The Role of Distribution
Fertilizer use is time-sensitive. When spring arrives, farmers race the clock to get their crops into the field, planting and fertilizing millions of acres across the country in a matter of days. The only sure way to meet their demand for fertilizer is to have product inventories “staged” in the market at distribution facilities with high-volume, state of the art handling equipment.
The nation’s logistics network simply can’t meet farmers’ fertilizer needs on a just-in-time delivery basis from distant sites.
Typically, CF Industries’ fertilizer manufacturing complexes operate all year, producing customer orders and building inventories for seasonal demand. The company’s dry products warehouses can stock more than 250,000 tons of Urea, more than 300,000 tons of Diammonium Phosphate (DAP), and more than 25,000 tons of Monoammonium Phosphate (MAP) in or near the marketplace. Its ammonia terminals have the capacity to hold more than 700,000 tons of product, and its UAN Solution terminals have more than 400,000 tons of storage capacity (at 28 percent nitrogen equivalent).
The location of the company’s distribution facilities—most of them in key Corn Belt markets, served by multiple modes of inbound and outbound transportation—can often provide important advantages in serving nearby customers, since shipping small amounts of fertilizer products over long distances generally isn’t economical.