Recovery in the Fertilizer Industrv

During the next fifteen years, however, the total tonnage doubled, reaching 7,000,000 tons in 1914. The history of the industry during the past twenty...
0 downloads 0 Views 1MB Size
Download PDF
Courtesy,

C.S Geologacal Survey

REFINERY AND WAREHOUSES O F A POTASH COMPAYYI N NEWMEXICO

Recovery in the Fertilizer Industrv J

d

Future Development Will Depend As I t Has Depended in the Past on the Prosperity of the Farmer CHARLES J. BRAND The National Fertilizer Association, Washington, D. C.

S NEARLY as can be determined, the fertilizer industry originated in Baltimore about the middle of the past century. At any rate, the beginning of the industry in this country followed closely the first production of superphosphate in England by Sir John Lawes in 1843, and the exploitation of the nitrate deposits in Chile and of the guano deposits in Peru and elsewhere. For the first half-century of its existence, the industry grew rather gradually, attaining a volume of 3,500,000 tons in 1899. During the next fifteen years, however, the total tonnage doubled, reaching 7,000,000 tons in 1914. The history of the industry during the past twenty years is well knownthe erratic war period, the drop which began in 1920, the slow recovery through 1929-30, another precipitous drop in 1931 and 1932, and another slow recovery which began in March, 1933. From a few plants of meager capacity seventy-five years

tries in recent years, we are still doing a substantial import and export business in fertilizer materials. The U. S. Department of Commerce reports that exports of fertilizer materials from the United States during 1934 amounted to 1,307,000 tons, valued a t $12,543,000. This is an increase of 27 per cent in quantity and 51 per cent in value compared with 1933, according to C. C. Concannon, chief of the Chemical Division. Exports consisted chiefly of phosphate rock, more than 1,000,000 tons of which were exported, but nitrogenous fertilizer materials, chiefly synthetic sodium nitrate, totaling more than 200,000 tons, and valued at nearly $5,000,000, were also exported. Imports of fertilizer during 1934 totaled 1,247,000 tons and were valued a t $26,000,000. As will be pointed out later, imports of ammonium sulfate declined substantially, while sodium nitrate increased.

Production Far below Capacity

annually. Superphosphate is now produced in more than two hundred plants with an annual capacity of fully 7,000,000tons. The first domestic potash was produced in 1916, and production has now reached 140,000tons of potassium oxide annually, with a capacity much larger but difficult to estimate. Despite the rapid growth of the nitrogen and potash indus-

1930 1331 1932

8 163257 6:306:083 4,369,600

1933 1934

4823940 6:500'000 (prelimi-

rimy figure)

The drop from 8,163,000 tons in 1930 to 4,369,000 tons in 1932 describes vividly the effect of the depression on the fertilizer industry. 372

373

INDUSTRIAL AXD ENGINEERING CHEMISTRY

APRIL, 1935

.^

5 NATIONAL FERTILIZER ASN. AllD BUREAU OF THE CENSUS. CONSUnPTlOn IS BASED ON PROoucrmn STOCKSAT BEGINNING AND EXPORTS. OF Y F A R , IMPORTS,

4

flb

3

2

I

0

f930

FIGURE 1. FERTILIZER COKSUMPTION

FIGURE 2. GROSSFARMINCOME

Figure 2 and the following figures show the course of the gross,agricultural income during the same five-year period: 1930 1931 1932

$9,403,000,000 6,911,000,000 5,143,000,000

1933 1934

$6,383,000,000' 7,250,000,000"

I, Includes benefit payments

From 1923 to 1929 farm income exceeded $11,000,000,000 annually, and in 1929 it was $11,950,000,000. The drop to $9,400,000,000 in '1930 resulted in a drop in fertilizer consumption from 8,163,000 in 1930 to 6,306,000 tons in 1931. Then in 1931, farm income dropped to 86,911,000,000 and fertilizer consumption in 1932 dropped to 4,369,000 tons. The gradual recovery in farm income from 1932 to 1934 resulted in a similar increase in fertilizer consumption. The improvement in farm income in 1934 as compared t o 1933 is an almost certain indication that there will be a substantial increase in fertilizer consumption in 1935 as compared to 1934. If and when international trade in farm products returns,

1931

19%

1933

f934

FIGURE3. PRODUCTION AND CONSUMPTION OF SUPERPHOSPHATE

acreage restrictions, especially on cotton, tobacco, wheat, and corn, will be removed and fertilizer consumption will undoubtedly increase accordingly.

