Phosphatic Fertilizers

SIC 2874

Companies in this industry

Industry report:

This category includes establishments primarily engaged in manufacturing phosphatic fertilizer materials, or mixed fertilizers from phosphatic materials produced in the same establishment.

This industry, which had 127 plants engaged in manufacturing phosphatic fertilizer materials, or mixed fertilizers from phosphatic materials, was valued at $17.3 billion in 2008. Industry-wide employment was 4,800 workers. Plants producing phosphatic fertilizers shipped $11.3 billion in fertilizer. States with the highest concentration of establishments were Florida, Georgia, California, and Texas.

Although the original sources of phosphorus for plant fertilization were guano (bird and bat excrement) and ground bone, a more plentiful source was found in phosphate rock, which was the only commercially important source of fertilizer phosphorus in the mid-2000s. The United States is the world's leading producer of phosphatic fertilizers. The Kola Peninsula in Russia is another primary source, and so is Morocco, which has phosphate rock deposits four times larger than those in the United States.

After mining, the phosphate rock must be refined and concentrated for use as fertilizer. Sometimes finely ground phosphate rock is applied directly to soil, but usually sulfuric acid is used to convert it into a more water-soluble form.

About 45 percent of the phosphatic fertilizer produced in the United States was used on the domestic corn crop, so corn acreage is one determinant of domestic demand. The U.S. Department of Agriculture estimated corn plantings had increased 1 percent from 2004 to 2005 and expected continued increases in the Corn Belt and Great Plains. However, other parts of the country were expected to decrease their corn acreage due to low corn prices and high fuel and fertilizer costs.

At the beginning of 2006, fertilizer prices were about 15 percent above the previous year's prices. Phosphate showed the sharpest price increase, up 26 percent. The increase in prices were due to increased natural gas costs, world demand, and ability to purchase raw materials. International demand was expected to continue to push up the prices of phosphorous and also potash.

In the mid-2000s the most widely used of the phosphatic fertilizers was diammonium phosphate (DAP). About 70 percent of the fertilizer used in the United States was DAP. About half the DAP produced in the United States in the early 1990s was exported to China, but as China began to become more self-sufficient, those numbers decreased. Beginning in 2000, the output of phosphate fertilizers in China rapidly increased. For example, the output of concentrated phosphate compound fertilizers was around 4.5 million tons in 2003, which was an increase of 22 percent over the previous year. In addition to China's increase in production and the resulting decrease in U.S. exports, Morocco and the Middle East attempted to capture market share during the mid-2000s. Thus although U.S. exports of DAP saw an annual growth rate of 3.7 percent through the 1990s, they decreased by 4.8 percent annually from 1999 through the mid-2000s.

Population growth and improving diets affected the global fertilizer business in the mid-2000s. Developing countries started moving away from diets consisting of mostly grain to high-protein diets of beef, poultry, and pork. These high-protein diets required an increase in the amount of grain produced, and this in turn caused an increase in the amount of fertilizer produced and demanded. Because phosphate fertilizer manufacture is driven by global supply and demand, it was expected to increase throughout the mid- to late 2000s, though only at a predicted rate of 2 percent annually in the United States.

There were 11 phosphates manufacturing plants with 1,164 employees and $5.5 billion in product shipments. Diammonium phosphate production manufacturers were valued at $500 million. There was one manufacturer of superphosphates, employing 25 workers and generating $10.6 million in revenue. Plant foods, mixed from plants making phosphatic fertilizer, operated 11 plants with product shipments totaling $10.2 million.

In 2007, the United States was the largest exporter of phosphate fertilizer, which provided healthy revenues for the U.S. phosphate industry. Although the United States was the largest producer of phosphate fertilizers, profits and declining export demand for diammonium phosphate (DAP) led to a decline in phosphate production. In fact, phosphoric acid (the chief feedstock for phosphate fertilizers) production declined 13 percent from 1999 to 2008. Volatile raw material costs early in 2008 led to higher fertilizer prices, thus adding to fertilizer manufacturers' bottom lines.

