FERTILISERS’ RESEARCH

Hokitika Guardian, 6 June 1930, Page 7

FERTILISERS’ RESEARCH

FUTURE OF SYNTHETIC

NITROGEN

LONDON, May 2

Lord Melchett (chairman of the company) presided at the third ordinary general meeting of Imperial Chemical industries on April 29th. During the course of a long and important speed) he mentioned that there had been a sudden and large increase in the demand for nitrogen in recent years, and he expected, that history, would repeat itself. If the synthetic nitrogen industry of the world is to cope with these stiuden increases (said Ixnd Melchett) it must possess surplus capacity at any given moment, as it does at the present time. Synthetic nitrogen is going through a phase common to many new industries, when, after the initial difficulties nave been overcome, a good many enter with insufficient? knowledge both of technical costs and market conditions, and with exaggerated ideas of the profits to be obtained. This leads to temporary wide fluctuations and depression of price, jtnd nitrogen prices have now reached a level ttt which, to my mind, 3,8 compared with those of other commodities, they appear to have suffered an unnecessarily steep reduction. In those circumstances it is only producers like ourselves who, by means of a specially favourable geographical position and large-scale production, high technical efficiency, and well established selling organisation, can expect to make an adequate return on the capital invested in this industry. While in South Airica recently Lord Belcliett had many opportunities of meeting the directors of the company, and discussing important development programmes both as regards explosives and fertilisers, which have now been taken in hand. Among other problems which call for study is the future development of the vast copper area in Northern Rhodesia, which proniir£s~ to become the most important copper producing field in the world, and which will naturally look to Imperial Chemical Industries for the supply of explosives for its operations.

The chairman made a complete study of the future development of research in conjunction with very able Government officials regarding the fertiliser requirement of that vast country, There is an obvious necessitlv for the increased use both of phosphate and nitrogenous fertilisers which is being, more and more appreciated, and while the present world depression of agricultural prices is not unnaturally affecting also the farmer of South Africa, he is beginning more and more to understand—as Well as fanners will all the world over—that it is intensification of production (and fertilisers alone can give him a greater yield per acre) rather than a more extensive avid in reality a more expensive form of cultivation that his future prosperity lies.