked
change is taking place in the outlook of nitrogen world-wide,
indicating that the deficit expected last March of between 3.9
and 9.6 million tons by 1980 now appears likely to turn into a
surplus of over 5 million tons, according to the Economic
Research Service of the Department of Agriculture. The
department estimates new capacity announcements in the first
quarter of 1974 at 10.5 million tons and says that since April
an additional 6.4 million tons have been contracted or
planned. Most of the new capacity is taking place in China and
Canada, as well as Russia, which recently contracted for at
least eight large ammonia plants plus several similar plants
Russia expects to construct itself. This will give Eastern
Europe and U.S.S.R. a substantial surplus by 1980, instead of
the deficit earlier estimated, the report states. In addition, the
Mideast countries are indicating intentions of building between
1 million and 3 million tons of new capacity by 1980.
856 The Nitrogen Situation: You Ain't Seen Nuthin 'til '75.
E. A. Harre and J. R. Douglas, Jr. (Tennessee Valley
Authority, Muscle Shoals, Ala.). Fert. Prog. 5 (3), 17, 18,
21-2, 48, 50, 52, 54 (May-June 1974). Greatly increased
demand for food and fiber, high prices for farm products, and
agricultural policy changes that stimulate production have
caused fertilizer demand to spurt. The difference between
1974 supply and 1975 demand for ammonia is categorized
into four major elements and each is discussed in detail. These
elements are: (1) carry-over unfilled 1974 demand, (2) normal
increase brought on by more intensive farming practices, (3)
the need for replenishing inventories, and (4) the increased
demand in the industrial market. The total increased N
demand for these elements is estimated at 1700-3400
thousand tons. A table lists the companies, location, capacity
in 1972 and the expected change in capacity through 1980 for
the United States and Canada in anhydrous ammonia
production capacity.
857 Nitrogen Fertilizer Shortage is Forecast. Chem. Week
116 (15), 25 (Apr. 9, 1975). This year's supply of N fertilizers
will fall short of U.S. farmers’ needs by about 1 million tons
(10% of demand), says FS Services (Bloomington, Ill.). The big
farm co-op says supplies will ease in 1976, when a Canadian
ammonia plant, the first of four large units being built for FS
affiliates, comes on-stream. Supplies are expected to be
adequate when a second Canadian plant and two Gulf Coast
units start up in 1977.
858 World's Supply-Demand Situation of Nitrogenous Ferti
lizers. Jpn. Chem. Week 16 794, 4 (July 17, 1975). The
worldwide supply-demand balance of nitrogenous fertilizers is
forecast. In 5 years, supply is estimated to increase by
28%—from 36.17 million N tons in 1972-73 to 46.33 million
N tons in 1976-77—while demand will increase by 33% from
36 million N tons to 47.70 million N tons during the same
period. Though quite a few new plants are scheduled to go
into operation in Eastern Europe and Asia during this period.
the added capacity will not be sufficient to keep up with the
growing demand so that the supply-demand balance will no
doubt remain unstable for some time to come. A reverse trend
 SUPPLY AND DEMAND
is anticipated for the 1977-78 period. The supply growth rate
will reach 42% while the demand growth rate will be 4.1%
compared to 1972-73 levels. From that time on, the global
shortage of N fertilizers will mitigate and the supply-demand
balance will be restored. But, to properly assess the above
prospects, one must consider the fact that in the wake of the
worldwide scarcity of fertilizers some importing countries
might resort to hoarding and that global inflation might
compel some countries to cut down fertilizer imports on
account of the foreign currency squeeze.
859 The Nitrogen Supply-Demand Situation. J. F. Babbitt.
In TVA Fertilizer Conference (held July 29-31, 1975, Louis
ville, Kentucky) Muscle Shoals, Ala.: Tennessee Valley Au
thority, National Fertilizer Development Center; Bulletin
Y-96, pp. 44, 146-8 (July 1975). World N production in 1972
was about 40,000,000 mt. By 1980 world N production will
be about 72,000,000 mt/yr of N. World demand will exceed
supply until mid-1977. By 1980, a world surplus over demand
of about 900,000 tons of N will be shown. The U.S. will be
short of N through 1976-77 season, have a surplus through
1979, then be fairly close to a balanced position in 1980.
Latin America will show a small net import requirement in
1980. Western Europe will have a surplus of about 300,000
tons of N in 1976-77 and this will grow to as much as
1,000,000 tons by 1980. Far East and Southeast Asian
Communist Nations will not improve their 1,000,000 tons N
deficiency through 1980. Russia and the Eastern European
Bloc Countries show a surplus now of about 900,000 tons of
N; this will increase to over 2,200,000 tons by 1977-78 and
still be at 1,550,000 tons in 1980.
860 Forecasting Nitrogen Supply-Demand for 1975-76. R.
R. Johnson (Agrico Chem. Co., Tulsa, Oklahoma). Fert.
Solutions 19 (6), 88, 92, 94 (Nov.-Dec. 1975). The supply of
domestic N can be fairly accurately predicted for the next 12
months. One can count the ammonia plants, assess their
effective capacities, allow for interruptions due to downtime
and/or curtailment due to gas supply, forecast the export/
import N balance, assess the industrial usage of N and come up
with a close estimate of supply by product. A forecast of 5.1%
increase in the N supply for the 1975-76 season is given. The
demand for N is shaped by the needs and wants of people.
Slightly over 75% of our domestic N usage is applied to four
crops: corn, wheat, cotton, and grain sorghum. The acreages of
these four crops and the application rate per acre form the
base for a reliable N demand forecast. Production, economics,
and profitability are the largest factors influencing decisions
regarding acres to plant and N rates. Forecasters predict that
input items—seed, chemicals, fertilizers, labor, machinery, and
land will hold near spring 1975 levels. These forecasts with the
Chicago Board of Trade future market forecast of forward
crop prices suggest the cost:benefit ratio will favor using
adequate fertilizer rates. A 6% increase in N demand for
1975-76 is given.
861 The Supply Outlook for Nitrogen. J. F. Babbitt, Jr.
Farm Store Merchand 19 (2), 18, 22, 29 (Feb. 1976). A
shortage of nitrogen of potentially major proportions is
predicted for the U.S. for this yr. During 1977-79 there will be
a surplus and 1980 will show a balanced supply-demand. The
world deficiency in nitrogen production will continue until
mid 1977. By 1980 there will be a world surplus over demand
of about 900,000 tons. The forecast for 1976-77 in the U.S.
supply is based on (1) normal consumption of industrial
ammonia, (2) estimated 50% drop in ammonia import, (3)
increased curtailment of natural gas, and (4) limited new
production capacity.
862 North America. Supply-Demand Prospects for Nitrogen
Fertilizers. E. A. Harre (TVA, National Fertilizer Development
Center, Muscle Shoals, Alabama). Nitrogen No. 100, 39-40
(Mar.-Apr. 1976). Recent declines in prices of nitrogen
materials have resulted in favorable benefit: cost ratios. With
agricultural export agreements expected to bring greater
stability to the market, nitrogen use patterns are expected to
make up most or all of last year's decline. The curtailment in
nitrogen use in 1974-75 left producers with higher inventory
levels and the supply levels are expected to be adequate during
1975-76. Beyond 1975-76 there is not expected to be any
shortage of nitrogen fertilizer for the remainder of the decade.
Total U.S. ammonia capacity is scheduled to increase from
15.7 million tons N in 1975-76 to over 19.5 million tons by
1980. Canada is also expanding capacity, increasing from 1.4
million to almost 2.4 million tons N in the next 2 yr. Only
with an unprecedented recovery of farm demand, coupled
with severe curtailments in natural gas supplies can shortages
of nitrogen be expected. The future growth in market lies with
higher use levels per acre and full development of markets such
as the fertilization of pastures. The maintenance of favorable
price ratios is a key factor in the market.
863 World Nitrogen Production Forecast. Eur, Chem. News
28 (741), 23 (June 18 1976). By 1980 total world nitrogen
fertilizer production would reach about 96.6 million ton
compared to the 1975 level of 65.8 million ton, according to
figures released by the West German fertilizer giant Ruhr.
Stickstoff. Eastern Europe is currently the largest single
producing area, with a total capacity in 1975 of around 18.6
million ton. Ruhr Stickstoff predicts that by 1980 Asia and
Australia capacity will grow from its present level of 13.3
million ton to around 25.5 million ton. By 1980 East
European capacity will reach about 25.3 million ton. West
European capacity is only expected to grow from 14 million
ton to 18 million ton by 1980 and in North America a similar
growth from the present level of 15.7 million ton to 19.8
million ton is predicted. While African production will more
than double in this period it will still only be around 3.4
million ton by the end of the decade and in Latin America
production should grow from 2.8 million ton to 4.6 million
ton.
864 Nitrogen, Now and Tomorrow. J. H. Parker (TVA,
National Fertilizer Development Center, Muscle Shoals,
Alabama). Crops Soils 28 (8), 12-14 (June-July 1976). We can
expect to continue to have nitrogen fertilizers in the future;
but we still face the possibility of short-term scarcities when
we have fast changing market conditions. The dominance of
natural gas as a feedstock for ammonia production will
diminish, being supplemented by coal late in this century,
Ft. ther in the future, processes based on nuclear electricity
and/or heat may become dominant. Other approaches that
now appear exotic could assume significance if researchers are
able to manipulate nature's secrets for fixing nitrogen.
865 The Nitrogen Outlook: Not all Bad. Bill Dible. Farm
Chem. 140 (3), 26, 28, 30 (Mar. 1977). Today there is a great
research effort to develop a commercial process for the
115
 SUPPLY AND DEMAND
biological fixation of N. Solar energy, wind power, tidal power
and sea thermal power all offer possibilities for production of
hydrogen and, therefore, ammonia. There is little likelihood of
commercial development of any of these within the next 10
yr. For the next 10 yr the world is totally dependent on
present technology and feedstocks for the production of
ammonia: petroleum, natural gas, coal, and organic waste. In
1970 almost 70% of the ammonia was produced from natural
gas feedstock. In 1980 this is expected to increase to over
71%. In the U.S. coal is going to replace some natural gas as
process fuel and possibly feedstock in the 1980s. The
geography of production will be markedly different in 1980
due to the distribution of hydrocarbon reserves. Through
1980, the ammonia expansions will be in less developed
countries and the Com-Fcon countries because the hydro
carbons are there for the production of ammonia and the
demand is building there for the product.
866 Spain's Nitrogen Surplus Increases. Fert. Int. No. 95, 3
(May 1977). The gap between nitrogen production and
consumption in Spain continues to widen. Results for the
calender yr 1976 indicate that for the second successive
calender yr production of nitrogen fertilizers in Spain grew at
a faster rate than consumption. Growth in production
increased 8% while imports regained some of their former
strength totalling 16,300 mt N in 1976. Urea production
increased to over 190,000 mt, 31% greater than last yr. The
increase for 1975 over the previous yr was 40%, thus urea
production more than doubled in only 3 yr. By contrast,
consumption has risen by 57% since 1973, the resulting
exportable surplus totalling nearly 90,000 mt N in 1976.
Spanish urea capacity is not scheduled to increase after
1976-77 having already risen by 180% during the last 3 yr,
most recently by the commissioning of the 76,000 tons/yr N
plant at Huelva and the expansion from 32,000 tons/yr N to
69,000 tons/yr N at Escombreras.
867 Adequate Nitrogen Spurring Positioning for Markets.
Green Markets 1 (17), 3 (June 6, 1977). Nitrogen fertilizer
production will more than meet demand through the early
1980’s, and there will be a scramble among producing nations
to maintain market shares. As a result, major importers of
nitrogen products such as China and India may be in a buyer's
market before long. The greatest growth in nitrogen fertilizer
capacity will be by developing countries and eastern European
producers. Third world capacity will jump by nearly 90% to
15.6-million mt. Concerted efforts by eastern European
nations, and especially the Soviet Union, to enter the world
nitrogen fertilizer market will have a significant impact on
marketing patterns in the next several years. Prices by these
nations will be extremely competitive owing to less expensive
feedstocks, such as Soviet natural gas. Soviet intentions to use
fertilizer as a major export material have been clear for some
time. To a lesser extent, other eastern European nations have
similar ambitions.
868 The Outlook for Nitrogen Fertilizers. G. C. Matthiesen.
In Situation 77, TVA Fert. Conf. (held Kansas City, Missouri,
July 26-27, 1977.) Muscle Shoals, Ala. TVA, National
Fertilizer Development Center, Bull. Y-115, pp. 18-22 (July
1977). Since mid-1976, nameplate capacity of ammonia
production for United States locations increased by over 15%;
Canada's capacity has also increased nearly 70%. At this
capacity level an operating rate of 80% would insure projected
116
1977-78 demands. High prices for grain caused farmers to
increase planting and fertilizer use in 1976. The results were
large stocks of grains and lower prices. Because of this there
seemed to be doubt about how much N would be used in
1977. Observations at this time indicate that 1977 consump
tion will exceed 1976. If weather is not a great limiting factor
there will again be economic justification for increase on the
rate of N fertilization/acre on many crops in 1978. The 1978
fertilizer demand is expected to be at least 10.6 million tons N
depending upon exports, imports, and especially energy
feedstock considerations.
869 Long Term Forecast for World Nitrogenous Fertilizer
Demand and Supply. Tokyo, Japan: Unico International
Corp.; 85 pp. (Sept. 1977). Forecasts are made and interpreta
tions given for N fertilizer supply and demand by country
through 1986.
870 Application of Nitrogen Fertilizers: Present Trends and
Projections. M. J. Frissel (P.O. Box 48, Wageningen, Nether
lands). Ambio 6 (2-3), 152-6 (1977). Biol. Abstr. 64, 53936.
Recent model studies on food prediction indicate that the N
requirement for crop production will almost double within the
next 35 yr. Only if the biological N fixation can be increased
by 3% annually, can the share of N fixation in the production
of consumable N be maintained at the 63% level where it is
now. If the biological N fixation only increases by 1% yr, its
share will be reduced to 37%, and the fertilizer requirement
will then increase to 160-185 Tg (teragram = 10' *g) in 2010.
871 Nitrogen Supply–Domestic. L. L. Laquier (W. R. Grace
and Co., Memphis, Tennessee). Proc. 1977 NFSA Round Up
(held St. Louis, Missouri, July 20-21, 1977.) Peoria, Illinois:
National Fert. Solutions Assoc.; pp. 1-6 (1977). The future
domestic supply of nitrogen is analyzed and estimates through
1985 are made by the use of index numbers. These indices
represent the ratio of effective demand to production
capacity. When analyzing operating rates, two important
questions should be considered: (1) is the operating rate
between 85-90%, and (2) are the operating rates moving up to
85-90% range or moving down from it? In 1965-67 the rate
was at the 90% + level. In 1968-71 it decreased to the 80-86%
range. Beginning in 1972, the operating rate increased again to
the 84-90% + range through 1975. Estimates for 1977 reveal
that the rate will still be in the 80-85% range. The operating
rate indicates about 80-82% in 1978-80, an oversupply
situation. In 1981 it is estimated to reach 85% through 1985, a
continuing balance situation. The overall trend indicates a
temporary oversupply situation in 1978, 1979, and perhaps
1980, and then a rebalance. Continued growth is projected for
both urea and nitrogen solutions consumption. Urea consump
tion is estimated to grow both as a fertilizer material in its own
in addition to its growth as a component of solutions. The
projection for UAN solutions is one of balance.
872 Slow Growth in Use of Nitrogen by World Agriculture.
Nitrogen No. 111; 28-30 (Jan.-Feb. 1978). World N fertilizer
production continued a rather unsteady increase in 1976-77,
with an overall increase of 4.3%. Provisional statistics show the
total increase being 45.4 million mt from 43.5 million in
1975-76. Consumption of N rose less than production in most
countries despite the surplus produced in previous yr. Firm
increases took place in the less developed countries of Latin
America as the result of government sponsored promotional
 SUPPLY AND DEMAND
campaigns. An 8.5% increase in use was also recorded in West
Europe. Very little increases took place in the industrialized
economies of North America and East Europe as the results of
world grain stocks and prices. The United States, the U.S.S.R.,
Poland, and Italy combined increased N use by less than 2% in
1976-77. In some countries N usage actually dropped. These
included the Netherlands and several countries in East Asia.
Indonesia experienced a 12% decrease in N usage despite
increased output and accumulated stocks. Inadequate promo
tion and transportation seemed to be the major problems
there.
873 Turkey–The Fastest Growing Nitrogen Market in
Europe. Nitrogen No. 111; 23-7 (Jan.-Feb. 1978). Turkey is
the outstanding exception to any generalizations made con
cerning the fertilizer situation in West Europe. In the last yr
alone Turkish N fertilizer consumption increased by 60%.
Total consumption for all three nutrients in 1976-77 reached
1,130,000 mt of which 591,000 mt was N, 522,000 mt P. Os ,
and 17,000 mt. K2O. Nitrogen fertilization accounted for 52%.
Calcium ammonium nitrate remains the most widely used
product by far, representing almost 50% of total N consump
tion. The use of ammonium sulfate has remained relatively
constant at 60,000–80,000 tons/yr, while the consumption of
urea has increased by 20% since the early 1970's. Various
credit programs initiated by FAO and the Agricultural Bank
partially stimulated the sustained growth in fertilizer use.
Expanded domestic manufacturing capacity and increased
imports were also major factors involved. In 1976 imports
reached an all-time record of 534,000 mt. At least 11 major N
producing facilities are to be commissioned in the early
1980's. If all projects are completed as scheduled Turkish
ammonia capacity will increase to over 3.0 million tons/yr N
by 1984.
874 Ammonia Supply Forecast. Chem. Week 116 (19), 25-6
(May 7, 1975). The way expansion plans are shaping up, there
will be some marked changes in the world ammonia produc
tion picture—and in the patterns of world trade in N
fertilizers in the next 5 yr. Many countries that now rely on
imports of N materials will be building production units of
their own, especially in areas where raw-materials supplies are
abundant. Most of the projects are scheduled for completion
in this decade. Beyond 1980, Saudi Arabia and other Mideast
nations are expected to add major new ammonia capacity,
with much of the production slated for export markets. New
plants are on the way, but they won't help much until
1977- and they may not be sufficient to bring domestic
output up to demand even when they do come on. Japanese
producers, with capacity for nearly 4 million mt/yr of urea
and 4.5 million tons of ammonia, are running out. As a result,
the Japanese industry is likely to lose its role as the major
regional supplier to Asian markets and will have to concentrate
on domestic outlets. This is only a sampling of the changes
that are likely to take place in international trade in N
fertilizers during the next 5-10 yr.
875 Outlook for Ammonia Good Through the 1970's. Ted
Wett. Oil Gas J. 73 (29), 21-3 (July 21, 1975). Ammonia
supplies will fall shot of demand for at least the rest of the
1970's. There may be a short period around 1978-79 when
capacity surges could result in oversupply. Based on fertilizer
needs to meet demand predicated on increases in world
population and food requirements, some 190 new 1200:
ton/day ammonia plants should be added to those now
on-stream by 1985. World demand for nitrogen fertilizer is
increasing at about 8.6%/yr for the period 1973-80, with
capacity increasing only 6.5%. If this estimate proves any
where near correct, ammonia shortfall may be even more acute
than many expect. It’s a good bet that many of the projected
plants will not be completed on schedule, if at all. This is
particularly true in developing countries where escalating
capital costs will take their toll. A number of projects in India,
for example, were to be built with Japanese financial credits
and technical guidance. They are being jeopardized by
run-away costs. All in all, soaring costs and scarce feed make it
unlikely that ammonia producers will have to cope with
significant oversupply in the 1970's.
876 Anhydrous Ammonia Shortage. Chem. Mkt. Rep. 206
(22), 23 (Nov. 25, 1974). The increased demand for fertilizer
in the world market has added a great deal of pressure to a
large amount of chemicals, and anhydrous ammonia is one of
them. Historically, about 60% of the annual production of
anhydrous ammonia goes toward the production of fertilizers,
but industry observers believe that nearly 75% of this year's
output will be directed to the manufacturing of fertilizer
material. Because of the increased demand, many companies
have been running their plants full capacity and consequently
have been suffering breakdowns. A number of new capacities
have been announced by various companies while others claim
to have future expansions in the planning stages. But neither
of these areas will help current market conditions. The prices
are high, the market is tight, and it's probably going to stay
that way for the better part of 1975. Market sources say that
the situation is probably going to get worse before it gets
better with prices expected to rise somewhat in the next yr.
877 Is Ammonia Building for Letdown? Chem. Week 120
(22), 21-3 (June 1, 1977). A major round of ammonia
capacity expansions is well under way that could lead to severe
overcapacity problems during the 1977-78 fertilizer yr and
perhaps for several years beyond. Units now coming on-stream
will add more than 2 million tons/yr to U.S. capacity, an
increase of almost 15.5% from the 1975-76 capacity of 18.86
million tons. Startups later this yr or early in 1978 will add an
additional 1.4 millions tons/yr. And across the border in
Alberta, Canadian producers will add 1.2 million tons/yr to
their capacity, much of which is slated for U.S. markets. In
addition, producers in Mexico will boost capacity Some 1.3
million tons/yr. Substantial portions of the output will be
exported, either as ammonia or as downstream products. None
of the U.S. plants now starting up will figure much in what
appears to be a record yr for fertilizer shipments. Next yr,
however, it is doubtful that U.S. farmers will boost nitrogen
consumption by as much as 5% and consumption by 1980
probably will be, at most, 25% higher than in 1976.
Fertilization of major crops is already at a high rate; and
acreage for corn, the major user of nitrogen, can’t easily be
expanded. Thus, while the outlook for growth of ammonia
consumption is good, it still does not stack up well enough to
liſt producers over their overcapacity problems of the next few
years. Gearing up for bigger export business may be the only
all SW tº l'.
878 Ammonia Capacity—Worldwide. Green Markets 1 (22),
2 (July 1977). Worldwide ammonia capacity will reach
100-million mt/yr by 1980-81 according to West Germany's
117
 SUPPLY AND DEMAND
Veba Chemie. Capacity for the nine common market countries
will be 12.6 million mt/yr in 1980-81. West German produc.
tion will grow by 500,000 mt/yr from its present level of 2.4
million mt/yr to 2.9 million mt/yr by 1980-81.
879. Over Capacity Threatens Ammonia–Again. Chem. Eng.
News 55 (31), 4 (Aug. 1, 1977), United States anhydrous
ammonia capacity has increased 15% since mid-1976, while
ammonia production for 1976-77 will be approximately the
same as last yr. In 1975-76 the United States produced 16.4
million tons of anhydrous ammonia. Average nameplate
capacity for the period was 18.7 million tons. Production for
1976-77 is estimated to be l 6.4 million tons but capacity is
expected to rise to an average 20.3 million tons. In 1977-78,
ammonia production will rise about 6% to 17.4 million tons.
Again capacity will also rise to 22.4 million tons. In the past,
operating rates below 80% have led to surpluses and price
decreases.
880 Latin America Ammonia Consumption. Oil Gas J. 74
(47), 87 (Nov. 22, 1976). Annual world ammonia demand will
exceed 160 million tons by 1990, and probably more than 200
million tons by the yr 2000. Latin American consumption
should reach 16 million tons by 1990, and some 28 plants
(1000 ton/day) will be needed to supply it. Consumption of
ammonia in Latin America in 1980 is expected to approach 8
million tons. This will be about 5.3 million tons more available
capacity. Based on 1000-ton/day-capacity plants, capital is
estimated to be required for at least 16 new plants in Latin
America during the period up to 1980.
881 World Urea Markets Face Shortages. Eur, Chem. News
23 (578), 4 (Apr. 6, 1973). Virtually no material is available at workers. Rock shipments from Southeastern producers will
the moment for prompt delivery and buyers are already
becoming anxious about future supplies. Poland, one of the
major suppliers to Europe, has over-sold for the coming season
and some urea has entered Poland from Finland, possibly to boost capacity about 2 million tons/yr by debottlenecking,
cover plant breakdowns. Large tenders for material earlier this and shipments will approach 40 million tons. Substantial new
yr by Turkey and Pakistan have not been fully covered and capacity will not be ready until 1975-76. Domestic demand is
both countries are still anxious for material. Poland is
supplying large tonnages to India and Pakistan. Large new
markets have emerged in South America and Indonesia, adding
to the shortage. In the U.K., ICI theoretically operates enough
urea capacity to meet both domestic demand and provide an
export surplus; but the company has taken in some urea from
the U.S.A. and other sources, due possibly to a recurrence of
the operating problems which have troubled the company's
ammonia plants in the past.
882 World Phosphate Rock Outlook Through the Late
1970's. M. C. Manderson (Manderson Associates, Inc., Winter
Park, Florida). Min. Eng. 30 (1), 48-52 (Jan. 1978). The sharp
drop in world phosphate demand that took place in 1975, due
to temporarily high prices, now seems to be reversing itself.
There are ample proven reserves of phosphate rock to supply
world needs for many decades to come. New discoveries will
occur, but they are not likely to reshape the mining economics
or the relative importance of the world's major producing
areas in the next few yr. Adequate production presently exists
to satisfy near term increases in demand and new expansions
