National Agri-Marketing Association
NAMA Website
Upcoming Events
Agri-Marketing Conf
Best of NAMA 2017
Member Directory

Source: Mosaic news release

To view the complete report, click here.

2013 set up a number of challenges for the crop nutrition industry, and for Mosaic. Market prices for potash and phosphates declined through most of the year in response to wide-ranging economic and governmental influences: New supplies came to market, from Mosaic and our competitors; and crop nutrient demand softened in key agricultural centers, driven largely by lower grain and oilseed prices and policy changes in India.

The easy response to such difficult operating conditions would be to hunker down and wait for better times. But at Mosaic, we seized opportunities and pushed our growth strategy forward. We choose to view the tough environment as a climate for growth.

The crop nutrition industry - indeed, the broad industry of agriculture - has always been cyclical. Mosaic's seasoned management team has weathered many troughs and peaks, and we have positioned Mosaic to thrive through these cycles, because we know that the long-term outlook for global food and, in turn, plant nutrient demand is extremely appealing.

Many market factors are outside our control, so we chose to focus on what we can control and on executing Mosaic's clearly defined strategy. We made huge progress in this regard in 2013, and, as a result, Mosaic is positioned to emerge, in a stronger business environment, as the world's leading crop nutrition company.

We acquired CF Industries' Central Florida-based phosphate business for a total of $1.4 billion in cash. The deal was announced in October and was completed in March 2014.

The additional 1.8 million tonnes of phosphate capacity will bring our capacity to approximately 11.5 million tonnes - extending Mosaic's lead as the largest finished phosphate producer in the world. The acquisition provides many benefits for Mosaic, including enhanced operating efficiencies, lower production costs and reduced capital investment.

We reached ammonia supply agreements with CF Industries. Together with our existing ammonia production capacity in Louisiana, the agreements assure us that the vast majority of our ammonia needs will be satisfied at attractive terms for many years to come. In light of these agreements, Mosaic was able to forego construction of an ammonia manufacturing plant - saving approximately $1 billion in capital investment.

Earlier in 2013, we entered into an agreement to develop a 3.5 million-tonne integrated phosphate mine and granulation operation with Ma'aden and SABIC in the Kingdom of Saudi Arabia. Mosaic owns 25 percent of the joint venture and will market a similar percentage of its production.

The low-cost operations promise to diversify our sources of phosphates and facilitate improved logistical access to key agricultural countries, including India. Planning for the facilities is proceeding on schedule, and construction is underway.

Search News & Articles

Proudly associated with:
American Business Media Canadian Agri-Marketing Association National Agri-Marketing Association
Agricultural Relations Council National Association of Farm Broadcasters American Agricultural Editors' Association Livestock Publications Council
All content © 2018, Henderson Communications LLC. | User Agreement