Economic impact of storage and handling regulations on retail fertilizer and pesticide plants

✍ Scribed by Duane S. Rogers; Jay T. Akridge

• Publisher: John Wiley and Sons
• Year: 1996
• Tongue: English
• Weight: 881 KB
• Volume: 12
• Category: Article
• ISSN: 0742-4477
• DOI: 10.1002/(sici)1520-6297(199607/08)12:4<327::aid-agr3>3.0.co;2-0

✦ Synopsis

A budgeting model was developed to estimate the cost of retailing dry bulk fertilizer, liquid bulk jertilizer, anhydrous ammonia, and pesticides for three sizes of plants. Estimates were obtained of the cost to upgrade each of the model plants to comply with Indiana's regulations on the handling and storage of fertilizers and pesticides. Results suggest that there are sign&ant scale economies associated with the regulations and that smaller plants will have a more dificult time rationalizing the investment in containment facilities. The implications of these regulations for the retail fertilizer industry are explored using Porter5 five-forces model. 01996