Risk of Cyclicality
Short-term price cyclicality due to competitive costs, availability of supply and government involvement has historically added considerable risk in phosphate. Over the next five years, increasing competitive supply of solid fertilizer, particularly DAP, may outpace growth in world consumption, potentially depressing prices and risking our phosphate margins. In mitigation, we are leveraging our strengths in specialty industrial and feed products while streamlining fertilizer production to minimize production costs.
United States Environmental Protection Agency
The US phosphate industry, including PotashCorp, is subject to an industry-wide initiative of the United States Environmental Protection Agency (USEPA), which has challenged industry's implementation of a particular exemption for mineral processing wastes under the hazardous waste program. Potential violations at our various phosphate facilities stemming from inspections conducted by the USEPA under this program could lead to financial penalties. We address this risk by working with other phosphate industry members and in company-specific meetings with representatives of the Department of Justice, the USEPA and state environmental agencies regarding potential resolution, through litigation or otherwise, of any matters identified in the inspections.