Publications

Fertilizer Pricing in Canada

Prepared in June 1998 by:

Maurice Korol and Éric Larivière

Click here to view the following report: 'Canadian Fertilizer Consumption, Shipments and Trade'

TABLE OF CONTENT

Chapter I - Fertilizer Pricing In Canada
Chapter II - The Structure of the Canadian Fertilizer Industry

2.1 Canadian Fertilizer in the Global Context
2.2 The Nature of the Industry and its Products
2.3 Canadian Fertilizer Producers
2.4 Canadian Fertilizer Production

2.5 Canadian Fertilizer Marketing
2.6 Fertilizer Demand

Chapter III - North American Fertilizer Prices, Production and Consumption

A. Overview of the Canadian Fertilizer Industry

3.3 Consumption

B. Overview of the United States Fertilizer Industry

3.6 U.S. Fertilizer Production and Industry Capacity

3.7 Consumption

C. Canada - U.S. Border Area Price Comparisons

Chapter IV - Literature Review and Model Selection

A. Fertilizer Demand and Industry Pricing Behaviour

4.1 Fertilizer Demand
4.2 Fertilizer Industry Pricing

B. Theoretical Considerations

4.3 The Supply/Demand Price Clearing Model
4.4 Fertilizer Prices over Space and Time

Chapter V - Fertilizer Price Determination
Chapter VI - Spatial Price Analysis

6.1 Theoretical Models

6.2 Data Description, Unit Root and Cointegration Tests

Chapter VII - Results

7.1 Ammonia
7.2 Urea
7.3 DAP
7.4 Summary

Chapter VIII - Summary and Conclusions

8.1 Purpose of Study
8.2 Methodology Utilised
8.3 Summary of Results
8.4 Implications
8.5 Conclusions

Fertilizer Retailers in Canada

The Saskatchewan Potash Countervail

Profiles of Canadian Fertilizer Producers

Tables:

Table 2.1 - Fertilizer Consumption, Selected Comparisons
Table 2.2 - Nitrogen Fertilizer Consumption, Selected Comparisons
Table 2.3 - Phosphate Fertilizer Consumption, Selected Comparisons
Table 2.4 - Potash Fertilizer Consumption, Selected Comparisons
Table 2.5 - Canadian Share of World Production and Trade, 1995/96
Table 2.6 - Canadian Fertilizer Production and Shipments
Table 2.7 - Canadian Fertilizer Producers Selected Financial Indicators
Table 2.8 - Canadian Nitrogen Producers Capacity, 1997
Table 2.9 - Fertilizer Sold and Nutrient Content, Atlantic Provinces
Table 2.10 - Fertilizer Sold and Nutrient Content, Québec and Ontario
Table 2.11 - Fertilizer Sold and Nutrient Content, Western Canada
Table 2.12 - Fertilizer Sold and Nutrient Content, Canada
Table 3.1 - The Canadian Fertilizer Price Index
Table 3.2 - Fertilizer Prices in Canada*
Table 3.3 - Canadian Nitrogen Price Index
Table 3.4 - Canadian Phosphate Price Index
Table 3.5 - Canadian Potash Price Index
Table 3.6 - The Canadian Fertilizer Price Index
Table 3.7 - Canadian Nitrogen Producers Capacity, Production, & Capacity Utilization
Table 3.8 - Canadian Potash Capacity Utilization Comparison
Table 3.9 - Nitrogen Consumption in Canada, 1991/92-1996/97
Table 3.10 - Nitrogen Consumption By Province
Table 3.11 - Phosphate Consumption By Province
Table 3.12 - Potash Consumption By Province
Table 3.13 - Canadian Nitrogen Exports
Table 3.14 - Canadian Potash Producer Sales
Table 3.15 - United States Fertilizer Production, Capacity and Capacity Utilization
Table 3.16 - United States Nitrogen Consumption
Table 3.17 - United States Phosphate Consumption
Table 3.18 - United States Potash Consumption
Table 3.19 - Manitoba Vs N.Dakota-Minn. Fertilizer Prices, June 1993-97
Table 4.1 - Fertilizer Industry Concentration in Canada and the U.S.
Table 6.1 - Example of Segmented variable using the First 10 Observations of the US Gulf Price Variable for Urea
Table 6.2 - Unit root tests
Table 6.3 - Cointegration tests
Table 7.1 - Monthly Price Variable Correlations, January 1992 to November 1997
Table 7.2 - Monthly price asymmetry tests for Anhydrous Ammonia, January 1992 to November 1997(a)
Table 7.3 - Monthly price asymmetry tests for Urea, January 1992 to November 1997(a)
Table 7.4 - Monthly Price Asymmetry Tests for DAP, January 1992 to November 1997(a)

Figures:

Figure 2.1 - Natural Gas Prices
Figure 3.1 - United States Ammonia Prices
Figure 3.2 - United States Urea Prices
Figure 3.3 - United States DAP Prices
Figure 4.1 - Fertilizer Plant Pricing
Figure 4.2 - Basing Point Pricing