At least eight members of Congress have written the Obama Administration seeking an investigation of potash imports from Belarus, citing sanctions that were put in place in 2007 against the state-owned company Belneftekhim Concern. According to the opponents, the Belarus government in February 2014 removed potash producer Belaruskali from the Belneftekhim Concern and a Belarus press article at the time said the move was “intended to evade economic sanctions once imposed by the U.S.”

The Fertilizer Institute has received a number of inquiries from its members on the issue and has prepared a memorandum advising them to “act with caution,” in proceeding with any Belarus –related transaction. TFI urges them to conduct an appropriate level of due diligence review, and as needed, consult their own counsel to assure themselves of compliance with the regulations.

TFI duly notes that the U.S. Department of Treasury’s Office of Foreign Asset Control (OFAC), which is responsible for administering and enforcing U.S. sanctions, places the burden on U.S. companies themselves for conducting due diligence on these transactions. TFI said that OFAC itself has refrained from expressly and publicly indicating if it considers Belaruskali or trading company Belarusian Potash Co. (BPC) as subject to the sanctions.

Under OFAC rules, TFI said if Belaruskali or trading firm BPC are still 50 percent or more owned by Belneftekhim, then they would still be under the sanctions.

TFI noted BPC has indicated it is not subject to the sanctions.

At least one import cargo has reportedly found its way to NOLA, with two more expected this month. In total, about 150,000 mt are expected, with three trading firms reportedly bringing in the product– Trammo, Koch and Gavilon. The NOLA potash market was sitting at about $370/st when the news of Belarus imports were confirmed. With the Belarus news, along with other imports, prices have recently fallen to the $358-$365/st FOB range.

According to TFI, violating the sanctions could mean a fine up to the greater of $250,000 or twice the value of the transaction per violation in most administrative cases, and temporary or permanent denial of export privileges. Criminal violations involving willful failure to comply with the regulations may result in up to $1 million in fines and/or up to 20 years in prison per violation. However, TFI noted that in many cases, OFAC reaches negotiated settlements, and has the authority to reduce fines and penalties resulting from voluntary self-disclosures of violations and other mitigating factors. TFI said actual penalties in the past have ranged from warning letters to multi-million fines.

Workers at Dead Sea Works and Rotem Amfert on Monday, Feb. 9, held a one-day warning strike in solidarity with striking workers at Dead Sea Bromine Compounds. They are all subsidiaries of Israel Chemicals Ltd. The workers at Dead Sea Works prevented potash from leaving the premises of the Sdom plant and Rotem Amfert workers stopped all shipments of phosphates. The sanctions were approved by the Histadrut Labor Federation in response to the strike at Dead Sea Bromine after negotiations between the union and management over the firing of 140 workers broke down.

Dead Sea Works union head Armond Lankri called on ICL”s management to take back the dismissal notices to Dead Sea Bromine workers and return to the negotiating table. Dead Sea Works workers halted potash shipments from mid-December for a month. The sanctions were only halted after an agreement was reached at the Beer Sheba Labor Court whereby ICL management agreed to withdraw dismissal notices sent to 134 workers at Dead Sea Works. The court instructed the parties to hold intensive negotiations to reach an agreement on outstanding issues and report back to the court by Feb. 15. With that date fast approaching and no agreement in site it appears that workers may again go on strike. Regardless, expectations are that Dead Sea Works and Rotem workers may launch another one-day strike later this week or next.

In the meantime, the whole issue has come up in the election campaign with the opposition Labor party coming out in strong support of the workers. Former Finance Minister Yair Lapid and his Yesh Atid party have also given support to the workers and demanded that management take back the dismissal notices.

Potash Corp. of Saskatchewan Inc. reported fourth-quarter 2014 net income of $407 million on sales of $1.9 billion, up from the year-ago $230 million and $1.54 billion, respectively. Gross margins were up for all three major products—N, P and K.

“Record potash sales volumes, combined with higher realizations across all three nutrients, raised our quarterly earnings near the upper end of our guidance range,” said PotashCorp President and CEO Jochen Tilk. “As we look ahead, we see a supportive market environment – most notably in potash. We are ready to respond should demand for this nutrient prove stronger than expected and, as we balance operational flexibility with efficiencies, we believe PotashCorp is well positioned should conditions be more challenging.”

Full-year net income was off at $1.54 billion on sales of $7.1 billion from 2013’s $1.78 billion and $7.3 billion, respectively.

The workers at Dead Sea Works have intensified their sanctions and halted all potash shipments from the Sdom plant. The move was in response to a decision by Israel Chemicals Ltd.’s management to summon 135 workers in advance of their being laid off. The layoffs are part of a reorganization plan being implemented by ICL management.

In recent weeks, workers have reduced shipments as part of sanctions imposed with the backing of the Histadrut Labor Federation to counter plans by ICL to implement its reorganization plan. The DSW said that 135 workers received notices yesterday and in response all shipments of potash out of the plant were halted.