Fertilizer Materials Affected Commercial fertilizers, as is well known, supply for the most part the three major plant foods-namely, nitrogen, phosphoric acid, and potash. They also supply as natural constituents of various carriers large quantities of calcium and sulfur. In some localities a considerable amount of magnesia is also carried in fertilizer mixtures, and very small quantities of materials containing manganese, copper, and zinc are also used. The three major subdivisions of the industry are the nitrogen, superphosphate, and potash groups. SUPERPHOSPHATE, Superphosphate is, from the standpoint of tonnage and value, the most important single fertilizer material. Figure 3 and the following table show that in 1930 the production and consumption of superphosphate were in fair agreement, but a t the end of 1930 there were large stocks on hand and production in 1931 declined to a much greater extent than consumption; this was also true in 1932: (Short ton basis, 16 per cent available phosphoric acid) Apparent Year Production Consumption

By the beginning of 1933, stocks had been reduced so that production returned to the 1931 level, and there was a substantial gain in consumption. In 1934 production and consumption again reached a reasonable parity but were only about 65 per cent of the 1930 total. NITROGEN.The production and consumption of chemical nitrogen in the United States during the past five years are shown in Tables I and I1 and by Figures 4 and 5. The production of by-product nitrogen reflects the activity in the steel industry. SynSFARLESLAKEPROVIDED THE FIRSTCOMMERCIAL SOURCE OF POTASH IN THE U. S. IN MODERNTIMES; PHOTOGRAPH SHOWSTRIPLE-EFFECT thetic nitrogen production declined about 50 per cent in 1931 as compared to 1930, but, AT TRONA, CALIF. EVAPORATORS

INDUSTRIAL AND ENGINEERING CHEMISTRY

3 74

TABLBI. PRODUCTION AND IMPORTS OF CHEMICAL NITROGEN IN SHORT TONS Year 1930 1931 1932 1933 1934

By-product 164,250 117,130 76.300 93,000 93,000

Synthetic 135,000 66,000 89,000 114,000 127,000

Im orts (#et) 136,800 118,300 65,000 105,600 99,500

Total Supply 436,050 301,430 230,300 312,600 319,500

TABLE11. ESTIMATED CONSUMPTION OF CHEMIC.4L NITROGEN IN SHORT TONS Year

Fertilizer

Other Induetries

Total

1930 1931 1932 1933 1934

294,000 202,000 162,000 185,000 232.000

110.000 90,000 65,000 90,000 100,000

404,000 292,000 227,000 275,000 332,000

TABLE111. IMPORTS AND EXPORTS OF SODIUM NITRATE AND AMMONIUM SULFATE (IN SHORTTONS) Year

-Imports-Chilean nitrate

1930 1931 1932 1933 1934

636,825 616,689 56,482 137.610 328,750

Ammonium sulfate

-ExportsSynthetic nitrate

Ammonium sulfate

37,938 125,681 344,188 393,404 207,537

28,630 74,700 185,000 102.310 176,865

91,461 74.930 16,511 16,047 28,704

since 1931, production has gained steadily and in 1934 it was almost equal to 1930. In view of the large domestic production, imports of nitrogen have held up remarkably well (Table I). It is difficult to estimate the consumption of nitrogen accurately, but the figures given in Table I1 are approximately correct. - Nitrogen consumption as fertilizer exceeded, in 1934, the 1931 level, w h e r e a s industrial consumption approached the 1930 level. Table I11 shows the imports and exp o r t s of s o d i u m nitrate and ammonium sulfate for the latest five-year period. The exceedingly low i m p o r t s of Chilean nitrate in 1932 and 1933 were balanced t o a large extent by high imFIGURE 4. PRODUCTION AND IWPORTS ports of ammonium OF CHEMICAL NITROGEN s u l f a t e for t h e (Short tone) s a m e years. The f a c t t h a t we exported such a large tonnage of synthetic sodium nitrate in 1932, 1933, and 1934, and that we were a t the same time importing much larger quantities of ammonium sulfate is due in part to the price differential that prevailed in 1932 and 1933, and in part to the exceedingly low rate of production of byproduct ammonium sulfate in this country. It is well known that there were large stocks of Chilean nitrate on hand a t the

