All posts by hlancey@bloomberg.net

Interoceanic Acquires Bonus Crop Fertilizer in Texas

Ammonium Sulfate, Featured, Texas

Interoceanic Corp., White Plains, N.Y., announced on June 27 that its affiliate company Rapid Plant Nutrients LLC has acquired the assets, brands, and trademarks of Bonus Crop Fertilizer (BCF), headquartered in Greenville, Texas.

Established in 1982, BCF is a producer of fertilizers for the consumer retail industry and the professional lawn and landscape, golf, sports field, and nursery/greenhouse markets. The company operates mixing, screening, formulating, and bagging operations in north Texas that serve customers in the Southeast and Southwest US.

“Our goal is to continue to bring our family values and our supply chain efficiencies to the professional and consumer fertilizer industry, said IOC President Elio Mazzella. “Choosing Bonus Crop as a strategic partner was the next big step to strengthening our geographical footprint. We can now continue to increase our service capabilities to both our professional distributors and our consumer retail partners.”

The acquisition follows IOC’s purchase in 2022 of Spring Valley USA (GM Nov. 23, 2022), a producer of fertilizers for the turf and ornamental market headquartered in Jackson, Wisc. In addition to BCF, Spring Valley, and Rapid Plant Nutrients, the IOC family of companies now includes Chimico Rail, Chimico Logistics, EM2 Enterprises LLC, and PCI Nitrogen, one of the largest global producers of bulk synthetic grade granular ammonium sulfate at Pasadena, Texas.

“Finding a partner who will continue to carry on the legacy of our business that we spent the last 40-plus years nurturing and building was important to me, my family, and to the associates at Bonus Crop,” said Steve Barton, President and owner of BCF. “Having watched the success IOC has brought to the market with the Spring Valley acquisition just 18 months ago, and its supply chain efficiencies, aligning with two powerful brands in the market just made perfect sense for me and my family.”

“BCF will be a solid addition to IOC’s family of companies,” Mazzella added. “Our ability to bring market knowledge to our BCF and Spring Valley acquisitions, along with our capability to move raw materials efficiently and cost effectively throughout the country, will continue to provide exceptional value to our end-user partners across all channels. BCF’s geographical footprint continues to complement our model of supply chain efficiencies.”

FCEC Members Approve Merger with Kanza Cooperative

Featured, U.S.

Members of Farmers Cooperative Elevator Company (FCEC) in Garden Plain, Kan., have approved a merger with Kanza Cooperative Association, Iuka, Kan. The merger will become effective on Sept. 1, 2024, with the combined organization headquartered in Iuka and operating under the Kanza Cooperative Association name.

FCEC members approved the merger in late May with a vote of 180-85, meeting the two-thirds majority required by Kansas law. The vote was the second scheduled for the merger, with an earlier vote in April failing to meet the threshold with a lower voter turnout of 113-57.

“We had an excellent turnout from the membership and are very pleased that the majority approved the merger,” said Dixie Brewster, Board President of FCEC. “This vote has set our cooperative on the best track to maintain high quality service and products to our members, stay the employer of choice in our communities, and protect our members’ equity for generations to come.”

The merger was unanimously approved by both boards earlier this year, with a definitive merger agreement signed in March and a letter of intent in January. The boards noted that both organizations are financially strong and share a similar geography and many of the same members, and said a combined business would be more efficient, provide stronger customer service, and create opportunities for synergies.

The combined cooperative will operate from 31 Kansas locations and employ a full-time staff of 204. Based on the latest full fiscal year, the combined agronomy, grain, energy, and feed businesses are projected to generate $407 million in annual sales with $285 million in total assets.

“We are excited for the synergy that is possible as we bring these two strong cooperatives together,” said Alvin Neville, Board Chair of Kanza. “We have so much in common from geography to services to strong financial positions. Together we will create a better cooperative for our members, employees, and the community we serve.”

Alan Woodard, current CEO of Kanza, will be the General Manager and CEO of the combined organization. Rusty Morehead, current CEO of FCEC, will remain on the management team as a key employee.

The new board will consist of nine current Kanza board members and two current FCEC board members, plus one additional associate board member from FCEC. Going forward, the 11-member board will consist of six members from the co-op’s west region, which is primarily Kanza’s existing territory, and six from the east, where FCEC’s operations are focused.

FCEC currently operates agronomy, feed, grain, and petroleum divisions from Kansas locations at Bentley, Halstead, Mount Hope, and Patterson. Kanza traces its roots to 1915 and began operating under the Kanza name in 2001 after several mergers and acquisitions. Another merger with Andale Farmers Cooperative in 2016 expanded the co-op again (GM Jan. 15, 2016), and Kanza currently operates agronomy, grain, feed, energy, and sunflower trading businesses from 27 locations.

