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Outlook for International Prices of Fertilizers, Raw Materials and ...

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SUPPLY FACTORS<br />

NITROGEN – many producers with no one<br />

producer or group <strong>of</strong> producers able/willing to<br />

manage supply<br />

PHOSPHATE – Increased concentration in<br />

the US facilitating some supply management<br />

POTASH – Supply concentrated with major<br />

producers managing supply<br />

FERTECON /FAI Hyderabad December 2009 51<br />

SUPPLY MANAGEMENT<br />

Supply management protects prices in a<br />

downturn <strong>and</strong> sets the scene <strong>for</strong> big<br />

increases in prices when dem<strong>and</strong> moves<br />

upwards<br />

Surplus capacity is managed in both phases<br />

<strong>of</strong> the cycle<br />

Possible in potash <strong>and</strong> phosphates, but not<br />

nitrogen<br />

FERTECON /FAI Hyderabad December 2009 52<br />

26

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