Late last week ICL threatened a lock out if the ongoing sanctions continue. The company has yet to receive approval from Israel’s Economics Ministry to go ahead with the shutdown of the plant, one of the largest potash facilities in the world.

ICL has accused the union of dragging its feet in the negotiations to implement the reorganization plant. Management said that it is being forced to downsize as part of its strategy in light of the recommendations of the government appointed committee on taxation of the natural resources sector. In November, Israel’s Economic Cabinet approved the recommendations which are expected to increase the government take from minerals and will lead to the country’s largest chemical maker paying $110 million annually in additional taxes.

Meanwhile Haifa Chemicals, the world’s largest producer of potassium nitrate, said it has been forced to shut down its two plants at Mishor Rotem and Haifa due to a shortage of potash supplies from ICL.

Haifa Chemicals is totally dependent on ICL’s subsidiary Dead Sea Works for potash supplies. Haifa workers demonstrated today in front of the ICL headquarters in Tel Aviv demanding a resumption of potash shipments. The Haifa union leader Eli Elbaz charged that ICL is using Haifa workers as hostages in their dispute. He said the company’s 600 workers take unspecified action to restore potash shipments.

Haifa management noted that ICL holds a monopoly over a large part of Israel’s natural resources and has continued to supply foreign and even other domestic customers the necessary raw materials. The management said it had demanded an investigation by Israel’s Anti-Trust Commissioner David Gilo of ICL’s actions and specifically in regard to the use of its monopolistic power and its adverse impact on Haifa Chemicals.

A massive fire at the Kugler Company fertilizer facility in Sterling, Colo., on Sept. 3 reportedly destroyed nearly 95 percent of the building and caused a small anhydrous ammonia leak that prompted the evacuation of approximately 200 households on the northeast side of town.

The fire was reported at 3:30 p.m. and fire crews had the blaze under control by roughly 5 p.m. Ten workers were inside the plant at the time of the blaze, but all were able to safely evacuate with no injuries reported. When responders detected the leaking ammonia, a reverse 911 call went out to area homes ordering the evacuation. Local news reports on Sept. 4 said no one required hospitalization or reported getting sick from the leaking ammonia.

Investigators on Sept. 4 said the fire was likely started by a welding accident. The Sterling Fire Department remained on the scene overnight on Sept. 3 to keep putting water on the building.

Headquartered in McCook, Neb., Kugler is a regional manufacturer and supplier of liquid fertilizer products, with plant locations in Nebraska, Colorado, Kansas, South Dakota, and Iowa. According to the company’s website, the Sterling plant produced ammonium thiosulfate fertilizer.

Wilbur-Ellis Co. announced on Sept. 4 that it has acquired the assets of Poynter’s Ag Supply, a retail facility and Wilbur-Ellis alliance partner located in Sawyer, N.D. The location will now be part of Wilbur-Ellis’s Midwest Region, and joins the company’s other North Dakota facilities at Elgin, Grafton, Grand Forks, Lisbon, Minot, Mott, Rolla, Wahpeton, and Walhalla.

“We expect the transition to Wilbur-Ellis ownership will be seamless given our long- standing partnership with the company,” said Duane Poynter, owner of Poynter’s Ag Supply. “Wilbur-Ellis places great value on integrity and operational excellence, which we believe is important. I look forward to future successes with the Wilbur-Ellis team.”

As an alliance partner, Poynter’s Ag Supply has purchased a majority of its products, including plant protection, nutrition, and seed, from Wilbur-Ellis, including the company’s branded products. Wilbur-Ellis said the acquisition will allow growers more access to its agronomists, technology specialists, and other services including aerial application. In addition, Wilbur-Ellis said the Sawyer location’s proximity to the Minot facility and other locations makes it a strategic fit for the company’s expanding operations in North Dakota.

“We’re thrilled to welcome the talented team at Poynter’s Ag Supply to Wilbur-Ellis,” said Randy Haugeberg, Wilbur-Ellis area manager. “We have an established relationship with the company, and I believe that our common goals of helping our customers succeed will be mutually beneficial for all parties.”

Pinnacle Agriculture Holdings LLC on Sept. 3 announced the opening of a new wholesale location in Yuma, Ariz., that will operate as part of Pinnacle’s Performance Agriculture brand. The new greenfield facility is located at 7211 East 30th Street, Suite B, and is the ninth location to join Pinnacle’s newly branded Performance Agriculture segment.

“We are so excited to join Performance Agriculture and for the opportunity to blend our talents and experience to provide customers with the best possible service and pricing,” said Patty Wooldridge, location manager, who was instrumental in the launch of the Yuma facility. “Performance Agriculture’s mission of contributing to customer success is very synergistic with the values of our team and something that will drive our operations day in and day out.”

