Phosphate Trade Patterns In The New World Order (cd97f3fe-1aba-4c09-a877-134eccdf12dc)

An examination of the statistics of the world phosphate fertilizer industry since 1980 reveals an increasing tendency for fertilizer manufacturing activity to concentrate in phosphate rock mining areas. The economic justification for this resource-oriented strategy is clear. The choice between shipping phosphate rock, a comparatively low-value product, and shipping more valuable finished fertilizers will always be resolved in favor of the latter if cost considerations control the decision. The historical existence of substantial phosphate fertilizer manufacturing capacity oriented toward fertilizer-consuming activities and dependent on imported phosphate rock shows that narrow cost considerations have not always determined the industry's location. One is entitled to ask what conditions have changed to precipitate the observed relocations, and how permanent these changes are. These questions are the subject of this investigation.