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Growmark reports record results for fiscal year

Chicago-Growmark reported record unaudited estimated results for the fiscal year ending Aug. 31, 2008. Both net income and sales were all-time records. Net income is estimated at $312 million on sales of $6.3 million. “The results from operations include our traditional wholesales divisions of seed, plant food, crop protection, energy and facility planning,” said Growmark Vice President of Finance Jeff Solberg. “Growmark sales are now 20 percent retail with operations of Growmark FS and Seedway, both in the Northeast; AgVantage, New Century and Star Energy in Iowa; FS Partners in Ontario; and Illini FS.” More than $121 million in patronage refunds will be returned to Growmark member cooperatives. Plant food product prices were the highest on record. High corn and soybean prices supported strong application rates, and the plant food division posted its second highest income ever. “Price risk management has emerged as a key component of managing this business,” said Solberg. “Our objective is to provide the ‘best in class’ market information and firm price recommendations.” Growmark said its market information and price recommendations provide guidance to FS member cooperatives on plant food purchases. Growmark said it had a 20 percent sales increase and record income in 2008 from its crop protection division. Adjuvant sales improved 25 percent, thanks in part to the launch of an expanded FS product line. The seed division also saw significant growth, with sales topping $180 million and gross income improving 15 percent. System-supported seed brands were placed on an additional 250,000 acres in 2008. Growmark FS, the retail subsidiary in the Northeast, had record sales and income. Growmark cited improved efficiency and acquisition opportunities as contributing to higher profitability. And despite the flooding in the Midwest, Growmark said its Iowa retail units (AgVantage, New Century, and Star Energy) reported strong profitability. In addition, Illini FS, the retail division of Growmark, will pay patronage again this year, 50 percent in cash and 50 percent in stock.

Vale celebrates launch of $479M Bayovar project

Rio de Janeiro-In a ceremony Sept. 5, Brazilian company Vale marked the implementation of one of the world’s largest phosphate projects with the estimated $479 million Bayovar project in Peru. Vale says the project will employ 1,600 during the construction phase. It says the project will have nominal production capacity of 3.9 million mt/y and should start production in 2010. Construction will also include a concentration plant, a 40 kilometer road, a transport strap, and a silo for the storage of phosphate rock. At the same time, activities for contracting the construction of the harbor, with loading capacity of 7.9 million tons of phosphoric rock, have been started. Vale is also proposing the construction of a water desalinization plant to process the phosphate, aiming the non-interference in the hydrous resources of the region. The desalinization plant will enable the preservation of underground waters for use by local citizens.

Building collapse hits N.J. fertilizer plant

Paterson, N.J.-A wall of a two-story building undergoing renovation next door to Harvest Lawn Care collapsed at mid-day Sept. 8, causing no injuries but forcing the precautionary emptying of a 1,500-gallon fertilizer tank containing liquid nitrogen. Paterson City Fire Deputy Chief John Duffy told Green Markets the fertilizer posed no danger to nearby residents, but the decision to empty the tank was made because of the severe damage to the building’s roof. He said tank contents were transferred over several hours into three tanker trucks, adding that he doubted there would be any product loss. Duffy said that heavy debris from the building cave-in may have damaged roof rafters beyond repair and has put the fertilizer plant temporarily out of business. He said inspection of the rafters indicates the roof may have to be replaced. City firefighters arriving on the scene were told by construction workers at the collapsed building that no one was trapped in the rubble. The building owner had received city planning board permission to convert an old mill into condominiums. Harvest Lawn Care owner Donald Foster told the local press he was in the office doing inventory when he heard a loud boom. “I thought a plane was coming through the building,” Foster said. “It was tremendous. I started to scream, ‘You guys OK?’, but I didn’t hear any response.” When he went outside he found the workers standing there unhurt. The company provides turf maintenance and treatment, tree and scrub services, and commercial lawn care in New Jersey and New York.

PotashCorp buys shares, expands repurchases

Saskatoon-PotashCorp said Sept. 5 that it purchased for cancellation 500,000 of its common shares outstanding pursuant to private agreement between the company and an arm’s-length third-party seller. This purchase brings the cumulative total number of shares purchased under PotashCorp’s 15.82 million share repurchase program announced in January 2008 to 15.15 million shares. The order permits PotashCorp to purchase up to an additional 600,000 common shares prior to Nov. 30, 2008. On Sept. 11, PotashCorp announced that its board of directors has approved additional share repurchases, raising the ceiling to 10 percent of the public float, or 31.5 million of issued and outstanding common shares. It can repurchase and cancel by Jan 30, 2009, up to an additional 15.68 million, or approximately 5 percent, of its common shares, over and above the initial maximum of 15.82 million shares. “We currently have an opportunity to use our strong cash flow to re-invest in the world’s best potash assets – our own company – at an attractive price,” said Bill Doyle, PotashCorp president and CEO. “We believe our shares are significantly undervalued versus our long-term potential. By buying back low-priced shares, we will strengthen our company for the future and reward our long term shareholders.” In other news, the PotashCorp board has declared a quarterly dividend of US$.10 per share payable Nov. 10, 2008, to shareholders of record Oct. 20, 2008.

