NEW STUDY FINDS LOUISIANA FERTILIZER INDUSTRY CONTRIBUTES $1.3 BILLION TO ECONOMY
9/2/09

Report Shows More than 1,100 Jobs Linked to Fertilizer Manufacturing in Louisiana and Highlights Industry’s Contributions to Nation’s Food Security

Washington, D.C. – The Fertilizer Institute (TFI) is pleased to announce the release of a report that shows the U.S. fertilizer manufacturing industry supports 244,000 jobs and adds $57.8 billion in value to the U.S. economy.  The new economic study specifically highlights that Louisiana ranks first among states with ammonia plants in terms of economic contributions of the fertilizer manufacturing industry.

The study, conducted by Charles River Associates International (CRA), found that the Louisiana fertilizer industry directly employs more than 1,100 people who produced fertilizers valued at almost $1.3 billion in 2006.  Moreover, the industry’s compensation per employee was considerably higher than the Louisiana average, at $108,535 per employee versus a Louisiana average of $37,112 across industries.  These higher salaries, wages, benefits and other forms of compensation were a result of a very high output per employee ratio.  The fertilizer industry in Louisiana generates over $1.1 million in output per worker, which is almost seven times the Louisiana average across industries.

“For the first time, the CRA report quantifies the valuable economic contribution of the fertilizer industry to the U.S. economy,” said TFI President Ford B. West.  “The results will help the industry better educate lawmakers and the public about the role and value of the industry as we advocate on legislative issues such as climate change policy.”

The significant economic contributions of the fertilizer manufacturing industry in Louisiana are primarily the result of the productivity of the ammonia plants within the state.  In 2006, the state had the greatest ammonia plant capacity in the country, representing 24 percent of the U.S. total.  The report also states that the total economic contributions to the state of Louisiana, including additional contributions such as impacts on suppliers and spending by employees, were $2.4 billion and over 7,300 jobs.

The overall CRA report provides a background of the industry and presents the economic contribution analysis, including analysis by sector and a focus on fertilizer manufacturing in Florida and Louisiana.  The report found that the total U.S. nitrogenous fertilizer manufacturing sector provides a total economic contribution of $23.7 billion and 80,000 jobs, of which $10.3 billion and 7,565 jobs were direct.  Phosphate fertilizer manufacturing was found to provide a total economic contribution of $21.2 billion and almost 90,000 jobs, of which $6.6 billion and 7,410 jobs were direct.  While economic contribution data for the U.S. potash manufacturing sector is not as available as other sectors due to non-disclosure rules, CRA found the potash industry provides an estimated 1,774 direct jobs.

 The final section of the report highlights the economic contributions focusing on: 1) the value of maintaining a domestic fertilizer manufacturing industry versus relying on imports, and 2) the “use” value of domestically produced fertilizer in terms of its contribution to the agricultural sector and world food supplies and calculates that if 50 percent of U.S. agricultural production is dependent upon fertilizer use, that fertilizer use in the United States alone provides an economic value of up to $300 billion.

“The “use” value goes beyond economic value to the U.S. agriculture industry. In a world market struggling to keep food supplies apace with growing demand, agricultural products and fertilizers exported from the United States are important on a humanitarian level.  If costs of U.S. agricultural products are increased as a result of a less-than-stable U.S. supply of fertilizers, the economic consequences could be large.  This value of the U.S. fertilizer industry could well exceed the substantial measurable portion of the economic contributions of domestic fertilizer manufacturing that were estimated in this report.”

A full copy of the CRA report, including a description of the methodology used in its development is available on TFI’s Web site.

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The Fertilizer Institute represents the nation’s fertilizer industry. Producers, wholesalers, retailers, trading firms and equipment manufacturers which comprise its membership are served by a full time Washington, D.C., staff in various legislative, educational and technical areas as well as with information and public relations programs.  www.tfi.org
Contact: Estelle Grasset (202) 515-2721

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