Oslo-Yara International ASA said April 8 that it has offered for sale 50 percent of its shares in China Blue Chemical Ltd. The stake in the company was acquired in 2006 as a part of the IPO of China Blue Chemical, and constituted a total of 9 percent of the total free float of the company. As part of this process, China Blue Chemical and Yara also entered into a strategic investment agreement. After a thorough process, both companies say they now consider the likelihood of realizing the intentions in this agreement as small. This partly reflects general market conditions and partly reflects the priorities of the two companies. The shares are therefore offered for sale to re-deploy funds in a way that enhances its overall growth strategy. Yara’s strategic intent to increase its presence in China remains firm. With regard to the remaining 50 percent of Yara’s holding, these shares are tied up under a share purchase agreement, with a further lock-up period of 18 months. The net gain from the sale is expected to be approximately US$22 million.
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Fertilizer blamed for high ammonia in water
Des Moines, Iowa-Agriculture isn’t ready to take the rap all by itself for record levels of ammonia getting into water supplies in parts of the state. The Des Moines Register proclaimed in a front-page article that the cause is the practice of spreading fertilizer on frozen ground, which resulted in ammonia being trapped under heavy ice cover rather than dispersing harmlessly into the atmosphere. The newspaper said the situation at the Des Moines Water Works was so bad in early March that the plant had to draw on an alternative source. “The big issue no doubt is the ammonia levels,” conceded Roger Wolf, environmental manager for the Iowa Soybean Association and major participant in Agriculture’s Clean Water Alliance (ACWA), which has been researching agronomic and environmental issues tied to nitrogen application for the past seven years. “Agriculture isn’t certain of the sources,” Wolf told Green Markets. “But we recognize that agriculture products are part of the issue and we’re investigating to gain a better understanding of what’s happening in the watershed.” Wolf indicated there could be multiple sources, including decaying plant material, sewage wastes, and manure. Whatever the cause, he noted, it took a “perfect storm” with freezing rain, snow, cold weather, and snow pack trapping the ammonia, which volatized in the river. He said there are questions about DAP and MAP, and indicated that ACWA would look at how much has been applied. Wolf added that ACWA may take immediate action. “We’ll be looking at the science involving fertilizer on snow covered ground and adjusting our Code of Practice as necessary.” ACWA, which was formed in 2000, introduced its Fall Nitrogen Code of Practice as a formal agreement among the retailers restricting distribution of anhydrous ammonia for fall application. Anhydrous wasn’t involved in the current ammonia situation, but Wolf disclosed that ACWA is holding a conference call right away with retailers about DAP and MAP and the implications with frozen ground. “I don’t know what will be decided but I expect that additional elements could be added to the code,” he reported.
Ag officials react to nitrate pollution claims
Morro Bay, Calif.-Agriculture interests believe city officials are jumping to conclusions when they claim vegetable and avocado growers in the lower Morro Valley area are over-using nitrogen fertilizer and causing nitrate levels in the groundwater to exceed state standards. “It amounts to a lot of maybes, estimations, might-bes and assumptions,” asserted San Luis Obispo County Farm Bureaus Legal Analyst Joy Fizhugh. “And this doesn’t lead to hard conclusions. What they better do is get some more facts together, because it may be the poor condition of the sewer system that’s causing the problem.” Fitzhugh said the growers were surprised by the city’s reaction to a groundwater study done by a San Luis Obispo consulting firm concluding that was the growers’ use of nitrogen fertilizers that caused high nitrate levels in city wells. She said it was unfortunate that the city attorney threatened legal action when both sides need to discuss the problem and resolve their differences. To this end, Fizhugh reported, the Farm Bureau and other agriculture-related groups are putting together a series of focused workshops on irrigation methods to bring about “more education on both sides of the spectrum.” She wants the city to realize that farmers are required to take 15 hours of water quality education and work through regional boards to develop management plans. “It’s hard to believe with the high cost of fertilizer that they (the farmers) are over-applying,” Fizhugh insisted. “They’re fairly sophisticated people who know what they are doing, not out just blanketing the world with fertilizer.” Kay Mercer, coordinator of the Agricultural Watershed Coalition for southern San Luis Obispo and Santa Barbara counties, told the local press that growers were unhappy about being accused of causing the elevated nitrogen levels. Estimates of fertilizer use were made with data that likely is outdated, she said.
DuPont, Arcadia to seek more N efficiency
Wilmington, Del.-DuPont & Co. (DD) and Arcadia Biosciences Inc. have announced they will collaborate under a research and commercial agreement to improve nitrogen use efficiency in corn. Terms of the agreement were not disclosed. DuPont said the collaboration boosts the progress it has made in developing corn hybrids that use nitrogen more efficiently, noting that nitrogen fertilizer prices are closely tied to rising natural gas prices, making efficient use of nitrogen fertilizer increasingly important. DuPont business Pioneer Hi-Bred has exclusive rights to Arcadia’s proprietary technology under the agreement.
Idaho fertilizer registration in effect July 1
Boise-The Idaho Department of Agriculture will have in place July 1 a system to keep track of all bulk fertilizer facilities in the state. The registration requirement was the main part of two bills enacted by the Idaho Legislature and signed March 17 by Gov. C.L. “Butch” Otter. The measures also increase fees for product registration and various inspection programs, and raise the cost of licenses for nurseries, landscapers, and importers. “Over the years we’ve been contacted by the Federal Bureau of Inspection and Homeland Security, both asking for a list of where fertilizer facilities are located,” commented Michael Cooper, deputy administrator of the plant industries division. “We couldn’t answer their questions.” He said legislation directs that a registration system be established to develop an inventory of all facilities that handle or store fertilizers in bulk. An annual fee of $100 per facility will be assessed to handle the cost. Cooper said the changes were recommended to the legislature by a committee of fertilizer industry advisers.
