Production of Urea Fertilizer. Business Plan & Investment Opportunity for Entrepreneurs Startup in Crop Production Fertilizer Industry.
Urea is the most important nitrogenous fertilizer in the market, with the highest Nitrogen content (about 46 percent). It is a white crystalline organic chemical compound. Urea is neutral in pH and can adapt to almost all kinds of soils. It is a waste product formed naturally by metabolizing protein in humans as well as other mammals, amphibians and some fish. Urea is widely used in the agricultural sector both as a fertilizer and animal feed additive.
It is the largest component of modern commercial fertilizers. Urea fertilizer has nearly replaced ammonium nitrate as a fertilizer in large farming operations. Although this urea is artificially produced, its composition is the same as that produced by the body. Manufactured urea fertilizer can, therefore, be considered an organic fertilizer. It contains large amounts of nitrogen, which is essential for healthy plant growth.
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Advantages of Urea Fertilizer
When applied in measured proportions and through precise methodology, urea works wonder for all crops and increase4s the yields by great proportions
As urea comprises of 46% N, it can be easily stored, transported and handled safely. There are no explosion hazards caused by urea fertilizer.
The nutrient composition rendered by urea enhances the productivity of the soil and enriches its nutrient constituency. Providing each plant with relevant elements needed, urea sustains plant life.
More than 90% of world industrial production of urea is destined for use as a nitrogen-release fertilizer. Urea has the highest nitrogen content of all solid nitrogenous fertilizers in common use. Therefore, it has the lowest transportation costs per unit of nitrogen nutrient.
Many soil bacteria possess the enzyme urease, which catalyzes conversion of urea to ammonia (NH3) or ammonium ion (NH4+) and bicarbonate ion (HCO3−). Thus urea fertilizers rapidly transform to the ammonium form in soils. Among the soil bacteria known to carry urease, some ammonia-oxidizing bacteria (AOB), such as species of Nitrosomonas, can also assimilate the carbon dioxide the reaction releases to make biomass via the Calvin cycle, and harvest energy by oxidizing ammonia (the other product of urease) to nitrite, a process termed nitrification. Nitrite-oxidizing bacteria, especially Nitrobacter, oxidize nitrite to nitrate, which is extremely mobile in soils because of its negative charge and is a major cause of water pollution from agriculture. Ammonium and nitrate are readily absorbed by plants, and are the dominant sources of nitrogen for plant growth. Urea is also used in many multi-component solid fertilizer formulations. Urea is highly soluble in water and is therefore also very suitable for use in fertilizer solutions (in combination with ammonium nitrate: UAN), e.g., in 'foliar feed' fertilizers. For fertilizer use, granules are preferred over prills because of their narrower particle size distribution, which is an advantage for mechanical application.
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The most common impurity of synthetic urea is biuret, which impairs plant growth. Urea is usually spread at rates of between 40 and 300 kg/ha (35 to 270 lbs/acre) but rates vary. Smaller applications incur lower losses due to leaching. During summer, urea is often spread just before or during rain to minimize losses from volatilization (a process wherein nitrogen is lost to the atmosphere as ammonia gas).
The market for urea is expected to witness a CAGR of more than 2.5% over the forecast period. One of the major factors driving the market studied is the increasing demand for fertilizers in the agriculture industry. However, health hazards regarding urea are likely to restrain the market.
Urea fertilizer prices are looking to firm up after years of weakness. This is resulting from signs of global tightening, resulting from strong Indian imports combined with low export availability out of China. Exports from China are dwindling because of low global prices and very high cost of production, owing to the huge increase in bituminous coal prices in China.
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Urea cost structure analysis shows that while energy costs for the ammonium-swing producers set a price floor for ammonia, the ammonia price sets a floor for the urea price. If the urea price drops below this floor, more ammonia will be offered for sale, less urea will be sold, and the relationship will be restored.
It is commercially synthesized by combining ammonia with carbon dioxide (CO2) under high pressure to obtain solid odorless white pellets or crystals. Urea is primarily used in the production of urethane, which is further polymerized to form polyurethane foams. It is also utilized in the manufacturing of fertilizers, feed supplements, pharmaceuticals, and adhesives, laminates, molding compounds, resins, coatings and textile finishes. It finds extensive applications across various industries, including agriculture, chemical, automotive and medical.
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Nitrogen is one of the important nutrients required for the growth of plants. It is available in natural form in the atmosphere, however, only a few plants can absorb it. Hence, it is supplied to plants synthetically in the form of nitrogenous fertilizers. The global market offers nitrogenous fertilizers in the form of urea, ammonia, ammonium sulfate, calcium ammonium nitrate, and a few others, with varying proportions of the nutrient value. These nitrogenous fertilizers provide better texture and regulate plant growth for faster yield.
The demand for fertilizer additives is mainly dependent on the growth of the ertilizer industry. Further, the shrinking arable land, adoption of new technology in fertilizer production, and the increasing willingness of farmers to spend more for increased productivity are some important factors that contribute to the growing demand for fertilizer additives.
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Fertilizer additives are substances that enhance the quality and integrity of fertilizers. These are particularly engineered and developed to counter problems such as foaming, dedusting, moisture, and caking. Additives are effective tools for producers to improve the quality and integrity of their products and to reduce the damage caused during storage, transportation, and application.
Related Project: - Urea Fertilizer- Start Business in Fertilizer Industry
List of Top Key Players in Urea Fertilizers:-
v CF Industries
v Yangmei Chemical
v Koch Fertilizer
v Shanxi tianze coal-chemical
v Rui Xing Group
v China XLX Fertiliser
v Shandong Lianmeng Chemical
v Dongguang Chemical
v Sichuan Lutianhua
v CVR Partners, LP
v Hubei Yihua Chemical Industry
v Luxi Chemical Group
v Coromandel International Ltd.
v Sinofert Holdings Limited.
v Bunge Limited
v OSTCHEM (Group DF)
v OCI Nitrogen
v Coromandel International Ltd
v National Fertilizers ltd
v Chambal Fertilisers & Chemicals Ltd
v National Chemical & Fertilizers Ltd
v Nagarujuna fertilizers and Chemicals Ltd
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