VOL. 27, NO. 4

beginning of 1932, which were largely disposed of during 1932 and 1933. POTASH.Table IV shows the production, imports, exports, and apparent consumption of potash in the United States in 1930-34. and Figure 6 shows domestic production and net imports. Significant developments in the 400 p o t a s h industry d u r i n g the past 310 five y e a r s h a v e been the large inY 00 crease in domestic production, w i t h 250 more than a corresponding decline zoo in imports due t o the decline in conI50 sumption from 1930 to 1932. Be100 c a u s e of t h e extremely low price 50 of potash during the past year, 0 1930 /931 1932 1933 1934 s t o c k s i n fertilizer manufacturFIGURE 5. ESTIMATED CONSUMPTION ing p l a n t s a n d OF CHEMICAL NITROGEN warehouses are (Short tons) undoubtedly considerably above anticipated requirements for the 1936 season a t the present time. PHOSPHATE ROCKAND SULFURIC ACID. In order to complete the picture, Tables V and VI give data on phosphate rock and sulfuric acid, respectively.

The Code and Industry Recovery The definite recovery shown by these tables and charts is due almost, if not entirely, to the recovery of agriculture. In other words, practically the same volume or tonnage

TABLEIV. PRODUCTION, IMPORTS, AND APPARENT CONSUMPTION OF POTASH (IN SHORT TONSOF POTASSIUM OXIDE)

a

Sear Production Imports" Exports 1930 61,270 328,670 10,200 1931 63,880 201,250 19,600 1932 61,990 104.580 1,750 1933 143,378 161,390 17,600 165,940 16,790 1934 140,OOOb Includes crude potassium nitrate. b Estimated.

Total (Net! 379,740 245.630 164,820 287,168 289.150

TABLEV. PRODUCTION AND EXPORTS OF PHOSPHATE ROCK(IN SHORT TONS) Year 1930 1931 1932 1933 1934

Production 4,425,000 2,887,000 1,948,000 2,586,000 2,998,000

Exports 1 373 000 1:065:000 687,000 929,000 1,113,000

TABLEVI. SULFURIC ACIDCONSUMED BY THE FERTILIZER INDUSTRY IN THE UNITED STATES-

a

Year Tons Per Cent of Total 1930. 2 477 000 32.3 24.8 1:455:000 1931 1932 780,000 17.7 1933 1,200,000 23.3 1934 1.450.000 25.6 Estimates by Chemical and Metollurgical Engineering.

APRIL, 1935

INDUSTRIAL AND ENGINEERING CHEMISTRY

375

recovery would have occurred without the Fertilizer Code, but it seems quite certain that without the Code it would have been a profitless recovery. In discussing the effect of the Code on the industry, it is well to remember that there are more than eight hundred plants with a total capacity of fully 12,000,000 tons of mixed fertilizer annually, and that our consumption of mixed fertilizer in 1934 was only about 4,200,000 tons, or a little more than onethird of capacity. In view of these facts it is not difficult for one familiar with the past history of the i n d u s t r y t80v i s u a l i z e what would h a v e h a p p e n e d without the stabilizing influence of the Code,