Industry Leaders

One of the largest producers of phosphate fertilizer in the United States in the mid-2000s was Mosaic of Faustina, Louisiana, which had the capacity to produce 5.3 million tons of product a year. Mosaic was formed in 2004 by the merger of Cargill Crop Nutrition, a business unit of Cargill and IMC Global. Other leaders included CF Industries of Plant City, Florida, with a 1.1 million ton capacity and sales in 2006 of $1.95 billion, and Potash Corporation (Saskatoon, Saskatchewan, and Northbrook, Illinois), which had sales in 2006 of $632 million. U.S. Agri-Chemicals of Bartow, Florida, and Simplot Phosphates, a subsidiary of J. R. Simplot Company, in Pocatello, Idaho, were also important phosphate fertilizer manufacturers in the mid-2000s. Cargill, Inc. was the United States' largest private corporation in the mid-2000s and the leading grain producer, in addition to a fertilizer manufacturer. Including all divisions, the company posted 2006 sales of $75.2 billion and had 153,000 employees.

© COPYRIGHT 2018 The Gale Group, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. For permission to reuse this article, contact the Copyright Clearance Center.

News and information about Phosphatic Fertilizers

Research and Markets Adds Report on the India Phosphatic Fertilizers Market
Manufacturing Close-Up; November 24, 2017; 448 words
The "India Phosphatic Fertilizers Market By Type (DAP, SSP...Markets' offering.India phosphatic fertilizers market is forecast to is propelling demand for phosphatic fertilizers as they aid in increasing the...
Market Data Forecast Adds Report: Phosphatic Fertilizers Market
Manufacturing Close-Up; November 14, 2016; 700+ words
...According to the report "Phosphatic Fertilizers Market", published by...only minor amounts of it. Phosphatic Fertilizers market has progressed into...forecast period.The global Phosphatic fertilizers market is segmented as follows...
Research and Markets Adds Report: European Phosphatic Fertilizers (Diammonium Phosphate, Monoammonium Phosphate, Superphosphate) Market - Trends & Forecast Up to 2019
Manufacturing Close-Up; May 7, 2015; 516 words
...addition of the "Europe Phosphatic Fertilizers Market byType, by Application...highlights include:The Phosphatic Fertilizers market is segmented into...fertilizer in the European Phosphatic Fertilizers market.The European Phosphatic...
MarketsandMarkets: Phosphatic Fertilizers Worth $61,623.5 Million by 2018
Manufacturing Close-Up; April 17, 2014; 500 words
...and segments the global phosphatic fertilizers market with an analysis...restraining factors for the global Phosphatic Fertilizers market with an analysis...Rest of the World (ROW).Phosphatic fertilizers include diammonium phosphate...
Phosphatic fertilizers
China Chemical Reporter; February 26, 1997; 700+ words
Table 1 The Output of Phosphatic Fertilizers Year Output Over the previous...2 The Main Producers of Phosphatic Fertilizers in China in 1995 Output...phosphate 1204.9 17.97 Other Phosphatic fertilizers 916.7 13.67 Triple superphosphate...
Complex Supply - Phosphatic Fertilizers
Mena Report; September 30, 2014; 528 words
Tenders are invited for Complex supply - phosphatic fertilizers Total quantity or scope: 40 tons of complex Estimated value excluding VAT: 102,360 RON Time limit for receipt of tenders or...
Bohra Industries to Hit Capital Markets to Raise Upto Rs 25.15 Crore
Accord Fintech; March 21, 2017; 326 words
...Advisors, while the compliance officer for the issue is Priyanka Jain.The company manufactures and markets phosphatic fertilizers. The company's products include single super, granualated single super, and triple super phosphate. The...
Indorama in Talks to Buy Tata Chemicals' Haldia Unit
Mint; August 2, 2017; 700+ words
...inorganic chemicals and fertilizers. Over the years, Tata Chemicals has expanded its operations to edible salt, phosphatic fertilizers, urea and cement. Its agri business includes crop nutrition, chemicals and pesticides.For the Indorama group...

Search all articles about Phosphatic Fertilizers