We expect that the current market trends will persist at least through thesecond quarter of 2009, and potentially longer. Further, we anticipate that theapplication rates for potash fertilizers will decline in 2009, relative to 2008,but we also do not expect this decline to be permanent as fertilizer plays avital role in ensuring that world agricultural production meets the needs of agrowing population. We believe that once dealer inventories clear, dealers willbe more cautious in re-stocking to normal summer levels in an effort to keeptheir inventories low. Intrepid remains well positioned to provide just-in-timedelivery of product in certain key agricultural markets when demandmaterializes. Confronted with this difficult environment we are maintaining ourfocus on balance sheet strength and capturing margin opportunity. We willcontinue to manage production volumes and our net cash position and makeappropriate adjustments as the market develops.
First Quarter ResultsOperating income for the first quarter of 2009 was $40.2 million compared to proforma operating income of $26.5 million in the first quarter 2008. Cash flowsfrom operating activities were $16.5 million for the first quarter of 2009,which compares to $17.1 million for the first quarter of 2008. PotashDuring the first quarter of 2009, Intrepid produced 137,000 short tons of potashand sold 99,000 short tons of potash. This compares to 224,000 short tonsproduced and 213,000 short tons sold in the first quarter of 2008. Productiondeclined in the first quarter of 2009 relative to the prior year period dueprimarily to our election to lower production at the East Mine and West Mine byeffecting two-week shutdowns at each facility which began in February of 2009and were completed the second week of March 2009. Additionally, we reduced thenumber of operating shifts at these facilities from four shifts to three shiftsand took other actions to slow production in response to lower market demand. The 99,000 short tons of potash we sold in the first quarter was at an averageFOB net sales price of $727 per short ton as compared to an average FOB netsales price of $295 per short ton during the first quarter of 2008.
The decrease in sales this quarter, as compared to 2008, resulted from slowersales of granular potash as growers deferred potash applications. Additionally,industrial sales have slowed as the North American rig count has continued todecline in response to lower natural gas and oil prices. However, in the feedportion of our business, we have seen sustained demand for our product. Our potash "cash operating" cost of goods sold ("COGS"), which we define astotal cost of goods sold excluding depreciation, depletion and amortization,royalties, and by-product credits, increased to $266 per short ton in the firstquarter of 2009 from $136 per short ton in the first quarter of 2008. The costper ton amount is higher than previous quarters primarily due to fewer tons ofproduction as a result of our lower operating rates in the first quarter of2009.
Additionally, during the first quarter, we determined that due to thepreviously mentioned production curtailments our production was below normalranges, which in accordance with FAS 151, required us to recognize a certainportion of our costs as period costs rather than absorbing these costs intoinventory. This accounting adjustment resulted in a $1.2 million increase in ourCOGS in the first quarter of 2009, or approximately $12 per short ton sold inCOGS. It also is important to understand that, because production rates remainedat low levels in the first quarter of 2009, the product currently being held ininventory has a higher relative per ton cost than our average COGS for 2008. TheCompany expects it could take several quarters for this relatively higher costinventory to work through the system assuming sales and production levelsincrease. Langbeinite - TrioDuring the first quarter, Intrepid produced 42,000 short tons of langbeinite Wemarket our langbeinite under the registered name of Trio.
Our langbeiniteproduction was 25 percent lower than the 56,000 short tons produced during thefirst quarter of 2008. The decrease in langbeinite production was largely drivenby our decision to shut down the East Mine for two weeks and then operate withthree operating shifts instead of four shifts as part of our inventorymanagement efforts announced in January 2009. Intrepid sold 38,000 short tons of Trio in the first quarter 2009 at an averageFOB or net sales price of $330 per short ton as compared to 93,000 short tons atan average FOB price of $123 per short ton in the prior year`s first quarter. Capital InvestmentDuring the first quarter 2009, Intrepid invested $23.8 million related to the2009 capital program. The dollars invested in the first quarter of 2009 wereused to fund projects already in progress and for sustaining capital. Totalcapital investment in 2009 is expected to be between $90 and $130 million.Despite the current market conditions, we will continue to invest capital toincrease the operating efficiency of our plants with a view towards thelong-term recovery of the potash market.