MICHAEL PORTERS’ FIVE FORCES MODEL OF FERTILIZER INDUSTRY
Submitted by: Charushila Satish Bankar
Roll no.: 0125
Div: A
INTRODUCTION TO FERTILIZER INDUSTRY: Today, Indian Fertilizer Industry is developing in terms of technology. Indian manufacturers are adopting advanced manufacturing processes to prepare innovative new products for Indian agriculture. India has entitled as the third largest producer and exporter of nitrogenous fertilizer. The tremendous demand of fertilizers has led the country to invest huge in the public, co-operative and in private sectors. At present, India has more than 63 large sized plants of fertilizers, manufacturing wide assortment of fertilizers including nitrogenous, phosphatic, Ammonium
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4. But even though the prices are high, farmers have to use them to get high production. Hence they prefer to buy them from co-operative societies which provide at concessional rate with credit facilities. 5. Also variety of substitutes are available like FYM, compost, green manures, biofertilizers which along with increasing production protect the soil fertility.
Thus, the bargaining power of buyers is high here.
THE THREAT OF SUBSTITUTES: MODERATE
A wide range of substitutes are available. They are as follows- 1. Bio-fertilizers, 2. manures(FYM,cattle dung), 3. ,green manures(vegetable,household waste), 4. vermicompost(Roundworms) 5. A wide range of mixed fertilizers.
The prices of these organic fertilizers are low compared to inorganic fertilizers. As Indian rural farmers are price sensitive they can go for these substitutes. Also it protects the soil from getting deteriorated, reducing soil fertility.
But, the cost of switching to the substitute is high.
Hence, the bargaining power of buyers(farmers) is moderate.
RIVALRY AMONG THE EXISTING COMPETITORS: HIGH Below the list of Public Sector Fertilizer Company in India 1. Brahmaputra Valley Fertilizer Corporation Limited 2. Hindustan Copper Limited 3. FCI Aravali Gypsum And Minerals India Limited 4. Hindustan Fertilizer Corporation Limited 5. Madras Fertilizers Limited 6. Neyveli Lignite Corporation Limited 7. Paradeep
Inorganic fertilizer may look as if to propose that the fertilizer is not natural it is chemical made by the industries or a factory. Industrial fertilizer is fertilizer supply from mineral deposit or artificial from man-made compound. This type of fertilizer also contains natural compounds. The mixture of a formula is put together in a factory, rather than collecting by environment as it occurs with organic fertilizer. Inorganic fertilizer also contains beneficial chemical and mineral deposits and materials the nutrients essential to produce plants. This type of fertilizer can be offered mostly in different agriculture different stores. Some of the farmers prepared to use inorganic fertilizer for them to salvage the malnourishment of the
Continous use of chemical fertilizers can affect the soil property which later cause decrease in productivity, low nutrient recovery for plants uptake which cause higher cost of production and environmental pollution ( Sarkar et al ., 1997 ).
ABSTRACT: Rare earth elements or rare earth metals are a group of seventeen elements in the Periodic Table including Scandium, Yttrium and 15 Lanthanides with Z ranging continuously from 57 to 71. These elements encompass nearly all electronic, clean energy, and military technologies due to their unique physical and chemical properties. Despite world-wide usage of these elements, presently China bears a monopoly in rare earth market owing to its huge rare earth deposits. The ever increasing demand and restricted export of REE from China has forced counties around the world to explore resources available to them. Propelled by increasing demand and a need for self-sufficiency to provide for growing industry demands, India plans to triple its output by 2017.Though a number of conventional techniques are already in practice they are too costly and environmentally destructive to be used for the widely dispersed low grade resources. Furthermore, the processing of low grade ores would lead to generation of additional amount of wastes of complex nature. Thus, there is an urgent need to search for alternative rare earth mining techniques. For this reason Phytoextraction would be a better alternative. In
Over Fertilization occurs when more nutrients are added to the soil than the growing plants can utilize unused nutrients are then carried away by irrigation or rain water. Several factors can result in over fertilization. For example, it is difficult to determine precise nutrient content in some organic fertilizers, like manure. As a result, actual nutrient levels may exceed estimated content, and over fertilization occurs. Also, gardeners may incorrectly diagnose poor plant growth as a nutrient deficiency and apply fertilizer as a corrective amendment. In fact, the true problem could be unhealthy roots, poor soil conditions or other improper care. To prevent overfertilization, have soil tested regularly to determine accurate nutrient levels and only apply fertilizer as
The yearly fertiliser program for the flats is as following, 250kg/ha of Sulphur Super with added selenium. Capital applications of lime are also applied as required.
