PEAT (Data in thousand metric tons, unless noted)1/ Domestic Production and Use: The estimated f.o.b. plant value of marketable peat production in the contiguous United States was about $16 million in 1995. Alaskan peat output was valued at $450,000 by the State Department of Natural Resources, Division of Geological and Geophysical Surveys, in Fairbanks, AK. Large firms, operating bogs over a wide geographic area in the United States, reported relatively level production, along with a moderate increase in sales. Peat was harvested and processed by about 70 producers in 21 States. Reed-sedge peat accounted for about 70% of total U.S. peat production by volume, followed by sphagnum moss, 18%; humus, 7%; and hypnum moss, 5%. Geographically, about 85% of U.S. peat production was from the Great Lakes, and Southeast Regions, led by Florida, Michigan, and Minnesota, in order of importance. The remainder was produced in the Midwest, Northeast, and West. Approximately 95% of domestic peat was sold for horticulture/agriculture usage, including general soil improvement, potting soils, earthworm culture, the nursery business, and golf course maintenance and construction, in order of importance. Other applications included seed inoculants, vegetable cultivation and mushroom culture, mixed fertilizers, and packing for flowers and plants. In the industrial sector, peat found widespread use as an oil absorbent, an efficient filtration medium for the removal of waterborne contaminants in mine waste steams, and municipal storm drainage. Peat also was used as an effective sterile absorbent in feminine hygiene products, and, to a lesser extent, as a fuel source. Salient Statistics--United States: 1991 1992 1993 1994 1995e/ Production 632 599 616 574 580 Commercial sales 703 652 612 552 580 Imports for consumption 573 639 648 669 700 Exports 13 22 8 23 20 Consumption, apparent2/ 1,250 1,230 1,290 1,240 1,290 Price, average value, f.o.b. mine, dollars per ton 25.29 25.68 27.54 27.22 27.00 Stocks, producer, yearend 298 308 269 252 220 Employment, mine and plant 650 650 650 650 650 Net import reliance3/ as a percent of apparent consumption 49 49 53 53 55 Recycling: None. Import Sources (1991-94): Canada, 100%. Tariff: Item Number Most favored nation (MFN) Non-MFN4/ 12/31/95 12/31/95 Peat 2703.00.0000 Free Free. Depletion Allowance: 5% (Domestic). Government Stockpile: None. Prepared by Peat Specialist, (703) 648-7711. PEAT Events, Trends, and Issues: Several operations were idled owing to permitting problems associated with increasingly stringent federal regulations and the proliferation of subsidized composting programs. A major horticultural peat firm in the United States planned to exit in the business, given the existing climate of diminishing returns. The Canadian sphagnum peat industry continued to capitalize on the environmentally restricted U.S. peat industry by shipping another record high volume. In 1995, Canadian peat shipments to the United States were proceeding at an annual rate of 720,000 tons, representing an increase of about 7% in volume and 3% in value. Thus, the aggressive marketing strategy adopted some years back by the Canadian industry resulted in an increase in the U.S. net import reliance from 53% to 55% between 1994 and 1995. The value of Canadian peat shipped to the U.S. marketplace was projected to reach about $130 million at U.S. Customs, eclipsing the value to the total U.S. peat industry by approximately eightfold. The public and private sectors introduced new peat products, including renewable sphagnum top moss used as a decorative accessory by the florist industry and encapsulated sphagnum moss beads that effectively captured heavy metals in industrial waste stream effluents. The outlook for horticulture during the remainder of the century is bright, according to U.S. Department of Agriculture market research studies. U.S. production will likely be governed principally by future wetlands environmental regulation, the ability to permit new bogs, competition from recycled natural organic materials, and Canadian competition. World Mine Production, Reserves, and Reserve Base: Mine production Reserves5/ Reserve base5/ 1994 1995e/ United States 574 580 15,000 6,400,000 Belarus 16,000 18,000 (6/) (6/) Canada 1,020 1,200 22,000 300,000,000 Estonia 5,500 5,500 (6/) (6/) Finland 8,550 7,000 64,000 6,400,000 Germany 2,980 2,900 42,000 450,000 Ireland 6,650 6,500 160,000 820,000 Latvia 5,000 5,000 (6/) (6/) Lithuania 4,700 4,800 (6/) (6/) Russia 64,000 60,000 (6/) (6/) Sweden 1,650 1,700 (6/) (6/) Ukraine 21,000 21,000 (6/) (6/) Other countries 942 1,000 4,900,000 150,000,000 World total (rounded) 139,000 135,000 5,200,000 460,000,000 World Resources: World resources of peat were estimated to be 1.9 trillion tons, of which the Former Soviet Union has about 770 billion tons and Canada about 510 billion tons. Domestic deposits of peat occur in all 50 States, with estimated resources of about 310 billion tons or about 16% of the world total. Substitutes: Natural organic materials may be composted and compete in certain applications. The superior water-holding capacity and physiochemical properties of peat limit substitution alternatives. e/Estimated. 1/See Appendix A for conversion to short tons. 2/Defined as production + imports - exports + adjustments for industry stocks. 3/Defined as imports - exports + adjustments for Government and industry stock changes. 4/See Appendix B. 5/See Appendix C for definitions. 6/Included with "Other countries." Mineral Commodity Summaries, January 1996