now underway will probably provide for sufficient excess
capacity to maintain a competitive international market.
Future United States expansions will shift away from central
118
Florida and prices for both phosphate rock and phosphate
fertilizers appear to be bottoming out.
883 Fertilizer Supplies in the Late 1970's: The Prospect for
Phosphates. W. J. Turbeville, Jr. (Phosphate Rock Export
Assoc., Tampa, Florida). In TVA Fertilizer Conference, held
July 31-Aug. 1, 1974, Louisville, Kentucky, Bull. Y-78; pp.
19-26 (Aug. 1974). Muscle Shoals, Ala.: Tennessee Valley
Authority, National Fertilizer Development Center. A
challenge to the fertilizer industry is to prevent extremes of
oversupply and scarcity. Phosphate fertilizer is in short supply.
For the United States it is temporary; for others the scarcity
will be more serious and of longer duration. Help is on the
way. Phosphate fertilizer, P. Os chemical plants, already under
construction have the capability of supplying all require
ments—if they can get enough rock. Phosphate rock reserves
are ample. Mines under construction, announced additional
mines, and those that will be attracted by our “new
economics” will have the situation under control by the end of
the decade. Prices can never return to pre-1974 levels, but
there will likely be an easing of prices when supplies become
more plentiful.
884. Shortage of Phosphate Rock to Continue. Chem. Week
112 (20), 33 (May 16, 1973). Phosphate rock shortages will
continue at least through the 1974-75 fertilizer fiscal yr,
possibly longer. Nominal rock capacity in the current fertilizer
yr is 42 million tons of Florida and North Carolina producers.
Although the draglines are operating full time, it is unlikely
the industry will be able to produce much more than 36
million tons because of lack of equipment maintenance during
the recent years of rock surplus and migration of laid-off
reach 38 million tons this fiscal yr and inventory drawdown
will make up the difference between effective capacity and
shipments. During the 1973-74 fertilizer yr, producers will
growing at 4-5%/yr, in contrast with a 7-8% growth rate in
world demand.
885 Possible Over-Supply of Phosphate Fertilizer Foreseen.
Ag-Chem Newslett. No. 79, 1 (June 1, 1973). Observers of
the phosphate fertilizer market have been quick to recognize
that with the wave of new plant construction we may be
headed right back toward the over-supply situation that
demoralized the market back in the 1967-70 period. Nine big
new plants are currently being built—by IMC, Agrico, Grace,
Texas Gulf, Occidental, CF Industries, Farmland, Freeport,
and Conserve. When all are in operation, by Jan. 1, 1976, U.S.
capacity will reach 9 million tons of P., Os, compared with
present capacity of 6.3 million tons. Tennessee Valley Author.
ity has estimated that even by 1980 the U.S. will need only
7.5 million tons. Can the export market be counted on to take
the excess? If the export market doesn't hold up, we are again
going to have phosphate fertilizer over supply and prices
tumbling. One saving factor is that U.S. exports of phosphate
rock may drop in the years ahead, as we run out of high grade
rock. If less rock goes abroad, this may help our export market
for concentrated fertilizers. The producers of phosphate
fertilizers should be concerned.
 SUPPLY AND DEMAND
886 Shortage Seen Facing Phosphate Rock Firms. Al Wyss.
J. Comm. 316 (22.969), 2, 8 (June 14, 1973). A crisis could
face the U.S. phosphate rock industry in the foreseable future.
The U.S., for example, has at present, substantial reserves of
phosphate rock and is still exporting substantial quantities.
Worldwide demand for phosphate rock is outstripping U.S.
production capacity and new mines will be needed if the U.S.
is to continue to participate to the same extent in world
markets and meet a growing domestic demand. In the long
range, as demand and production for phosphate rock increase,
the quantity of economically recoverable reserves of phos
phate rock, which are definitely limited in quantity, shrinks
more and more rapidly. Present mine capacity has been
overtaken by increasing demand and we've been rapidly
drawing from U.S. inventory reserves built up in recent years.
The general trend in phosphate markets, and the large reserves
of good quality phosphate rock outside the U.S. with a much
higher reserve to production ratio indicate that perhaps at
some time in the future the U.S. will become a net importer of
phosphate rock.
887 Phosphate Shortage Now, Glut Later? Chem. Week 113
(1), 6-7 (July 4, 1973). As the 1973-74 fertilizer yr begins,
major U.S. producers of phosphate fertilizers are expanding
aggressively. Their combined capacity, now something like 6.2
million tons/yr (P20s equivalent), seems headed toward
8.2-8.6 million tons/yr by 1976-77. A similar expansion spree
just 7 yr ago led to severe overcapacity in this industry during
the late 1960's, and some fertilizer industry specialists are
warning that this bit of history may be in for a rerun. But the
phosphate processors who are expanding say they’re confident
that if there is any excess capacity when the new plants come
on-stream, it will be relatively slight and of short duration.
They’re betting that a world population boom coupled with a
rising standard of living, particularly in the developing nations,
will make their global markets grow much faster than the
output of their foreign competitors. Probably the big differ
ence between the phosphate fertilizer buildup in the mid
1960's and the current round of expansion is that much of the
output from the new projects is already covered by firm sales
contracts. But producers say that demand for phosphate
fertilizers exceeds supply right now, and the discrepancy is
widening. In 1975, world production capacity for wet-process.
phosphoric acid is projected at 17.3 million tons (P2 Os
content), but global demand in that yr is estimated at
24.3-26.7 million tons.
888 Trends in the Phosphate Industry of Idaho and the
Western Phosphate Field. R. L. Day. Moscow, Idaho: Idaho
Bureau Mines Geology. Pamphlet 155; 63 pp. (Dec. 1973).
Since 1945, Idaho's phosphate industry has progressed from a
single underground mine producing - 100,000 tons of
phosphate rock/yr, all of which was shipped out of the state
for processing, to four large surface mines yielding *
4,000,000 tons/yr of rock, 90% of which is converted into
fertilizer and elemental P within the state. Rapid growth of the
phosphate industry was made possible principally by (1) the
largest reserves of the required grades of phosphate rock
available by low-cost surface mining in any state outside of
Fla., (2) the success of the state's principal fertilizer manu
facturer in penetrating phosphate fertilizer market of the West
North Central States during the period of its most rapid
growth; (3) establishment of the elemental P industry just as
the market for phosphate detergents began its explosive
growth; and (4) electric power rates which have remained
among the lowest of the nation, a fact of critical importance in
the elemental P industry where 13,000 kWh of electric power
are required for each ton of P produced. Growth in the
fertilizer segment of Idaho's phosphate industry ceased in the
late 1960's as a result of less favorable market conditions
which apparently were associated mainly with the great
increase in fertilizer production in the southern and mid
western states. However fertilizer production again turned
upward in 1972 as consumption again began to increase
rapidly. Growth of the elemental P industry may taper off
during the 1970's if phosphate-based detergents should
become less acceptable. (31 ref, 1 map)
889 Canada's Phosphate Outlook. Can. Chem. Process 58
(3), 60 (Mar. 1974). Within a yr, phosphoric acid and
phosphates have gone from abundance to scarcity as foreign
suppliers of phosphate rock encountered production and
transportation problems. Yet, even with adequate rock
supplies, Canadian producers of phosphate fertilizers will be
unable to fill domestic and export orders if world demand
continues to rise sharply in step with food shortages. Estimates
for 1980 suggest that phosphate producers around the world
must add new capacity of 10-15 million tons/yr during the
next 6 yr (equal to 50 new plants). Some of this capacity will
Surely be in Canada to take advantage of low-cost S and
sulfuric acid. But finding the other feed material, phosphate
rock, will be another matter. Canada has one known deposit,
11 million tons of apatite at Nemegos, Ont. and as foreign
rock becomes more expensive, this apatite will be mined. To
encourage more phosphate production in Alberta, the
provincial government has gone seeking a rock supply in the
Pacific basin. Canada imported 3,650,000 tons of phosphate
rock in 1973, up 18% over the 3,000,000 tons imported in
1972.
890 Phosphate Fertilizer Shortage Worldwide. Chem. Eng.
News 52 (25), 10-11 (June 24, 1974). The chairman of the
Phosphate Rock Export Association predicted a shortage for
the next 2-3 yr with improved supplies by 1977. European
countries as well as most of the developing countries are now
dependent on the U.S. for a source of phosphate. The
communist countries are fairly well supplied with Russia
producing approximately 21% of the world's supply of
phosphate rock. Production of phosphate rock is scheduled to
increase approximately 50% on a world wide basis between
1974 and 1978. Prices will increase because of the increased
cost of production.
891 Phosphorus Supply Outlook for 1975-76. D. C. Edmi
ston (Texasgulf Inc., Raleigh, North Carolina). Fert. Solutions
19 (6), 104-6 (Nov.-Dec. 1975). The shifting market patterns
of 1974 will continue. Changes will be based on success of the
marketing programs of phosphate producers and dealers in
convincing farmers of the financial return to be realized by
optimum use of fertilizers. Phosphate rock supplies will be
tight in 1975-76 but the fertilizer industry will receive
priority. Substantial new U.S. phosphoric acid capacity has
been completed in the first half of 1975, and production will
increase to supply the demand in 1975-76. Supply of
phosphoric acids to the liquid industry will be adequate in
1975-76, especially to those users who provide a good storage
capacity for receiving yr round shipments.
119
 SUPPLY AND DEMAND
892 Phosphate—Fertilizer Boom Strains World Supplies. G.
D. Emigh. Eng. Min. J. 176 (3), 145-8 (Mar. 1975). Production
of phosphate rock in the United States (Florida, North
Carolina, Tennessee, and Western U.S.) and major producing
countries outside the United States is discussed in details.
Plans worldwide call for bringing on new rock capacity—at
least for the rest of the 1970s. Lack of details makes it
difficult to predict production even for the next 5 yr;
however, it appears that planned new production will be more
than adequate to meet continued increases in world demand
for the rest of the 1970s. Within the next few yr there even
seems to be a good chance of overcapacity and a drop in the
price of rock and fertilizer. In early January 1975, there was
strong evidence of buyer resistance to high prices, causing
inventory buildups in rock and finished phosphate fertilizer.
For a number of years, the overall production of phosphate
industrial chemicals has seen limited growth. However, in the
years ahead, the outlook is for renewed expansion, with
exphasis on purified wet phosphoric acid as the basic starting
material.
893 Phosphate Fertilizer Demand Set For Growth. Chem.
Eng. News 53 (11), 11 (Mar. 17, 1975). Although users aren't
happy with the price hike, it hasn't lessened demand for
phosphatic fertilizers. International trade in phosphate rock
last yr approached 53 million mt up from 45 million mt or so
shipped in 1973. By 1980 the figure likely will reach some 82
million mt, predicts a study by Westinform Service, a firm of
international shipping consultants based in London. The study
foresees a more dramatic increase for phosphoric acid ship
ments. These might undergo a fivefold increase from last year's
level of nearly 1.3 million mt to 6.3 million mt in 1980. More
than 80% of the nearly 100 million mt of phosphate rock
mined annually worldwide is used for fertilizer production.
Many countries plan to increase fertilizer use substantially to
boost their crop yields. Westinform expects this pattern to be
maintained throughout the remainder of the decade. By 1980,
Moroccan rock exports likely will exceed 29 million mt. U.S.
shipments will have risen to just under 14 million mt, and
those of the U.S.S.R. will remain virtually unchanged at 6.9
million mt. The reason for the very sizable increase in
phosphoric acid trade is the higher added value of the acid
over and above that of the rock. Westinform predicts that
about one-third of the 6.3 million mt of the acid traded in
1980 (against last year's nearly 1.3 million mt) will come from
new Suppliers.
894 Phosphate Production in Morocco. J. Flour Animal
Feed Milling 157 (4), 26 (Apr. 1975). Moroccan production of
plmosphate rose to 20.5 million tons in 1974, an increase of
more than 2 million tons compared with 1973. Details were
given by Mohammad Arim Lamrami, head of the phosphates
office. Sales were up by 15% in 1974.
895 The Supply Outlook for Phosphate Fertilizers. E. A.
Harre (Tennessee Valley Authority, Muscle Shoals, Ala.). In
TVA Fertilizer Conference (held July 29-31, 1975, Louisville,
Kentucky) Muscle Shoals, Ala.: Tennessee Valley Authority,
National Fertilizer Development Center; Bulletin Y-96, pp.
36-44 (July 1975). Between 1973 and 1980 the U.S. has
scheduled an increase of more than 60% in phosphate rock
capacity to almost 75 million mt of material. This includes 10
million mt that is still in the early planning stages. Since 1950
consumption in the U.S. has increased at more than 5%/yr.
120
With 5%/yr growth in consumption the U.S. would need over
45 million mt in 1980. Assuming a conversion of 82% of
capacity in 1980, the U.S. would need to export over 20
million tons of rock to bring supply and demand into balance.
Through 1980 normal superphosphate will continue to decline
and concentrated superphosphate production will be main
tained at near today's levels. Phosphoric acid production
capacity was 6.7 million ton P3Os in 1974 and could reach
over 10 million tons in 1980. Decreased operating rates or new
markets to stimulate demand will be required to avoid
oversupply of phosphates through 1980.
896 The Phosphate Connection. David Laing. Ecologist 5,
(7), 240-1 (Aug.-Sept. 1975). Environ. Abstr. 6, 3501. Since
1940 U.S. marketable phosphate production has increased
exponentially with time. If the trend continues, exhaustion of
identified U.S. phosphate reserves will occur by about 2011,
and total reserves (identified plus hypothetical) will run out by
about 2060. Eventual depletion of concentrated phosphate
reserves, coupled with the prohibitive expenditure of money
and energy necessary to reconcentrate the resources, will
necessitate a reduction of world population to the 1-2 billion
level, which the globe can reportedly support without the use
of phosphate fertilizer on submarginal cropland.
897 Phosphate Fertilizers and Chemicals; Special Study. J.
R. Multrop. Cleveland, Ohio: Predicasts, Inc.; 71 pp. (Nov. 18,
1975). The United States produces close to 40% of the world's
phosphate rock and about 25% of the phosphate fertilizers.
This output supplied a 6.6 million ton (P2 Os) U.S. market for
phosphate materials (fertilizers and chemicals) plus a large
export market in 1972-74. By 1985, U.S. consumption of
phosphate materials is projected to exceed 11 million tons.
Fertilizer use, alone, will approach 9 million tons, with
multinutrient mixtures continuing to be the dominant form.
Concentrated superphosphate and diammonium phosphate
will show the best long term growth, reflecting the trend
towards high analysis fertilizers. Exports will account for a
declining proportion of U.S. phosphate fertilizer output due to
growing competition from other producing countries notably
Morocco. Nevertheless, the export market is expected to reach
2.2 million tons by 1985, or 20% of U.S. output of phosphate
fertilizers. Prospects for phosphate chemicals are generally
poor because the two largest uses, detergent builders and
animal feed supplements are now mature markets. Therefore
U.S. consumption is projected at under 2.2 million tons in
1985 with only water treatment chemicals and organophos
phorus chemicals offering good growth potential. However, a
large phosphoric acid export market exists and the U.S. has
commitments to ship significant quantities to the U.S.S.R.
Shipments of all phosphates are projected at more than $9
billion by 1985, up from $2 billion in 1972-74. A large part of
the increase will be due to higher prices, expecially for
phosphate rock. Much of this gain has already taken place
because phosphate rock prices have increased from an average
of $7 per ton in 1972-74 to upwards of $30 per ton in 1975.
898 World Phosphate Demand. J. Flour Anim. Feed Milling
157 (12), 29 (Dec. 1975). Major phosphate users report that
they have reduced by up to 10% the quotas alloted to them,
due to falling demand primarily for P fertilizers. Pressure for
formal reduction in price seems to be building up. According
to a recent study by the Dynachim International, contrary to
other published accounts of the phosphate market, the years
 SUPPLY AND DEMAND
of 1975-77 will be characterized by a surplus of rock. This yr
the surplus is likely to be 2 million ton and producers will take
a minimum of 1.5 million ton less than previously forecast,
making a world overcapacity of at least 3-5 million ton.
Dynachim forecasts an average 6%/yr compound growth rate
in demand for the long term, provided prices are allowed to
find their economic level. In 1985, demand should be about
equal to production.
899 Phosphate Fertilizer Demand Will Strengthen. Chem.
Mirk. Rep. 208 (26), 19 (Dec. 29, 1975). Producers are now
gearing up for what is expected to be a better-than-average yr
for phosphate fertilizer movement both here and abroad.
Although dealers are still offering discounts on the list prices
of various producers materials in order to reduce excess
inventory, manufacturers claim that the price undercutting
will end soon. Analysts say that the heart of this bright
projection lies in the assumption that farmers throughout the
world will be willing to pay the higher prices for phosphate
fertilizer materials because they have now realized that
phosphates are necessary if increased crop yields are to be
achieved. During the better part of 1975, agricultural phos
phate producers saw their product inventories steadily rise
because farmers refused to buy any materials at the higher
prices that manufacturers had instituted around the first
quarter of the yr. Dealers report that stocks are moving at a
more rapid pace than last yr. Further, producers claim that
they are seeing an increased amount of orders for phosphate
ſettilizer materials this season as opposed to the preceding one.
On world markets, producers are equally hopeful. In the latter
part of 1975, a rash of product orders coming from Eastern
Europe in particular has become evident. People in the
industry feel that before the end of the first quarter of the yr,
other markets will have increased activity. Recently, the
Phosphate Chemicals Export Association, which handles ferti.
lizeſ exports for its eight member companies, reported a price
increase on its products that would become effective March 1,
1976.
900 Fertilizer Supplies Should be Plentiful in 1976. The
Supply Outlook for Phosphate. E. A. Harre (TVA, National
Fertilizer Development Center, Muscle Shoals, Alabama).
Farm Store Merchand. 19 (2), 16, 18 (Feb. 1976). A review of
phosphate production, sales, and inventory in the U.S. are
given. Phosphate rock will not be a limiting factor in the
future production level for phosphate fertilizers. Except for
the closing of several plants in 1971, phosphoric acid capacity
has climbed steadily over the last decade and it is apparent
that the phosphate industry in the U.S. will have more than
enough capacity to meet even the most optimistic of future
use estimates. The surplus supply level could exceed 2.3
million tons P20s this yr and only under conditions of rapidly
expanding demand would any progress be made in bringing
this surplus back to manageable levels by 1980.
901 Phosphate Oversupply Forecast. Chem. Mark. Rep. 209
(25), 7, 25 (June 21, 1976). A report presented in London by
the International Phosphate Manufacturers’ Association
(SMA) predicts a global surplus of phosphate rock and
phosphoric acid until at least 1980, and notes that although
phosphate fertilizer prices have eased, the market remains
perturbed. ISMA says it believes there will be a substantial
increase between 1974 and 1979, in the available capacity for
producing phosphoric acid for export, more than enough to
cope with demand. The survey shows that on balance, it is
difficult to see where the additional capacity would find a
market. Production potential by 1979 would total as high as
22 million tons, the ISMA estimates, compared with only
about 17 million tons of estimated consumption. A similar
situation is the supply potential for phosphate rock forecast to
increase to as high as 150 million tons or more 3 yr from now,
against a demand of only about 100 million tons. Delegates
agreed unofficially that this over-supply phosphate situation is
putting heavy downward pressure on prices. Opinion has been
voiced that a further decrease in demand, after the bad 1975
yr, must be anticipated on the Continent despite expectations
of some recovery in worldwide consumption this yr. An
unchanged position is also reported for wet-process phosphoric
acid, now clocked at 15 million tons or so of P., Os, with
almost 70% originating in developed countries in Western
Europe, and the US.
902 Brazil to Have Phosphate Surplus. Chem. Age (London)
113 (2973), 6 (July 9, 1976). Brazil's Instituto Deeconomica
Agricola estimates that output of phosphate fertilizer by 1980
will be well over 2 million tons, or about half-a-million tons
more than domestic demand. A 600,000 mt/yr phosphate
concentrate plant is due for start-up this yr in Araxa, Minas
Gerais district, and a 500,000 mt/yr phosphate enrichment
plant will be built by 1977 for Metago in Catalao, Goias
district. The Mineracao Vale do Paranaiba expects to bring on
stream in 1978, an enrichment unit to produce, almost l
million mt/yr of phosphate concentrate (36%). Brazilian
deposits of phosphate in Patos de Minas and Corimandel are
estimated at 600 million mt.
903 Phosphate Supply Forecast. Eur. Chem. News 29 (765),
16 (Oct. 1, 1976). Total North American phosphate consump
tion will increase from its present level from around 5.5
million ton/yr of P., Os, of 100% phosphoric acid, to around 7
million ton by 1980, leaving the U.S. with a large surplus of
phosphates for export well into the 1980s, according to the
president of International Commodities Export Company
(ICEC). While there will continue to be excess capacity and a
surplus of P. Os over the next 5 yr, ICEC does not expect this
surplus to continue into the 1980s, when there could actually
be some small localized shortages.
904 Phosphate-1977. W. F. Stowasser. Washington, D.C.:
U.S. Dep. Interior, Bureau Mines. Mineral Commodity Profiles
MCP-2; 18 pp. (May 1977). A projection of the forecast base
for phosphate rock consumption in the United States in the yr
2000 is given. The forecast is based on acres of crops harvested
and phosphate application per acre. United States consump
tion is expected to grow 1.5%/yr to 1985 and 2.7%/yr from
1985 to 2000 for an average growth rate per yr from 1975 to
2000 of 2.2%. The forecast of phosphate rock in exported
fertilizer was derived by assuming U.S. exported fertilizer
would grow at the same rate as the rest-of-world demand,
3.8%/yr. World demand was related to population growth;
population growth for the world is shown growing 1.84%/yr to
2000. United States capacity, production, and demand are
projected for the period 1975-2000.
905 Phosphate Rock Demand to Grow 10% in 1977.
Phosphorus Potassium No. 90; 5-7 (July-Aug. 1977). Varying
trends in major consuming regions indicate a 10% increase in
demand for phosphate rock. Western Europe is expected to
121
 SUPPLY AND DEMAND
use some 4 million mt of additional rock during the full yr.
The decline in rock prices during the past 18 month may have
also contributed to the increase in demand. Domestic demand
for phosphate rock is projected to grow by 4-5 million mt in
1977. The largest single element of this increase is the United
States where both domestic deliveries and exports of fertilizers
have continued to expand. The United States sold or used 23
million mt during the first half of 1977 compared to 20
million mt during the same period for 1976. The U.S.S.R.
reports a 6% increase in fertilizer output during the first half
of 1977. The Moroccan phosphate industry managed to
expand its exports by 400,000 mt. Total Moroccan shipments
of rock were 8.31 million mt in the first half of 1977. The two
major West African phosphate producers were also able to
expand their sales by 840,000 mt in the favorable export
climate of the first half of 1977.
906 The Outlook for Phosphate Fertilizers. J. H. Wiley. In
Situation 77, TVA Fertilizer Conference. (held Kansas City,
Missouri, July 26-27, 1977.) Muscle Shoals, Ala.: TVA,
National Fertilizer Development Center, Bull. Y-115; pp. 23-7
(July 1977). At present mining rates phosphate rock reserves
will last for over 100 yr. Additional resources should theoreti
cally be three times as large as presently identified sources.
The cost of mining will increase as Florida reserves become
exhausted and producers move to deeper, lower grade reserves.
Depleted Florida reserves will increase the importance of
western and North Carolina deposits while a gradual shift to
lower analysis fertilizer is expected as the results of changes in
mining practices. Specifically, triple superphosphate will be
44% APA material or less and monoammonium phosphates
will be produced instead of DAP. Net exports of P. Os in 1977
are expected to reach a record level of about 2.2 million tons.
It is believed that the worst of the phosphate over supply
problem is over with steady improvements expected for years
to COme.
907 Phosphate Supply–Domestic. D. C. Edmiston (Texas
gulf Inc., Raleigh, North Carolina). Proc. 1977 NFSA Round
Up (held St. Louis, Missouri, July 20-21, 1977.) Peoria,
Illinois: National Fert. Solutions Assoc.; pp. 6-10 (1977).
Studies made a yr ago of the supply-demand picture for
phosphates in the domestic and world markets indicated
substantial oversupply into the mid-1980s. An alarming
oversupply was indicated for 1977 and 1978. In spite of the
record high in-place capacity for phosphate fertilizer produc
tion in the United States, the supply and demand levels remain
close. This can be attributed to the 16% increase in United
States fertilizer P. Os consumption in the 1976 fertilizer yr,
high volumes of phosphate exports, and an overall operating
rate of about 80% for wet-process phosphoric acid plants. The
United States production capacity for phosphate rock con
tinues to increase. At the current mining rate of about 49
million short tons of marketable rock/yr, the United States has
identified resources which will last for over 200 yr. Consump
tion of fertilizer P. Os has increased from about 4.6 million
