Converted Organics - Competitors

Converted Organics Competition

Now Viewing Converted Organics's competition in: Chemical Manufacturing - Agricultural (primary)

Recent Developments

Imports, Exports Increase - US agricultural chemical imports rose 30.4 percent in 2007 compared to 2006; exports rose 13.5 percent. Imports from 13 of the 15 top suppliers of agricultural chemicals to the US increased. Imports from Canada, which provides about 36 percent of the agricultural chemicals to the US, rose 19.9 percent, and imports from China rose 122.5 percent.

US Corn Acreage Expected to Decline - US farmers intend to plant 8 percent less corn in 2008 than in 2007, according to the USDA. Demand for certain agricultural chemicals may be impacted by changes in the amount of acreage farmers commit to various crops. High nitrogen costs and strong soybean prices were cited as key causes for the expected decline in US corn acreage.

Rule may Prevent Oil Price Manipulation - US FTC officials hope to have a rule in place to prevent oil price manipulation by oil companies by year-end 2008. Reports that oil company BP has occasionally exported oil from Alaska's North Slope to Asia in an effort to drive up spot crude oil prices on the West Coast were a key reason for the potential rule. Oil products are often used in agricultural chemical production, and manufacturers are negatively impacted when oil prices rise.

Competitive Landscape

Demand for agricultural chemicals depends mainly on demand for various crops, which in turn depends on crop prices. The profitability of individual companies is linked to efficient operations and marketing. Big producers have large economies of scale in production. Smaller companies can compete effectively by making specialty chemicals or fertilizer mixtures for local markets. Operations are capital-intensive and highly automated: annual revenue per employee at a large plant is close to $700,000.

Full Industry Overview For Chemical Manufacturing - Agricultural

Chemical Manufacturing - Agricultural Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US agricultural fertilizers and chemicals is forecast to grow at an annual compounded rate of 3.5 percent between 2007 and 2012.

Agricultural Chemicals Growth Slow but Improves

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.