Terra strikes technology deal with Kemira

Sioux City-Terra Industries Inc. reports that it has executed a license agreement whereby Kemira Specialty has granted to Terra Environmental Technologies (TET) certain exclusive rights to Kemira’s Denoxium® product and technology in the U.S., Canada, and Mexico. TET will market the product under the brand name TerraCairTM. Selective catalytic reduction (SCR) systems are used in conjunction with nitrogen-based products (usually urea) to reduce nitrogen oxide (NOx) emissions from diesel engines. This technology is commonly used in Europe to meet emissions standards for heavy-duty vehicles, and those same standards are beginning to take effect in North America. Kemira has developed Denoxium – a mixture of urea, ammonium formate, and water – as a fully compatible and interchangeable replacement for urea in such systems. TerraCair offers users a number of benefits over urea in SCR applications. Most significantly, it will perform better at lower temperatures – urea crystallizes at -11C (-12F), whereas TerraCair is effective at temperatures as low as -30C (-22F). The product is also biodegradable, safe to handle, cost effective, and non-corrosive. Kemira Specialty, a business area of Kemira Oyj, is the leading expert in specialty chemicals in selected customer segments and serves customers in a wide array of industries, such as the paints, cosmetics, packaging inks, feed, and food industries, through its customer-driven solutions.

Incitec Pivot cited as takeover target

Melbourne-Incitec Pivot Ltd., Australia’s giant fertilizer and explosives company, may be a target for acquisition by major international fertilizer companies, according to the Australian Financial Review. The publication cited likely suitors as PotashCorp, The Mosaic Co., Agrium Inc., and Yara International ASA. IPL told the press it does not respond to speculation, which appears to be the basis of the AFR report.

TFC adds Mississippi associate member

LaVergne, Tenn.-Alcorn County Co-op, Corinth, Miss., has joined the Tennessee Farmers Cooperative (TFC) as an associate member. TFC says Alcorn has 11 employees and serves some 500 members, with a great deal of walk-in business. It will be served via TFC’s Jackson, Tenn., distribution center, which is about 50 miles away. TFC says Alcorn has been doing business with it for the past four years and the associate status takes the relationship to the next level. Associate members gain access to TFC products, services, and patronage, but have no voting rights. TFC has two other associate members – Farmers Association, North Little Rock and Benton, Ark., and North Arkansas Farm Supply in Batesville and Mountain View, Ark.

Simplot pipeline repair almost complete

Boise-The J.R. Simplot Co.’s removal of a leaking pipeline and installation of a replacement pipe as part of a Pole Canyon Creek diversion project at its Smoky Canyon Phosphate Mine is expected to be completed by Sept. 30, the U.S. Forest Service reports. Construction started in October 2006, with the project’s pipeline portion completed in February 2007. The diversion prevents the creek from flowing beneath a waste rock overburden disposal area as part of a plan to remediate contaminant releases from the mine. Last March, engineers found leaks in the pipeline after running water tests through it. More testing conducted in April indicated about 6,800 feet of the 10,400-foot pipeline leaked. In July, the leaking pipeline was removed. Installation of the replacement pipe began on July 30.

Vast areas of world fertilized with sewage

Washington, D.C.-Millions of acres of farmland in developing countries – primarily in Asia, but also in sub-Saharan Africa and in many Latin American cities – use untreated or partially treated wastewater for irrigation and fertilization, according to a survey by the International Water Management Institute (IWMI) published by the online National Geographic. “Irrigating with wastewater isn’t a rare practice limited to a few of the poorest countries,” said Liqa Raschid-Sally, IWMI researcher and lead author of a report on survey results. “It’s a widespread phenomenon, occurring on 20 million hectares across the developing world, especially in Asian countries.” The report points out that wastewater use is critical to farmers’ incomes and urban food security, but raises health concerns. In over 70 percent of the 53 cities studied, more than half of urban agricultural land is irrigated with wastewater that is either raw or diluted in streams. The report stated that the most common use is for vegetables and cereals, which raises concerns about health risks, particularly vegetables that are consumed uncooked. On the other hand, wastewater agriculture was found to contribute importantly to urban food supplies and to help provide a livelihood for the urban poor, especially women and recent migrants from the countryside. The survey concluded that the widespread practice is virtually inevitable where developing countries lack suitable transportation to deliver large quantities of perishable produce to urban areas, and because of widespread water shortages and lack of access to clean water in most areas.