All posts by mickeybarb@charter.net

Lithuania Moves to Terminate Belarus Potash Transhipments

Belarus, Featured, Lithuania, News, Potash

Lithuania has moved a step closer to halting the transhipment of Belarusian potash via its territory, after a government commission said on Dec. 21 an agreement signed by state-run railway Lietuvos Geležinkeliai (LTG) in 2018 to transport potash from sanctions-hit Belarus goes against national security interests, Reuters has reported.

According to the report, the door is now open for Lithuania’s government to terminate the rail transportation contract.

The country’s Transport Ministry on Dec. 10 registered a proposed bill, which if passed, would allow Lithuania to prevent any transit of Belarus potash or fertilizer via its territory.

Belarus rails most of its potash for export through Lithuania, into the Lithuanian port of Klaipėda for onward shipment.

Belarusian authorities warned that Lithuania may face “multi-billion” lawsuits if the transit of Belarusian potash and fertilizers is banned, according to the tvr.by report.

European Gas Spikes, Quickly Crashes

Europe, Featured, News

European gas prices jumped to a record high on Dec. 21 after Russian flows to Germany through a key pipeline were halted, but then plunged by 26 percent by close on Dec. 23.

The benchmark Dutch TFI front-month gas contract (January 2022) in Amsterdam had surged to an all-time high of €170.775 per megawatt-hour by 13:00 hrs (GMT) on Dec. 21, up 16.232 percent on the previous day’s close.

However, news of a “flotilla” of U.S. liquefied natural gas (LNG) cargoes heading for Europe saw European benchmark gas prices plunge on Dec. 23. By 4:59 pm, the TFI front-month gas contract was down 27.115 percent on the day to €126 per megawatt-hour. The slump in prices continued, and prices were as low as €87.055 a megawatt-hour in Amsterdam on Dec. 30.

However, analysts said not to mistake this recent meltdown as the end of Europe’s energy woes. “Europe’s gas problem may not go away next year,” said Andrew Hill, Head of European Gas Analysis at BloombergNEF. “Geopolitical issues and acrimony with Russia, particularly around the Nord Stream 2 pipeline, will increase the scope for Russia to limit flows to Europe in the first half of the year, and potentially much longer.”

Other analysts said Europe still has to get through the winter and will need Russian gas. “LNG diversions from Asia are a useful stop-gap measure, but are not a sustainable substitute for stable pipeline supplies,” Kaushal Ramesh, a Senior Analyst at Rystad Energy, told Bloomberg.

The region remains at a “critical point,” with record low inventories, according to Goldman Sachs Group Inc. “At this rate, we have a clear risk of running out of gas if weather turns cold in the first quarter,” Damien Courvalin, the bank’s Head of Energy Research, told Bloomberg. “Volatility will remain high.”

GAR Bennett Announces Expansion in California

California, News, News Briefs

GAR Bennett, a full-service ag retail company based in Reedley, Calif., announced on Dec. 20 that it is expanding to Dos Palos, Calif., in March 2022 following a recently executed long-term strategic partnership with Spain Air Inc., an aerial application business headquartered in Dos Palos.

Both companies will operate under the GAR Bennett name, with the initial focus on crop care and crop nutrition advice, followed by other services scheduled to launch in 2023. The Dos Palos Expansion is spearheaded by Bill Hume, Director of Retail Sales and Procurement for GAR Bennett; Sean Mahoney, Director of Agronomy and Farm Technology; and Kurtis Douglas, Director of Business Development.

“We look forward to this very exciting opportunity to expand into the Dos Palos regional market,” said Tyler Bennett, Co-CEO of GAR Bennett. “We have a great strategic partner in Randy Spain, some of the world’s best farmers in the local area, and wonderful people that reside in western Merced and Madera counties. We will commit to servicing growers in the best way possible to help them continue to feed the world in this changing and difficult industry.”

According to its website, GAR Bennett provides crop protection, crop nutrition, regulatory compliance, food safety, agronomy, integrated water systems, farm technology, wastewater management, large-scale water systems, and gopher management products and services from seven California locations following an expansion in 2021 to a second site in Kern County and the merger between GAR Tootelian Inc. and Bennett Water Systems on Jan. 1, 2020 (GM Nov. 27, 2019).

The company’s primary trade area encompasses the Central San Joaquin Valley, including Fresno, Kings, Kern, Madera, Merced, San Joaquin, Stanislaus, and Tulare counties.

Sylvite – Management Brief

Management Briefs

Sylvite in late December announced some additions to its sales team. Joseph Turchi has been named Sales Agent in Philadelphia, Pa., and Jackson Clark has been hired as a Sales Trainee based in Tifton, Ga. Both will be working with Gary Garcia, U.S. Specialty Sales Manager, assisting current customers and developing new business in the Northeastern and Southeastern U.S. Maria Elena Ramos, based in Miami, Fla., has also joined the company as a fertilizer Sales Agent to blenders in Latin America and the Caribbean.