FIGURE8. PERCENTAGE OF FERTILIZER TAX TAGSSOLI) EACH MONTH IN TWELVE SOUTHERN STATES

rate datawere obtainedfrom more than fifty companies operating mure than one hundred plants and selling over half of the total fertilizer tonnage during 1933. The arerage ton ofmixed fertilizer in 1933 was sold on an f . 0. b. factory basis at $13.98 per ton, and the cost of manufacture, I ' R O F I T S .4ND not including interest on investment, was $15.50 per ton-a LOSSESDISCLOSED net loss of $1.52 per ton. In the spring of 1934, owing to the BY SURVEY.I n increased cost of materials, bags, and labor, the cost of nianuthe spring of 1934, in order to answer facturing a ton of mixed fertilizer had increased to $17.68, or an increase of $2.18 per ton over the 1933 cost. The average m a n y criticisms ton of fertilizer was sold, f . 0 . b. factory basis, in 1934 a t 318.68 that were directed at fertilizer prices, per ton, or a t a profit of $1.00 per ton, not including interest on FIGURE 6. PRODUCTION .4ND IMPORTS the National investment. In one year, therefore, the industry was transOF POTASH Fertilizer Associaformed from a profitless to a moderately profitable basis. Fig(Short tons of potassium oxide) tion made a careure 7 gives a graphic picture of that transformation. ful survey to deIn addition- t o putting the industry on a profitable basis, termine the cost of producing fertilizer in the spring of 1933 the Code has reduced hours, increased wages, and reemployed and iii the spring of 1934 as compared to the selling prices that a considerable number of persons. In 1933 the average prevailed in each case. Nine representative areas were wage for unskilled labor had declined to 16.8 cents per hour as selected, using the most popular grade in each area, and accucompared to 28.6 cents in 1929. The minimum arerage wage FIGURE7. COMPARISON OF COSTS ~ ' H I C E SFOR KINE REPAND SELLING RESENTATIVE GRknEs OF MIXED FERTILIZER

FIRSTTANK-CAR TRAINLOAD OF ANHYDROUSAMMONIA SHIPPED FROM HOPEWELL, VA.

INDUSTRIAL AND ENGINEERING CHEMISTRY

376

1

.

..

_ _.

._

.

.. .

. .

_ _

VOL. 27, NO. 4 .

.

.

I

I

A MODERNFERTILIZER PLANT FROMSULFURIC ACIDTO COMPLETE FERTILIZER

established by the Code is 35 cents an hour in the North and Middle West, 25 cents an hour in the South, and 40 cents an hour on the Pacific Coast; the weighted average rate is 27 cents an hour. The maximum work week under the Code is 40 hours. In April, 1933, according to the Bureau of Labor statistics the average work week in the fertilizer industry was 50 hours, whereas in April, 1934, the average work week was 35 hours and the average rate of pay 33.5 cents per hour. The average number of workers employed in the industry in April, 1933, was 19,000while the average number employed in April, 1934, was 35,000. Total wages for April were 108 per cent higher than for April, 1933. These figures show clearly the effect of the FertilizerLCodeon hours, wages, and employment.

are sold in the first four months and 47 per cent in the remaining eight months of the year, principally in August and September.

Technological Improvement

Because of the progress in fertilizer manufacture that had been made prior to 1930, of the tremendous decline in consumption as compared to capacity that occurred during the depression, and of the fact that research activities have been greatly reduced in recent years, there have been only a few significant developments in fertilizer technology during the last five years. This statement is as true for Europe as for the United States. The outstanding development of the last decade has been the direct use of ammonia in connection with superphosphate Seasonal Nature of Fertilizer Business in the manufacture of mixed fertilizers. It is interesting t o recall that Sir John Lawes recommended superphosphate “for Among the dificult problems with which the fertilizer mixing the ammonia of dung heaps, cesspools, gas liquor, industry has to deal is the highly seasonal demand for feretc.” as early as 1843. He understood thoroughly the tilizer, corresponding as it does with the farm planting season. affinity that superphosphate has for ammonia, but it was This fact is well known to agricultural workers but may not not until 1928, 85 years later, that any substantial quantity be so well understood by those who do not have agricultural of ammonia was used as suchlin mixed fertilizers. Each year contacts. I n seventeen states the laws require that a tax tag since 1928 a s u b s t a n t i a l must be attached to every quantity of anhydrous and bag of fertilizer sold, and aqua ammonia have been the sale of these tax tags is used in fertilizers and more a fairly accurate measure of recently s e v e r a l solutions f e r t i l i z e r sales month by containing ammonia a n d month. In twelve southern urea or nitratenitrogen have states which consume over appeared on the market. 60 per cent of all fertilizer The demonstrated fact that used in the United States, or d i n a r y superphosphate the record of tax tag sales made by the sulfuric acid for 1931 to 1934, inclusive, process is such an excellent shows that 80 per cent of c a r r i e r of n i t r o g e n has the tags are purchased durgiven this product a new ing the f i s t four months of lease on life and has favorthe year, and that 58 per ably affected the investment cent are purchased in the in superphosphate and sultwo months of March and furic acid plants. April. Figure 8 shows the A growing appreciation record of tax tag sales in of the gypsum content of t w e l v e s o u t h e r n states s u p e r p h o s p h a t e and of and is an accurate picture mixed f e r t i l i z e r s gives of t h e h i g h l y s e a s o n a l further assurance that the nature of t h e f e r t i l i z e r s u l f u r i c a c i d process for bu,’mess. producing available phosIn the Middle West, tax phoric acid will continue in t a g s a l e s f o r five states use for a long time to come, SUPERPHOSPHATE CURINGIN A MODERNPLANT s h o w t h a t 53 p e r c e n t

