Demand for crops and vegetables globally has risen remarkably in recent years,

as a consequence of various macroeconomic factors such as high population growth.Increasing

demand for food produce is promoting the adoption of more and better fertilizers by the farmers
to meet the need and take the explore the rising opportunities. The ammonium nitrate based
fertilizers are extensively preferred by the farmers, thus creating demand for the nitric acid.

Global historical supply is accounted by the major producers of nitric acid from around the
world such as J.R. Simplot, Rentech, Agrium and Koch Industries. These manufacturing plant
commonly sell varying grades of nitric acid and ammonium nitrate–based products for agricultural,
mining, and industrial customers.

The demand for nitric acid have been inconsistent throught the years especially last year,
2016. There are different factors to consider such as the price of the product or service, the
income of the consumer, therir tastes and their expectations toward the product.
Nitric acid is a key chemical in the manufacture of fertilizers aside from being use as
dyes,adipic acid and polyurethanes.By far, the production of fertilizer consumes 75-80% of the
total tons of nitric acid produced annually. Of this 96% is used to make ammonium nitrate and
calcium ammonium nitrate. Thus, there is a need for the supply of nitric acid in the Philippines
because it is considered as an agricultural country with a land area of 30 million hectares, 47% of
which is agricultural land.
The mode of product distribution starts with the production of nitric acid. The products will
be marketed to the companies locally, and if the demand outside would be large and the supply
in the local would be met after some years, it would proceed to global distribution.

Nitric acid is usually liquid in form, colorless with a concentration of <3%. As of today, the
supply of nitric acid comes from other country and within PhP 20 000 per metric ton. In addition,
carbon dioxide have price of Php 1000 per metric ton. For the sulfuric acid, it has a price of Php
3000 and for anhydrous ammonia has a price of Php 25 490. These prices were based on June
19, 2017 Philippine Peso to US Dollar exchange rate of 50.08 PhP/US Dollar excluding the
shipping fee for the product.

Despite the increasing rate of demand of nitric acid throughout the years, the supply in the
Philippines is still not enough considering the fact that the country were just a distributor of the
said chemical and have no manufacturing plant up to this day. According to ITC Calculations
based on comtrade unit as of 2016, Philippines will remain a net importer of nitric acid that ranks
# 44 worldwide and # 11 in the Asian region. Thus, proposing a manufacturing plant of nitric acid
right here in the country can open the avenue in the world market.

A number of different technologies have been introduced regarding the utilization of swine
manure in the production of nitric acid. Similar to those processes, Ostwald and Haber-Bosch
process in the production of nitric acid will be employed. Upon implementation of this technique,
there are certain strategies that plant has to be accomplished in order to achieve its objectives.For
the marketability of a certain industry, market strategy is an essential prerequisite that a company
should prioritize. Market strategy involves decision making base on the various factors that
influence the market. A flexible strategy is required to meet the changes in the customers’ demand
and perception.