All posts by mickeybarb@charter.net

Yara Buys Stake in Brazil Trading Platform

Brazil, News, News Briefs, Scandinavia

Yara Brasil Fertilizantes SA has purchased a 14 percent stake in Rede Agro Fidelidade e Intermediacao SA, an online trading platform doing business as Orbia. The price of the investment was not disclosed. The deal was announced after receiving Brazil antitrust approval.

Yara’s goal is to reach 25 percent of total product sales in Brazil via digital platforms, such as e-commerce and marketplace, by 2025. “We are dedicated to contributing to the future of climate-positive and carbon-neutral food production, and we understand that in addition to offering the best nutrition solutions, this also involves access,” said Cleiton Vargas, Vice President of Farming Solutions for Yara Americas. “Making our portfolio available in multiple channels ensures that it reaches the field in the most appropriate way for each customer profile.”

Germany’s Bayer AG owns a majority stake in Orbia with 68.8 percent and Brazil’s Bravium 17.2 percent. Both companies equally diluted their shareholding in order to welcome Yara, which will get one seat on the Board of Directors.

“We need to expand partnerships and offer a range of products and services that make their interaction pleasant and agile, promoting the best shopping experience for the farmer,” said Luis Offa, Director of Marketing Latam of Bayer’s Agricultural Division. He said Yara adds a strong portfolio that will complement the solutions that the platform’s customers are looking for.

“For Bayer, Orbia is today one of the most important digital tools,” said Offa. “We understand that to be the protagonist of a digital transformation in agribusiness we need to be together with several players – it is what we call co-creation for innovation.”

“Our perception is that, with the entry of Yara, the digital transformation of the producer’s journey is increasingly consolidated in the idea of a one-stop-shop platform, making Orbia’s marketplace and coalition loyalty program absolutely fundamental solutions within the rural producers’ strategy,” said Ricardo Garcias, Co-Founder of Bravium.

Orbia said it has more than 240 distributors and national coverage in ag inputs. Crop commodities are also traded. It claims the largest loyalty program in Brazilian agribusiness, with approximately 190,000 registered users.

Supply partners include Bayer (agricultural pesticides), Yara (fertilizers), Boehringer-Ingelheim (animal health), and Bunge (grain origination). Orbia is expanding into Argentina, Mexico, and Colombia, according to a Reuters report.

Mosaic Acquires Plant Response

News, News Briefs, Southeast, Specialty

The Mosaic Co. has acquired Plant Response Inc., Research Triangle Park, N.C., a small ag technology company that develops and commercializes plant and soil health products. Mosaic said Plant Response will remain as a separate company.

Mosaic did not reveal the price, but said the amount was not material. Mosaic said that it has invested some $50 million in the last two years to build the foundation for an exciting future portfolio of value-added products that its customers have been asking for. The company has recently made investments and/or partnerships with Anuvia, AgBiome, BioConsortia, and Sound Agriculture.

In recent years, Plant Response has done some consolidation of its own, merging with Koch Biological Solutions (GM Nov. 22, 2019) and acquiring Pathway Logistics (GM Jan. 17, 2020) and WISErg, Seattle, over the last three years.

Plant Response said its portfolio of products currently touches over 3 million acres and that it has at least 13 product on the market in the areas of biostimulants, nutrient enhancers, and turf and ornamental, with others in the pipeline, according to its website.

In addition to its N.C. office, it has offices in Madrid, Spain, and Ciudad Obregon, Mexico. Manufacturing plants are in Plant City, Fla. (fermentation and formulation), and Redmond, Wash.

In 2018, Plant Response closed the first round of a Series B investment of $6.9 million, which included participation by Yara Germinate, iSelect, Bayer Ventures, Novozymes, and Middleland Capital.

Tri-County Farmers, GreenPoint Ag Combine Retail Agronomy Operations

Featured, News, South Central, Southeast, Southern Plains, Texas

Tri-County Farmers Association (TCFA) and GreenPoint Ag Holdings LLC have completed a transaction to combine their operations, the companies announced on March 1. The combined business, which includes all operations of both companies, will operate as GreenPoint Ag, with 114 retail and wholesale agronomy locations in Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Missouri, Tennessee, and Texas.

“I am absolutely thrilled for this combination,” said Jeff Blair, CEO of GreenPoint Ag. “Tri-County‘s farmer-focus and service-oriented business is a perfect fit with GreenPoint Ag. There is very little geographic overlap, and Tri-County’s locations will fit well within the existing GreenPoint Ag footprint. Thus, we believe the combination will allow us to provide better service to all growers in the region and be more efficient logistically.”

Headquartered in Brinkley, Ark., TCFA is a farmer-owned co-op with 150 employees and more than $100 million in annual sales. The company offers seed, seed treatments, crop protection, crop nutrition, custom application, crop consulting, and petroleum products and services from seven Arkansas retail locations at Stuttgart, Hunter, Des Arc, Brinkley, Holly Grove, Forest City, and Marianna.