APRIL, 1935

INDUSTRIAL 4 N D ENGINEERING CHEMISTRY

~~

LOClATION OF FERTILIZER :Jf.4NUFACTURERS

and that farmers mill continue to obtain calcium and sulfur free of charge with the freight paid. It is admitted that most fertilizers supply more calcium and sulfur than are needed on the great majority of soils, but competent authorities agree that, if these plant food elements were omitted froin fertilizers, large areas of our lighter soils-for example, the Coastal Plain soils-would within a few years develop calcium and sulfur deficiencies. Of the so-called minor plant foods, magnesium occupies an entirely different position from that of calcium and sulfur. It has been supplied to a limited extent in mixed fertilizers by certain of the organic nitrogen carriers, cottonseed meal in particular, and by the crude potash salts. As a result of the decline in the use of organic nitrogen materials and of the increasing concentration of potash salts, as well as the depletion of soil magnesium, the need for magnesium as a plant food has increased rapidly in recent years, especially in the Atlantic Seaboard and Gulf States. For this reason magnesium is now being used extensively as a plant food in tobacco and potato fertilizers and in some localities for other crops as well. The availability of different carriers of magnesium to crops, and chemical methods of determining such availability, are now being studied by agronomists and agricultural chemists. Many minor plant food elements appear to be essential to crop growth. I n addition to calcium, sulfur, and magnesium, positive field results have been obtained with compounds of manganese, copper, and zinc, although these elements are present in most soils in ample quantities. When deficient, however, some really astonishing results are obtained from their use. Positive results have been obtained with sodium on certain soils that are deficient in potash, and it is known that a small percentage of chlorine in tobacco fertilizer will increase the yield without injuring quality. There are still

37 7

~

ACCORDING TO

1930

CENSUS, AS OF

1929

many agronomic problems to be solved with respect to fertilizer use. The increased use of the ammonia forms of nitrogen in recent years has greatly increased the potential acidity of fertilizer mixtures; this refers to the residual effect on the soil reaction.

Trend toward lVeutra1 Fertilizer A careful study of this subject by the U.S. Department of Agriculture shom that prior to about 1906, mixed fertilizers in this country were potentially basic and that they did not become significantly acid until about 1925. Recently a method for determining the residual acidity or basicity of fertilizers was proposed by R. H. Pierre,’ and, although his method has not been adopted as oficial by the Association of Official Agricultural Chemists, it is nevertheless being used by many agronomists and fertilizer chemists. The State of Alabama adopted a regulation a year ago requiring that all fertilizers sold there must be labeled “acidforming” or ‘‘nonacid forming,” and amendments to the fer-. tilizer laws of South Carolina and West Virginia are now pending, which include a similar provision. Pierre’s method is based on a careful study of experiments that have been conducted for many years in various sections of the country, and he has not only developed a method for determining the acidity or basicity of fertilizer mixtures and materials but has prepared tables which fertilizer manufacturers may use in adjusting the potential reactions of various mixtures. The interest of manufacturers in this subject is indicated by the fact that in nearly every section of the country neutral or nonacid-forming fertilizers are being advertised, and inert, fillers are being rapidly replaced by ground dolomitic limestone. 1

IND.ENQ CHEW, Anal. Ed., 5, 229-34 (1933).

