Blood and bone: Volatility in the agricultural sector contributes to revenue declines

IBISWorld’s Fertiliser Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.


Industry Threats & Opportunities

  • Industry players are vulnerable to external shocks such as adverse weather conditions
  • Rising utility prices have had an adverse effect on profit margins over the past five years
  • The performance of the agricultural sector significantly influences the industry

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    Industry Analysis & Industry Trends

    The Fertiliser Manufacturing industry plays an essential role in ensuring that the nation's agricultural production systems are economically efficient in the short term and sustainable in the long term. Roughly five to six million tonnes of fertiliser is sold each year in Australia, about half of which is manufactured locally in volume terms. The industry supplies a range of phosphorus, nitrogen, potassium and sulphur fertilisers, and an increasing mix of high-analysis blends and trace elements. Nitrogen-based fertiliser products (including ammonium phosphates and urea) are applied to over half of all fertilised agricultural land in Australia, and make up a key industry product segment...

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    Industry Report - Industry Investment Chapter

    Industry capital intensity levels are high as large amounts of capital are required to set-up and operate a world-class fertiliser manufacturing plant. Upgrading facilities to ensure world-class competitiveness or economies of scale requires additional capital outlays. Over the past five years, industry operators have invested capital resources in measures designed to lower operating costs through increased automation and improved operating efficiencies. They have also sought to reduce labour input costs, cutting employment numbers and curbing wage growth.

    IBISWorld uses the industry cost structure to calculate capital intensity. Depreciation is used as a proxy for capital, while wages are used as a proxy for labour. In 2016-17, depreciation is estimated to account for 3.8% o..

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    Additional Insights for the Fertiliser Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Fertiliser Manufacturing Industry are

  • Availability of resources
  • Having contacts within key markets
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Demand from agriculture and Domestic price of fertiliser in the Fertiliser Manufacturing industry impact industry performance..

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    Industry Products

    What is the Fertiliser Manufacturing Industry?

    Industry firms manufacture or mix fertilisers, including those based on the three major plant nutrients (phosphorous, nitrogen and potassium), and organic fertilisers, including those derived from bonemeal and animal by-products.

    Industry Products
    Nitrogen-based fertilisers
    Superphosphate fertilisers
    Ammonium phosphates
    Organic fertilisers
    Potash fertilisers
    Other manufactured fertilisers
    Industry Activities
    Prilled ammonium nitrate
    Ammonium phosphate and ammonium sulphate
    Animal or vegetable fertilisers and other organic fertiliser
    Bone dust, bonemeal and fishmeal fertiliser
    Phosphate, ground and superphosphate fertiliser
    Potash fertiliser
    Potassium chloride fertiliser
    Sodium nitrate fertiliser
    Controlled release fertiliser preparation
    Urea (fertiliser grade)

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Demand from agriculture
  • Domestic price of fertiliser
  • Level of annual rainfall
  • Trade-weighted index

  • Current Performance
  • Volatile revenue growth
  • Dominant international trade patterns
  • Changing operating environment
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry challenges
  • Changing players
  • Environmental issues
  • International importance
  • Table: Fertiliser Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Fertiliser Manufacturing Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Grain Growing
  • Sheep Farming
  • Beef Cattle Farming
  • Sugar Cane Growing
  • Cotton Growing

  • Key Selling Industries
  • Basic Inorganic Chemical Manufacturing
  • Oil and Gas Extraction

  • Products & Services
  • Nitrogen-based fertilisers
  • Ammonium phosphates
  • Superphosphate fertilisers
  • Organic fertilisers
  • Other manufactured fertilisers
  • Potash fertilisers
  • Chart: Fertiliser Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wheat farmers
  • Livestock farmers
  • Other cereal grain farmers
  • Export market
  • Non-agricultural users
  • Oilseed farmers
  • Industrial crop farmers
  • Other farmers
  • Chart: Major Market Segmentation for the Fertiliser Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Fertiliser Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Fertiliser Manufacturing Industry

  • Industry Globalization
    Major Companies
    Incitec Pivot LimitedWesfarmers LimitedYara Pilbara Holdings Pty Ltd
  • Table: Incitec Pivot Limited - financial performance
  • Table: Wesfarmers Limited - financial performance
  • Table: Yara Pilbara Holdings Pty Ltd - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Fertiliser Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Fertiliser Manufacturing Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Nitrogen Fertilisers
  • Fertilisers based on the manufacture of ammonia. They are popular because Australian soils are deficient in nitrogen.
  • Phosphate Fertilisers
  • Fertilisers manufactured by adding acid to phosphate rock. Superphosphates are made by treating phosphate rock with sulphuric acid and water, making the phosphorous soluble for plants to absorb.
  • Potash
  • Fertiliser that is derived from geological saline deposits and is used in soils that are affected by potassium deficiency.
  • Single Superphosphates (Ssp)
  • SSP fertilisers were the first commercial mineral fertiliser and were once the most commonly used fertiliser. They have a relatively lower phosphorus content.
  • Urea
  • A naturally occurring organic compound used to manufacture nitrogen fertiliser. It is made by combing ammonia and carbon dioxide.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Fertiliser Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Fertiliser Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Fertiliser Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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