TFI World Conference Sept. 7-10
Washington-The Fertilizer Institute reports that its 2008 World Fertilizer Conference will be held in Seattle, Wash., on Sept. 7-10, 2008, a change from the earlier announced Sept. 8-10. For more information, see www.tfi.org.
Bids submitted for financially troubled Kansas co-op
Garnett, Kan.-A Kansas farm cooperative is up for sale after its lender informed the board of directors to sell or be taken into bankruptcy. According to the KC Community News, New Horizons Farm and Home Cooperative, based in Garnett, Kan., has received two bids, one from Beachner Grain Co. of St. Paul, Kan., and another from Ottawa Cooperative of Ottawa, Kan. The bid offers were not revealed, and the News reported last week that voting stockholders will be notified when a date is set to decide which to accept. A two-thirds majority is required to accept either bid. An earlier effort to sell to Beachner was turned down on March 18 when New Horizons stockholders voted 197-112 to complete the sale, falling just short of the needed majority. Faced with undisclosed financial concerns and an ultimatum from Frontier Farm Credit, New Horizon’s nine-member board of directors on March 11 decided to sell substantially all of the co-op’s assets to Beachner. New Horizon also owned a one-third interest in East Kansas Chemicals, which it agreed to sell to the other owners. New Horizons is less than two years old, formed in Aug. 2006 from the merger of Miami County Cooperative Association and United Cooperatives Inc. New Horizons also purchased Ligon Feed and Supply of Paola and Louisburg, Kan., in 2006. The co-op has facilities in Miami, Linn, and Anderson counties, and started operations with 75 employees at some 13 locations in 10 towns. Beachner Grain has been in business since 1987 and owns 19 grain, feed, and fertilizer facilities in Kansas and Oklahoma. Ottawa Cooperative has 14 locations in five eastern Kansas counties.
CHS takes over Provista, buys Legacy Foods
St. Paul, Minn.-CHS Inc. said April 1 that it has acquired full ownership of Provista Renewable Fuels Marketing. CHS has purchased the 50 percent interest in Provista owned by US BioEnergy Corp., an ethanol manufacturing firm, making it the sole owner of Provista. US BioEnergy merged with VeraSun Corp. effective April 1, 2008. Terms of the transaction were not announced. CHS will operate Provista under its present name and leadership. “As sole owner of this successful renewable fuels marketing and distribution operation, CHS looks forward to new opportunities to connect biofuels producers and blenders quickly and efficiently as the alternative fuels industry continues to grow,” said Leon Westbrock, CHS executive vice president and chief operating officer, energy. Provista currently markets more than 550 million gallons of ethanol. In other news, CHS also reported on April 1 that it has acquired Legacy Foods LLC of Hutchinson, Kan. CHS will operate the business as part of its oilseed processing group, managed by Dennis Wendland, senior vice president of oilseed processing. The Kansas-based company is one of the nation’s premier producers of Ultra Soy® (textured soybean-based food products) and TSP® (a textured soy protein) used around the world by manufacturers of human- and pet-food products. Financial terms were not disclosed. Legacy, formerly known as PMS Foods LP, has been owned by an investment group led by Simpson Capital LLC since February, 2002. Legacy’s management team will continue in place, reporting to Wendland. The company employs approximately 80 people, all of whom will become CHS employees.
Converted Organics shows off at capital mall
Boston-Food waste-to-fertilizer producer Converted Organics Inc. is partnering with SafeLawns.org to put its organic products on display for visitors to see at the nation’s capital. Converted Organics reported that the demonstration project, on four acres of the National Mall, is in collaboration with the National Park Service and the Environmental Protection Agency to show off the advantages of organic products and practices over conventional methods. Safelawns.org, a non-profit organization dedicated to promoting natural lawn care, is conducting the test, which is divided into three plots to be evaluated by the NPS and EPA. All four acres were prepared by SafeLawns.org by adding compost, other natural soil amendments, and organic fertilizer before reseeding the area. Over the next two years, the NPS and EPA will evaluate each of three plots. One will be maintained conventionally by the NPS, a second will get standard organic treatment (maintenance via organic products), and a third will have a complete organic makeover with Converted Organics’ all-natural, organic soil amendment and fertilizer products. Rich Alea, vice president of marketing and development, explained that the company is participating because it is confident it will be a success. “With over 25 million people annually visiting our nation’s capital, we expect this will be a highly visible demonstration of the effectiveness of organics,” said Alea.
Management Briefs
Agrium Inc. on April 11 announced the establishment of a representative office in Beijing, China. The office will be led by Dr. Mark Wong, who will serve as president of Agrium (China) Inc. Agrium said the move will allow it to pursue growth opportunities beyond its current interests in the region. Agrium purchases urea from Chinese sources, supplies potash to Chinese customers through its investment in Canpotex Ltd., and holds a 19.6 percent equity position in a Chinese specialty fertilizer company, Hanfeng Evergreen Inc., with whom Agrium has licensing agreements for sulfur-coated urea technology in China.
H.J. Baker & Bro. Inc. announced on April 10 that James DeWitt will be the new plant manager at the company’s Wilmington, Calif., sulfur manufacturing facility. DeWitt will be responsible for all facets of the manufacturing process. He was previously employed as production manager at Mizkan Americas Inc. in Rancho Cucamonga, Calif. Prior to that he held senior management positions at a number of manufacturing companies.