“We think this is the right move at the right time for Tri-County’s farmers. We’ve done some great work over the last 65 years, always advancing and strengthening our co-op, but now recognize that for Tri-County to continue, in this era, and to provide best possible service to our growers, we need a large partner,” said Sam Medford, TCFA’s Board Chair. “GreenPoint Ag’s farmer-owned structure and geographic footprint allow us to remain part of the co-op system while benefiting from supply chain, economies of scale, agronomy, and technology that GreenPoint Ag brings with its system.”

GreenPoint Ag is jointly owned by Tennessee Farmers Cooperative (TFC), Alabama Farmers Cooperative (AFC), WinField United, Tipton Farmers Cooperative, and Farmers Inc. (GM Sept. 24, 2020). The company is based in Decatur, Ala., with regional offices in Memphis and LaVergne, Tenn., and is recognized as the largest farm retailer in the southern U.S. and a top seven wholesale and agronomy company in the U.S. GreenPoint Ag employs more than 1,000.

Blair said the addition of TCFA will boost GreenPoint’s annual sales by nearly 8 percent, to more than $1.4 billion, and will provide opportunities to improve service and grow in the region. “I would like to thank the TCFA farmers and members, who voted overwhelmingly to support the transaction,” he added. “TCFA has a long and proud history and has served its members well for several decades. I am honored and humbled by their faith in us and our new model.”

$50 M Organic Project Slated for Indiana

Eastern Cornbelt, News, News Briefs

Bionutrients, a new joint venture between Hello Nature, an organic fertilizers, biostimulants ,and microbials company, and MPS Egg Farms, Manchester, Ind., plans to break ground on a $50 million two-building production facility in Wabash, Ind., this spring. Completion is expected in the summer of 2023.

“We believe that this new production facility will be a turning point for the North American market,” said Luca Bonini, Hello Nature’s CEO. “Today the fertilizer industry undergoes multiple challenges such as rising prices, logistics issues and shortage of inputs, and there is a desperate need for innovative solutions to feed a growing population with less inputs and less land available. Our facility will ensure a regular production of sustainable fertilizers to help North American farmers achieve their yield goals. We are honored to partner with MPS and the Krouse family in this important project.”

This facility will expand Hello Nature’s Indiana presence and complements its two facilities in Anderson, Ind. (GM Oct. 25, 2019). The company was formally known as Italpollina (GM Jan. 22, 2021). It is based in Rivoli Veronese, Italy, with its U.S. headquarters in Anderson.

MPS said the project will enhance its operations in and near Wabash. The company has six farms, with locations in Indiana, Illinois, and Texas. It has over 11 million hens.

“MPS is excited to partner with Hello Nature to bring their expertise to Wabash. After a thorough review of potential sites in two states, we determined Wabash was the most attractive location and allowed us to expand at home,” said Dan Krouse, MPS Vice President of Operations. “We couldn’t be more thrilled to make this investment and hire more Hoosiers in Wabash County.”

Krouse told Inside Indiana Business that its Wabash County farms produce some 80,000 st/y of chicken litter, which currently goes onto row crops. He said Hello Nature’s technology will allow it to be made into products for a variety of crops.

The facility will employ 46, and the Indiana Economic Development Corp., has committed $490,000 in tax credits due to the job creation.

Kalium SOP Production Expected to Resume in June

Australia, News, News Briefs, Specialty, Sulfate of Potash

While Kalium Lakes Ltd., Balcatta, Western Australia, achieved it first batch of sulfate of potash (SOP) production last October (GM Oct. 8, 2021), difficulties have intervened and it does not expect enough “start-up grade” harvested potassium salt (KTMS) to be accumulated until June.

The SOP purification plant will restart at that time, with targeted commercial SOP sales in July. It said prior impacts to the brine production rates ahead of the peak summer solar evaporation period resulted in less KTMS for 2022 than was targeted.

“We are implementing plans to overcome the difficulties we have encountered to date and expect to restart the processing plant in the next quarter as soon as sufficient ‘start-up grade’ of KTMS has been accumulated,” said Kalium CEO Len Jubber. “We are confident that the revised commissioning plan will be successful.”

Another problem is that the region is expecting a dramatic escalation in COVID-19 cases in late March. It said mobilizing international equipment specialists and project designer Ebtec would take place after the wave has passed.

Kalium is now projecting an 80,000 mt/y run rate by first-quarter 2023, with a targeted 120,000 mt/y by third-quarter 2024.

As a result of the new ramp-up schedule, the company does not anticipate investment not being required for the SOP purification plant and power station expansion works until 2023.

EarthRenew Increases Organic Capacity

Canada, News, News Briefs

EarthRenew Inc., Toronto, reported that it has turned its pilot R&D facility in Beiseker, Alta., into a full-scale granulation facility that can now produce 20,000 mt/y of regenerative fertilizer and an additional 46,000 mt/y of blended product.

EarthRenew reported 2021 fertilizer revenue of C$14 million, a 106 percent increase over 2020, and said that it can now leverage the expanded facility to maintain a growth trajectory. To take advantage of the new production, the company said it has secured offtake agreements with CoreAg Inputs, an Alberta-based distributor, as well as Canadian retailer Parrish & Heimbecker Ltd. (P&H), Winnipeg.