tons in the 1970 fertilizer yr to about 5.2 million tons in
1976. The 1977 fertilizer yr has seen consumption at slightly
higher levels than 1976. It is believed that growth will proceed
at a slightly higher rate of 3% for the next 3 yr reaching almost
6 million tons of P2 Os consumption for the 1980 fertilizer yr.
908 The Phosphate Industry Rebounds. John Douglas and J.
H. Parker (TVA, National Fertilizer Development Center,
122
Muscle Shoals, Alabama). Farm Chem. 140 (6), 32-3, 36, 38
(June 1977). Basic unexpected changes in the past yr indicate
that the North American phosphate industry could reach
supply-demand balance in 1978, and certainly no later than
1979. While several interrelated factors attributed to the
turnaround at least three identifiable supply related trends are
significant. First, production of normal superphosphate was
reduced by a quarter million tons P. Os in one yr; second,
Several smaller wet-process acid plants were closed reducing
capacity by over 0.3 million tons; and third, delays in
construction of new plants proposed before 1980 further
reduced potential capacity by about 0.6 million tons P, Os.
Demand has also shown healthy growth. Domestic use of
P. Os increased by 700,000 tons in 1976, a 15% gain. This
reversed the downturn of 1975 and exceeded the record high
levels of 1973-74 by about 2%. All indications, including
export demand, are that the season now ending will show
continued growth.
909 Patterns of Phosphate Rock Production and Use. J. R.
Douglas and E. A. Harre. Muscle Shoals, Ala.: Tennessee
Valley Authority, National Fertilizer Development Center,
Circular Z-81; 15 pp. (Feb. 1977). World production of
phosphate rock totals approximately one hundred million
tons. The industry is divided into four major producing
regions—the United States, the U.S.S.R., Africa, and the
Pacific Islands. The United States is the largest producer
comprising about 40% of the total market. Total deliveries of
rock from the United States has increased from 26.5 million
tons to 40 million during the past 10 yr. North Africa ranks
second in world rock production. Its principal producing
nation is Morocco. Rock deliveries from Africa and the Near
East have doubled from 16.7 million tons in 1965 to over 35
million in 1974. The U.S.S.R.'s rock deliveries have also
increased from some 15 million tons to over 24 million since
1965. Annual deliveries from the Pacific Island normally range
between 2.5 and 3.5 million tons. More than ample supplies of
phosphate rock will be available through the mid-1980's.
World production is well in excess of deliveries, and inven
tories are piling up. Estimates of demand through 1980 range
between 140 million to 160 million tons. Estimates of
potential production are up to as much as 180 million tons.
910 Forecasts of Phosphate Fertilizer Consumption. ISMA
Ltd. (Paris, France), A/F/77/105; 35 pp. (June 1977). Report
contains world phosphate consumption data for period
1974-76. Forecasts for yr 1979-85 are also included for 11
individual world regions by products.
911 Phosphoric Acid Supply. Phosphorus Potassium, No. 64,
3-4 (Mar.-Apr. 1973). The supply of merchant acid will be
substantially increased in and after 1975 through the comple
tion of a number of plants, both by potential merchant acid
suppliers, and by some of the fertilizer manufacturers who
have become substantial acid buyers. In the short term,
however, the most important contribution to the increase of
merchant acid supplies will undoubtedly come from Fertili
zantes Fosſatodos Mexicanos SA (FFM). During the current yr
FFM expects to have a substantially increased tonnage of acid
available for export, largely as a result of the successful
debottlenecking of its Coatzacoalcos plant. In addition FFM
has entered into a series of collaborative agreements with other
acid manufacturers which will give it access to additional
tonnages of acid in 1973 and again in 1975/76. During 1972,
 SUPPLY AND DEMAND
the Coatzacoalcos plant produced 190,000 mt P2 Os which
represented employment of just over 50% of its full nominal
capacity of 372,000 tons P2 Os/yr. As a result of various
modifications made to the plant at the end of 1972, it has
been operating during most of the current yr at 80-85% of
capacity and, according to FFM's engineers, it will be able to
get up to 100% before long. This development alone should
add 180,000 tons P. Os/yr to FFM's sales capability. By 1976,
therefore, FFM should be controlling supplies of merchant
acid totalling just under 600,000 tons P2 Os/yr, primarily
available for shipment to export markets outside Mexico. In
this way FFM will retain its position as the world's largest
merchant acid supplier, while at the same time shortening its
lines of supply to two major marketing areas, the United
States and Western Europe.
912 Phosphoric Acid Leaves Shortage Behind. B. F. Greek.
Chem. Eng. News 53 (27), 9-10, 15 (July 7, 1975). Phosphoric
acid production in 1975 again will show a gain over the
previous year's production as it has each yr for more than 10
yr. It could total 7.4 million tons (in terms of P:Os), up about
4% over 1974. But this gain masks a considerable market
turnaround from the supershortage conditions of a yr ago.
Prices now are weaker as large new capacity looms and world
demand is slackening. Agriculture dominates the phosphoric
acid industry. Fully 80% of total output goes to fertilizers.
How well demand for fertilizers goes therefore determines how
the industry functions in any given yr. Hence, how much of
the new production will be consumed rather than placed into
inventories proves difficult to forecast. Fertilizer prices and
demand, new capacity coming on-stream, phosphate rock
supplies, and manufacturing costs are some major factors that
will influence production and sales of derivatives of phos
phoric acid. New capacity to make phosphoric acid by the wet
process (reaction of sulfuric acid with phosphate rock) will
come on-stream this yr at a rapid rate rivaling a decade ago.
Substantial new capacity also is scheduled for 1976 and 1977.
Running this new capacity will assure production gains for a
while. Selling the output, largely as derivative fertilizers, and
making a profit doing so become a challenge equal to that of
the late 1960's when phosphoric acid capacity declined as
several plants were shut down and a few dismantled because of
financial losses in operation. At this time, most marketing
men, though gloomy, do not expect a repeat of that situation.
With the future of phosphoric acid so dependent on agri
culture and nearly all of that on fertilizers, innovations in
fertilizers and their use loom importantly. The trend continues
toward use of ever-higher analysis grades and toward liquid
forms of fertilizers. This means a need for higher quality more
expensive acid.
913 Phosphate Surplus Continues. Fert. Int. No. 97, 1, 6
(July 1977). Estimates analyzed by ISMA of phosphoric acid
component of phosphate fertilizer consumption equaled 55%
of fertilizer consumption in 1970-71, 57% in 1973-74, and
67% in 1979-80. Indications are that western world surplus
capacity in 1979-80 will be 2.8 million mt. ISMA has also
estimated the 1979-80 balance from this yr figures and
calculates a 1979-80 surplus of 3.1 million mt.
914 Future for Potash. Chem. Week 121 (12), 79-82 (Sept.
21, 1977). Recent developments in world potash markets are
good for North American producers. Farmers and dealers in
most major consuming areas have largely liquidated the
inventories they built up during the shortage situation of a
couple of yr ago. World wide growth in potash demand is
settling into a 4%/yr growth pattern. World demand for potash
is expected to increase to 31.72 million tons (K2O basis) in
1981-82. World capacity for potash production is forecast to
top 40 million tons/yr by 1981-82. Operating rates should rise
to about 79% of nameplate capacity during the same period.
The closer fit between supply and demand does not mean that
there will be shortages but it does indicated that the long
period of excess capacity is ending.
915 Fertilizer Supplies in the Late 1970's: Future Potash
Supplies. W. E. Koepke (Dept. Energy, Mines Resources,
Ottawa, Canada). In TVA Fertilizer Conference, held July
31-Aug. 1, 1974, Louisville, Kentucky, Bull. Y-78; pp. 27.34
(Aug. 1974). Muscle Shoals, Ala.: Tennessee Valley Authority,
National Fertilizer Development Center. The structure,
behavior, and past performance of the world potash industry is
presented. An analysis of consumption-production data (actual
and projections) is given for the period 1969-78. Projected
world potash consumption beyond 1980 will require at least
one new mine each yr somewhere in the western world.
Potential expansion locations are Saskatchewan, and new
Brunswick Canada, and England. Increase in prices reflect an
increase in production costs and the need for producers to
offset some of the losses experienced in the 1968-70 era of
extreme oversupply and depressed prices.
916 Rising Potash Demand Brightens Outlook. Eng. Mining
J. 175 (3), 143-4 (Mar. 1974). The North American potash
industry entered 1974 in a healthy state. U.S. potash
production in 1973 was 2.6 million tons of K2O. The bulk of
this amount was produced from the Carlsbad deposits in New
Mexico, which accounted for 2.16 million tons. Interest in the
Carlsbad area remains strong. In mid-1973, International
Minerals & Chemical Corp. began an $800,000 expansion
program for the processing of langbeinite ore, which is a good
source of potassium sulfate. A Canadian producer, Noranda
Mines, Ltd., through its U.S. subsidiary, Norandex, Inc.,
acquired an option on a 32,000-acre potash property near
Carlsbad and began a $300,000 exploration program in the
Second half of 1973. Texasgulf's solution nuine near Moab,
Utah, had its 2nd yr of successful operation in 1973, reaching
a production level of about 300,000 tons/yr of pure white
muriate of potash containing approximately 61% K2O. The
consensus is that the potash industry will have a better yr in
1974 for at least three reasons: (1) In the U.S., the Cost of
Living Council finally exempted potash and other fertilizers
from Phase IV price controls in October 1973. (2) In Canada,
where the government of Saskatchewan has continued to
dictate price and production levels for the fourth consecutive
yº, individual producers were allowed to increase output from
40% to 58% of capacity in July 1973, and from 58% to 68% in
October 1973. (3) Worldwide demand for potash and other
fertilizers is increasing at an accelerating rate, as indicated by
the 9% increase—from 8,206,000 to 8,971,000 tons—in world
potash exports during 1973.
917 Potash: Demand Still Ahead of Supply in 1974.
Phosphorus Potassium No. 76, 7-8 (Mar.-Apr. 1975). To meet
the continued strong growth in demand for potash, producers
had to withdraw a further 350,000 mt K.O from their
stockpiles in 1974. This means that the Saskatchewan stock
pile has been diminished by another 280,000 mt K, O, and
123
 SUPPLY AND DEMAND
that it has now reached such a low level that it can no longer
be regarded as providing an adequate basis for supporting the
commercial activity of the Province's ten mines. In December
1974, according to Saskatchewan's Department of Mineral
Resources, potash stocks stood at 268,000 tons K.50, equiva
lent to 2 weeks' shipments, compared with 5 weeks at the end
of 1973 and 15 weeks at the end of 1972. Although smaller
stockpiles exist elsewhere, they are not sufficient to allow
demand to remain ahead of supply in the coming years. Potash
production and sales are given for leading countries. With no
significant improvement anticipated in the global supply
position, and producers' stocks currently at a very low level,
there is no immediate prospect of any weakening in prices.
918 Comecon: Consumer of One-Third of World Potash.
Part II. Country Survey. Phosphorus Potassium No. 77, 39-44
(May-June 1975). The use of potash within Comecon has
increased enormously since 1950 and the member countries
are responsible for a very large fraction of world consumption.
In the German Democratic Republic and in Czechoslavakia the
need to increase domestic food production stimulated an
immediate and continuous increase in potash use. In Hungary,
Bulgaria, and Romania there was less pressure to increase food
production and, also, over wide areas Soil potash status was
good. During the mid-1960s much more emphasis was placed
on agricultural development and in all three countries a rapid
rate of increase in fertilizer use resulted. A similar emphasis
was placed on agriculture in Poland and the U.S.S.R. leading
to large increases in potash use throughout the period
1963-73. The patterns of consumption growth in each country
are given for 1950-73.
919 The Potassium Supply-Demand Situation. D. R. Gidney.
In TVA Fertilizer Conference (held July 29-31, 1975, Louis
ville, Kentucky) Muscle Shoals, Ala.: Tennessee Valley Au
thority, National Fertilizer Development Center; Bulletin
Y-96, pp. 45-51 (July 1975). The normal rate of increase in
world potash use is 5.7%/yr. This increase was not shown in
1974-75 but the upward trend is expected to resume in
1975-76. There is no major new production and the Saskatche
wan producers are not producing at rated capacities; therefore,
the supply may be short. Even if demand does not grow there
will be no great surplus. Supply and demand are expected to
be in close balance. Production in the U.S. has stabilized at
about 2.4 million mt of K2O/yr. With the prospect for major
new sources dim and 1980 forecast a requirement of 6.3
million mt, the U.S. market will be increasingly dependent on
imports. The supply-demand picture in Western Europe,
Eastern Europe, and the U.S.S.R. is described.
920 Increase in Potash Inventories Assures Ample Supply. F.
D. Lyon. Eng. Min. J. 177(3), 114-15 (Mar. 1976). Potash will
be in ample supply through the 1975-76 fertilizer yr because
of an unexpected buildup in North American inventories in
the preceding yr. No problem is anticipated in meeting world
potash demand in the 1975-76 season. The major problem in
the US and Canada will probably be getting the potash
delivered. Price uncertainties are preventing potash from
moving as well as expected. The USSR is expected to continue
to lead the world in potash production. An additional 350,000
tons of K2O capacity is scheduled to come on stream in
1975-76 at the Berezhniki Potash No. 3 expansion, which
came on line in 1973. Soviet potash capacity is expected to
increase from a 1975 level of 8.2 million tons of K2O to 14.4
124
million tons in 1980, and to nearly 17.0 million tons by 1985.
Total Western European K2O capacity is expected to increase
from 6.8 million tons of K2O to 7.4 million tons in 1976. In
other areas of the world, capacity will be increased by minor
amounts in the Congo, People's Republic of China, at the
Dead Sea Works in Israel, and in Chile in the form of
potassium nitrate. The short range outlook indicates an ample
supply of muriate of potash and some spot shortages of sulfate
of potash. The longer range North American outlook is very
much in doubt because of possible takeover of potash
production by the Saskatchewan government. It takes up to 4
yr to develop a potash mine and refinery supplies could
become short before alternative sources to Canada can be
brought into production.
921 North American Potash Supply. O. R. Yates (Kalium
Chem. Ltd., Atlanta, Georgia). In 26th Annual Meeting
Fertilizer Industry Round Table (held Atlanta, Georgia, Oct.
26-8, 1976), pp. 22-6 (1976). North American potash pro
ducer inventories on July 1, 1975 was about 1,075,000 tons
K2O or 1.75 million product tons. Production during the same
period totaled 7,430,000 tons K2O of which 35% was
standard grade muriate. Domestic and exports sales totaled
6,990,000 tons K2O. Inventories increased during the yr by
440,000 tons. Standard grade potash accounted for 280,000
tons K2O or roughly 65% of the total. Total supply for
1976-77 is forecast to be 8,915,000 tons of which 710,000
will be soluble, 2,925,000 standard, 3,260,000 coarse, and
2,020,000 granular.
922 Potash Supply–Domestic. D. R. Gidney (Ideal Basic
Industries, New York, New York). Proc. 1977 NFSA Round
Up (held St. Louis, Missouri, July 20-21, 1977.) Peoria,
Illinois: National Fert. Solutions Assoc.; pp. 10-12 (1977). For
many yr Western Europe and North America dominated
world potash production. This is no longer the case. Eastern
Europe, which comprises the USSR and East Germany, has
approximately 42% of world productive capacity. North
America, which comprises Canada and the United States, has
approximately 33% of world productive capacity. Western
Europe has approximately 23%. The productive capacity
during the current fertilizer yr is rated at approximately 34
million short tons K2O. Consumption for the same period is
estimated to be 24 million short tons K2O. It is anticipated
that world productive capacity in the next five yr will grow by
approximately five million K2O short tons. This increase in
capacity is expected to come principally from the USSR. The
United States production is not expected to increase in the *
next several yr, but will probably decrease. Any significant
increase in the future will come when and if the very deep
deposits in North Dakota and Montana are developed. As the
result of developments in Saskatchewan some production from
these area will probably be available in the early 1980's. World
surplus of soluble muriate of potash exists primarily in the
form of standard muriate. Coarse and granular muriates are in
reasonable balance. As the results of a 400% increase in the
cost of energy, the production of soluble grade muriate may
become economically infeasible.
923 The Outlook for Potash Fertilizer. R. E. Wagner (Potash
Institute, Atlanta, Georgia). In Situation 77, TVA Fertilizer
Conference (held Kansas City, Missouri, July 26-27, 1977.)
Muscle Shoals, Ala.: TVA, National Fertilizer Development
Center, Bull. Y-115; pp. 28-33 (July 1977). World consump
 SUPPLY AND DEMAND
tion of potash will move to 31,720,000 tons by 1981-82, a
28% increase over 1975-76. By 1982 a world capacity of
40,850,000 short tons is projected a 5-yr increase of 14.8%.
World reserves are enormous; Canada, Russia, and East
Germany have the most extensive know deposits. Potash
consumption in the United States through 1981-82 is pro
jected to increase by about 25% from the 1975-76 base of
5,700,000 tons of K.O. This increase in consumption comes
at a time when no new mines in the United States or Canada
are scheduled to come onstream. Developing nations have
potentially productive areas not being cropped. The develop
ing countries are expected to increase potash use sixfold in the
next 25 yr while developed nations increase it two and
one-half times.
924 World Potash Market. Fert. Int. No. 98; 11 (Aug. 1977).
The potash market currently accounts for 24 million mt K2O
of which 95% is used in fertilizers. Of the 12 countries which
produce K2O, the U.S.S.R. and Canada are dominant with
production capacities each exceeding 7 million ton/yr K2O.
Consumption is also concentrated through to a lesser extent
with ten markets consuming more than 70% of total tonnage.
* Af.
United States, U.S.S.R., and France alone account for
925 Prospects of Potash Supply and Demand. Paris, France:
ISMA Ltd., A/F/78/3; 4 pp. (Jan. 5, 1978). Supply and
demand projections for world potash are given through the
1981-82 fertilizer yr. A separate forecast is given for demand
only for 1985-86. The data is grouped into three sections; the
developed, developing, and centrally planned market econo
IIllcS.
926 The Future for Sulfur. B. F. Newton (Exxon Chem. Co.,
New York, New York). Hydrocarbon Process. 57 (1), 181-4
(Jan. 1978). World supplies of sulfur will be adequate through
1980 but beyond that the future becomes difficult to forecast.
By 1985, significant new uses, particularly sulfur asphalts, will
have developed to add to established uses. Today, around 90%
of all sulfur is consumed in the form of sulfuric acid, with the
other 10% used directly for paper sizing, in agriculture or small
end uses. Over 50% is used in the manufacture of phosphate
fertilizers with an additional 10% for ammonium sulfate and
other fertilizer products. Major producing countries are
Canada, Poland, Mexico, and the United States. The effective
world supply is predicted to grow at 4%/yr from 50 million mt
to 73 million in 1985. Byproduct brimstone supply is
expected to grow by 5%/yr and by 1985 will account for 57%
of the growth in Western World production. New recovery
projects planned in Middle East (Saudi Arabia) and possible
Frasch discoveries in Canada may provide additional supplies
by 1985.
927 Outlook on Sulfur Availability. J. M. Lancaster (British
Sulphur Corp., United Kingdom). Proc., F.A.I. National
Seminar World Fert. Situation Seventies-Technical Economic
Aspects Production Ammonia Based Heavy Fractions Petro
leum Feedstocks, pp. 14/1-3 (1973). New Delhi: Fertilizer
Assn. India. The reasons for the current shortage of S are
different from those in the past. Although statistically
speaking, the world produces annually three million mt of S
more than it consumes, this quantity which is largely produced
in vats in Canada should be considered as frozen stockpile,
since it cannot be moved to world markets due to anti
pollution measures and transport limitations. As far as 1975,
the industry is left with a narrow margin and even that on the
assumption that S producers produce to the maximum
capacity. Surpluses that may be generated in East Europe and
U.S.S.R. may go to western world markets which are in short
supply. The outlook beyond 1975 is as yet uncertain. It is
necessary that producers of S and consumers evolve a joint
policy to avoid shortages of this vital raw material and
fluctuations in its price. The course of action to be adopted by
the industry in the future may well take it outside its normal
area of activity, such as to the governments, energy producers,
and energy carriers.
928 Fertilizer Sulfur: Status and Potential in the U.S. J. D.
Beaton (Cominco Ltd., Calgary, Alberta, Canada) et al.
Washington, D.C.: The Sulphur Institute Techn. Bull. No. 21
18 pp. (Aug. 1974). An evaluation of the current S status and
potential requirements for fertilizer S for each cropping region
in the U.S. is given. Data is given on how much S is being
applied in fertilizer and how the amount has declined in recent
years, how the amount of S applied relates to that required by
crops and to the amount of other nutrients applied in
fertilizer, and the significance of these figures for the potential
market for S fertilizers. These data are given for each of the
major cropping regions of the U.S., and the significance of the
total amount of S in fertilizers applied and of the N.S and
P2 Os:S ratios are discussed.
929 World Sulfur Market Starts to Soften. Chem. Age
(London) 110 (2012), 8 (May 9, 1975). The world market for
elemental S is beginning to soften, following a substantial
recovery in both demand and prices for the natural gas
byproduct over the past 18 months. Industry experts say
depressed economic conditions at home and abroad are
responsible for the halt in price and demand escalation.
However, experts do not expect demand and prices to run the
traditional 2 yr cyclical course alternating between the
periodic glut situation and minimal returns and premium
prices in a seller's market. They think the continuing expan
Sion of fertilizer manufacturing capacity will break the cycle.
Most of the long-term contracts, signed at low prices,
sometimes only to keep S moving, have expired. New sales.
being concluded at today's higher prices, are projecting price
stability and profit prospects for at least a yr.
930 World Sulfur Supply and Demand 1960-1980. M.N.J.
Horseman (British Sulphur Corp., Ltd., London, England).
Vienna, Austria: United Nations Industrial Dev. Organization;
165 pp. (1973). Price $2:00. A summary of information
gathered by the United Nations on the sulfur supply and
demand on a worldwide basis is given. A major portion of the
report supplies statistics on actual supply and demand for the
period 1960-1969. Information on major sources, producing
countries, demand and uses, as well as prices for the products
throughout the world is reported. Projections on the sulfur
situation from 1970-1980 are made. The sources as they relate
to demand are analyzed. Each Source is dealt with as it relates
to the total demand and supply. Producing countries are listed
along with a summary of prices, use by sources, and some
information on freight cost in transporting sulfur from
producing points to market areas.
931 The Emerging Sulfur Outlook. M. C. Manderson (Man
derson Associates, Inc., Winter Park, Florida). Chem. Eng.
125
 SUPPLY AND DEMAND
Prog. 72 (7), 25-31 (July 1976). World stilfur balance by area
is projected for 1975-86. North America will have substantial
sulfur surpluses in the years ahead, and these surpluses will
account for most of the projected world surplus. Western
Europe will be by for the largest import target for the
surplus-producing areas; the Far East and Oceania will repre
sent the only other significant import market. Sulfur prices
will weaken, but they should not deteriorate to the levels of
1970-73. Any price weakness in the sulfur market will most
likely originate from competitive pressures arising within
North America rather than overseas. World sulfur trade will
continue to take place between most continents.
932 How Long Will Sulfur Surplus Last? Chem. Week 119
(7), 19-20 (Aug. 18, 1976). Sulfur users may have trouble
getting all the brimstone they need by 1985 as world output
of elemental sulfur falls behind demand, say some market
forecasters. And while others predict that a brimstone bind
will take longer to develop, there are several signs of a
tightening of sulfur supplies in the long run. World demand for
brimstome will probably begin to exceed output within the
next few years, say some analysts. Thus reduction of excess
stockpiles in Canada and elsewhere will start before 1980 and
they may be virtually gone by 1985. Their effect on sulfur
prices will be minimal. That means that prices of elemental
sulfur will continue their long-term up-trend. For not only will
the overhanging surpluses be reduced, but also the cost of
developing new sources and of producing Frasch sulfur will
continue to rise, especially in the U.S. The brimstone shortage
thesis, as pronounced in a recent report by a London-based
market research organization, holds that world demand for
brimstone will increase to 60.2 million mt by 1985. Supply of
brimstone, meanwhile, will rise to 51.4 million m.t., leading to
a gap of 8.8 million m.t. The U.S. Bureau of Mines projects
that demand will grow more slowly and that recovered sulfur
will make more of a contribution to supplies. It pegs U.S.
demand growth at 3%/yr from 1973, putting it at 14.5 million
m.t. in 1985 and 23 million in 2000. Meanwhile, total U.S.
output, including recovered material, will grow to 16 million
m.t. in 1985 and 24 million in 2000. Total world demand, says
the bureau, will probably rise 3.7%/yr, to 64.5 million m.t. in
1985 and 110 million in 2000.
933 International Situation on Sulfur. Raisaku Kiyoura.
Chem. Econ. Eng. Rev. 9 (10), (No. 110), 9.19 (Oct. 1977).
The international supply and demand for sulfur began a
firming trend in late 1976. Underlying this trend was an
increase in the demand for phosphatic fertilizers and an output
restriction imposed by the United States sulfur industry.
