Calgary, Alberta-Agrium Inc. announced on March 18 that Profertil S.A. and the Argentine government have reached an agreement to put a cap on the price of urea to provide improved input cost predictability for Argentine growers. The agreement establishes a ceiling for the urea price to growers at the current selling price of $410 per tonne for the upcoming growing season. The Profertil facility, the largest single train urea plant in the world, experienced significant downtime due to reduced gas availability during the winter of 2007, Agrium said. News reports said that farmers in Argentina were squeezed by fertilizer shortages last year, partly due to the gas supply-related outages at the Profertil plant. The Argentine government has indicated that ensuring an adequate supply of urea to farmers is a priority. “This priority, along with steps being taken by Profertil, is expected to minimize the risk of downtime due to gas supply interruptions through the 2008 winter,” Agrium said. The Profertil operations produce anhydrous ammonia and urea. Profertil S.A. is 50 percent owned by Agrium Inc. and is an Argentine-based manufacturer and wholesale distributor of nitrogen products. Agrium’s partner in the plant is Spain’s Repsol YPF.
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