All posts by mickeybarb@charter.net

Sackett-Waconia Turns 125

News, News Briefs, Northeast

Sackett-Waconia, Baltimore, the U.S.-based designer and manufacturer of fertilizer equipment systems, is entering its 125th year. Founded in 1897 as The A.J. Sackett & Sons company, it acquired a controlling interest in Waconia Mfg. Inc. in 1994.

In 2006, Sackett do Brasil was formed with a Brazilian company to serve Brazil’s fertilizer industry. In 2016, the companies came together under the banner of Sackett-Waconia and have continued their mission of providing design, engineering, fabrication, and customer support to the fertilizer industry.

“We have seen an evolution over these many years from the early days of crushing and mixing organic fertilizers to the development of high analysis granular fertilizers,” said Larry Taylor, Sackett-Waconia CEO. “Modern agriculture has taken recent advancements a step further to a soil specific model, where accurate blends of high analysis macro and micro fertilizers, soil amendments, and biologicals are required to maximize plant and soil health and improve Nutrient Use Efficiency on every acre.

“Our mission, over the past 125 years, is to provide customers with products and services that offer state-of-the-art fertilizer production equipment solutions,” he added. “We take this opportunity to offer our gratitude to the fertilizer industry for supporting our success!”

Novatek, Uniper Ink Term Sheet on Low Carbon Ammonia Supply

Ammonia, Germany, News, News Briefs, Northwestern Europe, Russia

Novatek, Moscow, Russia’s largest independent natural gas producer, and Uniper SE, Düsseldorf, an energy supply company, announced on Dec. 22 the signing of a term sheet on long-term supply of up to 1.2 million mt/y of low-carbon ammonia to the German and Northwest Europe markets. The product price will be indexed to relevant European and global benchmarks.

The product will be produced at Novatek’s planned Obskiy Gas Chemical Complex project, which will include carbon capture and storage facilities, and delivered to Uniper’s planned ammonia import terminal in Wilhelmshaven, Germany (GM April 16, 2021), equipped with an ammonia cracker operating with renewable power.

The imported low-carbon ammonia will be used as hydrogen carrier, transformed into gaseous hydrogen and fed into the future German hydrogen pipeline system, as well as supplied directly as a clean feedstock and as a fuel. The signing of the term sheet progresses cooperation based on a Memorandum of Understanding signed in January 2021.

“We are now at the pre-FEED stage for a low-carbon ammonia and hydrogen plant with CCS facilities, and signing of term sheets for long-term supply demonstrates growing demand for low-carbon products, which is an essential precursor for the Final Investment Decision on this project,” said Leonid Mikhelson, Novatek Chairman. “The plant will be located next to our LNG cluster in Yamal in order to minimize the infrastructure costs and provide the most competitive clean energy supplies to the global market.”

Prophecy Potash Becomes Alpha Copper

News, News Briefs, Potash, Vancouver

Junior mineral exploration company Prophecy Potash Corp., Vancouver, said on Dec. 31 it will change its name to Alpha Copper Corp. It expected the name change and a change of its ticker symbol to occur on Jan. 4, 2022.

The common shares of the company will continue to trade on the Canadian Securities ‎Exchange under its new trading symbol, ALCU, commencing at market open on Jan. 4, 2022. ‎ The company said a new corporate website, www.alphacopper.com, will be available soon.

AGI Completes Eastern Fabricators Acquisition

Canada, News, News Briefs

Equipment supplier Ag Growth International Inc., Winnipeg, said on Jan. 4 it has completed the acquisition of Eastern Fabricators, Georgetown, Prince Edward Island. Eastern specializes in the engineering, design, fabrication, and installation of high-quality stainless-steel equipment and systems for food processors. Eastern operates three facilities in Canada, with two in Prince Edward Island and one in Ontario.

Consideration for the transaction includes an upfront purchase price of C$29.25 million, payable upon closing, plus the potential for an additional C$15.75 million in earn-outs based on the achievement of financial targets in future years.

As of October 2021, on a trailing twelve-month basis, Eastern generated approximately C$26 million in revenue and $8 million in adjusted EBITDA.

Amazon Invests in Sustainable Fertilizer, Ammonia Related Companies

News, News Briefs, Specialty

Amazon, Seattle, reported that it has invested in Hippo Harvest, Half Moon Bay, Calif., and Amogy, Brooklyn, N.Y. The investments are a part of Amazon’s $2 billion Climate Pledge Fund, established in 2020 to help the company meet its climate goals.