During the first half of 1976, the international price of sulfur
remained depressed but the price began to climb in the second
half when demand increased sharply. Free world consumption
of sulfur in all forms in 1976, amounted to 31,355,000 tons
which was a 3.6% gain over 1975. The United States remained
the largest consumer in 1976, with 10,900,000 tons. Canadian
sulfur consumption totaled 1,435,000. Total consumption of
all form of sulfur in the free world excluding North America
reached 19,020,000 tons. Free world sulfur production in all
forms totaled 33,615,000 tons in 1976, a decrease of 0.7%
from 1975. Total producers inventories in the free world,
including the stocks in Canada and Iraq reached 30,700,000
tons in 1976, an all time high. Recovered sulfur inventories in
western Canada, representing 62% of the free world total
consisted mainly of “dead” inventories and did not affect the
126
international market. The volume of trade is related to
phosphatic fertilizer and is likely to reach considerable
proportions by about 1979.
934 Sulfur: 1980s Shortage or Glut? P. R. Savage. Chem.
Eng. 83 (20), 49-52 (Sept. 27, 1976). Three conflicting
schools of thought, each backed by experts with data at hand,
are presented contesting whether a worldwide S shortage is
looming, whether the market can stay in balance, Qr whether
the material threatens to be in vast oversupply in coming
years. On the glut side are: existing world stockpiles of a
record 26 million mt of surplus S, the likelihood of large
tonnages of recovered S being produced in the Middle East as a
result of sweetening operations at natural-gas-exploitation
projects underway there; the probability of more S being
recovered as a result of U.S. and Western European environ
mental legislation targeted at power-plant stack-gas emissions;
the virtual certainty that more high-S crude will be processed
in the U.S.; and the expected growth of recovered S supplies
following commercialization of projects for synthetic natural
gas, coal liquefaction, shale oil, and other alternative energy
sources. On the shortage side are: predicted declines in S
associated with dwindling gas-fields in currently strong pro
ducing areas such as France and Canada; doubts about the rate
of growth of recovered S in the next decade; lack of strong
economic incentives for continued growth of Frasch (mined) S
production in the U.S., reservations about the marketability of
small tonnages of recovered S from scattered individual
Sources, and rapidly inflating capital costs for Frasch facilities,
recovery units, and shipping and transportation. Sulfur con
sumption during 1975 took a knock worldwide, due to the
general industrial recession. World consumption was 45.7
million mt, against 47.8 million tons in 1974. World produc.
tion totaled 52.0 million mt last yr, up slightly from 1974's s
51.7 million tons.
935 World Sulfur Supply and Demand 1970-1982. Paris,
France: ISMA Ltd., A/F/77/183; 34 pp. (Nov. 23, 1977).
Sulfur supply and demand statistics are provided in three
sections. Section one includes past data from yr 1970-76,
sections two and three includes supply and demand forecasts,
separately, for yr 1977-82. A section is also included on
Western World brimstone supply and demand 1977-82.
936 Sulfur 1985–Production, Consumption, and Trade in
Sulfur and Sulfuric Acid Upto 1985. Shipping Rpt. No. 310,
Westinform Service, London, England; 133 pp. (May 1976).
An acute brimstone shortage of 8.8 million mt (almost 15% of
potential demand) could become apparent by 1985 due to the
inability of producers to match a rapid growth in world
demand. The tight supply conditions can be expected to give
rise to a rapid increase in demand for imported H, SO4 of
smelter or pyritic origin, and/or the resurgence in the use of
pyrites. World brimstone trading is expected to maintain a
steady growth between 1977-80 to reach 21.2 million mt,
despite the current decline in which the level of trade is
anticipated to fall by 2.2% in 1976 compared with 13.5
million mt in 1974. However, little further growth can be
forecast after 1980, and a slightly lower level of 21 million mt
should be maintained through the mid-1980's. A considerable
change in the pattern of supply sources is seen. The growth in
demand will continue to exceed that of S-in-all-forms (SAF).
In the noncommunist world, brimstone demand is forecast to
rise at an annual rate of 7.0% and 6.1% during 1974-1980 and
 SUPPLY AND DEMAND
1980-1985, respectively, whereas that of SAF is expected to
be only 5.8% and 5.3%. New uses could account for almost
14% of the 12.2 million mt increased in brimstone demand in
Western World between 1980 and 1985. The USA and Canada
are expected to consume over 1.25 million mt of brimstone
for new uses in 1985, approximately 75% of the total
projected world brimstone usage for this purpose. Western
Europe will account for 19.4% and the remainder by Japan.
World demand for H2SO4 is forecast to grow at an annual rate
of 6.8% between 1976-1980 and 4.6% between 1980-1985.
The higher rate of growth up to 1980 is largely attributable to
the anticipated recurrence in the strength of demand from the
fertilizer industry. Almost 57% of the projected 12.7 million
mt increase in brimstone output between 1976 and 1985 is
forecast to be in the form of recovered S. For the first time,
recovered S output will exceed that of Frasch and native
refined S. The 23 million mt brimstone stocks accumulated at
the end of 1975 can be expected to be totally depleted by the
1980's. Canadian stocks could increase from 15.7 million mt
in 1975 to peak at 19.2 million mt in 1978 but from then
onwards they should decline and virtually disappear by
mid-1980's. The 5.5 million mt stock in the USA will also
disappear by 1983-84. Canadian and French recovered S. out:
put is projected to decline by 2.5 million mt, but this fall will
be more than compensated by an increase of some 3.9 million
mt in the Arabian Gulf recovered S output. Increase in Frasch
S output, with the commissioning of new domes, will be offset
by the closure of older ones in the USA. Frasch and/or native
S mining in Mexico, Poland, Iraq, and the USSR will maintain
a steady growth. The brimstone supply/demand situation in
the 1980's may give rise to large scale exploitation of S
deposits in other areas, such as Bolivia. The anticipated growth
in demand for imported H2SO4, especially during the 1980's,
is expected to stimulate investment in export orientated
H2SO4 plants based on pyrites. Such developments may take
place in countries with indigenous pyrites production, such as
the USSR, Spain, Portugal, Greece, and others. Involuntary
acid, principally from smelter gas will also play an important
part in generating large volumes of merchant H2SO4 supply.
937 Sulfuric Acid Outlook in Japan. Chem. Mkt. Rep. 204
(3), 17 (July 16, 1973). The sulfuric acid industry in Japan
went through some dramatic changes last yr. In January,
supply exceeded demand. The situation had reversed itself by
yr end, with supplies being extremely tight. In explanation of
the change, industry sources say the market picked up earlier
than expected. Demand from the fertilizer, man-made fiber,
and titanium dioxide industries was especially strong. A
second reason offered for the supply turnaround is that during
the second half of the yr, shutdowns of sulfuric acid plants
due to pollution problems—especially sintering sulfide ore
units—were common. Production of sulfuric acid in calendar
yr 1972 came to about 6.7 million tons. As of March 31, end
of the 1972-73 Japanese fiscal yr, sulfuric output amounted to
6.8 million tons. Mitsui Mining & Smelting Company, and
Mitsubishi Metal Mining Company, have reportedly decided to
import 10,000 tons of the acid from Taiwan, even though the
price is nearly twice the domestic acid quotation.
938 Sulfuric Acid in New Zealand. Sulphur No. 1 16, 31-5
(Jan.-Feb. 1975). Following a 24% increase in fertilizer
consumption in 1972 and further 18% increase in 1973, New
Zealand's phosphate fertilizer industry found itself hard
pressed to meet demand. Production was being restricted by
the availability of sulfuric acid despite nearly full capacity
utilization of all New Zealand's sulfuric acid plants. The
response by the fertilizer industry to the tightness in sulfuric
acid supply was to plan some 580,000 tons/yr of new acid
capacity. Even after allowing for the closure of a number of
older units as the new larger units come into service, New
Zealand's total acid supply capability is due to increase
between 1973 and 1977 by an impressive 66%. The extent to
which the industry is committing itself appears surprising. The
last round of expansion took place in the mid-1960s when
380,000 tons/yr of new capacity was commissioned between
1964 and 1967. Domestic demand for sulfuric acid did not
grow in the orderly manner hoped for. Throughout the period,
the sulfuric acid industry, unable to channel its output into
export commodities, was forced to operate significantly below
its full potential. Sulfuric acid producers have shown them
selves willing to invest a further NZ$20 million at a time when
demand has only just reached a level where capacity installed
in the mid-1960s can be fully utilized.
939 Western World Sulfuric Acid Production 1978-80.
Sulphur No. 132; 23-5 (Oct.-Sept. 1977). Sulfuric acid
capacity in the Western World is, at present, 136 million
ton/yr. Seventeen million ton/yr of new capacity is expected
on stream from January 1978-December 1980. Over two
thirds (37 of 57 projects) of this added capacity will originate
in less developed countries. Of this new capacity developed in
Africa, Asia, and Latin America, 76% will be used directly in
the manufacture of fertilizers. Over the whole Western World
63% of the expected capacity between 1978-80 will be
associated with the production of fertilizers.
940 Sulfuric Acid Shortage Forecast by 1985. Chem. Age
(London) 112 (2968) 9 (June 4, 1976). Sulfuric acid is
expected to be in very short supply by 1985, although tougher
pollution regulations could provide the necessary production
to meet a significant part of industry demand. According to
the findings of Sulphur 85, a report on world production,
consumption, and trade in sulfur and sulfuric acid up to 1985,
the shortage of sulfur should amount to nearly 15% of
potential world demand. World demand for sulfuric acid is
forecast to grow at an annual rate of 6.8% between 1976-80
and 4.6% between 1980-85. The higher rate of growth up to
1980 is largely attributable to the anticipated recurrence in the
strength of demand from the fertilizer industry. The report
contains country-by-country analyses of all the major pro
ducers and consumers, plus detailed information on the major
factors affecting supply and demand.
941 Asian Fertilizer Demand Forecast. Chem. Mkt. Rep. 203
(3), 4 (Jan. 15, 1973). Japanese analysts forecast that by
1985, Asian-Far Eastern region fertilizer consumption will
have risen perhaps 200% or more, and point out that fertilizers
alone will take probably 45% of the overall investment of all
regional output. Japanese say this is borne out, too, by recent
FAC regional studies assembled in New Delhi, in turn
reflecting a specific report from a survey compiled by the FAC
district office in Bangkok, Thailand. This recommended that
the production capacity for plant nutrients should be planned
according to realistically estimated needs so as to meet
increasing demand for fertilizers.
942 Present Position of Fertilizer Raw and Intermediate
127
 SUPPLY AND DEMAND
Materials and Future Prospects of Supply in Asian Countries.
H. R. Von Uexkull (Potash Res. Assoc., Tokyo, Japan).
ASPAC Food Fert. Tech. Center Ext. Bull. 41; 39 pp. (Oct.
1974). World fertilizer needs are expected to grow at fast
rates. In the industrialized countries, where fertilizer usage is
approaching optimum levels, population growth is small. In
the developing countries, where population growth rates are
high and food requirements are growing faster, fertilizer usage
rates are still low. Future growth in the usage of fertilizer will,
therefore, increasingly be a feature of the developing nations.
In the foreseeable future, no shortage of fertilizer raw
materials is anticipated. On a short-term basis (3-5 yr) N
supply most probably will be most tight and K most easily
available. With the overall fertilizer supply remaining tight and
prices high, it will be more important than before to aim for
precision farming in order to maximize fertilizer response.
More emphasis will be needed on applied field research, not
only to give better advice to farmers on how much and what
kinds of fertilizer to apply, but also to improve the general
agronomic techniques which will result in a better response to
fertilizer. Also, more efforts should be undertaken to stabilize
prices of agricultural products. In many developing countries a
good crop means a low price for the farmer and this in turn
results in a cyclic change in demand. Agriculture can only be
developed if farmers are assured of a fair price. Similarly the
fertilizer industry can only supply agriculture the needed
fertilizer, if fertilizers are sold at a fair price.
943 A Model of Fertilizer Demand in the Asian Rice
Economy: A Micro-Macro Analysis. C. C. David (Stanford
Univ., Stanford, California). Diss. Abstr. Int. A 36,8198. This
study analyses the factors affecting fertilizer demand in the
Asian rice economy. Demand is estimated from macro- and
micro level data as a function of the fertilizer-rice price ratio,
factors representing differences in fertilizer response functions,
and liquidity position of farmers. The attempt to account for
the variability in production response to fertilizer due to
differences in the physical environment, irrigation, level of
technology, institutional development and management capa
city across time or location, results in more accurate estimates
of the short run production and demand elasticities of
fertilizer with respect to rice. The macro-level data are figures
from 1950 to 1972 across 12 Asian countires. The micro-level
data are drawn from an Asian farm survey covering about
2000 farmers in 36 villages in six countries and the Laguna
(Philippines) survey of about 150 farmers from 1966 to 1971
The results show that differences in fertilizer: rice price ratio
and in fertilizer response functions contribute significantly to
variations in fertilizer demand. In the majority of cases, about
one-third of the gap between the average and the heaviest
fertilizer application is explained by differences in the price
ratio, and the remainder by the differences in the productivity
of fertilizer. The latter is primarily due to the differential
adoption of fertilizer-responsive varieties in the intercountry
aggregate data and in the inter year Laguna data and dif
ferences in the physical environment and quality of irrigation
in the intervillage Asian farm data. In the short-run, price
policy may be the only feasible instrument of intervention. An
important contribution of this study is the estimation of the
production and demand elasticities of fertilizer. Production
response to fertilizer is low (10 kg rough rice/kg nutrients)
which conforms with earlier studies about fertilizer efficiency
on farmers's fields. Fertilizer demand is more price elastic in
the long run (-09) than in the short run (-0.3 to -0.6). The
128
plausibility and consistency of the estimated elasticities,
despite the very different types of data and methodologies
that were used, justifies a greater degree of confidence in their
use for policy studies.
944 Canadian Fertilizers Face Brighter Future. Can. Chem.
Process. 57 (7), 51-3 (July 1973). Canadian fertilizer pro
ducers are affected more quickly by the world market because
they are dependent on foreign markets; therefore, they are
more vulnerable to world shortages and surpluses. Demand for
phosphates and nitrogen fertilizers has increased to a balance
between supply and demand; however, Canadian potash
producers are still not too optimistic with regards to the future
for potash. Fertilizer sales in Canada should increase about
18% in 1973, and with some shortages of phosphate rock and
gas curtailment some Canadian producers have been pressed to
supply farmers with fertilizers needed. The lack of transporta
tion facilities has also added to fertilizer shortages in some
areas. If the industry is to compete effectively in world
markets, a discipline which has not been enforced in the past
decade will be required.
945 Fertilizer Situation in 1974 and Outlook for 1975. I. F.
Furniss, R. K. Eyvindson, and C. D. Crober (Agric. Canada,
Ottawa, Canada). Can. Farm Econ. 10 (1), 13-20 (Feb. 1975).
Fertilizer consumption in Canada set an all-time record in
1973-74. Although prices in 1973-74 were up sharply from
yr-earlier levels, demand continues strong and sales in the
1974-75 fertilizer yr could exceed those of the previous yr. No
new major production facilities will come on-stream in Canada
before 1976-77, so that increased domestic sales will have to
come largely from reduced exports. Production, especially of
N and P, was affected in 1974 by lengthy shut-downs in
several major manufacturing facilities due to industrial dis
putes. Consequently, with inventories at a very low level at the
beginning of the 1975 calendar yr, the supply situation is
tight. Prices in Canada in the winter of 1974-75 are generally
below United States and world levels. Although further price
increases may occur in the spring because of higher material
and transportation costs, increased buyer resistance, noted
especially in the United States market, may temper such
increases. With the current high prices for fertilizers, more
efficient use should be made of the available supply to
maximize returns. These include soil testing and reducing, if
necessary, the application rates. In the area of fertilizer
technology, current developments are contributing to lower
distribution, storage, and marketing costs by reducing the
amounts of inert materials, improving storability and devel.
oping new methods of fertilizer application that reduce
nutrient losses.
946 1976 Situation and 1977 Outlook for Fertilizers in
Canada. I. F. Furniss and C. D. Crober (Agric. Canada, Ottawa,
Canada). Can. Farm Econ. 11 (6), 10-18 (Dec. 1976). In
1975-76 world fertilizer supplies continued to improve and
prices to moderate. In 1976-77, however, world fertilizer
prices will be firm to higher, especially for potash. Fertilizeſ
use in Canada in 1975-76, on the basis of manufacturers'
shipments to dealers, did not equal the previous year's level.
Final consumption figures will likely show little change from
the 1974-75 level. Several factors contributed to this situation:
(1) an increase of over 17% in Western Canadian fertilizeſ
prices (Eastern Canadian prices fell 17%); (2) a continued
weakening of grain prices; and (3) uncertain crop yield
 SUPPLY AND DEMAND
prospects at planting time. Fertilizer supplies for domestic use
in 1976-77 will be adequate. The new ammonia plant of
Canadian Fertilizers Limited at Medicine Hat, Alberta, will
mean increased nitrogen supplies in Western Canada and,
indirectly, in Eastern Canada. Phosphatic fertilizer require
ments will be met both from domestic production and
increased U.S. imports. Domestic fertilizer prices seem likely
to hold close to late 1976 levels. With current grain price
prospects, no increase in fertilizer demand is foreseen,
assuming no change in fertilizer prices in the spring of 1977.
947 Supply-Demand in China. Chem. Mkt. Rep. 204 (9), 4,
42 (Aug. 27, 1973). Rapid expansion of fertilizer facilities in
China will go a long way toward closing the supply-demand
gap by 1980, according to a study of the Chinese fertilizer
market conducted by British Sulphur Corp. (BSC). Perhaps
China could close the gap completely by that date, but
apparently authorities will prefer to leave room for about 1 to
2 million tons of imports to take care of seasonal variations
and geographic imbalances. By 1980, consumption will
amount to between 35 and 36 million tons, of which domestic
production should account for 34 million tons. The import
market that remains in China is expected by BSC to show a
continuation of the pattern of the last few years—toward the
import of more high-analysis materials, either straight or
compounded. Turning to current figures, BSC discloses that
phosphate rock consumption in China in 1972 amounted to
1.15 million metric tons of P20s, of which 780,000 originated
from domestic sources. By 1980, P3Os requirements are
expected to rise to 2.65 million tons. The 1980 figure is
expected to include 2,020,000 tons of domestically produced
material and 630,000 tons of imports. For potash, BSC
expects an increase in total requirements from the current
level of 350,000 tons of K2O to about 900,000 tons in 1980.
Domestic development of this industry will be undertaken
unhurriedly owing to the ample supply of low-cost foreign
material. Imports are expected to total 300,000 tons of K2O
by 1980. In the case of sulfur, total supplies to be imported
during the current yr are expected to exceed 400,000 mt at
the very least.
948 China Boosts Fertilizer Output—Still Depends Heavily
on Imports. Chem. Week 117 (5), 9 (July 30, 1975). China is
increasing production of fertilizers but will still need to import
substantial quantities of nutrients. Preliminary estimates put
1974 output at 24.8 million mt of fertilizers, imports 7.4
million, total consumption 32.2 million. The ratio of NPK was
100-46-46 in 1973 and probably the same in 1974. Output of
chemical fertilizers in 1974 was unchanged from 1973, but
official sources say increased production goals for the first half
of 1975 have been met. New large ammonia plants now on the
books will add 3.5 million mt/yr to China's N output by
1978-79, 20% more than 1973's total. This will shift the
balance away from small plants and will also require expansion
of domestic production or imports of phosphates and potash
to maintain the balance among the three major nutrients.
Current forecasts are that domestic output will not be able to
keep pace with phosphate and potash needs and that China
will require substantially more imported material, especially
potash. One estimate is that the country will have to import 2
million mt/yr of potash by 1980.
949 Demand for Fertilizer in Developing Countries. C. P.
Timmer. Food Res. Inst. Stud. Agric. Econ. Trade Dev.
(Stanford) 13 (3), 197-224 (1974). The impact of the new
price environment on the demand for fertilizer in the
developing countries is examined. Major emphasis is devoted
to the demand for N fertilizers for application on the major
cereal crops. Existing methodology for understanding fertilizer
demand is reviewed, and some of the empirical results are put
in comparative perspective. The focus is on basic parameters
and their interaction rather than projections. A major short
coming of nearly all existing work on fertilizer demand is its
micro-perspective. The demand for fertilizer is derived, by the
physical production function, from the demand for food and
fiber. Alternatively, a number of long-run fertilizer demand
projections assume a growth in food demand from income and
population and work backward by way of some response
function to the level of fertilizer applications needed to
produce a food supply adequate to meet the projected
demand. Seldom are the equilibrium conditions for food price
connected to fertilizer demand. The implications of this
macro-connection are examined after the review of existing
micro-work. The state of knowledge about the basic para
meters affecting the outlook for fertilizer demand is sum
marized.
950 Food and Agricultural Organization Sees Fertilizer
Shortage in Developing Lands. J. Commerce 321 (23234), 6
(July 5, 1974). There will be a shortage of about 2 million
tons of fertilizer in 100 developing countries in the coming
autumn-spring period, the UN Food and Agricultural Organiza
tion reports. A plan for setting up of an international fertilizer
supply scheme for developing countries was presented to the
first meeting of FAO's newly formed commission on fertil
izers. The importers who will be hurt most by fertilizer
shortage are countries in Southeast Asia, parts of Latin
America, and Africa. Based on existing and planned capacity
developments the world's present shortage of fertilizers,
particularly nitrogenous, but also phosphatic and potassium
fertilizers, is likely to persist and possibly worsen during
1974-75 and 1975-76. There is no way in the short run for
bridging the gap between expected demand and supply, the
report said, capacity additional to that planned cannot be
brought onstream before 1977, and probably 1978, so that the
world has to live with a worsening shortage in the meantime.
The physical shortage of fertilizers, and more importantly, the
drop in exportable surpluses from North America and Western
Europe, is likely to result in government insistence on priority
for domestic supplies, the FAO document said. Under the
proposed international fertilizer supply scheme, the commis
sion on fertilizer and FAO could act as a clearing house,
bringing together suppliers of fertilizer, needy countries, and
sources of finance. FAO also could operate a fertilizer pool to
which contributions would be invited in both fertilizers and
cash.
951 Fertilizers Lead Chemical Growth in East Germany.
Eur. Chem. News 27 (709), 6 (Oct. 31, 1975). Chemical
production in East Germany this yr is due to increase by 8.9%,
with the fertilizer sector providing the main thrust of this
development. Potash fertilizer production has grown rapidly
through 1975, with the recently commissioned Zielitz com
bine making its presence felt. Potash production totalled 2.9
million ton K2O in 1974. In the nitrogen sector, work is
continuing on the new Piesteritz combine and remaining plants
are being switched to natural gas feedstock supplied by the
USSR. Nitrogen fertilizer production is expected to increase
129
 SUPPLY AND DEMAND
from 460,000 ton in 1974 to 720,000 ton in 1975, covering
90% of domestic needs. Commissioning of the Piesteritz
combine—two ammonia plants and three units—in 1976 will
add an extra 480,000 ton/yr of fertilizers while urea produc
tion will total 1 million ton/yr. Phosphate fertilizers produc
tion, which reached 410,000 ton P3Os in 1974, will increase
to around 500,000 ton in 1975. With domestic use running at
around 525,000 ton P2 Os some imports will still be required.
952 The Fertilizer Industry of the German Democratic
Republic. Tom Sealy. Fert. Int. No. 101; 10-11, 20 (Nov.
1977). Over the last 10 yr the German Democratic Republic
(G.D.R.) has become one of the world's major consumer of
fertilizers. During 1976-77, the G.D.R.'s mineral fertilizer
consumption rose to over 300 kg/ha. Over the past 10 yr,
consumption of N fertilizers has increased from 65 kg/ha to
115 kg/ha, an increase of 77%. Domestic production has
increased by over 100% during the same period and now
accounts for 80% of domestic consumption. Potash fertilizer
production remains to be dominant in the G.D.R. During the
period 1960-76 total potash production increased by 88%,
from 1.7 million mt to 3.2 million mt. The largest actual
growth has been in the production of phosphate fertilizers
which has increased by 156% to 423,000 mt. Nitrogen
fertilizer production has also increased by about 1.35% from
334,000 mt to 785,000 mt during the same period.
953 Fertilizer Situation in India. Fert. News (India) 20 (1),