“We are extremely pleased to increase our warehouse capabilities and expand our sales territories as demand for our products and services continues to grow,” said Brent Sutton, General Manager at Sylvite.

Albaugh to Buy Rotam AgroSciences

China, News, News Briefs, Specialty, Western Cornbelt

Agricultural input companies Albaugh LLC, Ankeny, Iowa, and Rotam AgroSciences Ltd., Hong Kong, which is publicly listed on the Taiwan Stock Exchange, announced on Dec. 21 that they have entered into an agreement under which Albaugh will acquire all outstanding shares in Rotam through a merger between the holding company of Rotam and an entity in the Albaugh group of companies.

The parties have agreed on an all-cash transaction with a consideration of NTD 26.23 per share for all issued and outstanding shares in Rotam corresponding to a total consideration of approximately US$197.5 million net of cash and debt at current exchange rates, representing a 73 percent premium over the average closing price of Rotam over the past 12 months.

The parties said the combination of the businesses will create a leading global crop protection company with total sales exceeding $2 billion and multiple areas of strength. In addition to crop protection products, Rotam is also involved in plant nutrient products, including organic, inorganic, slow release, and micronutrients. Albaugh also does plant growth regulators.

“With this acquisition, Albaugh becomes a broader, better balanced, and stronger resourced company,” said Kurt Pedersen Kaalund, Albaugh Group CEO. “The business will become a truly global business with operations also in the China/Asia/Pacific region; new markets in the Americas and Europe, Middle East, and Africa; and stronger positions in key existing Albaugh markets in USA, Argentina, Brazil, and Mexico.

“The product portfolios are largely complementary, with Albaugh having strong positions in proven core herbicides and Rotam having a highly differentiated portfolio with relatively higher share of insecticides and fungicides,” he continued. “The addition of manufacturing facilities in China and India, and strong competencies and resources in research and development, will be key to the successful future development and growth of the business.”

The transaction has been unanimously approved by the Boards of Albaugh and Rotam and is subject to approval of Rotam’s general shareholders meeting scheduled for Feb. 8, 2022. The merger is expected to close thereafter subject to customary procedures and regulatory approvals.

Albaugh is a privately-owned U.S. limited liability company founded by Dennis Albaugh in 1979. Albaugh operates multi-functional plant sites in St. Joseph, Mo.; at Pilar, San Nicolás and Rio Tercero in Argentina; at Resende, Brazil; in Chihuahua, Mexico; and in Rače, Slovenia.

Darling Acquires Valley Proteins

News, News Briefs, Southeast, Specialty, Texas

Darling Ingredients Inc., Irving, Texas, a producer of organic ingredients, including fertilizers, on Dec. 28 announced that it entered into a definitive agreement to acquire all of the shares of Valley Proteins Inc., Winchester, Va., for approximately $1.1 billion in cash.

Founded in 1949, Valley Proteins operates 18 rendering and used cooking oil facilities throughout the southern, southeast, and mid-Atlantic regions of the U.S. It employs 1,900 employees and operates a fleet of 550 vehicles.

“We are pleased to add Valley Proteins to our global ingredient family and we expect this acquisition to be accretive post integration. In the evolving world of ESG and global decarbonization, Valley Proteins will supplement Darling’s global supply of waste fats and greases.

The new supply will now provide Darling with additional low carbon feedstock to produce renewable diesel and potentially sustainable aviation fuel,” said Randall C. Stuewe, Darling Chairman and CEO. “Valley Proteins has a rich 70-plus year history of providing essential services to the meat processing industry and restaurant locations and our teams will work diligently to complete this acquisition in a timely manner.”

Grassley Seeks DOJ Investigation; Corn Growers Ask Mosaic to Withdraw Duties

News, News Briefs, U.S., UAN

Sen. Charles Grassley (R-Iowa) on Dec. 15 sent a letter to Attorney General Merrick Garland asking the U.S. Department of Justice to investigate concerns raised by America’s farmers about possible anti-competitive activity and market manipulation in the fertilizer industry. “I have heard numerous concerns from Iowans and member organizations expressing concerns that fertilizer companies are colluding and unfairly raising the price of their products,” said Sen. Grassley.

He also noted that the U.S. International Trade Commission (ITC) has imposed tariffs on phosphate imports and will likely impose them on UAN. “These tariffs create additional financial hardship for farmers who are already dealing with tight fertilizer supplies across the country,” he added.

The ITC decision has also been on the minds of corn farmers, including the National Corn Growers Association (NCGA), which along with several state organizations sent a letter to The Mosaic Co., Tampa, asking the company to voluntarily withdraw its countervailing duties and allow critical supply back into the U.S. at a time of inadequate supplies and soaring phosphate prices.

