How to succeed in Europe’s fertilizer market
Fertilizers are an essential part of the food production chain, enabling agricultural productivity. They replace the chemical components that are taken away from the soil by growing plants. The raw materials, often in solid form, are delivered to manufacturers en-gross. Exports supply Europe. The marketplace for farm chemicals, such as fertilizers, is crowded. Therefore, succeeding in Europe’s fertilizer market is something of an impossible mission. Rivalry in fertilizer trading is huge. The good news is that it’s possible to survive and benefit from the global increase in food demand. Let’s find out how.
Planning and the market attractiveness
As a fertilizer producer, you have to establish what products make money and which ones take money. This is done by looking at how attractive the market is. The market attractiveness of any given product depends on the demand and growth prospects in the industry, as well as the pricing trends. You have to become actively engaged in improving your fertilizer production company. Take the example of Viatcheslav Kantor, who manages the Acron Group, a leading global mineral fertilizer producer. If he hadn’t invested time and effort into the Group, it wouldn’t have become what it is today. Those who improve their business have stronger chances of success.
Ensure access to competitive feedstock
Primary fertilizers comprise substances that are derived from raw materials. Various raw materials are used to produce phosphorous, nitrogen, and potassium. These raw materials have fluctuating pricing points, which rise and drop like the stock exchange. Taking this into account, it shouldn’t come as a surprise that leading fertilizer producers possess mineral resources. For instance, the Acron Group have secured an independent phosphate raw material base. Smaller players in the European fertilizer market that are unable to integrate mining or natural gas exploitation, resort to developing collaborative relationships. As a fertilizer producer, you can source your natural gas from centers like Austria or Belgium.
In the agricultural fertilizer industry, it’s of paramount importance to stabilize operating performance. This can be realized through diversification of products. It’s important to have a diversified supply base and to make sure that the price is right. The act of enhancing choices when bringing products into the market is a great business decision. Supply chain diversification allows your company to distinguish itself in a positive way. Yet again, we must take Acron Group as an example. The company headed by Moshe Kantor has a diversified product portfolio. Fertilizer producers with a considerable diversification enjoy excellent results.
Improve process efficiency
The business process refers to the tasks that the employees use to create a product. As you can imagine, productivity varies among employees. You can’t afford to have customers complaining about poor product quality. To improve the team’s process, analyze and redesign. Better yet, outsource labor. Labor accounts for as much as 10% of the costs, which is the reason why improvements need to be made. Examples of improvements include, but aren’t limited to, automating plant processes and outsourcing maintenance.