61-7 (Jan. 1975). Estimates of fertilizer consumption and
production during the Fifth 5 Yr Plan were prepared in 1972.
These were published in the January, 1974 issue of Fertiliser
News. Developments during the last 2 yr have necessitated a
fresh review of these estimates. The new review is given. The
figures given in the earlier part of the review are estimates of
consumption taking into account various constraints of which
the most important ones are relative prices and availability. To
sustain the targeted agricultural production program, the need
and the potential demand for fertilizers in the country is much
larger. This imbalance between potential demand and likely
consumption arising from inadequate availability is a measure
of the leeway necessary in stepping up domestic production as
a means to achieving self-sufficiency in this vital input.
954 Production and Consumption of Fertilizers. Annual
Review 1974-75. New Delhi, India: Fertilizer Assoc. India: 95
pp. (Aug. 1975). This is the 17th edition of the title
publication. It contains a review of production and consump
tion in India during 1974-75; discusses the performance during
the 5 yr period 1970-75, and forecast the expected trend of
production and consumption for 1975-76. Seasonal consump
tion by states for the 5 yr with increase or decrease in nutrient
consumption over the corresponding previous seasons are given
for the first time in this edition. (15 tables and 23 appendices)
955 India's Fertilizer Demand Forecast. Green Markets 1
(29), 6 (Aug. 29, 1977). Fertilizer consumption in India is
expected to increase 18.1% during the 12 months ending
March 31, 1978, compared with the same 12 months in
1976-77. The Fertilizer Association of India is forecasting a
15% increase in N consumption, an 18.7% gain in phosphate
demand, and a 40.6% increase in K2O use. Total Indian
consumption of N is expected to be 2.826 million mt during
the period compared with 2.457 million mt during 1976-77.
130
Production is expected to be 2.2 million mt against 1.857
million mt for 1976-77. Phosphate use is forecast to be .
754,000 mt during the current 12 months against 635,000 mt
for the previous period. Production of phosphates is expected
to be 730,000 mt, up from 478,000 mt. If the production
forecast proves to be accurate, it will mean that the increment
in N and P. Os demand will be satisfied largely through
increases in domestic output rather than higher import levels. :
India reported importing only 750,000 mt of N during
1976-77 compared with 951,000 mt in 1975-76.
956 Indian Nitrogen Supply-Demand. Chem. Age (London)
113 (2984), 2 (Sept. 24, 1976). India will have to install at
least five more large-scale fertilizer plants to bridge the gap
between production and consumption of nitrogenous fertili
zers by 1983-84, according to the Fertiliser Association of
India (FAI). The gap between consumption and production of
nitrogenous fertilizers will continue even after all the projects
under implementation go into operation, according to the
latest balance sheet of availability and production of nitro
genous fertilizers from 1976-77 to 1983-84 prepared by FAI
for the period to 1984. As a number of projects are likely to .
go into production in the immediate future, the gap will be
less till 1980-81, but will increase thereafter, rising to 1.3
million mt by 1983-84.
957 India's Fertilizer Consumption to Increase. Green
Markets 2 (1), 8 (Jan. 2, 1978). The Fertilizer Association of
India predicts that fertilizer consumption for the yr April
1977 to March 1978 will be 26% ahead of the previous yr.
This increase is anticipated largely because of the record
consumption attained during the current winter crop season.
In the current yr, N consumption is expected to be 21.6%
ahead of last yr while phosphate consumption will increase
32%. Potash is expected to increase by 50.5%. Indian
authorities also predict that the country will be self sufficient
in N fertilizers by 1983-84 but there will continue to be
shortages of phosphate materials.
958 India: Soaring Demand Emphasizes Need for New
Investment. Fert. Int. No. 104; 9, 14 (Feb. 1978). Following
the severe cutback in fertilizer demand in 1974-75, there is ,
now every indication that India's consumption has firmly
reestablished an upward trend. Latest estimates indicate a 26%
increase in demand for the Indian 1977-78 fertilizer yr ending
in March. Total nutrient consumption is expected to reach 4.3
million mt comprising N 3 million, P., Os 0.9 million, and K2O
0.4 million mt. Domestic production, meanwhile, fails to keep
pace with rising demand. Nitrogen output is projected at 2.14
million mt resulting in a potential deficit of 850,000 mt.
Phosphate fertilizers supply is expected to be short 150,000
mt with 1977-78 production projected at 710,000 mt P, 0s.
All indications are that consumption will continue to increase
through 1984-85. Additional investments in production facili
ties must be forthcoming if India is to achieve a greater degree
of self-sufficiency in the next decade.
959 Indonesian Supply-Demand Forecast. Chem. Eng. News !
54 (41), 10 (Oct. 4, 1976). Indonesia will become a net
exporter of nitrogen fertilizer by about 1980 if new capacity,
now on the drawing boards, comes on-stream according to
government plans. What Indonesia's plan has going for it are
the feedstocks available from the country's bountiful natural
 SUPPLY AND DEMAND
gas reserves. Indonesia built three nitrogen fertilizer plants
between 1964 and 1974. New nitrogen capacity, however,
both in the works and on the drawing boards, will dwarf
existing production. A third Pusri plant at Palembang is slated
to come on-stream at the end of this yr. It will have 1000
tons/day of ammonia capacity that will be converted to
570,000 tons/yr of urea. Meanwhile, another 570,000 ton/yr
urea unit is under construction at the same site. It is scheduled
to come on stream by the end of 1977. Together, the four
Pusri plants at Palembang will have a total capacity of a little
more than 1.6 million tons/yr of urea by 1978. Three more
570,000 ton/yr urea plants are in various stages of construc
tion or planning. Although the country does not now produce
phosphate fertilizers, government plans call for about 730,000
tons/yr of triple superphosphate capacity to be in place by
1982, along with 80,000 tons/yr of diammonium phosphate,
and 50,000 tons/yr of mixed nitrogen, phosphorus, and
potassium nutrients.
960 Japanese Nitric Acid Forecast. Jap. Chem. Week 15
(743), 6 (July 25, 1974). Nitric acid production for the fiscal
yr beginning July 1974 is estimated by the industry at
660,000 tons, up 9.7% over the estimated result of last
fertilizer yr, with the estimated operation rate of 98%. The
demand and supply position of the product is not likely to be
tight because demand for nitric acid derivatives is curbed. On
the other hand, ammonia output is estimated at 4,159,000
tons, up 8.8%.
961 Japan's Sulfuric Acid Supply-Demand. Jpn. Chem. Week
(Review) p. 71 (Issued Feb. 1976). Trade in sulfuric acid, one
of the basic raw materials for the chemical industry, has been
strongly influenced by the general situation, and demand has
declined to a serious extent as a result of lowered operating
rates at such consumer industries as fertilizers, synthetic fibers,
titanium dioxide, and others. Total demand in Japan for
sulfuric acid for fiscal 1975 (April 1975-March 1976) is
estimated at 6,019,000 tons, a decline of 13% from FY 1974,
which recorded a total consumption of 6,886,000 tons. The
quantity consumed in FY 1975 for the production of
fertilizers, the principal use of sulfuric acid, is estimated at
2,096,000 tons, down 19% from the previous yr (2,589,000
tons). The trend of demand in 1976 will entirely depend on
the timing of the recovery in business conditions, and it is now
expected that fertilizer and other consumer industries will
begin a gradual recovery. Production in 1976 will be carried
out in line with demand trends. Now that demand, particularly
from fertilizer producers, is expected to pick up, total
production is put in the neighborhood of 6,800,000 tons. It is
expected that in 1976, 100,000-200,000 tons of the acid will
be exported. For a balanced supply and demand of sulfuric
acid, it is necessary that domestic demand from fertilizer and
other industries return to normalcy. Export of the acid will be
a very important factor in the solution of excessive inven
tories.
962 Fertilizer Industry–Malaysia. Fert. Int. No. 101; 16-19
(Nov. 1977). Fertilizer consumption continues to advance in
Malaysia. In line with the rapid recovery in prices for
Malaysian exports, fertilizer usage is expected to reach record
levels. Rubber and oil palms dominate the agricultural sector.
Together the two crops occupy over 70% of all cultivated land
and consume over 80% of all fertilizer sold. The fertilizer
compounds principally used on rubber are primarily high in
phosphates with added magnesium such as 11-18-4 + 3 MgO.
Fertilizers high in potash are favored for oil palm chiefly
5-10-25 + 4 MgO. The Malaysian industry dates back from
1966 when the Chemical Co. of Malaysia erected a 41,000
ton/yr N calcium ammonium nitrate unit and complex
fertilizer plant at Padang Jawa. The local industry expects that
nutrient consumption will grow by about 30% by 1980.
Compound fertilizers will lead this growth, particularly NPKs
formulated for specific crops. In 1976 total nutrient consump
tion reached 275,000 mt and is expected to be over 290,000
mt in 1977.
963 North American Production Capacity Data: January
1975. Muscle Shoals, Ala.: Tennessee Valley Authority,
National Fertilizer Development Center. Circular No. Z-57; 11
pp. (Jan. 15, 1975). This supplement to Fertilizer Trends—
1973 (FA 7, 1808) updates the production capacity data of
U.S. and Canadian fertilizer manufacturers given in the original
publication. Producers of ammonia, urea, ammonium nitrate,
phosphate rock, phosphoric acid, ammonium phosphate,
concentrated superphosphate, nitric phosphate, and potash are
listed. The capacity data are compiled from published sources,
contacts with the fertilizer industry, and other sources.
Included are the company name, location, plant status, and
capacity as of Jan. 15, 1975. Data for 1973 and 1974 are
included together with projections through 1980.
964 Fertilizer Trends—1973. E. A. Harre. Muscle Shoals,
Ala.: Tennessee Valley Authority, National Fertilizer Develop
ment Center. Bull. Y-77, 56 pp. (June 1974). This is a biennial
publication which provides basic marketing data. This is the
ninth edition. A summary of the fertilizer industry is given
primarily in graphic and tabular form. A list of companies in
North America producing ammonia, urea, ammonium nitrate,
phosphate rock, wet-process phosphoric acid, concentrated
superphosphate, ammonium phosphate, or potash in May
1974 is given with their production capacity. A rapidly
escalating demand for fertilizers has caused shortages every
where. World plant nutrient consumption in 1973 is estimated
at 77.5 million tons. Total N consumption was over 36
million, P., Os more than 22.7 million and K2O 18.7 million
mt. The 1980 forecast shows N 57, P., Os 31.1, and K2O 25.6
million mt consumption. In the U.S. consumption in 1973 was
N 8.3, P2 Os 5.0, and K2O 4.4 million mt. The forecast for
1980 consumption in the U.S. is N 12.5, P., Os 6.8, and K2O
6.2 million mt. Data for the production, consumption,
inventory, export-import of fertilizer materials in the U.S. and
Canada are given for 1950-73.
965 Fertilizer Trends 1976. E. A. Harre, M. N. Goodson, and
J. D. Bridges. Muscle Shoals, Ala.: TVA, National Fertilizer
Development Center. Bull. Y-111; 44 pp. (Mar. 1977). This
edition has several format changes from the ninth edition (FA
7, 1808). The section on distribution systems has been
eliminated and will be included in TVA’s Directory of
Fertilizer Plant in the U.S.. Details on state and regional use
patterns are published in Fertilizer Summary Data. Consump
tion in the U.S. of plant nutrients, fertilizer materials, and
mixed fertilizer by class is given for each yr 1960 to 1975.
Production and consumption data for nitrogen, phosphate,
potash, and sulfur are given by yr for 1960 to 1975. Detailed
market data for Canada is provided. Capacity data for the
major fertilizer materials produced in North America is
presented.
131
 SUPPLY AND DEMAND
966 Pakistan Fertilizer Supply-Demand Forecast. Green
Markets 2 (9), 7 (Feb. 27, 1978). Three Arab-financed
fertilizer plants due on stream in the next 3 yr will increase N
production in Pakistan by 784,000 mt/yr. Public sector
production is currently 55,000 mt/yr while two privately
owned plants (Esso and Dawood) produced an additional
240,000 mt. Nitrogen consumption is expected to reach
820,000 mt/yr by 1981 which means 10% of domestic
requirements will have to be imported. Phosphate imports will
continue to be heavy in the for seeable future. Phosphatic
fertilizer production is currently only 16,000 mt/yr while
consumption totals 194,000 mt. By 1981 production is
projected to reach 88,000 mt and demand will increase to
268,000 mt/yr.
967 Poland Forecasts Fertilizer Requirements. Eur. Chem.
News 28 (738), 34 (May 28, 1976). Poland's Ministry of
Agriculture has estimated that in 1985 fertilizer consumption
in the country will be 300 kg/ha of NPK, of which N will
account for 100-110 kg/ha, and in 1990 almost 350 kg/ha
comprising 140 kg N, 87 kg P, Os, and 119 kg K2O.
Consumption of lime-based fertilizers is expected to reach 190
kg/ha CaO in 1990. For the past few yr the ratio of
N:P, Os: K2O consumption in Poland has been almost con
stant at 1:0.8:1.3 but in 1980 it is expected to be 1:0.8:1.1
and in 1990 l ;0.6:0.8.
968 Polish Fertilizer Production Forecast. Chem. Age (Lon
don) 111 (2930), 28 (Sept. 12, 1975). The production of
fertilizer by Poland's chemical industry, which stood at 2.3
million tons of pure nutrient in 1974, will rise by about 140%
to reach 5.6 million tons in 1985, according to present plans.
Output of 6.5 million tons in 1990 is planned. During the
second half of the present decade two new fertilizer plants are
to be built at the chemical combines in Police and Kedzierzyn,
while nitrogen facilities at Tarnow and Pulawy will be
expanded. These new units will concentrate on granulated
nitrogenous and phosphorus fertilizers. Pulawy, which now
has a capacity of 700,000 tons/yr–Europe's largest fertilizer
plant—will install another ammonia line and a urea unit.
969 Romania's Phosphate Industry Outlook. Phosphorus
Potassium, No. 66, 31-4 (July-Aug. 1973). Four 900,000
tons/yr nitrophosphate-based complex fertilizer plants are due
to be commissioned in Romania in 1974-75. Phosphate
fertilizer capacity will double as a result to over 800,000
tons/yr P20s. The present level of 400,000 tons/yr P. Os
itself represents a 60% expansion since 1970. The enlargement
of the phosphate industry is intended as a boost to Romania's
agriculture with the entire output designated for domestic use.
The 1971-75 five yr plan shows phosphate consumption
increasing from 200,000 tons/yr P:Os to 720,000 tons/yr. So
far, however, there are no signs of the 30%/yr growth that
would be required to achieve the target. Instead, Romania has
continued to produce a surplus for export and there are fears
that the surplus will increase over the next few yr. A
substantial tonnage of diammonium phosphate has been
shipped out of Romania since 1966 and triple superphosphate
sales have recently begun. Romania has, for a number of yr,
been exporting large tonnages of N fertilizers at very competi
tive prices. The prospect of triple superphosphate production
reaching full capacity of 500,000 tons/yr with a 3.6 million
tons/yr increase in complex fertilizer capacity to follow in
1974-75 is good.
132
970 Fertilizer Demand and Supply Projections to 1980 for
South America, Mexico, and Central America. Vienna,
Austria: United Nations Industrial Development Organization.
Fertilizer Industry Series Monograph No. 6; 80 pp. (1971).
The agricultural sectors of Argentina, Bolivia, Brazil, Chile,
Colombia, Ecuador, Paraguay, Peru, Uruguay, Venezuela,
Mexico, and other countries of Central America are discussed.
Details are given on population, land, rainfall, resources, per
capita annual income and average growth of gross national
product, identified fertilizer raw materials, farming patterns,
land and economic policies, fertilizer use and supply, and
balance of supply and demand. Future supply of fertilizer to
agriculture is suggested.
971 South Korean Fertilizers. Too Much too Soon. Phos
phorus Potassium, No. 91; 26-9 (Sept.-Oct. 1977). A
detailed description of the South Korean fertilizer industry is
given. Current production capacities for each major producer
is estimated. Fertilizer marketing in South Korea is closely
regulated by the National Agricultural Co-operative Federation
(NACF). NACF purchases all products and resell them to
farmers at subsidized prices. By 1974 these subsidies averaged
37% necessitating a 65% price increase for 1975 purchases
with a further 79% increase the following yr. Consumption in
1976 fell substantially, leaving accumulated inventories of
490,000 mt product of compound fertilizers, 160,000 mt of
fused phosphates, and 430,000 mt of urea. This problem of
excess fertilizer is expected to be compounded with the
start-up of Korea’s seventh national fertilizer project by
Namhae Chemicals. If consumption reaches the pre-1976 level
of 9% and plants operate at 100% capacity production would
equal consumption by mid-1980 except for compound fertili
zers. With consumption as much as 20% in 1977, South Korea
will begin 1978 producing twice the amount of compound
fertilizers consumed.
972 Soviet Fertilizer Output Forecast. Chem. Age (London)
106 (2793), 15 (Jan. 26, 1973). Total production of mineral
fertilizers in the Soviet Union (including feed phosphates) is
expected to reach some 90 million mt by 1975. A breakdown
of 1975 targeted fertilizer production shows 39.2 million mt
of N fertilizers, 30.5 million mt of P fertilizers and basic slag,
20.2 million mt of K fertilizers, and 100,000 and 70,000 mt of
B and Mg fertilizers. Average nutrient content is expected to
rise from 1970 to 1975 from 29.2% to between 35 and 37%.
973 Fertilizer Shortage Could Develop in the United King
dom in 1974. Chem. Week 113 (24), 19 (Dec. 12, 1973).
Producers are warning that they will have to export more
product if price increases are not granted by the U.K. Price
Control Board. Right now, tabs for fertilizers overseas are as
much as 30% higher than they are in the U.K. A Fisons
executive says the company increased fertilizer exports 43% in
1973, to 100,000 tons, adding that exports are likely to grow
if the price gap is not narrowed. The U.K. is becoming a less
attractive market than continental Europe.
974 United Kingdom Farmers Face Fertilizer Shortage. Eur.
Chem. News 26 (655), 8 (Sept. 27, 1974). Some UK farmers
could face severe shortages of fertilizers later this winter as
sluggish trading this summer has forced producers to divert
large quantities of material overseas. Producers themselves
have contributed to slack buying by their cancellation of the
early order rebate scheme, which is usually applied to
 SUPPLY AND DEMAND
purchases about now in an effort to spread the buying and
manufacturing load equally throughout the yr. But the real
villain has been the sharp upwards movement in fertilizer
prices over the past 18 months, disrupting the normal seasonal
buying pattern as consumers with the ready cash and storage
Space have bought material when and where they could in
advance of expected price rises. Another factor contributing to
slack trading is the farmers’ belief that prices may have
stabilized and there is now no need to tie up capital in stored
product. Many farmers are also hoping for the reimposition of
the fertilizer subsidy or at least higher prices for their produce.
Producers, on the other hand, fear that there could still be
more manufacturing costs to pass on this winter. Buyers are
already reporting difficulties in obtaining supplies of N and
compound fertilizers and many fear these could intensify over
the winter. Still more surprising is the fact that Fertilizer
Development Ltd., the association of small compounders
which relies on imports for its raw materials, has now entered
export markets.
975 United Kingdom Nitrogen Supply-Demand. Eur.
Chem. News 27 (699), 11 (Aug. 15, 1975). The United
Kingdom is still seriously short of ammonia. Imports from
other European sources could fill the gap. Future needs should
logically dictate expansion of ammonia production in the
North and East of Britain in close proximity to the natural gas
source. United Kingdom ammonia production presently totals
1.2 million ton/yr and imports of ammonia, nitrogen inter
mediates, and nitrogen fertilizer run at about 250,000 ton/yr
ammonia equivalent. Demand may increase at 4-6%/yr for the
rest of the decade and the only extra capacity likely to be
available through the period is 300,000 ton/yr. If the United
Kingdom is to supply its own fertilizer needs an estimated
£100 million investment in fixed and working capital will be
required. If an extra 1 million ton/yr of fertilizer
(300-400,000 ton/yr of nutrients) is to be made available for
export, an extra £150 million will be needed. The decline in N
demand could be relatively short-lived, but so far as the other
two nutrients are concerned, the turndown in demand could
be of longer duration.
976 Fertilizer Situation 1973. U.S. Dep. Agr., Economic
Res. Div., FS-3; 37 pp. (Dec. 1972). Fertilizer prices at all
marketing levels will be bullish in 1973. Some specific
items—urea, concentrated superphosphate, some of the
ammonium phosphates, for example—most likely will be
priced at or near their ceilings. Prices for high-analysis
phosphates will continue to be particularly unyielding as the
foreign market for phosphates is booming. If a soft spot
develops, it could be in the price of potash. The U.S. capacity
to produce ammonia, the source of virtually all fertilizer N,
WW remain considerably above demand in 1973, but the gap is
likely to narrow. U.S. producers could make about 17 million
Qūs of ammonia in 1973 operating at design capacity.
Currently the rate is 85% of capacity. The supply of
high-analysis phosphate fertilizers will continue tight through
1973. Additional U.S. capacity to produce phosphoric acid is
under construction with more planned to come into produc
tion in 1973 and 1974. If all new plants come on-stream as
Planned, 1.9 million tons P. Os in additional phosphoric acid
*\ual capacity will be available by late 1974. Fertilizers took
48 million tons P.O; in 1971-72. One potash plant in the
United States and another in Canada were closed for technical
feasons but both will be fully operable in 1973. U.S. capacity
in 1973 will be 3.4 million tons K2O. Added to this is more
than 8.3 million tons capacity in Canada where producers will
be allowed to produce only about one-half that amount.
Fertilizer use was a record high—41.3 million tons—in the 12
months ended June 30, 1972. A yr earlier, use was 41.4
million tons. However, on a plant nutrient basis, the tonnage
of K2O equivalent was the only one to increase. Consumption
of N and P20s both dipped slightly. The trend toward greater
use of both dry bulk and liquid fertilizer continued. Just over
70% of all fertilizer was applied in these two forms. Bagged
fertilizer was down to 11.5 million tons—30% of all fertilizer—
in 1970-71. Fertilizer exports rose 17% in dollar value during
the yr ended June 30, 1972, rising to $339 million. Much of
the increase came from increased export tonnages at higher
prices for concentrated superphosphate and ammonium phos
phates.
977 Fertilizer Situation. Econ. Res. Serv., U.S. Dep. Agr.
Bull. FS-4; 24 pp. (Jan. 1974). Demand for N and P fertilizers
has placed intensive pressures on supplies for 1974. Prices have
skyrocketed since fertilizers were freed from Phase IV price
regulations on October 25. Early indications are that prices of
fertilizers with a high N content may be up 50% this spring
from a yr earlier. Phosphates may be up 40%. Prospective K
price increases are in the area of 20%, although North America
potash production capabilities are far in excess of current
demand. The 1974 fertilizer bill for farmers in the United
States may go to $4 billion, nearly 40% above 1973. A ton of
fertilizer will cost over $100 this yr compared with $78
estimated for 1973. Perhaps 8% more N and P will be available
in 1974, but demand at current prices probably will not be
satisfied. Potash use may be up 5%. Three percent more
fertilizer was used in the 12 months ended June 30, 1973,
than during the previous 12-month period. Total use was 42.5
million tons. About 36.1 million tons of this was for farm use.
Plant nutrient use was: N, 8.3 million tons; P (P2 Os), 5.1.
million tons; and K (K2O), 4.4 million tons. Nitrogen and
P:Os use both were up 4%. K2O use rose 2%.
978 Outlook: NPK. Farm Chem 138 (1), 16-17 (Jan. 1975).
There will not be much easing of fertilizer shortages in 1975
because of cutbacks in natural gas delivery, slowdown in
construction, and the reserve tax imposed on potash by the
Province of Saskatchewan. Fertilizer inventories at the end of
the 1974-75 yr were short of desirable inventories for
Fla./North Carolina phosphate rock, phosphate chemical
(P:Os), potash (K2O), and nitrogen (NH3) by 35, 44, 62, and
50%, respectively. Supplies of NPK should be up 4-6% in 1975
over 1974 but USDA officials predict 12-16 million more acres
to be harvested in 1975 than in 1974. Sales to farmers have
drifted downward in some regions. There is evidence of
increased stocks at dealer levels. Some dealers report buyer
resistance building up to higher prices.
979 The Fertilizer Situation: Present and Projected. E. A.
Harre and G. G. Williams (Tennessee Valley Authority,
National Fertilizer Development Center, Muscle Shoals, Ala.).
Fert. Solutions 19 (5), 62, 64, 66-70 (Sept.-Oct. 1975). Once
again, the laws of supply and demand have brought the
fertilizer market through another supply cycle. After the short
supply levels of the 1973 and 1974 fertilizer yr, increased
price levels have stimulated investment in the industry. New
capacity is becoming available to satisfy the market demands.
Phosphate and K supplies should be ample for the remainder
133
 SUPPLY AND DEMAND
of the decade while N supply will follow by 1977. The future
supply-demand balances and the prosperity of both the farmer
and the fertilizer industry will depend on maintaining an
equitable price relationship between agricultural commodities
and fertilizers. Fertilizer remains a vital input in the nation's
agriculture. Its use will continue to expand as long as the
farmer continues to receive a favorable benefit: cost ratio with
its use. Generally speaking, the problems of the fertilizer
industry in the last decade stem not from lack of demand but
from overreaction on the supply side of the equation.
980 1975 Fertilizer Situation. U.S. Dept. Agr. Economic
Res. Service, FS-5; 27 pp. (Dec. 1974). Farmers may pay
10-15% more per ton for fertilizer during the 1975 planting
season than they did during the last quarter of 1974. Such an
increase would be much below the more than doubling in
prices since the lifting of price controls in the fall of 1973. It
may also signal an end to the violent upward price spiral of
recent months. Use of all three primary plant nutrients will be
up in 1975, but use of N and K may increase less than in 1974.