Australian Energy Company Shelves Plan for Ammonia, Urea Complex

Ammonia, Australia, Featured, Natural Gas, Urea

Australia’s Strike Energy Ltd., Thebarton, South Australia, has decided to shelve its plan to build a $3 billion fertilizer plant known as Project Haber, and will instead focus on producing electricity.

Strike in 2021 announced plans to build Project Haber, an ammonia and urea complex for Western Australia’s Narngulu Industrial Estate, adjacent to Geraldton Port (GM Jan. 15, 2021). The complex envisioned a 1.4 million mt/y urea plant and an 800,000 mt/y ammonia plant using natural gas from Strike’s Greater Erregulla development in the Perth Basin via a 120-kilometer pipeline.

Strike brought its Walyering natural gas project in the northern Perth Basin online in September 2023. But Managing Director Stuart Nicholls said some of the company’s appraisals of existing gas resources at South Erregulla were unsuccessful, resulting in a “dramatically” lower estimate of the amount of gas available.

“Our ambitions to build a 1.4 million-tonne urea facility are ostensibly delayed for quite some time and will be subject only to being able to find additional gas resources and bring those to market,” he told local media.

Strike purchased farmland west of Three Springs for the urea plant and will now build a gas-powered peaking power plant at the location.  Strike has submitted an application to the Australian Electricity Market Operator (AEMO) for the award of capacity credits and network access. If granted, Nicholls said the 85-megawatt peaking power station would be operational by October 2026.

In 2022 Strike was granted major project status by the federal government for Project Haber to streamline approvals and project support. The company in 2021 said it was in discussions with “several parties” for fertilizer offtake and equity agreements in the project, and said it planned to secure offtake agreements for up to 80% of the project before entering into front-end engineering and design (FEED) for the project.

At the time of the 2021 announcement, Strike estimated gross fertilizer revenues from Project Haber at A$540-A$700 million per year, or approximately $418-$542 million based on then-current exchange rates and urea prices in both wholesale and direct markets. Strike said the facility would be primarily focused on meeting the needs of Australian farmers, with surplus product to be made available to international markets.

The Andersons Inc., – Management Brief

Eastern Cornbelt, Management Briefs, U.S.

The Andersons Inc., Maumee, Ohio, announced on June 25 that Joe McNeely, President of the company’s Nutrient & Industrial business, will retire at the end of 2024. Andy Spahr, Vice President of the Wholesale Business, will assume the role of Senior Vice President, overseeing the Nutrient & Industrial segment on July 1, 2024.

McNeely, who began his career with The Andersons in 2017 as president of the Rail Group and later assumed responsibility for the former Plant Nutrient Group, forming the Nutrient & Industrial segment, will provide transition assistance and oversee the Nutrient & Industrial growth pipeline until his retirement.

“We are extremely grateful for all the work Joe has done to grow our Nutrient & Industrial business,” said Bill Krueger, The Andersons Chief Operating Officer. “His leadership through the divestiture of the rail business and strategic acquisitions in the fertilizer space have been instrumental in helping our Nutrient & Industrial business achieve record performance.”

Spahr joined The Andersons in 2011 and has held a variety of progressive roles in the former Grain Group before moving to the fertilizer business in 2016. As Vice President of the Wholesale Fertilizer Business, he led a team responsible for procuring and distributing more than 1.5 million st/y of crop nutrients, predominately in the Eastern Cornbelt.  

“Andy’s experience in the industry and across our businesses enables him to understand the needs of our customers and how to best leverage the market dynamics that drive this diverse business,” Krueger said. “I am excited for him to expand his role and to continue serving the company in this leadership capacity.”

Sage Potash – Management Brief

Management Briefs, U.S., Vancouver

Junior miner Sage Potash, Vancouver, B.C., on June 26 announced the appointments of Clark Sazwan on the Board of Directors, Amir Rahimtula as Global Markets and Finance Partner, and Shilo Sazwan as a new Strategic Operations Partner.

Sage said the appointments will accelerate its efforts in domestic potash production at the Sage Plain Property in Utah and follows Sage’s closing in May of non-brokered private placements grossing $1,822,500.

Clark Sazwan is the Owner and Director of Tiger Tank Lines, former Owner and current Director of Tiger Calcium, and the Director/Owner of Keg River Chemicals. Rahimtula is President of Transnational Enterprises, a Canadian trading company, and is the grandson of Amir Ali Rahimtula Sr., the first Chairman of the Fertilizer Association of India.

Shilo Sazwan served as the Chief Operating Officer at Tiger Calcium, where he oversaw 500 employees and led the development of multiple calcium and fertilizer plants with custom in-house technologies and a logistic division with rail and trucking fleets. Sage said he has more than three decades of fertilizer industry experience.

The US Department of Agriculture’s (USDA) National Agricultural Statistics Service (NASS) – Management Brief

Management Briefs, U.S.

