Risk To Our Phosphate Strategy
Risk of Cyclicality
Phosphate risk has historically been increased by short-term cyclicality due to fluctuations in demand, competitive costs, availability of supply and government involvement in the industry. Over the next few years, increased competitive supply of solid fertilizer may outpace growth in world consumption, potentially depressing prices and affecting our phosphate margins. To mitigate this risk, we are leveraging our strengths in less cyclical specialty industrial and feed products and streamlining fertilizer operations to minimize production costs.