There is some evidence that farmers' fertilizer purchases in the
last half of 1974 have slackened noticeably from 1973. At the
same time, inventories of basic materials have increased. This
can be an indication of buyer resistance to higher fertilizer
prices and the uncertainties of the 1975 crop production
season. Ammonia production capacity will be up by 907,200
tons (about 5%) annually as seven additional facilities come
onstream during the yr. However, output from most of this
capacity will not be available until the last half of 1975. With
several million more acres to be planted to crops in 1975
demand will be stronger than it was in 1974. Phosphoric acid
rated capacity will undergo a series of additions totaling some
1.9 million tons P. Os by year's end. About a fourth of this
will be available for use during 1975 in the United States.
Despite this increase, prices are likely to be somewhat higher
because of increased demand. New mines will need to be
opened soon to avert a serious shortage of phosphate rock.
World market phosphate rock prices have increased 350% since
December 31, 1973. They are scheduled to go up 8% more on
January 1, 1975. Potash supplies are likely to tighten in the yr
ahead and prices may rise. No substantial increase in produc
tion capacity for muriate of potash has been announced in
North America. The United States was a net exporter of N by
a margin of only 7% compared to 54% a yr ago. Exports of
P., Os in 1973-74 were up 10% compared with a 29% gain in
the preceding yr. Potash imports, principally from Canada,
were roughly equivalent to three-fourths of U.S. domestic use.
World use of N during 1974-75 may be about 47 to 48 million
tons—a 13% increase. Even so, the supply-demand balance will
continue tight. Several new phosphoric acid and phosphate
fertilizer plants will start up in 1975. Thus, supplies of
phosphate fertilizer production capacity will not be a limiting
factor. Morocco plans to boost phosphate rock output to 21.5
million tons. Spanish Sahara hopes to increase its production
to 6 million mt. Potash inventories in North America are at
dangerously low levels and little expansion in output is in view
for 1975. The U.S.S.R. will probably ship more potash into
western markets.
981 Fertilizer Supplies Adequate for 1976. Chem. Age
(London) 112 (2956), 9 (Mar. 12, 1976). A report of the US
Department of Agriculture predicts adequate world fertilizer decline. Fertilizer supplies appear adequate for a good spring
supplies and reasonable price levels this yr. The demand for season. The industry has a number of promising new or
nitrogen and phosphate fertilizer will remain at a relatively low
134
level, especially if grain prices fail to recover from their
late-1975 decline. Fertilizer production capacity in developing
countries is, furthermore, seen as rising sharply in the next 5
yr, reducing the dependence of these countries on imports and
making unlikely a recurrence of the 1974 fertilizer shortage.
The department, which places great weight on the perfor
mance of developing countries starting up and operating the
new capacities as well as on the impact of any higher oil price
levels, on N-fertilizer prices, says the 1976 fertilizer market,
particularly for nitrogen, could tighten rapidly if grain prices
should rise or fertilizer production fall short of present targets.
With regard to phosphate fertilizers, developing countries are
expected to increase their output by about 15%/yr between
1974 and 1981. This is above projected increases in consump
tion and should essentially eliminate the deficit between
production and consumption of phosphate in developing
countries as a whole by 1981. As for potash, the other major
fertilizer base, some 95% of world capacity is now accounted
for by mines in North America, Europe, and the USSR.
Developing countries' imports are expected to double by
1981.
982 United States Fertilizer Supply-Demand. Chem. Mark.
Rep. 210 (25), 4, 24 (Dec. 20, 1976). Total US farm
consumption of fertilizer will fall to 20.4 million nutrient tons
next yr, a 1.9% decline from record levels set in 1976,
according to Chase Econometric Associates, Inc. Total tonnage
in 1978 will increase to 21.3 million tons. Nitrogen demand
will decline 2.6% in 1977, while phosphate and potash move
down 1.6% and .9%, respectively. Demand in 1978 should pick
up over the previous yr by 5.8% for nitrogen, 3.3% for
phosphates, and 5.5% in potash. In spite of a decrease in
demand, nitrogen prices are expected to recover to 6-8% next
spring, over spring 1976, and then fall by 4-5% in 1978.
Phosphates and and potash are expected to move up 3-4% by
next spring. Exports of all fertilizers are now expected to
climb 5-7% in both 1977 and 1978 as the world's economic
climate improves and major fertilizer importing countries
continue to expand their food production. Nitrogen will
continue to be tight internationally, while phosphate and
potash world balances will remain pretty much where they
were in 1976. With nitrogen pipelines empty, shipments will
§. increase in 1977 as producer stocks decline by 5%.
itrogen producers should be running at 82-84% of capacity
and imports will climb 4.5%. Phosphate producers may be able
to rid themselves of one-fifth of their inventory next yr, and
46% by the end of 1978. Production will increase to only
85-86% of capacity over the same time. Capacity will increase
5% over the next 2 yr, but it will not be absorbed by the
market. Although some outmoded plants will be closed in
1977. Potash shipments from producers are expected to start
slowing in the spring as farm sales drop below 1976 levels. US
production is expected to run at 85-86% of capacity over the
next 2 yr, while Canada averages 70-72%.
983 Fertilizer Outlook 1977: Getting Back to Normal.
Farm. Chem. 140 (1), 35, 37 (Jan. 1977). Fertilizer products
are on the move again. The USDA reports that 1975-76
consumption increased 18%, the largest jump in 56 yr. This is
overshadowed by the fact that it was preceded by a historical
growing markets. Irrigation has already upped solutions
 SUPPLY AND DEMAND
consumption in dryland states. Pasture fertilization is being
more favorably considered by livestockmen now that beef and
dairy prices are on the rise. Forest fertilization is considered a
long-range prospect. Prediction on potential of foliar fertilizer
vary from good to wait-and-see attitude. Prices held back
1975-76 industry profits. Prices are now paving the way to a
gradual return to normal fertilization rates.
984 Fertilizer Supply and Demand. J. R. Douglas and C. H.
Davis (TVA, National Fertilizer Development Center, Muscle
Shoals, Alabama). Chem. Eng. 84 (15), 89-94 (July 18, 1977).
The supply and demand outlook for United States N, P, and K
is given. Fertilizer use of N has averaged about 9.5 million
tons/yr for the past 2 yr. Most projections for 1980 range
between 11.5 and 12 million tons N. To meet this anticipated
growth, 2.6-3.2 million tons of added ammonia production
will be needed by 1980. The supply situation for N could get
tight sooner because of an unpredictable ammonia supply.
Phosphate supply and demand could approach equilibrium by,
or before 1980. Domestic use is again increasing and should
approach 5.8 million tons P2 Os by 1980. If demand increases
as expected, further expansion of phosphate capacity will be
needed. The capacity outlook for 1979-80 is presently 9
million tons/yr. The future United States supply-demand for
potash is difficult to access. At present, 65-75% of United
States potash is imported from Canada. Canada will un
doubtedly continue to be a major supplier but increasing
prices have stimulated interest in mining deposits in New
Mexico and other western states. In general, North America
still has surplus potash capacity but this surplus may be
smaller than anticipated.
985 Fertilizer Future: More Non-United States Output Seen.
Chem. Mark. Rep. 212 (18), 4, 30 (Oct. 31, 1977). A balanced
N supply and demand situation is forecast by 1980 or 1981 as
105 new ammonia plants are scheduled to be built over the
next 4-yr. This will bring the total world capacity to some 98
million mt of N, an increase of 23 million mt over current
capacity. Supply will run at 56 to 60% of nameplate capacity
as changes in regional distribution will be of particular
significance. Indonesia and Mexico will become substantial
exporters while the People's Republic of China and India
significantly reduce gaps between domestic production and
consumption. Gas rich countries in the Middle East and North
Africa will soon provide increased competition. Phosphate
fertilizers should be in ample supply over the next few yr with
a gradual decrease in surplus and a balanced situation
predicted by 1982. World consumption of potash should grow
from an estimated 27.2 million short tons K2O in 1978 to
36.8 million tons by 1985. An average annual growth rate of
4.5% is expected for world potash.
986 United States Experts Predict Sluggish Season for 1978.
Green Markets 2 (1), 3 (Jan. 2, 1978). The United States
Department of Agriculture predicts fertilizer prices will remain
low through next spring due to surplus supplies and reduced
demand. Increased United States production capacity, abund
ant inventories, and reduced fertilizer use prompted by
government set-aside policies are the major reasons for this
prediction. Experts calculate that low crop prices and reduc
tions in acreage will cut wheat plantings by seven to nine
million acres in 1978. Corn acreage is expected to drop by one
to two million acres from 1977 levels of 69.5 million. Cotton
acreage is also expected to dip to 10.2 million acres, a 3.1
million acre decrease from 1977 plantings.
987 The Round Table Looks at Nitrogen-Phosphorus
Potassium Supply. Farm Chem. 140 (12), 74-5, 78 (Dec.
1977). Discussions are given by Round Table participants on
the future outlook for N, P, and K. Future N supply was made
for the United States only. An oversupply situation in excess
of two to three million mt is predicted for 1978-79. Past data
and estimates are made for future uses, sources, and operating
rates from 1972-1980. A list of five possible alternatives for
absorbing potential oversupply is also given. The past and
future phosphate supply is presented on a world basis for yr
1975-82. World use up to the mid-1980's is expected to
increase at an average rate of 5.5 to 6%/yr leaving a surplus of
about 2.6 million ton by 1982. Total available supply for
1977-78, 1978-79, and 1979-80 is estimated to be 30, 31, and
32 million mt, respectively. The future potash supply and
demand is also estimated on a world basis for yr 1978, 1980,
and 1985. It is projected that world consumption will increase
from 27.2 to 36.8 million mt during this period. Supply is
estimated to increase from 31.4 to 39.8 million mt during the
period and is expected to exceed demand by 8% by the end of
1985. A list of five major factors affecting the North American
potash industry is listed.
988 Fertilizer Supply-Demand to 1980. R. C. Smith (Amax
Chem. Corp., Greenwich, Connecticut). In 26th Annual
Meeting Fertilizer Industry Round Table 1976 Proc. (held
Atlanta, Georgia, Oct. 26-8, 1976), pp. 12-19 (1976). With a
good fall fertilizer season in the United States, demand should
continue strong in response to anticipated planting and
moderate fertilizer prices. Ammonia producers are concerned
about natural gas but are reconciled to paying $2.00/
thousands cubic feet within the next few yr. World N supply is
estimated to be .68 million tons in 1980-81, 36% greater than
the present supply. Preliminary estimates showed a balanced
situation for N but recent projections indicate supply in
creasing moderately more than demand. Demand should
increase by 31% by 1980-81. Phosphate supply-demand
currently is being brought into reasonable balance since
1974-75. World supply capability is projected to increase 15%
while demand should increase by about 25% by 1980-81. The
world potash situation hinges on several interrelated factors.
The most important being the government of Saskatchewan's
acquisition program. World supply of potash is expected to
increase 9% from 31.7 to 34.6 million tons by 1980-81.
Demand is expected to increase 6%/yr or 26% during the same
period. Only in Western Europe is supply expected to increase
as much as demand by 1980-81.
989 The Supply Outlook for Blending Materials. E. A. Harre
and J. N. Mahan. In TVA Fertilizer Bulk Blending Conf. (Held
Aug. 1-2, 1973, Louisville, Kentucky). Muscle Shoals, Ala.:
Tennessee Valley Authority, National Fertilizer Development
Center; Bull. Y-62, pp. 9-20 (Aug. 1973). Many products can
find their way into a blending formulation but only five are of
major importance. They are ammonium nitrate, urea, concen
trated superphosphate, the ammonium phosphates, and
potash. Under the present technology the future in N belongs
to urea. Urea and ammonium nitrate cannot be stored in close
proximity; therefore, blenders will have to commit themselves
to one material or the other. Since almost all N fertilizers used
in the U.S. are derived from ammonia the N supply-demand
picture is not clear because of the energy crisis. A curtailment
135.
 SUPPLY AND DEMAND
of production to as low as 80% of capacity would mean
imports of 18% of demand by 1975 and could reach 50% by
1980. Even with a 90% operating rate, demand forecast will
not be met after 1973 without new capacity. Several products
are basic sources of phosphate, including normal superphos
phate, concentrated superphosphate, wet-process phosphoric
acid, and small amounts of such material as nitric phosphate;
but the future belongs to wet acid. In 1962 phosphoric acid
accounted for less than 50% of the total phosphate market. Its
contribution in 1972 was almost 80% and could reach 87% by
1980. The shift to phosphoric acid as the major intermediate
has led to a rate of expansion in plant capacity well above the
phosphate market. The key to the future of the phosphate
industry is the export market. The growth in Canadian potash
mining during the past 10 yr completely disrupted supply
patterns and world markets. The Canadian industry has been
under a quota system for the past 3 yr and has brought about
an uneasy balance in the supply situation. The blender's major
concern will be competition from other distribution systems
such as liquid mixed fertilizer production and handling;
supplies of the materials will be available.
990 Indicators Show Continued Growth in Use of Fluid
Fertilizers. W. C. Scott, J. A. Wilbanks, and L. C. Faulkner
(TVA, National Fertilizer Development Center, Muscle Shoals,
Ala.). Fert. Solutions 20 (4), 54, 56, 58-60, 62, 64 (July-Aug.
1976). Trends in types of fertilizer consumption in the United
States since 1960 are given. A review of fluid fertilizer raw
material and necessary equipment for production is provided
and the current status of the industry is given. Growth in the
production and use of fluids is expected to continue.
Suspension fertilizers seem to be somewhat slower in taking
over the fluid market than was originally thought. This is
probably due, at least in part, to an unwarranted fear
of suspected difficulties in producing and handling these
products. Suspensions should eventually take over a much
larger portion of the fluid fertilizer market as well as some of
the high-analysis solids market. Availability of new products
such as UAP and potassium phosphates should also help the
fluid fertilizer industry. In recent years the techniques of
manufacturing, storing, and applying suspensions have
improved greatly. Interest in fluid fertilizers is increasing in
Europe and gradual increases in use of these materials appear
Probable in that area of the world. Increased use of fluids in
the U.S. will continue. A trend toward larger plants that offer
custom application services has been established and is
expected to continue.
991 The World Fertilizer Situation in the Seventies:
European Scene. S. Ramachandran (Minerals Metals Trading
Corp. India, Ltd., New Delhi, India). Proc., F.A.I. National
Seminar World Fert. Situation Seventies Technical Economic
Aspects Production Ammonia Based Heavy Fractions
Petroleum Feedstocks, pp. Il-1/1-13 (1973) New Delhi:
Fertilizer Assn. India. Europe holds the key to the world
fertilizer supply. During 1971-72, production of N in Europe
accounted for slightly more than 50% of world production,
while its consumption was approximately 46% of world
consumption. There has been considerable movement of N
from East Europe to West Europe, thus making East Europe a
leading producer of N. Owing to the high cost of production,
countries in West Europe have been importing fertilizers from
Eastern Europe to meet domestic demand, and export part of
their home production. Italy's N industry has been depressed
136
due to the Government's sales and farm and labor policy. In
West Germany, new expansions have been put off due to high
labor costs and the cost Squeeze in German agriculture. In the
Netherlands, although the outlook for export seems better,
expansion plans are not clear. In France, high unprofitability
in the past has made future investments cautious and plans for
substantial expansion of the industry ale very few. Among
other factors which have impeded capacity expansion are the
devaluation of the dollar and pollution control measures. The
curtailment of oil supplies from Middle East is also bound to
inhibit further investments. With the increasing cost of plants
and raw materials, production programs of developing
countries are likely to result in further widening of the gap
between production and consumption. However, there are
indications of huge expansion plans in countries of East
Europe, particularly in U.S.S.R., Poland, and Romania, and
surplus availability of N from these sources are expected. For
the present, there does not appear to be much hope of Europe
playing a prominent role in World trade in phosphatic
fertilizers essentially due to non-availability of rock phosphate
and S in Europe. Potash position appears to be comfortable.
International action is urgently needed to forestall any crisis of
non-availability of fertilizers and soaring prices, which would
seriously affect food production programs in the developing
countries.
992 World Fertilizer Supply in the Seventies: Position of
Western Europe and the Prospects for World Phosphoric Acid
Industry. A. Robinson and K.L.C. Windridge (International
Superphosphate & Compound Manufacturers’ Assoc., Ltd.,
London, England). Proc., F.A.I. National Seminar World Fert.
Situation Seventies Technical Economic Aspects Production
Ammonia Based Heavy Fractions Petroleum Feedstocks, pp.
II-2/1-26 (1973) New Delhi: Fertilizer Assn. India. Imbalances
in global supply and demand for fertilizers will acutely hit
other developing countries which are dependent on sizeable
imports to meet their domestic needs. Steep increases in
export prices of fertilizers have further reduced their ability to
buy this essential input. India accounts for one-sixth of the
fertilizer consumption among the group of 100 countries
which can be classified as developing nations. Low use of
phosphates and potash in the developing countries poses
problems not only from an agronomic point of view, but also
because of the soaring costs of rock phosphates which need to
be imported to correct imbalances. While Western Europe and
Japan have been net exporters of about 1.2 million mt of N,
the phosphate requirements in Europe are met by heavy
imports from U.S.A., U.S.S.R., and Morocco. From a position
of a net exporter of phosphates to the extent of 400,000 mt 4
yr ago, Western Europe has reached a stage when this surplus
has become negligible. The trend of falling net exports will
continue. Additions to N capacity in Western Europe in the
next few yr will be small, because of steep price increases of
naphtha and considerably enhanced costs of future ammonia
plants. There is an urgent need, particularly where developing
countries are concerned, to clarify the picture and ensure, that
fertilizer requirements of the developing world will be met.
The crux of the problem is to have effective control over the
cycle of over-supply and under-supply. Crucial areas where
immediate action is necessary are improving the capacity
utilization and the profitability in the industry to attract fresh
investments.
993 The World Fertilizer Situation in the Seventies. S.T.P.
 SUPPLY AND DEMAND
Singh (Sec. Ministry Agr., New Delhi, India). Fert. News 19
(1), 21-3, 66 (Jan. 1974). With the use of fertilizers having
reached the proportions they have now reached over a very
wide area of the world, there is dire need for concerted effort
to analyze and find out the factors contributing to shortages
and consequential sudden variations in the availability and
prices of fertilizers. The developing countries, in particular,
need to be insulated to the extent possible, from international
ups and downs originating from factors mainly concerning
international big business and power politics. This will require
the cooperation of all countries, and such cooperation should
be forthcoming if hunger and poverty are recognized as world
problems, and not the concern of the poor and hungry nations
only. The outlook especially in the developing countries is not
bright for some time to come unless something is done
immediately by the world community as a whole. The decade
of 70s holds a serious challenge.
994 World Fertilizer Reserves in Relation to Future
Demand. P. J. Stangel (International Fertilizer Development
Center, Muscle Shoals, Alabama). In Plant Adaption to Mineral
Stress in Problem Soils Proc. (held Beltsville, Maryland, Nov.
22-23, 1976); pp. 31-46 (1976). Estimates are given for the
future supply and demand of N, P, and K to the yr 2000.
These estimates are projected with reference to the adequacy
of raw material reserves. Calculations are made to determine
the basic energy requirements and production costs needed to
supply each compound. Potential research and development
areas were also identified for increasing the efficiency of plant
utilization.
995 What's Ahead in Fertilizer Supply-Demand. E. A. Harre
(TVA, National Fertilizer Development Center, Muscle Shoals,
Alabama). In TVA Fertilizer Conference (held July 27-8,
1976, Cincinnati, Ohio). Muscle Shoals, Ala.: Tennessee Valley
Authority, National Fertilizer Development Center; Bulletin
Y-106; pp. 18-24 (July 1976). Supply estimates for the 1976
fertilizer season indicate the recovery from the lower levels of
use during 1975. The fertilizer market is moving back to more
normal supply-demand levels. Looking to 1980, it appears that
the fertilizer market may be entering a period of modest, but
not rapid expansion in use. The industry has been through a
complete supply-demand cycle and it looks like we are headed
that way again. The drastic swings in supply levels can be
avoided. The price may be that of having to operate in a
market place with rather short cyclical movements rather than
the almost 10-yr span that has been the history of the
industry. Reaction times to changing market conditions will be
much quicker in the future than they have in the past.
996 World Fertilizer Trends. Deneb Taleki. In 3rd Enlarged
Winter Meeting of ISMA Proc. (held Washington, D.C., Nov.
30-Dec. 1, 1977); pp. 90-103 (Jan. 1978). Recent develop
ments in the world situation for N, P, K, and phosphate rock
are reviewed and estimates for world consumption are given
for the 1977-78 season. Overall, fertilizer nutrient consump
tion (in 1977-78) is expected to pass the 100 million ton mark
for the first time. This will be comprised of (mt) 50 million N,
27.4 million P, Os, and 23.7 million K2O. Phosphate rock
capacity is presently at 130 million ton and 1978 consumption
should total 117 million tons. Capacity growth for phosphate
chemicals is expected to exceed demand between 1978 and
1980 with consumption increasing to 31 million tons by 1981.
Potash consumption should reach 26 million mt by 1981 as an
11% increase in production capacity is anticipated. The
outlook for N is one of ample to an oversupply situation
through the 1970's. World capacity in 1977 totaled 84.9
million mt. Expansion plans world wide are expected to
aggravate this situation to the point where one million ton of
present capacity could be closed in the next 2 or 3 yr.
997 Nitrogen-Phosphorus-Potassium—World Production. E.
A. Harre and J. T. Shields (TVA, National Fertilizer Develop
ment Center, Muscle Shoals, Alabama). Proc. 1977 NFSA
Round Up (held St. Louis, Missouri, July 20-21, 1977.) Peoria,
Illinois: National Fert. Solutions Assoc.; pp. 12-15 (1977).
World production of NPK is estimated by analyzing the
supply-demand situations for three basic regional economic
groups. These are the developed, free world developing, and
the centrally planned economies (East Europe, U.S.S.R., and
Mainland China). By 1980 it is estimated that total N capacity
will be more than 110 million mt. Since 1967 there has been a
steady decline in the market share of the developed region. At
the same time, developing nations have raised their share of
capacity from below 10% to an expected level approaching
25% of total world capacity. Capacity in the centrally planned
regions has remained between 30-40% of the market. By 1980,
the developed regions and the centrally-planned group of
countries will have about an equal share of N capacity. World
N supply for fertilizer should increase from the current level of
over 42 million tons N to almost 61 million mt by 1980. With
the 1978 fertilizer season, supply will enter a period of surplus
over demand. This excess supply is expected to expand until
1980 when it will be almost 7% above expected demand.
Currently the world phosphate supply-demand situation
appears to be in balance. In 1980, the full potential of the
industry is 32 million tons P2 Os. There are no indications for
short supplies of potash in the next few yr. By 1980, a 34%
increase in the potential supply level of world potash is
expected.
998 United States Department Agriculture Sees World Ferti
lizer Growth of 32% by 1980-81. Chem. Week 118 (9), 32
(Mar. 3, 1976). The long-term outlook for fertilizers is strong.
The U.S. Dept. of Agriculture forecasts that North America
will use 12.2 million mt of N in 1980-81 compared with an
estimated 9.8 million in 1974-75 and 9.6 million in 1975-76.
Western Europe's consumption is put at 10.4 million mt in
1980-81 versus 8.1 million in 1974-75 and 8.4 million in
1975-76, total world consumption at 60.6 million in 1980-81
versus 41.8 million and 43.9 million. North American phos.
phate use is put at 6.8 million in 1980-81 versus 5.4 million in
both 1974-75 and 1975-76. Western European consumption in
1980 is forecast to rise to 7.1 million versus 6.2 million in
1974-75 and 6.4 million in 1975-76. Potash consumption in
1980 is pegged at 6.9 million in North America versus 5.1
million and 5.3 million; 6.7 million in Western Europe versus
5.7 million and 5.8 million. Total world use of potash is put at
29.5 million in 1980-81 versus 22 million and 23 million.
999 Estimates of Fertilizer Production-Consumption in 1980
and 1985. Raymond Ewell (State Univ. New York, Buffalo).
Proc., F.A.I. National Seminar World Fert. Situation
Seventies-Technical Economic Aspects Production Ammonia
Based Heavy Fractions Petroleum Feedstocks, pp. I-2/1-18
(1973). New Delhi: Fertilizer Assn. India. The present
worldwide shortage of fertilizers will continue for an indefinite
period, possibly permanently. The basic reason for this is that
137
 SUPPLY AND DEMAND