378

VOL. 27, NO. 4

INDUSTRIAL AND ENGINEERING CHEMISTRY

The study of the acidity of fertilizers has focused attention on the performance of the different forms of nitrogen, and agronomists are coming rapidly to the opinion that differences in yield obtained with the different forms of nitrogen can be explained largely by differences in residual acidity or basicity. The agronomists feel that, if fertilizers are made neutral, the source of nitrogen is less important than it was formerly . thought to be.

Reduction i n Number of Grades The Fertilizer Code provides a voluntary plan for the adoption by states or zones of lists of grades of mixed fertilizers to be offered for sale, and, after such lists are approved by the National Recovery Administration, the sale of other grades is prohibited. In adopting lists of grades, the industry must coBperate with agronomists and other federal and state officials. Up to date, lists of grades adopted in this manner have been established for nine states that consume over 30 per cent of the total fertilizer tonnage, and committees have been appointed looking toward grade reduction in ten midwestern states. The need for eliminating unnecessary grades was brought out recently in a survey conducted by this association in which 76 per cent of the total fertilizer tonnage of the country was reported by manufacturers by grades and by states. The number of grades offered for sale was found to vary from 15 in Mississippi to 442 in Florida, and in the latter state an exceedingly large number of special mixtures are prepared in ad&tion to the regular grades offered. Using the largest consuming state as an example, 167 grades were sold in North Carolina in 1933-34, and this number was reduced to 29 grades in accordance with the voluntary Code provision. The 29 grades, however, include 96 per cent of the total tonnage sold. A study made by the U. S. Department of Agriculture shows that the average plant food content of complete fertilizers sold in 1880 was 14.4 per cent as compared to 18 in 1932. The same study showed that more filler was used in the average ton of mixed fertilizer in 1932 than in any previous year. This was due to the fact that the concentration of fertilizer materials increased but consumer demand for higher analysis did not increase in the same ratio. As stated above, the further elimination of inert filler seems likely to be accompanied by an increased use of basic materials, particularly ground dolomitic limestone, and this will have a tendency t o slacken the rate of increase in plant food concentration.

Better Application During the past ten years an elaborate research program on better methods of applying fertilizers to crops has been sponsored by the Joint Committee on Fertilizer Application, organized with the financial help of The National Fertilizer Association in 1926. The scope of this program is indicated by the fact that during 1934 fifty-four comprehensive experiments involving the use of experimental machines were conducted in nineteen states and involve ten different crops. The application of fertilizer in bands a t the side of the row, as compared to application under the seed, has proved t o be better in most seasons and on most soils. In fact, the standard method of mixing the fertilizer with the soil in the row, as practiced in many localities, has been shown t o be a poor method in many cases. One illustration is as follows: In 1934 six experiments were conducted on cotton in North Carolina, South Carolina, Georgia, and Mississippi. In each of these experiments various methods of applying 800 pounds of fertilizer per acre were compared, and as an average of the six locations, the yield varied from 844 pounds of seed cotton per acre to 1220 pounds. The low yield was obtained by applying the fertilizer in a band 2 inches beneath the seed and represented a gain of 317 pounds of seed cotton over the unfertilized crop. The high yield was obtained by applying the fertilizer in two bands on each side of the row and 2 inches below the seed level. It represented an increase of 693 pounds over the unfertilized yield. I n other words, the efficiency of the fertilizer was more than doubled simply by changing the method of application.

Conclusion After groping its way through four years of depression, due primarily to the low purchasing power of agriculture, the fertilizer industry has emerged into a period of reasonable prosperity. It has recovered a substantial portion of its lost tonnage because of the improvement in farm purchasing power and has attained a degree of stability through the operation of its Code that few members of the industry thought could be attained only two years ago. In addition, it has made definite progress in technology, both in production and in the use of its product. RECBIVEDMarch 5, 1935.

PLANTFOR PRODUCTIOIX OF POTASHAND PHOSPHORIC ACID IN THE BLASTFURN A C E , F E R T I L I Z EAND R FIXEDNITROGEN INVESTIGATIONS, WASHINGTON D. C .