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Illinois Fertilizer & Chemical Association – Management Brief

Eastern Cornbelt, Management Briefs

The Illinois Fertilizer & Chemical Association (IFCA), Bloomington, Ill, has named Kevin “KJ” Johnson as its Interim President for one year, effective April 1, 2021. In this role, Johnson will serve as CEO. He replaces IFCA President Jean Payne after her retirement on March 31, 2021 (GM March 5, p. 29). She served as IFCA President from 2004–2021.

Since 2013, Johnson has served as IFCA’s Director of Government and Industry Relations. Previously, he served as the agricultural liaison for Congressman Tim Johnson. He grew up on a farm in Champaign/Vermilion counties

and earned a degree in agriculture and political science from Illinois State University.

IFCA, with over 1,000 members, represents the crop production input supply and service industry including ag retailers, crop protection and fertilizer manufacturers, distributors, and equipment suppliers.

Southern States Cooperative Inc. – Management Brief

Management Briefs, Southeast

Jeffrey Stroburg, the President and CEO of Southern States Cooperative Inc., Richmond, has announced his retirement effective June 30, 2021. He has held the positions since May 2015.

Steven M. Becraft, the cooperative’s Chief Operating Officer (COO), will assume the President and CEO role on July 1, 2021. He will serve in a combined role as both CEO and COO. The cooperative said Becraft brings more than 30 years of industry experience in the agronomy and ag retail markets, with five years in key leadership roles at Southern States, including serving for the last three years as COO.

Meristem, Planet Earth Agronomy Partner to Develop Direct-to-Farm Biologicals

Featured, News, Specialty

Meristem Crop Performance Group LLC, Columbus, Ohio, and Planet Earth Agronomy LLC, Middleton, Wisc., last month announced a strategic product development alliance designed to bring biological products to American farmers.

“This is the next step in our journey to create the first direct-to-farm business channel connecting the latest R&D to 20 million acres and beyond,” said Mitch Eviston, Meristem Founder and CEO. “Larry Fiene and his team at Planet Earth Agronomy have tested and refined new biologicals and biostimulants from all over the world, and together we will bring them to market at a price point that helps farmers make the most of every dollar they spend on these new inputs.”

“Farmers need real-life solutions that work under the stress of efficient, intensive crop production,” said Fiene. “We’re finding new methods of making biologicals and synthetics work together, be effective in the spray tank or on dry fertilizer, and provide a better ROI (return on investment) for growers.”

Fiene, who has over 30 years of experience, owns Planet Earth Agronomy, an agronomic consulting and new product development business.

Meristem is a relatively new direct-to-farm business, launching in May 2020 with Mitch Eviston and Rob McClelland as principals of the company. Eviston is a former Senior Vice President of WinField, with 30 years of experience in the crop input distribution business. “We’ve set up Meristem to be the lean provider of high-quality crop input additives to help these global players cut costs and increase yields,” he said at the time.

McClelland is the past President of Farm Journal Performance Marketing and co-founder and past CEO of FLM Harvest, a consulting, marketing, and communications agency.

The Meristem Board of Advisors is led by Rod Schroeder, former Chief Operating Officer of Land O’Lakes/WinField.

Meristem said it sources, formulates, and delivers crop inputs to farmers at the least cost possible, at savings up to 30 percent. With Planet Earth Agronomy, it hopes to build a biological lineup, including products to aid in the breakdown on crop residue and enhance nutrient release, industry-leading microbial packages for corn and soybeans, and a best-in-class stress mitigation product.

Meristem’s initial product portfolio includes crop input additives widely used by corn, soybean, wheat, sugar beet, cotton, and potato growers. The list includes seed treatments under the brand Raceready™, Revline™ plant growth regulators, Trutrack™ drift control, Aquadraft™ water conditioners and surfactants, and Homestretch™ nitrogen stabilizers, micronutrients, and foliar nutritionals.

Over the past year, Meristem has been branching out to add products and distribution partners, including C&H Ag Products, Benton County, Ind.; Ag To Go LLC, Henrietta, N.Y.; Forefront Ag Solutions, Huntington, Ind.; Axis Seed Direct LLC, Genoa, Ill.; AgPlanIt, Axtell, Neb.; and Van Trump Ag Solutions, Kansas City.

Meristem told Green Markets that company principals are Eviston and McClelland. While Old World Specialty Products LLC, a unit of Old World Industries LLC, Northbrook, Ill., was an initial joint venture partner, Meristem said the relationship ended in late 2020.

FDEP Allows Emergency Wastewater Release from Piney Point Phosphogypsum Stack

Florida, News, News Briefs, Phosphate

The Florida Department of Environmental Protection (FDEP) on March 29 agreed to allow an emergency release of wastewater from the phosphogypsum stack at the long-idled Piney Point Phosphate Plant. FDEP took the action after being warned of a leak by site manger HRK Holdings on March 26 that process water was bypassing the wastewater management system and making its way into Piney Point Creek, which runs into Tampa Bay.