there will probably not be enough new capital invested in the

fertilizer industry to meet the increasing demand for food and
fertilizer generated by 75 million more people in the world
each yr and by rising per capita incomes. New N fertilizer
plants now under construction are estimated to increase
existing world capacity by 6%/yr during 1973-75 compared
with increase in N consumption of 9%/yr during 1967-72.
Phosphate fertilizer is much the same picture as N, although
shortages are likely to be somewhat less acute. World fertilizer
consumption is forecast at 94.1, 123.6, and 155.4 million tons
of nutrients in 1975, 1980, and 1985, respectively, compared
with 72.1 million tons actual consumption in 1971-72. An
analysis of fertilizer surpluses and deficits, country-by
country, is presented. Some of the large deficit countries, such
as China, India, Turkey, Cuba, and Egypt will probably never
be able to achieve self-sufficiency in fertilizer because of
insufficient financial and material resources.

1000 Fertilizer Capacity to Keep Pace with World Demand.

Eur, Chem. News 32 (818), 7 (Jan. 6, 1978). Forecasts issued
by the United Nations Food and Agriculture Organization
(FAO) indicate that world fertilizer production capacity will
continue to exceed demand through 1985-86. The demand for
N and P is expected to double by the end of this period and K
needs will increase by about one-half. The forecasts were based
on present industry capacity, new facilities under construc
tion, and those firmly committed for completion during the
next 5-yr. Fertilizer prices will rise gradually assuming no
production restrictions by manufacturers. At least two
important changes are expected in the pattern of world
demand. By 1985-86, FAO projects that the fertilizer demand
in centrally planned economics (the USSR, China, and other
communist countries) will equal that of the developed market
economies. Likewise, the share of developing market econo
mies (LDCs) will grow to nearly two-and-one half times its
present level.

138
 AUTHOR INDEX

ABBOTT PERIASWAMY

Abbott, J. C. . . . . . . . . . .241 Cook, R. P. . . . . . . . . . . . 104 Gidney, D. R. . . . . .919, 922 Lal, Girdhari . . . . . . . . . . . 77

Achorn, F. P. . . . . .359,563 Couston, J. W. . . . . . .20, 421 Good, D. L. . . . . . . . . . . .249 Lancaster, J. M. . . . . . . . .927
Ahmed, E.D.H. . . . . . . . .247 Covington, Stuart . . . . . . 5 17 Goodson, M. N. . . . . . . . . 965 Laquier, L. L. . . . . . . . . . 871
Ahrens, C. L. . . . . . . . 52, 61, Crady, T. W. . . . . . . . . . . 546 Greek, B. F. . . . . . . . . . . 912 Larson, D. W. . . . . . . . . . . .5
64, 96 Creupelandt, H. . . . . . . . . . 99 Grisso, R. D. . . . . . . . .55, 91 LeCureux, Wayne . . . . . . 547
Aklilu, Bisrat . . . . . . . . . . 522 Crober, C. D. . . . . . .945,946 Grnlie, Odd . . . . . . . . . . .357 Lee, Dong-Bai . . . . . . . . . .49
Alexander, T. M. . . . . . . . 745 Crosser, Larry . . . . . . . . . 545 Groda, Bertie . . . . . . . . . 554 Lee, R. G. . . . . . . . . . . . . . 55
Alvarez Ercillan, J. A. . . . 176 Culp, J. E. . . . . . . . . . . . . 552 Gronlie, O. . . . . . . . . . . . 242 Little, Arthur, D. Inc.
Ambrose, D. M. . . . . . . . . 513 Gronroos, C. . . . . . . . . . . . .2 72
Amirmorri, H. . . . . . . . . . .92 Dehab, M.G.A. . . . . . . . .247 Livingston, O. W. . . . 22, 48,
Anderson, Barbara . . . . . 599 Dahl, D.C. . . . . . . . . . 10, 95 Hammond, J. W. . . . . . . . 249 53
Anderson, D. G. . . . . . . . 253 Dalrymple, Dana . . . . . . . 420 Hansel, G. . . . . . . . . . . . . . 21 Lohry, L. W. . . . . . . . . . . 557
Anderson, J. F. . . . . . . . . 853 David, C. C. . . . . . . . . . . .943 Hansel, H. . . . . . . . .523, 580 Loue, A. . . . . . . . . . . . . .469
Athavale, M. C. . . . . . . . . . 58 David, M. L. . . . . . . . . . .398 Hargett, N. L. . . . . . 45, 251, Louis, P. L. . . . . . . . . . . . 288
Davies, L. H. . . . . . . . . . . 142 258, 468, 801, 802, 803 Lyon, F. D. . . . . . . 291, 838,
Babbitt, J. F., Jr. . . . . . . 859, Davis, C. H. . . . . . . .403,984 Harre, E. A. . . . . . . . . 22, 48, 920
861 Day, R. L. . . . . . . . . . . . . 888 53, 856, 862, 895,
Baird, J. V. . .. . . . . . . . . 565 De Noronha, J. F. . . . . . . . 51 900, 909, 964, 965, Madangopal, B. . . . . . . . .240
Bakr, M. Y. . .. . . . . . . . . 124 Desai, G. M. . . . . . . . . . . 531 979, 989, 995, 997 Mahan, J. N. . . . . . 797, 798,
Balay, H. L. . .. . . . . . . . . 301 Desai, V. V. . . . . . . . . . . . . 12 Hartwig, Les . . . . . . . . . .573 799, 800, 989
Balser, R. L. .. . . . . . . . . . 34 Dever, L. A., Jr. . . . . . . . 550 Hayami, Yujiro . . . . . . . .422 Majumdar, A. . . . . . . . . . 529
Barker, Randolph . . . . . .422 Devino, G. T. . . . . . . . . .550 Heady, E. O. . . . . . . . . . . 716 Malk, J. M. . . . . . . . . . . . 398
Baskett, T. K. . . . . . . . . . . 29 Diamond, R. B. . . . . . . . . . 70 Hemstock, D. H. . . . . . . . 561 Manderson, M. C. . .882, 931
Basu, D. . . . . . . . . . . . . . 416 Dible, Bill . . . . . . . . . . . .865 Henderson, D. R. . . . . . . 544 Marhatta, H. P. . . . . . . . . . 11
Basu, T. N. . . . . . . . . . . .4 16 Doering, O. C. III . . . . . .409 Heredia, F. J. . . . . . . . 1, 250 Marothia, D. K. . . . . . . . . . 58
Bates, Ray . . . . . . . . . . . . 570 Dos Anjos, N. M. . . . . . . . .51 Hermina, M. H. . . . . . . . . 1.65 Marten, J. F. . . . . . . . . . .462
Baumel, C. P. . . . . . . . . . 3.18 Douglas, D. B. . . . . . . . . . 752 Heubrock, Arnold . . . . . . 551 Marten, John . . . . . . .588
Baumel, Phillip . . . . . . . . 319 Douglas, J. R., Jr. . . . . . . 30, Hignett, T. P. . . . . . . 48, 83 Mathur, C. P. . . . . . . . . . . 295
Beasley, L. W. . . . . . . . . . 560 365, 594,856,908, Hill, L. D. . . . . . . . . . . . . 320 Matthiesen, G. C. . . . . . . 868
Beaton, J. D. . . . . . .852, 928 909, 984 Hoeft, R. G. . . . . . . . . . . 564 McCune, D. L. . . . . . . . . . . 26
Berg, W. L. . . . . . . . . . . . 261 Downey, David . . . . . . . . 588 Homem De Melo, F. B. . . .19 Merwin, R. W. . . . . . . . . . 795
Bhave, S. W. . . . . . . . . . . . 58 Downey, W. D. . . . .467, 541 Honan, N. D. . . . . . . . . . . .41 Messerly, Marilym . . . . . . 102
Blair, S. S. . . . . . . . . . . . . 852 Drinka, T. P. . . . . . . . . . . 3.18 Horseman, M.N.J. . . . . . .930 Meyer, R. L. . . . . . . . . .88
Blakeslee, L. L. . . . . . . . .716 Dwarakinath, R. . . . . . . . 520 Hsu, R. C. . . . . . . . . . . . . 376 Miller, J. J. . . . . . . . . . . . 3.18
Blouin, G. M. . . . . .387, 403 Mishra, C. S. . . . . . . . . . . . 59
Boesdorfer, Rolland . . . .360 Eckholm, E. P. . .. . . . . . .47 Ishaque, M. . . . . . . . . . . . .97 Mittal, P. . . . . . . . . . . . . . 29,
Bond, B. J. . . . . . . . . . . . . 80 Edmiston, D.C. .. .891, 907 Mittendirf, H. J. . . . . . . . . 50
Book, Robert . . . . . . . . . 587 Ehly, Jean . . . . . .. . . . . . 601 Jalihal, K. A. . . . . . .519, 521 Moitra, A. K. . . . . . . . . . .4.18
Booth, R. L. . . . . . . . . . . .87 Eisgruber, L. M. .. . . . . . . 18 Janke, W. E. . . . . . . . . . .852 Moulik, T. K. . . . . . . . . . 575
Bose, S. K. . . . . . . . . . . . 416 El-Sayed, F. . . . .. . . . . . 124 Javed, A. . . . . . . . . . . . . . 369 Multrop, J. R. . . . . . . . . . 897
Boyle, P. J. . . . . . . . . . . . 262 Emigh, G. D. . . . .. .833, 892 Jayaraman, T. K. . . . . . . . .78 Mylonas, D. M. . . . . . . . . 196
Braun, H. . . . . . . . . . . . . .84 Erickson, F. A. . .. . . . . . 362 Jhingram, I. G. . . . . . . . . 170
Bridges, J. D. . . . . . . . . . .965 Everett, H. W. . . .. . . . . . 409 Johnson, D. E. . . . . . . . . 655 Nand, Satya . . . . . . . . . . 101
Brosnan, Joe . . . . . . . . . . 583 Ewell, Raymond . . . . . . . 999 Johnson, R. R. . . . . . . . . 860 Nelson, D.C. . . . . . .. . . .253
Brown, L. R. . . . . . . . . . . .47 Eyvindson, R. K. . . . . . . . 945 Jones, C. C. . . . . . . . . . . . 398 Nelson, L. B. . . . . . .. . . . 131
Brummitt, W. C. . . . . . . . 542 Jorgensen, J. L. . . . . . . . . 253 Nelson, W. C. . . . . .. . . . .88
Buchner, A. . . . . . . . . . . . 271 Fabry, Carl . . . . . . . . . . . 566 Nevala, M. . . . . . . . .. . . . . .7
Bunker, A. R. . . . . . . . . . 320 Faulkner, L. C. . . . . . . . . 990 Karanjai, S. K. . . . . . . . . . 575 Newton, B. F. . . . . .. . . .926
Buntrock, H. . . . . . . . . . . 262 Fenwick, Richard . . . . . . 581 Kaskar, B. . . . . . . . . . . . .4.17 Nieuwoudt, W. L. . .. . . .423
Byra Reddy, H. N. . . . . 519, Finneran, J. A. . . . . . . . . 406 Katell, Sidney . . . . . . . . .4.15 Norma, D. W. . . . . .. . . . . .8
520 Fogarty, C. F. . . . . . . . . . 715 Kimbrough, H. L. . . . . . . 359
Foster, T. H. . . . . . . . . . . . 54 Kiyoura, Raisaku . . . . . . 933 Ogunfowora, O. . . . . . . . . . 8
Callaway, J. A. . . . . . . . .400 Framingham, C. F. . . . . . 716 Klein, B. W. . . . . . . . . . . . .40 Oyloe, T. L. . . . . . . . . . .667
Calvert, D. W. . . . . . . . . .402 Frederick, M. T. . . . . . . . . 87 Koepke, W. E. . . . . . . . . . 915
Chamberlin, R. E. . . . . . . 364 Free, Joe . . . . . . . . . . . . . . 54 Kolshus, H. J. . . . . . . . . . 518 Padmos, L. . . . . . . . . . . . 818
Chamberlin, Richard . . . .593 Frye, R. B. . . . . . . . . . . . 592 Kramer, J. C. . . . . . .589, 595 Palmer, Lane . . . . . . . . . . 201
Channe Gowda, M. B. . . .521 Fulcher, C. E. . . . . . . . . . 599 Kresge, Conrad . . . . . . . . . 54 Parker, J. H. . . . . . . 25, 864,
Chari, K. S. . . . . . . . . . . . 185 Furlow, J. W. . . . . . . . . . 177 Krishnaswami, S. . . . . . . . . 23 908
Chaudhary, B. N. . . .16, 528 Furniss, I. F. . . . . . .945, 946 Kulkarni, A. N. . . . . . . . .746 Parthasarathy, N. S. . . . .526
Chaudhry, M. G. . . . . . . . 369 Patel, S. M. . . . . . . . . . . . . 13
Choudhuri, R. . . . . . . . . . 170 Gargano, G. . . . . . . . . . . . 381 Lahiri, K. C. . . . . . . . . . . 4.18 Pathak, S. M. . . . . . . . . . . 578
Cibantos, J. S. . . . . . . . . . . . 5 Gaumer, Keith . . . . . . . . 540 Laing, David . . . . . . . . . . 896 Patterson, Tom . . . . . . . . 582
Cone, B. W. . . . . . . . . . . . . 18 Ghashghai, I. . . . . . . . . . . . 92 Lakshman, H. K. . . . . . . . 240 Periaswamy, R. S. . . . . . . 240
 AUTHOR INDEX