Up next, the company said, is a much larger project at the K+S Potash Canada General Partnership (KSPC) site in Bethune, Sask., where it said production is now targeted at 200,000 mt/y for its granulated regenerative and organic fertilizer product (GM May 21, 2021).

According to a Letter of Intent (LOI) signed last year, the company plans to build a facility at the site and enter into a potash supply agreement in which K+S supplies potash byproducts for raw material input into the company’s regenerative fertilizer blends.

Symborg Buys Glen Biotech, Adds Pest Control to Biofertilizer, Biostimulant Portfolio

Europe, News, News Briefs

The biotechnological company Symborg, Murcia, Spain, recently announced the acquisition of Glen Biotech, a startup from the University of Alicante (Spain) providing biocontrol solutions for agriculture. This adds to Symborg’s existing portfolio of sustainable biofertilizers and biostimulants.

Glen Biotech’s technology is centered around the fungus Beauveria bassiana 203. According to Symborg, the fungus has a high potential for pest control, and the company will develop new products to provide biological mechanisms to control pests. It said the fungus already plays an important role in the fight against the red palm weevil, a pest that primarily affects palm trees.

Symborg cited a recent study by Mnemonics Research Analysis that valued the fungus at $1 billion, with a 16 percent annual growth rate that could reach $2.5 billion dollars in 2027.

Koch Ag & Energy Solutions to Acquire 50 Percent Stake in JFC III from OCP

Featured, Morocco, News, Southern Plains

OCP Group SA, Casablanca, and Koch Ag & Energy Solution LLC, have signed an agreement under which a Koch affiliate will acquire a 50 percent interest in Jorf Lasfar Fertilizers Co. III (JCF III) from OCP. When closed, the transaction will establish a 50/50 joint venture, the companies said in a joint press statement on March 2.

JFC III owns and operates an integrated phosphate fertilizer production facility in Jorf Lasfar, Morocco, with initial capacity to produce 1.1 million mt/y of phosphate-based fertilizers.

Output from the plant will be marketed by OCP and Koch Fertilizers LLC. Additionally, the companies will collaborate on the supply of ammonia and sulfur to OCP, and leverage their logistical capabilities for the shipment of fertilizers from Morocco.

OCP and Koch have agreed not to disclose the financial value of the deal, an OCP spokesperson told Green Markets.

Koch Fertilizer Executive Vice President Scott McGinn said the company was excited “to grow Koch Fertilizer from a predominately nitrogen producer and distributor by offering a larger suite of phosphate products to its customers.”

OCP Chief Growth Officer Soufiyane El Kassi said Koch is a key strategic partner “with a shared vision on how best to serve farmers and agriculture.”

The transaction remains subject to the satisfaction of customary closing conditions, including required approvals from regulatory authorities. Fulfilment of these conditions and transaction closure are currently estimated for the second or third quarter of this year.

Favorable Markets, Demand Boost OCP’s 4Q/FY2021 Revenues

Earnings, Morocco, News

OCP SA, Casablanca, reported an 84 percent increase in revenues for the fourth quarter ended Dec. 31, 2021, to MAD26.65 billion (approximately $2.75 billion at current exchange rates), up from the year-ago MAD14.50 billion.

The group cited favorable market conditions and a sustained demand across the main importing regions as driving the revenues’ performance.

For full-year 2021, revenues were up by 50 percent, to MAD84.30 billion versus MAD56.18 billion the previous year.

Fourth-quarter capital expenditure almost doubled compared with the prior year capex, rising to MAD6.01 billion from MAD3.16 billion. Full-year capex was up 37 percent, to MAD13.14 billion from MAD9.57 billion.

OCP is scheduled to report its detailed fourth-quarter and FY2021 results later this month.

OCP Ghana, Newage Agric Solutions, Ink MOU to Bolster Fertilizer Access

Africa, News, News Briefs

OCP Ghana Ltd., a subsidiary of OCP Africa SA, and Newage Agric Solutions Ltd., a leading Ghanaian agricultural firm, have signed a Memorandum of Understanding (MOU) to ensure a consistent and sustainable supply of fertilizer for food production in Ghana, according to local media reports.

The collaboration between OCP Ghana and Newage will ensure that the right type and quality of fertilizers are made available to farmers across the country to support both Ghana’s food security needs as well as jobs in the agricultural production value chain, according to the reports, citing Newage.

In Ghana, the government’s support through “Planting for Food and Jobs” (PFJ) has been working to ensure sustainable food production. However, farmers face the challenge of dealing with high costs because of rising global market prices.

OCP Ghana and Newage aim to ensure that local supplies of fertilizers are secured for timely delivery and at competitive prices, as well as strengthening local distribution channels and deepening the scope for extending existing agricultural systems.

In addition, the two firms want to promote knowledge sharing in the development of local fertilizer blends, innovation, and R&D efforts.