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Quantifying Impacts Of Competition And Demand On The Risk For Fertilizer Plant Locations, William W. Wilson, Sumadhur Shakya

College of Business Faculty Publications and Presentations

Fertilizer is an essential commodity traded in international and domestic markets and spatial competition is important feature impacting interfirm rivalry. In the case of North American fertilizer, numerous plants have been announced to either expand or open new plants (nitrogenbased fertilizer plants), exerting competitive pressures on an industry with surplus capacity but highly competitive in terms of production costs and technology. Proposed new plants and expansions are being induced by changes in the composition of crops, changes in the price of natural gas which affects the cost of producing domestic anhydrous ammonia. Developments in the fertilizer industry have become more …