VIEW FROM THE TOP: THE MOSAIC COMPANY
CROP NUTRIENT SECTOR FLOURISHING
Name: Jim Prokopanko
Title: President /CEO
Career: Joined Mosaic in July 2006 as Exec VP/COO. Previously he was Corp VP of Cargill and a Platform Leader responsible for US. AgHorizons, the Canada AgHorizons and the Frontier Agriculture Ltd. business units.
Education: B.S. from the University of Manitoba and an M.B.A. from the University of Western Ontario, London, ON.
AM: Please provide an overview of The Mosaic Company.
JP: The Mosaic Company was formed in 2004 by combining two leaders in the fertilizer industry, IMC Global and Cargill Crop Nutrition. Mosaic serves a noble and necessary purpose — namely providing the means and methods to feed the world's escalating demands for human nutrition. We produce and market concentrated phosphate and potash crop nutrients.
Our corporate headquarters is in Plymouth, MN. We have key distribution facilities in 11 countries, servicing customers in 33 countries around the world. Our principal phosphate production facilities are located in Florida and Louisiana. Our potash production facilities are located in New Mexico, Michigan and Saskatchewan, Canada. Mosaic is also a 50% owner in Saskatchewan-based Saskferco Products, Inc., one of the world's most efficient nitrogen production facilities. We also have equity interests in phosphate production facilities in the key growth markets of Brazil and China.
AM: What are some goals/objectives you have for the company?
JP: Mosaic is one of the industries newest players and we have spent the last two years laying the foundation for the company. We have had our share of start-up challenges, and have not yet produced the results that we expected. What we have worked through, however, only increases our excitement about the significant opportunity ahead.
We are focusing on operational excellence to help us reduce our costs. We are focusing on our customers and building a solid relationship with them that benefits us both. And we are focusing on paying down our debt and strengthening our balance sheet.
AM: What is your view of the crop nutrient business this year?
JP: Economic and demographic fundamentals are leading to an agriculture renaissance. Population growth and economic prosperity in developing nations, especially Asia and Latin America, is increasing the demand
At the same time, sustained high energy prices are driving energy deficient countries to develop alternative sources of fuel. This is particularly true in the U.S., where ethanol capacity is forecast to increase by about one-third over the next year. With increased demand leading to higher crop prices farmers are likely to apply more fertilizer to maximize their yield.
AM: How is Mosaic adding value to other products it provides?
JP: Fertilizer and other crop inputs are taking a larger share of the grower's dollar. How is Mosaic continuing to add value to the products they provide?
At Mosaic, we are taking time to listen to our customers, learn from our customers and partner with our customers. We know that when the market is tight, our customers depend on us to be able to deliver what they want, when they need it.