|
| I just read this week of a new coal gassification process that most likely uses potassium as a catalyst (the true catalyst is kept secret, but the reporter had reasons for this educated guess). Something to keep in mind. Because the catalyst is recycled, it may not become a huge consumer of K, but it is an example of non-fertilizer uses of these materials.
Agreed that many of our markets are substantially less free than they would ideally be (in my opinion), primarly due to gov't meddling (tariffs, regulations, taxes, etc). Voters and taxpayers should raise hell about this.
Tim C brings forth examples of pricing schemes with a whiff of collusion. I'm sure this happens quite a bit. Yet there are other players waiting in the wings ready to undercut the price if the markup gets too out of hand. Likewise new market entrants. Even with the barrier to entry of regulations, etc., there are companies who are ready and willing to shoulder the burden if it looks lucrative enough. Any windfall profits in any sector will attract new entrants in the market eventually. The Big Three automakers in the U.S. were the survivors of a couple hundred car manufacturers in the early 1900s. In the 1970s they thought that barriers to entry would let them have the playing field to themselves. They didn't see Toyota, Honda, Nissan as competitors. Oh, what a mistake. It's not over, either, with Hyundai, Susuki, Tata, and others gaining traction.
If the U.S. fertilizer market is so uncompetitive, we wouldn't see the degree of innovation that we do. Both Mosaic and Agrium have introduced many new compounded fertilizers (with trace elements) in the last decade or so. Agrium brought forth its ESN. Both of them continue to look at many new products to give them the edge.
| |
|
Fertilizer Companies are Screwing the FARMERS