Phosphorus has a huge part to play with farmers all around the world. As the phosphorus in soil is usually a small amount making plant growth smaller, phosphorus fertilisers are used throughout the world commonly. For example farmers will put fertiliser with phosphorus on their crops because it limits plant growth and the plants grow healthily. Then later on when the animals eat the plants it makes them adsorb the phosphates.
Conversely, natural cultivation is an advanced technology that does not harm the environment as well as the biosphere. As a matter of fact, no longer do cultivated areas contaminated, pesticide residual, emaciated and degraded. Instead, this technique assists boost biodiversity and the biosphere reserve in nature and protect the environment from antiquated farming practice. It would be the height of folly, however, not to mention some drawbacks of organic agriculture and advantages of intensive farming. For one thing, organic farming, while conventional farming is manufacturing bigger yields, cannot produce enough food to assuage the world’s appetite. For another thing, it would be rather difficult for the impoverished and underprivileged to afford high-priced products from natural farming, which, consequently, can in part limit their interests of utilizing fresh food. Meanwhile, intensive agriculture, with curtailed prices, can meet the requirements of more people. In conclusion, there is no denying that organic and intensive farming play a vital role in life. Notwithstanding, everything frequently parallels with its downsides and these methods are not an exception. Anyway, with the rational ways of exploiting these technological advances and future development in their security, hopefully all problems will be eliminated and the merits can be
It was hypothesized that if bean plants were planted in four different brands of soil (Jiffy, Miracle-Gro, Scotts, and Vigoro), then the bean plant in Vigoro-the most expensive soil-would grow the tallest. The experiment supported the hypothesis. The hypothesis was supported because the plant in Vigoro had a growth average of 5.74 cm at the end of week 4, the highest amount of growth out of the four brands of soil. This indicates that Vigoro was the brand that caused the best amount of plant growth in the bean plants. Vigoro Organic and Natural soil contains a 0.09% Nitrogen and 0.06% Phosphate content (“Vigoro” n.d.). Both of these components are vital in a plant’s growth. Plants require nitrogen, and phosphorus to be supplemented by soil (“Plant” n.d.).
S (%) and K (%) are marginal but in soil analysis Sulfate-S and K are low, therefore is recommended to add fertiliser to rise nutrient to optimum levels
If insufficient fertiliser or the wrong nutrients are applied productivity can be compromised. Hence, it is important farmers undertake regular soil and leaf analysis to determine an appropriate fertiliser regime for maximum production (Queensland Government Department of Agriculture and Fisheries, 2012).
The key factor that off-set the market price risk in the volatile fertilizer market is the low cost of the project’s feedstock gas supply, which will be supplied by PDVSA Gas on a long-term, low-cost basis. The cost-advantaged gas supply will allow FertiNitro to be a low marginal cost producer of fertilizer, allowing the project’s production costs to be near the bottom of the industry cost curve. Pequiven also has exclusive right to market and sell the off-take products in S. America, C. America and the Caribbean, but also can request Koch to market its portion in North
Since the dawn of the industrial revolution in the 19th century, both food production and the world’s population have experienced dramatic increases. The last five years have seen particularly significant benchmarks, with the world population reaching 7 billion in 2011. Looking to the future, experts have estimated that the population is likely to surpass 9 billion by 2050. As a result, the same amount of land (30% of the earth’s surface) will be expected to feed increasing numbers of people. The area will have to be used more intensively leading to soil deployment. For the above reasons fertilizers, will be in great
In the past few years farmers have overproduced and had to slash prices on their crops, due to the lower prices, farmers have reduced their spending on seeds thus impacting the sales in agribusiness (Pickler, et al. “Bayer Deal for Monsanto
The most common way to combat nutrient depletion is to use mineral fertilizers. In South and East Asia, where mineral fertilizers have been extensively used, crop yield
In fact, in 1997, when each industry, including automobile industry registered negligible growth, two wheeler industry registered 3% growth, quiet an impressive one, mainly due to the growth in rural demand. Market leader like TVS Suzuki, identify the reason to be good monsoon resulting in good agriculture production, support price policy in agriculture. Agriculturists are further supported but heavily governmental subsidies especially in fertilizer and power.