Amazon said Hippo Harvest’s pilot farm system uses a direct-to-root fertilizer system that requires 95 percent less water than traditional farming. Due to the controlled environment, the greenhouses can be built almost anywhere, which would eliminate the emissions from transportation and increase the shelf life of fresh vegetables. Going forward, this produce would likely be sold at Amazon-owned grocery ventures Whole Foods and Amazon Fresh.

Amogy, a technology startup, is focused on developing ammonia-to-power systems that are emission-free and will eventually be used to power heavy-duty transportation such as long-haul trucking, aviation, and marine transportation.

The Mosaic Co. – Management Brief

Management Briefs, Tampa

The Mosaic Co., Tampa, on Jan. 6 announced that Yijun “Jenny” Wang has been named Senior Vice President-Global Strategic Marketing, Head of China and India, and joined the company’s Senior Leadership Team, effective Jan. 1, 2022.

Wang, the current Vice President-Global Strategic Marketing, leads pricing strategy and product placement for phosphate and potash globally, strategic market and analysis, brand marketing, new product commercialization, and Mosaic’s distribution businesses in China and India. Wang has also served on the Board of Directors at Canpotex for two years.

“Jenny’s expertise in the global agriculture market has played a key role in Mosaic’s strategy for the past 10 years,” said President and CEO Joc O’Rourke. “Her leadership will be critical to Mosaic’s global positioning as the industry continues to evolve and we expand our distribution business in China and India.”

Prior to joining Mosaic in 2011, Wang held various leadership roles in Sales, Marketing, Strategy and Business Development, and Global Product Management, and as Country Managing Director at Syngenta for 16 years in China, Vietnam, and its global headquarters in Switzerland.

Wang earned a B.S. in Biology from Sun Yat-sen University and a Master of Biology degree from South China Agriculture University. She graduated from the Advanced Management Program at Harvard Business School.

Star of the West to Acquire Citizens LLC

News, News Briefs

Star of the West Milling Co., a Michigan ag retail company with agronomy locations at Emmett, Rapson, and Richville, announced in December that it is acquiring Citizens LLC, a Michigan-based grain handler, agronomy supplier, and global exporter.

Star of the West said the acquisition will bolster its capabilities across several key areas, including grain receiving and marketing, agronomy services, and food-grade soybean exports. Terms of the deal and an expected closing date were not confirmed.

“This acquisition brings together two successful companies that share strong Michigan roots, global business relationships, and a track record of success serving our farmers, customers, and employees,” said Jim Howe, President and CEO of Star of the West. “With much in common between our two companies, this acquisition aims to leverage shared areas of expertise to deliver strong results and continue growing Michigan agriculture.”

Citizens has a staff of more than 30 employees at Michigan locations in Vermontville, Potterville, Charlotte, and Battle Creek. The company’s products and services include chemicals, fertilizer, seed, specialty soybeans, custom application, seed treating, soil sampling, trucking, and overseas container hauling. The company receives and markets corn, wheat, and soybeans, including non-GMO soybeans, from Michigan farmers.

“Star of the West Milling Company is one of the oldest and most respected, successful independent agricultural businesses in Michigan,” said Bob Mansfield, Founder and President of Citizens. “Star of the West is a local company known for being good stewards of their customers, employees, and Michigan farmers, and I am proud to have them build on the success we have achieved at Citizens LLC since 1987.”

Star of the West is a 151-year-old company with headquarters in Frankenmuth, Mich. It began as one flour mill and now operates five mills in four states, including Indiana, Ohio, Michigan, and New York. In addition to its three agronomy locations, the company also operates ten elevators, as well as dry bean and food-grade soybean processing facilities.

Farmers Business Network Inc. – Management Brief

California, Management Briefs, Specialty

Ag tech platform Farmers Business Network Inc., San Carlos, Calif., on Dec. 20 announced the hiring of Kumud Kokal, the company’s first Chief Information Officer.

“Kumud brings expertise across a range of tech companies to FBN,” said Amol Deshpande, FBN CEO and Co-Founder. “Everything we do strives to provide ROI to our members. By optimizing FBN’s internal processes, we’ll be able to even better deliver for our growers.”

Prior to joining FBN, Kokal held senior level IT posts at Stitch Fix, Airbnb, Informatica, and Intuit.

