Agricultural Chemical Producers Expect Another Year of Increased Spending in 2011

SUGAR LAND--November 23, 2010--Researched by Industrial Info Resources (Sugar Land, Texas)--For the past several years, agricultural chemical producers have enjoyed the very low price of natural gas, which is a primary feedstock or energy requirement for almost all producers in this segment of the Chemical Processing Industry (CPI). The original forecast for 2010 called for capital and maintenance project investments to reach $386 million in the United States and Canada. As we approach the end of the year, current expectations are that total spending will be much closer to $458 million for 2010, an increase of more than 16%. Attractive feedstock costs are just one part of the equation; demand for fertilizers also has remained strong, as farm plantings were up again in 2010 and export demand remained constant.