Regina-Viterra Inc. recently told analysts that in addition to a good second quarter for its fertilizer business (GM June 15, p. 13), the company is also picking up market share. Viterra Agri Products Senior Vice President Doug Wonnacott told analysts that the company share in the entire Western Canada region is about 30-35 percent, and that it expects it will pick up a couple of points. While nitrogen volumes have been relatively flat through the first half, he expects the company to see a 100,000 mt upside versus year-ago levels as the company looks toward the end of the year. Responding to questions about severe phosphate and potash downturns in the U.S. Corn Belt, he reminded analysts that a different product mix is used in Western Canada. While he expects phosphate to be off 10-15 percent and potash by up to 40 percent, he noted that Viterra’s product mix is 70 percent nitrogen, 20 percent phosphate, and only 10 percent potash. As a result, the impact to Viterra of less phosphate and potash would not be so substantial. As for pricing, Wonnacott said in Western Canada the spring season has finished up with relatively stable pricing. However, he said it is a different matter on wholesale pricing, which has been reflecting a downward trend on urea and phosphates as has been seen on a global basis, with potash remaining reasonably stable. Wonnacott said Viterra does not expect any future write-downs on fertilizer for the balance of the year. A fertilizer inventory write-down of C$28.1 million helped move Viterra into the loss column for the first quarter ending Jan. 31, 2009 (GM March 16). On inventories, he expects the company to be effectively empty by the end of June. Due to a late spring, Wonnacott said he expects the glyphosate market to be down about 30 percent; however, he expects this will be offset by increases for grass and broadleaf products.
Transparency Across the Fertilizer Value-Chain