Images Source: Potash Corp.
Structure of the Agricultural Chemicals Industry
The agricultural chemicals industry is highly competitive. Product innovation, intellectual property protection, worldwide distribution, and farmer relationships are keys to success in the seeds and genomics business. The potash, phosphate, nitrogen, and rock salt markets have minimal product differentiation, though producers can gain an advantage in markets close to their sources of supply or when costs (transportation, processing) can be minimized. We’re generally neutral on the structure of the group due to commodity price swings, but firms can carve out competitive advantages in local markets.
We’ve dropped coverage of stocks in the Agricultural Chemicals industry: CF, CMP, MOS, NTR, SMG.