Agriculture in the 21 st Century Who Is Your Competitor? (It May Not Who You Think It Is)
Agriculture in the 21st Century
Who Is Your Competitor?
(It May Not Who You Think It Is)
Three Centuries of Agriculture
Do You Remember When?
• Fertilizer came on a box car in burlap
bags?
• Pioneer Hybrid Seed Corn Bags had
“Every Ear From a Detasseled Plant”
printed on them?
• Many farms had a few chickens, pigs, and
cows?
• The can truck picking up milk?
How Far Does Your Crop
Travel Now?
What Do You Compete For?
• Products & Services--IMPUTS• Equipment repairs, parts
• Land Leases and Rents
BUT WHAT ABOUT?
• Seeds and Chemical
• Fertilizer
• PRICE of your crop, grain or vegetable!
SO….
Who Is Your Competitor?
The World in the 21st Century
Times are different
Regions of the world are enjoying more
prosperity
We all like to eat
The balance of production
The balance of need
SHOW ME THE MONEY!
Country % World Population % Growth in Spending
Africa 32% 6%
Asia 52% 32%
Europe -5% 22%
North America 5% 27%
Russia 0% 4%
South America 11% 9%
Nitrogen Solution
• Mainstay of nitrogen sources here in East
Simple to use
Easy to move around
Easy to get
• In the WORLD
Costly to transport—a lot of water per unit N
Not as easy to store as urea
The Producers of UAN
Nitrogen Solution
Country %Consumption
United States 80
France
Spain total of 17%
Italy
Germany
Energy Facts
• Over twenty new fertilizer production
plants scheduled to be built in the world
and not one of them is for UAN
• U.S. Natural Gas remains well above
prices suitable to use in nitrogen
production DESPITE…
• U.S. has second largest stockpile of
Natural Gas in recorded history
WHY??
•Speculators now invest heavily in N/G
simply for profit. Product has become
non seasonal (remember soy meal)
•Fertilizer business is not primary purpose
for N/G (first fertilizer company were oil)
•Need for some changes to the energy
policy
Make the Most of Your Choices
The Potash Market
Country %Production
Canada 90
U.S. 10
Country %Consumption
China 30
India 15
Thailand 10
Indonesia 15
U.S. 30
A little fact: China now consumes 50% of ALL concrete made in the WORLD
Fertilizer is a World Product
• The whole world now shops for fertilizer
• Countries want food for their citizens
• Ocean vessels and barges have come
into huge demand. With freight rates over
double what they were before.
Here is the GREAT NEWS!
• The world has A LOT of people to feed.
Be ready like the N/G investor to make a
profit on your products
• North America continues to be the leader
in ag technology and innovations
• Make the most of the changes and
improvements
In Closing
• Nations are starting to feed their people
• The days of the Can Run are probably
over
• Private companies sell eliminate boundries
• Look for better ways to raise a crop
• Always look for ways to improve you
fertility program and try a little
Nitrogen determines your yield
Use it wisely…not just more
Each source has it’s pros and
cons
IN CLOSING…
Never Forget Were You Live!
We Have Much to be Thankful For
THANK YOU!