[Industrialized countries] In the USA, although relatively efficient methods are used in transport and handling, getting the fertilizer from the production point to the farmer accounts for as much as two thirds of the cost.
[Developing countries] Fertilizer production facilities in many developing countries are operating substantially below capacity; in some cases the operating rate is less than half the design rate. Domestic production has constantly been below domestic demand and consumption, necessitating large imports of chemical fertilizers by these countries. There are a number of reasons for this, but they are usually due to a combination of: processing problems, inadequate maintenance, high fixed operating costs, lack of market for the product - or inability to market it, inadequate supplies of feed materials, inadequate transport and storage facilities, lack of operating capital, technical incompetence, poor product quality, and lack of dependable power and water supplies. Also, shipping, storage and handling costs in the developing countries often represent more than half the total cost of getting the fertilizer to the farmer.