World potash — looking forward to the 1990s

CIM Bulletin, Vol. 78, No. 884, 1985

DOUGLAS A. KARVONEN, Potash Corporation of Saskatchewan, Saskatoon, Saskatchewan

Competition in the world potash market has increased significantly since the late 1970s. The failure of consumption to grow at expected levels has led to industry over-capacity, a situation which is likely to persist at least until 1990. Individual Saskatchewan producers and their offshore marketing company, Canpotex, have responded to this challenge by increasing mining efficiency, developing more cost-effective and reliable transportation systems and establishing innovative financing and market development programs tailored to customers' special needs. Investment in warehouse facilities to serve U.S. customers and exploration of opportunities for intermodal distribution through the Great Lakes and the Mississippi River system have maintained individual producers' position in the highly competitive domestic market. Export sales through Canpotex have been bolstered by utilization of CIDA funds, Export Development Corporation financing guarantees and other innovative payment plans which enable heavily indebted developing countries to maintain the import levels which are necessary for their agricultural development.
Keywords: Industrial minerals, Potash, Marketing, Domestic market, Offshore market product development, Transportation, Potassium chloride, Fertilizers.