Transcript FGD Gypsum Use in Agriculture

FGD Gypsum Use in
Agriculture
Doug Snyder
United States Gypsum Company,
Cary, NC
Overview
• Why is gypsum used in agriculture?
• Economics of gypsum in agriculture
• Marketing of gypsum in agriculture
Why is Gypsum Used in
Agriculture?
• Supply essential plant
nutrients
– Calcium
• Cell wall integrity
– Sulfur
• Sulfur containing amino
acids
– Does not appreciably
alter soil pH
• Lime
• Elemental sulfur
Why is Gypsum Used in
Agriculture?
• Soil chemistry/physics
remediation
– High sodium soils
– High clay (“tight”) soils
Why is Gypsum Used in
Agriculture?
• What crop characteristics
dictate the use of gypsum?
– High calcium requirement
NCSU Gypsum Application Rate/A Recommendation for
Christmas Tree Production (NCSU Note 5C1, 2005)
Ca% value given on soil test report
• Legumes, peanuts, most
dicotyledon crops
– Peak calcium need during
life cycle
• peanuts
– Optimal growth in low pH
environments
• Christmas trees
• Blueberries
– Developing sulfur
deficiencies
45
46
47
48
49
50
51
52
53
54
2.0
325
290
260
225
195
160
130
100
65
30
4.0
650
580
520
455
390
325
260
200
130
65
4.5
730
655
580
510
435
365
290
220
145
75
5.0
810
730
650
565
485
405
325
245
160
80
5.5
890
800
715
625
535
445
355
265
180
90
6.0
975
875
780
680
585
485
390
290
191
100
6.5
1055
850
840
735
630
525
420
315
210
105
7.0
1135
1025
910
795
680
570
455
340
225
115
7.5
1215
1095
970
850
730
610
485
365
245
120
8.0
1300
1170
1035
910
780
650
520
390
260
130
CEC
Economics of Gypsum Use
• There must always be a
high return on investment
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Product cost
Transportation cost
Handling cost
Application cost
Equipment depreciation
Time
Crop Input cost < crop
yield/grade gain
Economics of Gypsum Use
• Historical
– Bulk gypsum
• Generally natural
gypsum – high cost
– Proximity to market?
– “Powder” gypsum
• Generally fine ground
natural gypsum – high
cost
– “Pelletized” Gypsum
• Pelletized natural
gypsum – high cost
Economics of Gypsum Use
• Future
– Value proposition will change with bulk
gypsum
• Lower cost, better proximity to market (?)
• Finer, more uniform size product. May be hard to
handle?
– Value proposition will change with pelletized
gypsum
• Lower cost feedstock in synthetic gypsum
Economics of Gypsum Use
• New markets?
• New agronomic
research?
• New industrial uses?
• Recycled “Green”
Product?
How do I Market Gypsum?
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Understand the market
Understand the customer
Understand the channel
Understand the business
Understand the
regulatory and safety
processes
Market Understanding
• SWOT of gypsum
• Four “P’s” of
marketing
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Product
Price
Placement
Promotion
Customer Understanding
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Who is the decision maker?
What is the product that they want?
Where are they located?
When does the customer need the
product?
• Why does the customer want the product?
• How is the product applied?
– Pull-type, Floater, “Gandy box”, etc.
Channel Understanding
• Who is/are the primary
agricultural input
provider/s?
• How do they operate?
• Are there any crossalliances?
• Who are the people
involved?
– What influences their
decision?
– Who influences their
decision?
• University personnel
• Crop consultants
Business Understanding
• You have to think like a
manufacturer and not a
service provider
– You are manufacturing a
product for end use
• Purity
• Moisture content
• Impurities
– Chlorides, carbon and/or
hydrocarbon
compounds, heavy
metals, etc.
• Storage
– Indoor/outdoor
– Size
• Loading mechanisms
Business Understanding
• You have to think like
a manufacturer and
not a service provider
– “Back Office”
Personnel
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•
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Customer Service
Order fulfillment
Transportation/Logisitics
Finance
– Credit
– Billing
– Collection – very
important!
Business Understanding
• You have to think like a
manufacturer and not a
service provider
– Sales/Marketing Force
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Training
T&E
Transportation
Communication of
product/price/placement/
promotion
- One person with a car and
road map won’t get you too
far -
Regulatory/Safety Understanding
Regulatory/Safety
– Environmental/Health/
Safety
– Federal/State/Local
Product Registrations
• Minimum guarantee
compliance
– Fines/litigation if done
improperly
Summary
• FGD gypsum is a viable
agronomic input if treated
as a plant food or soil
amendment
• The economics have to
be correct or potential
customers won’t use it
• You have to know how to
bring the product to
market or you will have
great frustrations
• You have to manage risk
and comply will all
regulatory requirements
Questions?
Thank You!