FGD Gypsum Use in Agriculture

1. FGD Gypsum Use in Agriculture Doug Snyder United States Gypsum Company, Cary, NC

2. Overview • Why is gypsum used in agriculture? • Economics of gypsum in agriculture • Marketing of gypsum in agriculture

3. 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

4. Why is Gypsum Used in Agriculture? • Soil chemistry/physics remediation • High sodium soils • High clay (“tight”) soils

5. 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

6. 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

7. 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

8. 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

9. Economics of Gypsum Use • New markets? • New agronomic research? • New industrial uses? • Recycled “Green” Product?

10. How do I Market Gypsum? • Understand the market • Understand the customer • Understand the channel • Understand the business • Understand the regulatory and safety processes

11. Market Understanding • SWOT of gypsum • Four “P’s” of marketing • Product • Price • Placement • Promotion

12. 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.

13. 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

14. 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

15. 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!

16. 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 -

17. Regulatory/Safety Understanding Regulatory/Safety • Environmental/Health/ Safety • Federal/State/Local Product Registrations • Minimum guarantee compliance • Fines/litigation if done improperly

18. 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

19. Questions? Thank You!