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          1. Agricultural Chemical Manufacturing Industry Profile

            Report Page Length: 10-12
            Last Quarterly Update: 8/31/2020
            SIC Codes: 2873, 2879
            NAICS Codes: 3253
            Chapters Include:
            Industry Overview Trends & Challenges Industry Forecast
            Quarterly Industry Update Call Prep Questions Website & Media Links
            Business Challenges Financial Information Glossary & Acronyms
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            Excerpt from Agricultural Chemical Manufacturing Industry Profile

            Companies in this industry manufacture fertilizers and pesticides. Major companies include Bayer and BASF (Germany), Corteva (US), Nutrien (Canada), Sumitomo Chemical (Japan), Syngenta (a Switzerland-based unit of ChemChina), and Yara International (Norway). 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 976 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $31 billion.

            COMPETITIVE LANDSCAPE

            Demand for agricultural chemicals relies 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 can be considered as highly concentrated.

            International trade in fertilizers is large, because phosphate rock and potash are available only in 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 domestic supplies of nitrogen and potash. Canada, Trinidad and Tobago, and Russia ...

             
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