FGD Gypsum Use in Agriculture

Doug Snyder

United States Gypsum Company,

Cary, NC

Overview

• Why is gypsum used in agriculture?

• Economics of gypsum in agriculture

• Marketing of gypsum in agriculture

Why is Gypsum Used in Agriculture?

• Supply essential plant nutrients– Calcium

• Cell wall integrity

– Sulfur• Sulfur containing amino

acids

– Does not appreciably alter soil pH

• Lime• Elemental sulfur

Why is Gypsum Used in Agriculture?

• Soil chemistry/physics remediation– High sodium soils– High clay (“tight”) soils

Why is Gypsum Used in Agriculture?

• What crop characteristics dictate the use of gypsum?– High calcium requirement

• Legumes, peanuts, most dicotyledon crops

– Peak calcium need during life cycle

• peanuts

– Optimal growth in low pH environments

• Christmas trees• Blueberries

– Developing sulfur deficiencies

NCSU Gypsum Application Rate/A Recommendation for Christmas Tree Production (NCSU Note 5C1, 2005)

CEC

Ca% value given on soil test report

45 46 47 48 49 50 51 52 53 54

2.0 325 290 260 225 195 160 130 100 65 30

4.0 650 580 520 455 390 325 260 200 130 65

4.5 730 655 580 510 435 365 290 220 145 75

5.0 810 730 650 565 485 405 325 245 160 80

5.5 890 800 715 625 535 445 355 265 180 90

6.0 975 875 780 680 585 485 390 290 191 100

6.5 1055 850 840 735 630 525 420 315 210 105

7.0 1135 1025 910 795 680 570 455 340 225 115

7.5 1215 1095 970 850 730 610 485 365 245 120

8.0 1300 1170 1035 910 780 650 520 390 260 130

Economics of Gypsum Use

• There must always be a high return on investment+ Product cost+ Transportation cost+ Handling cost+ Application cost+ Equipment depreciation+ Time= Crop Input cost < crop

yield/grade gain

Economics of Gypsum Use

• Historical– Bulk gypsum

• Generally natural gypsum – high cost

– Proximity to market?

– “Powder” gypsum• Generally fine ground

natural gypsum – high cost

– “Pelletized” Gypsum• Pelletized natural

gypsum – high cost

Economics of Gypsum Use

• Future– Value proposition will change with bulk

gypsum• Lower cost, better proximity to market (?)• Finer, more uniform size product. May be hard to

handle?

– Value proposition will change with pelletized gypsum

• Lower cost feedstock in synthetic gypsum

Economics of Gypsum Use

• New markets?• New agronomic

research?• New industrial uses?• Recycled “Green”

Product?

How do I Market Gypsum?

• Understand the market• Understand the customer• Understand the channel• Understand the business• Understand the

regulatory and safety processes

Market Understanding

• SWOT of gypsum• Four “P’s” of

marketing– Product– Price– Placement– Promotion

Customer Understanding

• Who is the decision maker?

• What is the product that they want?

• Where are they located?

• When does the customer need the product?

• Why does the customer want the product?

• How is the product applied?– Pull-type, Floater, “Gandy box”, etc.

Channel Understanding

• Who is/are the primary agricultural input provider/s?

• How do they operate?• Are there any cross-

alliances?• Who are the people

involved?– What influences their

decision?– Who influences their

decision?• University personnel• Crop consultants

Business Understanding

• You have to think like a manufacturer and not a service provider– You are manufacturing a

product for end use• Purity• Moisture content• Impurities

– Chlorides, carbon and/or hydrocarbon compounds, heavy metals, etc.

• Storage– Indoor/outdoor– Size

• Loading mechanisms

Business Understanding

• You have to think like a manufacturer and not a service provider– “Back Office” Personnel

• Customer Service• Order fulfillment• Transportation/Logisitics• Finance

– Credit– Billing

– Collection – very important!

Business Understanding

• You have to think like a manufacturer and not a service provider– Sales/Marketing Force

• Training

• T&E

• Transportation

• Communication of product/price/placement/ promotion

- One person with a car and road map won’t get you too far -

Regulatory/Safety Understanding

Regulatory/Safety– Environmental/Health/

Safety– Federal/State/Local

Product Registrations• Minimum guarantee

compliance

– Fines/litigation if done improperly

Summary

• FGD gypsum is a viable agronomic input if treated as a plant food or soil amendment

• The economics have to be correct or potential customers won’t use it

• You have to know how to bring the product to market or you will have great frustrations

• You have to manage risk and comply will all regulatory requirements

Questions?

Thank You!