HRK further notified FDEP on March 28 that a boil (upwelling of water) was observed at the foot of the gypstack. At this time, the cause of the leak is believed to likely be a liner tear. FDEP said there is no evidence of a sinkhole or geological abnormality.

On March 30, HRK began its controlled discharges to Port Manatee as part of its efforts to ensure the structural integrity of the water management system at the Piney Point site. FDEP said that its Emergency Final Order, allowing the discharge, only authorizes discharges at an amount necessary to ensure stabilization.Discharges are at a rate of an estimated 10,000-13,000 gallons per minute.

FDEP said its staff have been on site to observe ongoing activities to contain leakage and the controlled emergency discharge.

Environmental groups objected to the release, citing fears that wastewater could spur an algal bloom or add cadmium to Tampa Bay.

Korean Register Grants AIP for NH3 Vessel

Ammonia, News, News Briefs, South Korea

The Korean Register of Shipping (KR), a non-profit marine classification society, has granted Approval in Principle (AIP) for an 8,000 mt ammonia bunkering vessel, the first of its kind in Korea, which is owned by KMS EMEC, a design engineering company.

The vessel has been developed through a joint development project (JDP) between KR, KMS EMEC, and the Singapore shipping company Navig8. It is the first 8,000 mt ammonia bunkering ship in Korea to be dual fueled, using both MGO (marine diesel) and ammonia.

Working with Navig8, KMS EMEC created the first domestic conceptual design, in accordance with the MAN Energy Solution’s engine specifications. KR then completed the necessary risk assessments, design safety verification, and reviewed compliance with Korean and international regulations.

Navig8 contributed to the ammonia bunkering vessel design development by conducting a detailed review of the commercial feasibility and operational economics of ammonia as a ship fuel, from the viewpoint of a shipping company.

Fertilizer Canada – Management Brief

Canada, Management Briefs

Fertilizer Canada’s Board of Directors on April 1 announced the appointment of Karen Proud as President and CEO. She assumes leadership from Garth Whyte, who has served as President since 2015. He announced his retirement in the summer of 2020. The Board of Directors sincerely thanked Whyte for his leadership, and his efforts to build and evolve the association.

Fertilizer Canada said Proud brings extensive senior-level management and leadership experience in the development, implementation, and enforcement of regulatory and legislative policy.

“Fertilizer Canada has a well-earned reputation in both programming and advocacy initiatives,” said Proud. “Having worked for a number of manufacturing and retail sectors I am excited to take on this new role aimed at advancing the safe, secure, and sustainable production and use of fertilizer in Canada and around the world.”

Prior to joining Fertilizer Canada, Proud was the Chief Operating Officer of Food Health and Consumer Products of Canada, a newly created association formed through a joint venture she spearheaded between Consumer Health Products Canada, where she had been President for seven years, and Food and Consumer Products of Canada.

“Karen’s experience in association management and regulatory negotiation will ensure a continued focus on our industry’s priorities, including achieving Federal recognition for 4R Nutrient Stewardship as the National Standard for nutrient management and the industry’s Codes of Practice as the standard in product safety, as outlined in our Strategic Plan 2025,” said Brian Mark, Chair of Fertilizer Canada’s Board of Directors.

“As a proven leader and relationship-builder, in combination with her extensive background and knowledge of government decision making, Karen will further develop and build upon Fertilizer Canada’s foundation of achieving fair, competitive and science-based policies,” he added.

Uralkali Continues to Target 2022 Start for Ust-Yayva Albeit at “A Low Rate”

News, News Briefs, Potash, Russia

Russian potash producer Uralkali’s capital expenditure last year amounted to $347 million, down 8 percent on the prior-year capex of $378 million, according to the company’s 2020 annual report. The FY2020 capex spend was 13 percent below the reduced capex guidance of approximately $400 million issued by the producer in April 2020 amid weak potash market conditions (GM April 17, 2020). That new lower guidance was around a 30 reduction on the capex initially approved for FY2020 by Uralkali’s board in December 2019.

While maintenance capex was reduced by approximately a quarter year-over-year to $163 million, the company’s capex for production expansion actually increased last year by 16 percent year-over-year, reaching $184 million, according to the annual report. Over two-thirds of this production expansion spend was related to the construction of two new mines: Ust-Yayva and Solikamsk-2.

At the new Ust-Yayva mine in Russia’s Perm region, construction of the processing plant and the conveyor to Berezniki Plant 3, where the ore will be processed, and expansion of that plant, is continuing. Construction of the mine shafts was completed last year (GM July 10, 2020), and the power facility is also completed.

According to its annual report, Uralkali currently expects the mine to begin production in 2022, “albeit at a low rate” and “assuming access of ore,” with subsequent “ramping up in the years thereafter.” Ust-Yayva’s planned design capacity is 2.8 million mt/y of KCl.

At the new Solikamsk-2 mine under development, also in the Perm region, construction is continuing, including shaft sinking which started in 2018. The project will include building a conveyor system to transport the ore to the existing Solikamsk-2 processing plant. The new mine’s planned capacity is 2.3 million mt/y.