Willard Agri-Service Joins CommoditAg

Featured, News

Willard Agri-Service, a Maryland-based ag retail company with five locations in the Mid-Atlantic region, will be joining online farm inputs retailer CommoditAg, according to a Dec. 22 announcement from Farmers Edge Inc., the Winnipeg-based digital agriculture company that purchased CommoditAg last August (GM Aug. 20, 2021).

Farmers Edge said this new alliance will extend the reach of the CommoditAg fulfillment centers into the Northeast, bringing farmers a broad selection of over 200 agricultural products from more than 50 suppliers. Willard placed 59th in the latest CropLife 100 ranking of the largest U.S. ag retailers.

“We are extremely excited about this partnership with CommoditAg,” said Mike Twining, VP of Sales and Marketing at Willard. “We are committed to growing in the digital agriculture space as it continues to evolve and mature. By working with CommoditAg, we can expand our reach, enhance services, and deliver our high-quality agricultural products with more convenience.”

Since its launch in December 2017 (GM Jan. 8, 2018) by founding partners The Equity in Effingham, Ill., and Sunrise Cooperative in Norwalk, Ohio, CommoditAg has grown its e-commerce platform to include 14 retail distribution partners with more than 500 locations in the U.S. The company offers a broad portfolio of agricultural products, including crop protection, seed, fertilizer, agricultural lubricants, micronutrients/biologicals, and animal nutrition.

“We are always on the lookout for great retailers to join us in serving growers, wherever they may be,” said John Demerly, President of CommoditAg. “A respected enterprise like Willard brings the expertise and integrity we value in a partner, and we look forward to helping farmers in the Northeast thrive and grow in the coming years.”

CommoditAg was acquired for Farmers Edge in August for a purchase price of US$4.6 million on closing, plus an earn-out to a maximum of US$7.2 million of additional cash based upon the business meeting certain performance targets over the next three years. CommoditAg now serves as a wholly-owned subsidiary of Farmers Edge.

“By working with Willard, we can provide farmers with more options to access quality agricultural products, without leaving the farm,” said Wade Barnes, Farmers Edge CEO and Founder. “Like us, Willard is committed to continuously adapting to meet the needs of farmers and ensure their success, making this an ideal partnership as we continue to deliver on our mission of developing a fully-connected digital agricultural ecosystem.”

CHS Reports Record 1Q Earnings; Wholesale Fert Income Up, Volumes Off

Earnings, Featured, News

CHS Inc. on Jan. 5 reported record quarterly net income of $452.0 million for the first quarter ending Nov. 30, 2021, compared to the year-ago $69.7 million. CHS said the significant improvement was largely driven by strong global demand across key businesses.

Revenues were $10.9 billion, up from the year-ago $8.7 billion.

“Our exceptionally strong financial performance in the first quarter of fiscal year 2022 reflects the support of local cooperatives and producers, as well as the hard work and dedication of our employees around the world, who remain focused on delivering superior value for our owners,” said Jay Debertin, CHS President and CEO.

“That support and hard work, along with the investments we continue to make in critical assets and technology advancements, are leading to operational improvements and stronger customer engagement, which are driving earnings momentum,” he added.

Ag segment pretax income was $286.4 million, up from $83 million, while revenues moved up to $8.6 billion from $7.45 billion. CHS saw higher margins across all Ag segment businesses due to strong global market conditions and robust demand for agronomy products, grains and oilseeds, soy oil, and soy meal.

CHS said Ag pretax income included a $78 million increase for wholesale agronomy products, which resulted from strong global market demand and global supply disruptions during the quarter. However, first-quarter wholesale crop nutrient volumes were off 2.7 percent, to 1.823 million st from the year-ago 1.875 million st.

CHS reported lower Ag grain volumes attributable to a smaller overall wheat crop due to drought conditions in some parts of the U.S. and the impact from Hurricane Ida on the Gulf Coast, including the impact on its grain export terminal in Myrtle Grove, La. CHS also noted that prior-year elevated trade volumes to China following the Phase One trade agreement have since plateaued.

Nitrogen Production pretax income was $96.6 million, up from $4.5 million. CHS attributed the increase to strong demand and increased prices of urea and UAN, which were partially offset by higher gas costs.

Energy pretax income was $69.2 million on revenues of $2.47 billion, up from the year-ago loss of $67.2 million on revenues of $1.36 billion. CHS said the industry continued to experience improved margins and maintain higher volumes compared to the lows experienced during the early stages of the COVID-19 pandemic; however, the volumes and margins remain lower than historical levels.