|Last Quarterly Update:||10/17/2016|
|SIC Codes:||2873, 2879|
|Industry Overview||Trends & Challenges||Industry Forecast|
|Quarterly Industry Update||Call Prep Questions||Website & Media Links|
|Business Challenges||Financial Information||Glossary & Acronyms|
Companies in this industry manufacture fertilizers and pesticides. Major companies include Bayer and BASF (Germany), Dow and Monsanto (US), Potash (Canada), and Syngenta (Switzerland). Many smaller companies are involved in mixing purchased raw materials to produce customized fertilizer compounds with special characteristics.
The global agricultural chemical manufacturing industry is driven by food production requirements. Large, fast-developing countries with major agricultural economies are increasingly being targeted for industry growth.
The US agricultural chemical manufacturing industry includes about 700 companies with combined annual revenue of about $45 billion.
Demand for agricultural chemicals depends mainly on demand for various crops, which in turn depends on crop prices. The profitability of individual companies is linked to efficient operations and marketing. Big producers have large economies of scale in production. Smaller companies can compete effectively by making specialty chemicals or fertilizer mixtures for local markets. The US industry is highly concentrated. The eight largest producers of fertilizers generate around 70 percent of segment revenue, and the eight largest producers of pesticides generate about 75 percent of revenue for that segment.
International trade in fertilizers is large, because phosphate rock and potash are available in only a few countries. The high product value makes bulk shipping costs relatively unimportant. The relative cost of natural gas (for nitrogen fertilizers) has a large effect on trade.
The US is usually a net importer of fertilizer, largely due to limited ...
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