Back in late 2019, Uralkali planned a 2023 production launch for the new Solikamsk-2 mine, but the company last July said it was holding off starting work on the processing plant and ground facilities (GM July 10, 2020).

In its 2020 annual report, the potash producer said “there is a risk of a delay” in mining production commencing from the “New Solikamsk 2” mine from that currently envisaged in the Uralkali Business Plan. However, it said should a delay in construction occur, it is likely the company would be able to compensate for the resulting production shortfall by temporarily increasing production from other mines that have spare operating capacity.

Regarding its greenfield Polovodovsky project, Uralkali said it will make a further decision in 2023 whether to develop the project and process ore at one or more of the existing processing facilities or – as originally envisaged – to develop a new dedicated processing complex.

The project has been designed to have a production capacity of 12.5 million mt/y of ore (equivalent to some 2.8 mt/y of final KCl product) and assuming the option 2 development strategy is selected (i.e., a dedicated processing plant), it is anticipated to commence production in 2029 and reach 12.5 million mt/y capacity from 2030, the company said in its annual report.

EuroChem, SUEK Target Ust-Luga Terminal Completion in 2024

News, News Briefs, Russia

EuroChem Group AG and Siberian Coal Energy Co. (SUEK) aim to complete construction of their planned 7 million mt/y dry bulk terminal project in the north-western part of the Russian Baltic Sea port of Ust-Luga in 2024, according to a Prime Business report, citing the National Transportation Co. CEO Denis Ilatovsky.

National Transportation Co. is a joint venture company established by EuroChem and SUEK at the end of 2020, with more than 50,000 cargo railcars and six Russian seaports under its control (GM Jan. 22, p. 32). EuroChem Group’s owner, Russian businessman Andrey Melnichenko, is also SUEK’s principal owner.

The Ust-Luga transhipment terminal is to be developed in three phases, according to a report last year by Russia’s AK&M Information Agency, citing the St. Petersburg branch of Russia’s Main State Expert Appraisal Department (GM June 19, 2020). That report put the final handling capacity at 6.025 million mt/y

EuroChem revealed in June 2019 that it had decided to go ahead with the building of the transhipment terminal in Ust-Luga, a project halted in 2017 (GM June 14, 2019). At the time, the fertilizer group anticipated a 2022-23 launch of the new terminal.

Since then, the fertilizer group has declined to comment directly on the project. But, according to this week’s Prime Business report, EuroChem’s board approved the start of work on the Ust-Luga terminal project last September.

In June 2020, the St. Petersburg branch of Russia’s Main State Expert Appraisal Department approved the project’s design and estimates (GM June 19, 2020).

Potash from EuroChem’s Usolskiy potash operation, south of Berezniki, is expected to be among the group’s products handled by the new terminal once it is operational. The plans for Ust-Luga also include liquid fertilizer handling capacity, according to earlier EuroChem documents. Russia currently has no terminals for the handling of liquid fertilizers, and shipments are currently directed via the Estonian port of Sillamäe, according to the Prime Business report.

KBR & Toyo to Audit Bolivia’s Bulo Bulo Plant

Ammonia, Houston, TX, Japan, News, News Briefs, Urea

Houston-based KBR Inc. and Japan’s Toyo Engineering Corp. have been hired to audit Bolivia’s currently mothballed Bulo Bulo ammonia and urea plant, according to a report by BNamericas, citing state-owned oil and gas company Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), the plant’s operator.

The audits, which are due to start on April 15, are aimed at detecting and assessing damage to critical equipment caused by the halt and mothballing of the plant.

Production at the Bulo Bulo facility, located in the country’s central Cochabamba department, was stopped in November 2019 (GM Jan. 31, 2020). As reported earlier, YPFB’s Executive President Wilson Zelaya believes the shutdown of operations was not done according to proper procedures, resulting in damage to some of the equipment, and also that proper maintenance was not performed during the 12 months and more of its shutdown (GM March 26, p. 35).

After the diagnosis of the patented critical equipment, specialized personnel for corrective maintenance are expected to be hired.

Bolivia’s new Minister of Hydrocarbons, Franklin Molina, believes the plant can be back in operation in May or June. Zelaya was cited this week as seeing operations potentially restarting at the beginning of June.

The cost of repairs alone to the plant are put at an estimated $53 million, according to the YPFB executive.

JPMC, Iraq Discuss Phosphate Fertilizer Supply, JV Production Potential

Jordan, News, News Briefs, Phosphate

Jordan Phosphate Mines Co. (JPMC) is looking to boost cooperation with Iraq through the supply of phosphate fertilizers to the country and also the potential to build a joint venture plant for phosphate fertilizer production in Iraq.

JPMC Chairman Mohammad Thneibat and Jordan’s Minister of Industry, Trade, and Supply Maha Ali met with an Iraqi delegation headed by Minister of Agriculture Mohammad Al- Khafaji on March 29, according to a Jordan Times report, citing the Jordan news agency Petra.

The JPMC chairman also extended an invitation to the Iraqi delegation to examine the potential for a phosphate fertilizer manufacturing joint venture in Jordan.