The US Department of Agriculture’s (USDA) National Agricultural Statistics Service (NASS) has named Joseph L. Parsons as its new Administrator as of June 16, following the retirement in March of previous Administrator Hubert Hamer.

Parsons has been with NASS for more than 37 years, previously serving as Acting Administrator and before that as Associate Administrator. He also served as chair of USDA’s Agricultural Statistics Board and director of NASS’s Methodology Division.

Joseph J. Prusacki, a NASS employee since 1984 and former director of NASS’s National Operations Division in St. Louis, Mo., will remain as NASS’s acting Associate Administrator until the position is filled later this year.

Mosaic Sales Volumes, Revenues Lag 2023

DAP/MAP, News Briefs, Phosphate, Potash

The Mosaic Co. on June 24 released April and May sales volumes and revenues for its potash, phosphates, and Mosaic Fertilizantes business segments, with all three trailing year-ago figures.

Second-quarter potash sales volumes and MOP prices at the mine are expected to be within the previous guidance range of 2.2-2.4 million mt and $210-$250/mt, respectively. Phosphates sales volumes and DAP prices at the plant are expected to be in the range of 1.6-1.8 million mt and $530-$580/mt, respectively.

Potash  April/May 2024   April/May 2023
Sales Volumes (000 mt)  1,314  1,617
Sales Revenues (M US$)  371 672
Phosphates   April/May 2024  April/May 2023
Sales Volumes (000 mt)  932 1,329
Sales Revenues (M US$)  671 948
Mosaic Fertilizantes April/May 2024  April/May 2023
Sales Volumes (000 mt) 1,237 1,305
Sales Revenues (M US$) 606 791

Fertilizer Railcars Derail in Iowa Due to Flooding

News Briefs, U.S.

A BNSF train carrying dry fertilizer derailed near the town of Alvord, Iowa, on June 21, according to local reports. No injuries or spills were reported as a result of the nine-car derailment, which the Lyon County Sheriff’s Office said was likely due to flooded tracks after heavy rain in the area.

“BNSF can confirm at approximately 03:30 a.m. CST Friday, June 21, a train derailed in Alvord, Iowa, affecting the main track,” BNSF said in a statement. “There are no injuries and no threat to the public. BNSF personnel are on site working to clear theincident as quickly and safely as possible. The cause is under investigation.”

The Mill of Black Horse Receives Grant for Fert Plant

News Briefs, U.S.

Maryland Gov. Wes Moore on June 25 announced that the Maryland Department of Commerce has awarded 11 grants totaling $9 million, including $1 million to The Mill of Black Horse LLC, an ag retailer with seven locations in Maryland, for the construction of a 16,000 square-foot fertilizer plant for precision blended fertilizers using climate smart technologies.

The grants are part of Maryland’s Build Our Future Grant Pilot Program for projects that support innovation infrastructure development in eligible technology sectors. The program is part of the Governor’s Innovation Economy Infrastructure Act of 2023, which provides grants to private companies, nonprofit entities, local governments, or colleges and universities.

“To make Maryland more competitive, we need to turbocharge those areas of our economy that are producing fresh ideas and innovative new technologies,” Moore said. “These grants will not only help individual businesses grow but will also help establish tools and resources to support growing industries.”

Eligible industry sectors include advanced manufacturing, aerospace, agriculture, artificial intelligence, biotechnology, blue technology, cybersecurity, defense, energy and sustainability, life sciences, quantum, and sensors and robotics.

“The Build Our Future Program is a bold new way to accelerate growth in the innovative sectors where Maryland is poised to lead and dominate,”said Maryland Department of Commerce Secretary Kevin Anderson. “These grants will support innovation and spur economic growth across Maryland and help make sure we’re competitive in these key industries.”

Sulvaris Gets US Patent for MST Technology

Europe, News Briefs, Nitrogen, South America, South Asia, Sulfur, Urea

Calgary-based Sulvaris Inc., a developer of enhanced efficiency fertilizer products and proprietary technologies, announced on June 27 that the US Patent and Trademark Office (USPTO) has issued a patent to Sulvaris for its Micronized Sulfur Technology (MST®) platform.

Sulvaris said the patent was issued for a “method of preparing a micronized sulfur fertilizer product with urea,” which the company said has an even distribution of urea and micronized sulfur particles in each particle that provides a slow-release source of sulfur for crop nutrition.

“This milestone marks a significant step forward, strengthening Sulvaris’ intellectual property portfolio across key global urea and sulfur markets,” said Jake Underwood, President and CEO of Sulvaris. “Consistent availability of soil sulfur allows many crops to utilize other nutrients like nitrogen to their full potential so farmers can achieve greater yields, especially from an efficient sulfur source like MST®.”

Sulvaris noted that patent applications have already been filed in key markets across North and South America, Europe, Asia, and other jurisdictions with a market focus on nitrogen use efficiency. “The USPTO’s positive stance is a testament to the novelty of Sulvaris’ MST® technologies,” the company said.