PHILLIPS ZATOUT

Phillips, A. B. . . .. .. . . . 138 Savage, P. R. . . . . . . 103,934 Smith, R. C. . . . . . . . . . .988 Wadis, K. A. . . . . . 266, 532,

Poulton, J. W. . . .. .. . . . 597 Savdasia, V. B. . . . . . . . . .78
Powell, A. F. . . . . . .. . . . .40 Schottler, R. . . . . . . . . . . 347
Powell, J. D. . . . .. .. . . . 178 Schultz, J. J. . . . . . . . . . . .70
Prasad, C. . . . . . .. . . . . . 528 Schwartz, A. K. . . . . . . . .400
Prestwich, Lym . .. .. . . . 102 Scott, W. C. . . . . . . . . . . .990
Pushparaj, K. . . . .. .. . . .304 Sealy, Tom . . . . . . . . . . .952
Sekhon, G. S. . . . . . . . . .539
Quirk, Tom . . . . . . . . . . . 535 Sen, S. N. . . . . . . . . . . . . 305
Shankar, T. L. . . . . . . ... .419
Raiher, Ronald . . . . . . . .551 Shankar, V. S. . . . . . . . . .344
Ramachandran, S. . . . . . .991 Sharma, D. P. . . . . . . . . . . 12
Ramachandran, V. . . . . . . .4. Sheldon, V. L. . . . . . . . . .527
Ramanna, R. . . . . . . . . . . . 15 Sherff, J. L. . . . . . . . . . . .404
Ramaprasad, K. . . . . . . . .346 Shields, J.T. . . . . . . . . 3, 22,
Ramaswamy, V. S. . . . . . 303 48, 52, 53, 61, 64
Ranganathan, V. . . . . . . . 524 95, 96, 997
Rangi, P. S. . . . . . . . . . . .252 Shim, Y. K. . . . . . . . . . . . .95
Reagon, Duro . . . . . . . . . .69 Sidhu, D. S. . . . . . . . . . . .252
Reed, J. F. . . . . . . . . . . . .81 Sikder, B. P. . . . . . . . . . . 579
Rhein, Paul . . . . . . . . . . .388 Sikder, R. P. . . . . . . . . . .358
Robinson, A. . . . . . . . . . .992 Sills, L. G. . . . . . . . . . . . .258
Rogers, James . . . . . . . . .584 Simak, S. E. . . . . . . . . . .364
Roumasset, J. A. . . . . . . . . 17 Simak, Shelley . . . . . . . .600
Rudel, R. K. . . . . . . . . . . .36 Singh, Gurdev . . . . . . . . . . .4
Russel, D. A. . . . . . . . .55, 91 Singh, Raghbir . . . . . . . . 539
Russell, B. G. . . . . . . . . . .39 Singh, S.T.P. . . . . . . . . . .993
Sinha, N. C. . . . . . . . . . . .4.18
Sahai, C. . . . . . . . . . . . . .746 Sirohi, A. S. . . . . . . . . . . . .6
Salmieri, P. . . . . . . . . . . . 381 Sivaraj, K. . . . . . . . . . . . .277
Sankhayan, P. L. . . . . .6, 252 Skaadel, Johannes . . . . . .350
Sarkar, H. C. . . . . . . . . . .530 Skull, A. J. . . . . . . . . . . .345
Sastry, K.N.R. . . . . . . . . . . 15 Smith, E. D. . . . . . . . . . .518
Smith, Y.C. . . . . . . . . .
Srinivasamurthy, J. . . . .
Stangel, P. J. . . . . . . . . .
70, 82,994
Stowasser, W. F. . . . . . . .904
Strauss, J. L. . . . . . . . 14, 567
Stroike, H. L. . . . . . . . . 798,
799, 800
Sullivan, L. J. . . . . . . . . .525
Sutherland, W. N. . .589, 595
Taleki, Deneb . . . . . . . . .996
Talway, K.S.K. . . . . . . . .746
Tambad, S. B. . . . . . . . . .536
Tatum, H. B. . . . . . . . . . . .52
Taylor, C. R. . . . . . . . . . . .32
Terman, G. L. . . . . . . . . . .70
Thomas, T. T. . . . . . . . . .244
Thompson, R. G. . . . . . .400
Thompson, V. M. . . . . . .585
Thorup, R. M. . . . . . . . . . 548
Timmer, C. P. . . . . . . . . . . .9
Trytten, J. M. . . . . . . . . .534
Turbeville, W. J., Jr. . . . .883
Ullrich, K. H. . . . . . . . . . 271
Valdes, A. . . . . . . . . . . . . .79
Vasino, R. . . . . . . . . . . . .38 l
Verghese, M. C. . . . . . . . . 104
Verhaegen, G. . . . . . . . . . .71
Von Uexkull, H. R. . . . . .942
. 552 533
.520 Waggoner, D. R. . . . . . . . .87
. 24, Wagle, M. P. . . . . . . . . . .484
Wagner, R. E. . . . . . . . . .923
Walker, W. M. . . . . . . . . . 564
Walkup, H. G. . . . . . . . . 540,
558,559, 594
Wang, Kung Lee . . . . . . . .40
Ward, R. H. . . . . . . . . . . . 572
Warner, Richard . . . . . . . 596
Warren, C. J. . . . . . . . . . . 639
Wassaf, A. . . . . . . . . . . . . 165
Wehrman, R. H. . . . .45, 258
Wett, Ted . . . . . . . . . . . .875
Wheeler, E. M. . . . . . . . . . 553
White, W. C. . . . . . . 395, 713
Wierer, K. . . . . . . . . . . . . 100
Wilbanks, J. A. . . . . . . . . 990
Wiley, J. H. . . . . . . . . . . . 906
Williams, G. G. . . . . . . . .979
Wilson, C. A. . . . . . . . . . . 591
Windridge, K.L.C. . . . . . .992
Wise, J. E. . . . . . . . . . . . . . 34
Woodworth, R. C. . . . . . . . 70
Woolf, W. F. . . . . . . . . . . 560
Wright, E. B. . . . . . . . . . . 563
Wyss, Al . . . . . . . . . . . . . 886
Yates, O. R. . . . . . . . . . . 921
Yeutter, Clayton . . . . . . .722
Zatout, A. A. . . . . . . . . . 124

MATERIALS INDEX

AMMONIA NITROGEN-PHOSPHORUS-POTASSIUM

Ammonia, 35, 36, 37, 103, 104, 132, 275, 276, 316, 359, 360, 746, 747, 748, 751, 756, 763,
105, 106, 107, 108, 109, 110, 567, 712, 989, 990 771, 774, 780, 817,969
1 12, 113, 114, 115, 116, 135, Mixed Fertilizers, 225,483 Nitrogen-Phosphorus-Potassium,
200, 253, 263, 264, 286, 287, Monoammonium Phosphate, 148 22, 24, 26, 27, 48, 53, 65,289,
288, 293, 294, 295, 296, 297, Naptha, 383
298, 299, 300, 324, 325, 326, Natural Gas, 408, 412 §. : : i. 3. º
327, 331, 332, 333, 334, 335, Nitric Acid, 396, 960 ; 3. 3. 2 > 3.

352, 353, 354, 362, 382, 384, Nitric Phosphate, 130 502, 503, 511, 538, 553, 610,
385, 400, 401, 406, 409, 410, Nitrogen, 17, 31, 32, 89, 128, 136, 611, 649, 661, 666, 667, 668,
41 1, 414, 417, 436, 438, 451, 141, 144, 145, 151, 208, 226, 671, 681, 686, 701, 713, 715,
551, 604, 635, 636, 663, 708, 227, 308, 350, 369, 407, 413, 731, 732, 739, 740, 743, 744,
714, 729, 754, 829, 874, 875, 415, 416, 418, 424, 426, 450, 749, 750, 753, 766, 767, 768,
876, 877, 878, 879, 880 462, 606, 612, 617, 620, 639, 770, 776, 777, 779, 782, 797,
Ammonia and Urea, 38 l 654, 664, 675, 677, 684, 700, 798, 799, 800, 801, 802, 803,
Ammonium Nitrate, 351, 613 707, 769, 772, 773, 775, 781, 804, 805, 806, 807, 808, 809,
Ammonium Phosphate, 224, 435, 818, 819, 821, 828, 852, 853, 810, 811, 812, 813, 814, 815,
691,.692, 693, 830 854, 855, 856, 857, 858, 859, 823, 824, 825, 826, 827 850,
Ammonium Sulfate, 452, 624, 628 860, 861, 862, 863, 864, 865, 851, 941, 943, 944, 945, 946,
Calcium Ammonium Nitrate, 689 866, 867, 868, 869, 870 871, 947, 948, 949, 950, 951, 952,
Diammonium Phosphate, 222, 688, 872, 873, 956, 975 953, 954, 955, 957, 958, 959,
705 Nitrogen-Phosphate, 239, 404, 427, 962, 963, 964, 965, 966, 967,
Liquid Fertilizer, 45, 46, 129, 131, 434, 489, 655, 656, 738, 745, 968, 970, 971, 972, 973, 974,
 MATERIALS INDEX

NITROGEN-PHOSPHORUS-POTASSIUM UREA AMMONIUM SULFATE

976, 977, 978, 979, 980, 981,
982, 983, 984, 985, 986, 987,
988, 991, 993, 994, 995, 996,
997, 998, 999, 1000
Nitrogen-Phosphorus-Sulfur, 645
Phosphate, 39, 40, 41, 147, 211,
218, 232, 233, 246, 279, 280,
281, 285, 317, 337, 338, 355,
356, 370, 378, 390, 442, 471,
478, 488, 508, 510, 643, 650,
651, 658, 672, 690, 717, 720,
721, 725, 733, 755, 761, 764,
791, 831, 832, 896, 897, 898,
899, 900, 901, 902, 903, 904,
906, 907, 908, 910
Phosphate Rock, 38, 120, 155,
156, 157, 158, 159, 160, 161,
162, 163 164, 165, 166, 167,
168, 169, 170, 171, 172,
174, 175, 176, 177, 178,
180,
428,
181,
455,
182,
456,
274,
467,
315,
468,
430, 485, 49.i. 493, 493, 494,
509, 605, 637. 638, 657, 669,
674, 680, 687, 694, 695, 709,
716, 723, 762, 784, 785, 786,
787, 789, 790, 833, 834, 835,
836, 837, 882, 883, 884, 885,
886, 887, 888, 889, 890, 891,
892, 893, 894, 895, 905, 909
Phosphate Rock Slurry, 328
Phosphoric Acid, 117, 118, 119,
121, 122, 123, 278, 341, 342,
343, 361, 507, 647, 648, 659,
660, 678, 718, 719, 911, 912,
913, 992
Phosphorus, 439, 783
Phosphorus-Potassium, 445
Potash, 124, 125, 183, 184, 185,
186, 187, 188, 189, 190, 191,
192, 193, 204, 214, 237, 238,
314, 339, 371, 392, 429, 430,
431, 432, 433, 460, 461, 476,
481, 607, 608, 609, 640, 641,
173,
179, º º: º ; 7. %.
391,
469,
793. 793. 794. 816. $30. 838.*
3. 2 * • 3.
$39, 840, 84), $42, 94, 21%. Urea Ammonium Phosphate, 139,
916, 917, 918, 919, 920, 921,
922, 923, 924, 925
Potassium Sulfate, 42,843
Raw Materials, 846, 847, 848, 849,
942
Sulfur, 43, 126, 127, 149, 150,
194, 195, 236, 329, 504, 505,
630, 631, 698, 704, 741, 795,
796, 822, 845, 926, 927, 928,
929, 930, 931, 932, 933, 934,
935, 936
Sulfur-Coated Urea, 142, 143
Sulfur-Sulfuric Acid, 844
Sulfuric Acid, 44, 282, 330, 340,
473, 500, 632, 633, 646, 673,
699, 742, 757, 758, 759, 760,
778, 937, 938, 939, 940, 961
Superphosphate, 310,425
Triple Superphosphate, 146
Urea, 33, 34, 111, 228, 265, 270,
273, 301, 309, 336, 374, 387,
419, 453, 454, 614, 615, 616,
634, 642, 653, 66.2, 665, 676,
682, 685, 702, 881
Urea and Nitrate, 386
140
Urea Ammonium Sulfate, 621, 622,
623, 626, 627

GEOGRAPHICAL INDEX

AFGHANISTAN NEW ZEALAND

Afghanistan, 306 Developing Countries, 9, 99, 100, Indonesia, 336, 614, 615, 751, 959
Africa, 50, 155 101, 243, 268, 422, 474, 949, Iran, 92,690, 727
Angola, 156 950 Ireland, 37, 137, 616, 617
Arabia, 234 Dominican Republic, 54 Israel, 752
Argentina, 731 East Germany, 951 Italy, 93,278, 486, 618, 753
Asia, 10, 48, 49, 73, 85,941, 942, Egypt, 124, 165, 166, 167, 247, Ivory Coast, 94
943 677 Japan, 61, 62, 118, 151, 152, 373,
Australia, 41, 157, 424, 425, 426, England, 267 374, 392, 435, 487, 488, 489,
471, 604, 605, 732 Ethiopia, 522 490, 619, 620, 621, 622, 623,
Bangledesh, 270 Europe, 29, 114, 238, 329, 613, 624, 625, 626, 627, 628, 629,
Belgium, 307 678,679, 991, 992 630, 631, 632, 633, 691, 692,
Brazil, 5, 18, 19, 51, 88, 158, 159, Finland, 7, 743 693, 694, 695, 696, 697, 698,
160, 161, 224, 225, 328, 427, France, 227, 334, 475, 476, 477, 699, 726, 728, 754, 755, 756,
428,671, 672, 733, 902 478, 680 757, 758, 759, 760, 937, 960,
Bulgaria, 606 Germany, 271, 332, 480, 725, 952 96.1
Canada, 90, 126, 149, 162, 163, Ghana, 21, 55, 91 Jordan, 185, 315, 761, 762
204, 183, 184, 214, 313, 314, Holland, 744 Korea, 269
412, 429, 430, 431, 432, 433, Hungary, 681 Kuwait, 634
473, 537, 607, 608, 609, 610, India, 4, 6, 12, 13, 56, 57, 58, 59, Laos, 186
673, 734, 735, 736, 737, 852, 60, 77, 78, 110, 125, 168, 169, Latin America, 59,880
889, 944, 945,946 170, 240, 244, 245, 252, 272, Libya, 635
Caribbean, 89 277, 294, 295, 346, 358, 372, Malaysia, 63,962
Central America, 52 383, 416, 417, 418, 434, 482, Mexico, 96, 171, 187, 236, 636,
483, 484, 485, 579, 520, 521, 763
Chile, 611
524, 530, 538, 539, 575, 578, Morocco, 279, 341, 342, 355, 356,
China, 612, 674, 675, 738, 739, 579, 682, 683, 684, 685, 686, 491, 492, 493, 494, 637, 638,
947, 948 687, 688, 689, 745, 746, 747, 764, 894
Colombia, 164, 676 748, 749, 750, 953, 954, 955, Netherland, 308, 343, 639
Comecon, 740, 741, 742, 918 956, 957, 958 New Zealand, 309, 310, 938
 GEOGRAPHICAL INDEX

NIGERIA ZAIRE

Nigeria, 8 498, 499, 500, 501, 502, 503, 557, 558, 559, 560, 561, 562,
North America, 640, 641, 765, 597, 653, 706, 776, 777, 778, 563, 564, 565, 566, 568, 569,
862, 903, 908, 921, 963, 964, 779, 973, 974, 975 570, 572, 573, 574, 576, 577,
965 United States, 11, 27, 28, 32, 34, 586, 587, 588, 593, 594, 595,
North Vietnam, 766 36, 40, 43, 45, 46, 65, 66, 74, 596, 598, 599, 600, 601, 602,
North Korea, 642 80, 82, 98, 105, 106, 107, 108, 654, 655, 656, 657, 658, 659,
Norway, 172, 242, 292, 302, 333 109, 113, 116, 117, 119, 120, 660, 661, 707, 708, 709, 710,
Pakistan, 235, 369, 700, 701, 966 121, 127, 129, 130, 131, 132, 711, 712, 722, 723, 780, 781,
Peru, 173, 174, 643 133, 134, 135, 136, 138, 139, 782, 783, 784, 785, 786, 787,
Philippines, 17, 111, 603, 702, 703 140, 143, 144, 145, 146, 147, 788, 789, 790, 791, 792, 793,
Poland, 188, 280, 330, 644, 645, 148, 150, 154, 193, 194, 177, 794, 795, 796, 797, 798, 799,
646, 767, 967, 968 178, 179, 180, 197, 198, 199, 800, 801, 802, 803, 804, 805,
Portugal, 229, 768 200, 201, 202, 203, 207, 208, 806, 807, 808, 809, 810, 81 1,
Rhodesia, 495 209, 210, 211, 212, 218, 219, 812, 813, 814, 853, 857, 860,
Romania, 769, 969 220, 221, 222, 223, 232, 237, 861, 868, 871, 879, 883, 884,
Russia, 770 251, 253, 257, 258, 264, 265, 885, 886, 888, 891, 892, 895,
Saudi Arabia, 175 273, 274, 276, 284, 285, 286, 896, 900, 904, 906, 907, 915,
South Africa, 230, 246, 375, 472, 293, 297, 298, 311, 312, 316, 919, 922, 928, 976, 977, 978,
647, 648 317, 318, 319, 320, 321, 322, 979, 980, 981, 982, 983, 984,
South America, 970 323, 324, 325, 327, 331, 335, 985, 986, 987, 988,989
South Korea, 95, 228, 649, 704, 337, 338, 348, 349, 351, 352, USSR, 67, 68, 123, 128, 181, 182,
771, 971 354, 361, 362, 364, 365, 366, 195, 281, 287, 299, 326, 662,
Spain, 176, 217, 231, 282, 436, 367, 368, 377, 378, 382, 389, 663, 664, 665, 729, 815, 816,
496, 772, 773,774, 775, 866 393, 394, 396, 398, 399, 400, 972
Sri Lanka, 205, 248, 437 401, 402, 403, 404, 408, 409, Venezuela, 666
Sweden, 115, 651 410, 411, 414, 440, 441, 442, Vietnam, 817
Syria, 650 444, 445, 447, 448, 450, 452, West Europe, 818
Taiwan, 64, 376, 652 454, 455, 456, 457, 460, 461, West Germany, 479,481,667, 819,
Thailand, 190, 189 462, 463, 464, 465, 466, 467,
820, 821
Tunisia, 249 468, 504, 505, 506, 507, 508,
Turkey, 705, 873 509, 510, 511, 512, 516, 525, West Pakistan, 97
United Kingdom, 122, 142, 191, 535, 540, 541, 542, 543, 544, Western World, 822, 939
192, 206, 215, 216, 226, 283, 545, 546, 547, 548, 549, 550, Yugoslavia, 69,668
296, 363, 413, 438, 439, 497, 551, 552, 553, 554, 555, 556, Zaire, 70, 71
 Agriculºus

DATE DUE

ACS

ſ^

HIGHSMITH 45-220
 º
THE QHQSIAIEUNIVERSITYBOOKDEPOSITORY

ſiliſi
Q ASLE SECT SHLF side"Fös"TEM c
8 08 06 29 8 7 15 018" 3

Bulletin Y-135 October 1 978

NATIONAL FERTILIZER DEVELOPMENT CENTER TENNESSEE VALLEY AUTHORITY MUSCLE SHOAL S, ALABAMA 35660