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An examination of alternative fertilizer transportation, warehousing and application systems for agricultural cooperatives
(Sokoine University of Agriculture, 2004) Kilima Fredy Timothy Mlyavidoga
The difficulty of controlling cost in a dynamic industry where competitiveness and costs are changing over time has long been recognized. Conventional wisdom suggests that players who succeed in such an industrial setting are those who capture the opportunities presented by a new business environment while maintaining economic efficiency (Bello, Lohtia and Sangtani; Flint). In recent years, one of the business challenges for fertilizer suppliers in the United States has been to keep pace with the changing business environment. The changes arise from changing demand, growing global competition, increased regulations in the industry for environmental and safety reasons, and improvements in the transportation and application methods. The improvement in fertilizer distribution and application methods is by and large a reflection of changes in the physical condition and operating characteristics of highways, and changes in farm transportation and application equipment (USDA, Agricultural Cooperative Service). Changes in fertilizer demand and increased market competition are attributable to changes in farm application systems, and consolidation of farming business that has decreased the number of farms and increased the average farm size (Norton).