Emerging Centers of Fertilizer Production

Qose proximity of production facilities to markets is desirable however, the world s ratio of imports to fertilizer use increased from 30 1% in 1979/80 to 38.8% in 1992/93. This indicates that location of basic (N, P, and K) production capacity is increasingly dictated by availability of low-cost raw materials. Some of the reasons for new, emergir centers of production of nitrogen, phosphate, and potash fertilizers are discussed below. 

Projected increases in nitrogen fertilizer production capacity by region are discussed in Chapter 4 of this manual. Most expansions will occur in Asia and Latin America North America, Eastern Europe, and Oceania will see little change in ce acity, whereas Eurasia and Western Europe are expected to reduce capacities by small amounts. 

Phosphoric acid is used in the production of most phosphate fertilizers. According to TFI s 1994 production cost survey of North American producers, phosphoric acid represented about 60% of the total production costs for DAP, 74% of costs of producing MAP, and 62% of costs of producing TSP. Cost of phosphate rock comprised 47% and sulfur 30% of total costs of producing phosphoric acid. Therefore, the production of phosphoric acid-based phosphate products will continue to be concentrated in the regions with low-cost phosphate rock and sulfur. Acidulation of phosphate rock with nitric acid is a competitive technology, particularly in Europe. 

At the global level, phosphoric acid capacity is expected to increase to about 39 miUion tmnes P2O5 by the year 2000 mostly in the developing markets. The developed markets and the refornrung markets will register little change. 

Beginning near the year 2000, production in Florida (U.S.A.) is expected to decline due to environmental pressures and increased production costs. However, the United States is expected to be a major producer and exporter well into the 21st century. More detailed projections of changing phosphate production capacity are included in Chapter 4 of this manual. 

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