The announcement comes within days of other recent Pinnacle acquisitions under the Performance Agriculture brand, including East Kansas Chemical in Wellsville and Kingsdown, Kan., and Kerman Ag Re¬sources Inc. in Kerman, Calif. Pinnacle completed a comprehensive rebranding initiative on Sept. 28, launching the Performance Agriculture brand to focus on growth in the Western, Mountain, and Pacific states. Performance Agriculture joins Pinnacle’s existing brands, which include Sanders – the company’s flagship farm input retail brand in the southern U.S. – and Providence Agriculture, Pinnacle’s Midwest, Upper Midwest, and Mid-Atlantic brand.

Stephanie Wooldridge also joins the Yuma management team as operations manager, with Jeremiah Wooldridge and Joe Neff handling wholesale sales and sales management. Both Neff and Jeremiah Wooldridge are licensed Pest Control Advisors with extensive experience in retail and wholesale sales, sales training, and management.

“We are very enthusiastic about the recent greenfield launch in Yuma,” said Jason White, president of Performance Agriculture. “We look forward to this wonderful opportunity to serve area farm input retailers with quality products at great prices, brought to them by experienced people who truly care about their success and the success of their growers.”

Allied Cooperative, Adams, Wisc., announced that the members of Arcadia Co-op, Arcadia, Wisc., voted on Aug. 26 to approve a merger with Allied. The combined business becomes effective Dec. 1, 2014, and will have approximately 375 employees and serve customers from 32 locations in nine Wisconsin counties. Company leaders estimate the combined organization’s sales will be approximately $280 million.

“We are very pleased with the result of today’s votes,” said Bob Boberg, Arcadia general manager. “Our members have recognized the opportunities that a combined cooperative can provide and we are eager to move forward as part of Allied Cooperative.”

The boards of directors of both organizations announced in June that they had signed a letter of intent for a merger (GM June 16, p. 10), and would complete a feasibility study in advance of an August vote. Allied CEO Timothy Diemert said on Aug. 26 that team members from both co-ops will now work together over the next several months to create an integration plan for a smooth transition for customers and employees. He also said Allied will “introduce positive changes” that build upon the best qualities of each organization.

“We look forward to Arcadia Co-op members becoming part of the Allied Cooperative family,” Diemert said. “We share a commitment to our members, employees, and the communities we serve. Together we look forward to growing our cooperative and better meeting the expanding needs of our members.”

Allied currently serves customers in central and western Wisconsin and eastern Minnesota through six divisions – agronomy, energy, feed, grain, transportation, and retail – and has locations in Adams, Blair, Galesville, Mauston, Melrose, Mindoro, Plainfield, Plover, Tomah, West Salem, Wisconsin Dells, and Wisconsin Rapids. Allied was formed in April 2013 (GM March 25, 2013) with the merger of Wisconsin River Co-op of Adams and Farmers’ Co-op Supply & Shipping Association of West Salem, Wisc.

Arcadia has agronomy, bulk fuels, LP, and feed operations, and also operates a convenience store and an automotive service center.

Loveland Products, a subsidiary of Agrium Inc. and a global provider of high-performance crop input products, announced that it has acquired a controlling interest in Agricen, a Dallas-based agricultural biotechnology company that produces biochemical-based plant nutrition products.

Loveland Products has also acquired an interest in Agricen’s sister company, Agricen Sciences, an applied sciences research company developing novel microbial and biochemical solutions for plant health and nutrition. Financial terms of the deals were not disclosed.

“These strategic investments are the initial steps in the extension of our long-term strategy for the discovery and commercialization of next-generation technologies that enhance plant health and improve crop productivity,” said Brent Smith, Loveland Products vice president. “We have a long history of working with Agricen and Agricen Sciences, so this is a natural place to begin a new, concerted effort to deliver innovative and sustainable plant health technologies that complement conventional growing practices around the world.”

Agricen manufactures two of Loveland Product’s fastest growing plant nutrition brands, Accomplish® LM and Titan® PBA, which are biologically derived to enhance fertilizer efficiency. Loveland Products is based in Loveland, Colo., and is the proprietary products provider for all of Agrium Retail in North America, Australia, and South America, including Crop Production Services (CPS).

Under the terms of the agreement, Agricen will operate under its present name as a Loveland Products subsidiary. Smith will take on the role of chairman of the board of Agricen, and will serve on the board of Agricen Sciences. Jeff Tarsi, vice president of strategy and international retail for CPS, will also join the Agricen Board.

“By combining Loveland Products’ extensive reach in the agriculture industry with Agricen’s and Agricen Sciences’ history in agricultural biologicals, we have a significant opportunity to create value for growers with next-generation agricultural tools that complement and enhance existing plant nutrition practices,” said Michael Totora, president and CEO of Agricen.

Loveland Products and Agricen (then Advanced Microbial Solutions) had previously entered a strategic partnership agreement in 2012, which gave Loveland an ownership position in Agricen, as well as exclusive, worldwide distribution rights to existing Agricen technology and access to an integrated pipeline of new product and technology opportunities.