Industry Analysis & Industry Trends
The Fertiliser and Nitrogen Compound Manufacturing industry produces fertilisers containing nitrogen, potassium, phosphate and potting soil. Before the start of the five-year period through 2016-17, industry revenue fell as prices tumbled following a staggering increase in 2008-09. During the decade through 2008-09, the industry was beset by the long-term trend of falling fertiliser usage, with nitrogen usage in particular being hit. This trend has abated over the past five years. In view of this, global fertiliser prices have been the main determinant of industry performance over recent years. Industry revenue is expected to decline at a compound annual rate of 2.3% over the five years through 2016-17, reaching just below £1.7 billion, including an expansion of 1.8%... purchase to read more
Industry Report - Industry Investment Chapter
The costs of straight fertiliser production are high. This reflects the need for capital-intensive plants, which are expensive to start up and shut down. Thus the capital intensity of the industry is considered to be high. IBISWorld estimates that for every £1.00 spent on capital, approximately £1.54 is spent on wages. Ammonium nitrate fertilisers and nitrogen compounds are produced in an integrated process requiring significant feedstocks and high capacity utilisation rates to reduce production costs. However, industry participants involved in blending operations, where straight fertilisers are purchased rather than produced, face somewhat lower levels of capital intensity.
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