Abstract: A packaging system and method is provided which will substantially retard or reduce the caking of powdered, crystalline, or granular organic and inorganic cakable chemical compounds and mixtures thereof. Such retardation and reduction in caking enhances the free flowability and scoopability of the compound. The packaging system and method comprises a moisture impermeable container, a moisture impermeable cover which closes the container, providing a moisture tight seal between the container and cover such as with a gasket, and desiccant. The compound can be placed directly into the container or into a moisture permeable bag which is sealed after the compound has been placed therein. The bag is filled or sized so that there will be a void space in the container once the container is closed. The desiccant is placed in the void space. The drum may be a fiber board drum having a moisture impermeable liner, such as an aluminum liner. The cover is preferably a plastic cover.