In November, the U.S. Court of International Trade granted a motion allowing NCGA, the Agricultural Retailers Association, American Soybean Association, National Cotton Council of America, and the National Sorghum Producers to file an amicus curiae brief in the trade case that appealed U.S. Department of Commerce (DOC) and ITC decisions imposing duties on U.S. phosphate imports from Morocco and Russia (GM Nov. 26, p. 1).

Gensource Adds to Potash Permit Area

News, News Briefs, Potash, Saskatchewan

Gensource Potash Corp., Saskatoon, on Dec. 21 announced the acquisition of an additional potash permit area, Block 59, through the recent Government of Saskatchewan public offering of subsurface Mineral Crown Dispositions S010.

Block 59 abuts existing Gensource leases, is approximately 7,244 hectares and represents a direct addition to mineral leases KL244 and KL245 in Gensource’s Vanguard Area. The total price paid to the Government of Saskatchewan for Block 59 was $103,305, or $14.26 per hectare of Crown mineral rights and will be satisfied from existing cash resources.

Gensource is currently developing the Tugaske Potash Project in the Vanguard Area, with Helm AG as both an investor and offtaker in the 250,000 mt/y project. Gensource’s overall business plan is to develop several modular projects within the Vanguard Area, each directing product to clearly defined market areas.

“Gensource is leading the way to what it believes is the future of the potash industry, and this land addition is an exciting opportunity to complete further geological and project development work towards a potential new project.”

BCI Inks A$190 M Marine Structures Deal

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

Junior salt and sulfate of potash (SOP) producer BCI Minerals Ltd., Perth, on Dec. 22 announced the award of the marine structures contract for the Mardie Salt & Potash Project to McConnell Dowell Constructors (Aust) Pty Ltd., Hawthorn, Victoria.

BCI said the A$190 million marine structures package is the largest direct capital works contract for the project and is within the Optimized Feasibility Study estimates. It includes design, supply, fabrication, construction, installation, testing, and commissioning of marine facilities.

Jetty construction is slated to commence in fourth-quarter 2022 and the company said it represents a critical schedule item to achieving first salt on ship in fourth-quarter 2024.

In October, BCI said it had raised A$740 million of project finance debt for the project (GM Oct. 22, p. 34). Total funding of approximately $1.2 billion is required to develop the project to a capacity of 5.35 million mt/y of salt and 140,000 mt/y of SOP.

Ammonia

Ammonia, China, Cornbelt, India, Market Watch, Middle East, Thailand, U.S. Gulf

U.S. Gulf/Tampa:

Tampa anhydrous ammonia for January was concluded at $1,115/mt CFR, up from December’s $990/mt CFR. Market players had argued other recent international business should equate to at least $1,100 mt CFR at Tampa.

Cornbelt:

Sources reported a slow year-end buying pace after the hectic fall application season. Offers for prompt and spring prepay ammonia remained unchanged in the Cornbelt.

India:

Sources said buyers have been approaching traders and producers looking for extra tons of ammonia for delivery during the first quarter of 2022. The stepped-up increase, said one trader, appears to be tied to the large purchases of phos acid India made in the last quarter of 2021.

Middle East:

Ammonia supplies from the Arab Gulf remain tight. Sources said casual inquiries by traders and end users were deflected until after the new year begins. One trader said even serious offers to buy were being put off.

Iranian exports of ammonia for January-November 2021 were reported at 517,000 mt, down 8.8 percent from the same period in 2020, according to Trade Data Monitor. The main buyers for the first 11 months of 2021 were India at 344,000 mt and China at 89,000 mt.

November 2021 exports of 43,000 mt were up from the November 2020 exports of 16,000 mt. As with the rest of the year, India and China dominated the buying.

China:

Reduction in phosphate production and exports appears to have had an impact on ammonia imports in China. Trade Data Monitor reported January-November imports at 780,000 mt, down 25 percent from the 1.04 million mt imported during the same period in 2020.

The main suppliers to China were from Asia, with Indonesia sending 309,000 mt and Malaysia shipping 106,000 mt to China. Saudi Arabia was the second-largest supplier at 155,000 mt.

November 2021 imports of 26,000 mt were down about 78 percent compared to the 114,000 mt imported in November 2020.

Thailand:

January-November 2021 ammonia imports in Thailand were reported at 377,000 mt, up 28 percent from the 294,000 imported during the same period in 2020, according to Trade Data Monitor. Malaysia dominated the imports at 227,000 mt.

November imports were also dramatically higher at 22,000 mt, compared with 4,000 mt in November 2020. A history of ammonia imports indicated the first and fourth quarters of each year are the slow periods for imports. Purchases are expected to pick up in the second quarter of 2022.