Overland Park, Kan.-Compass Minerals reported a 23 percent increase in specialty fertilizer sales in the year ending Dec. 31, 2007, to $136.1 million, up from 2006’s $110.3 million. Fertilizer operating earnings moved up to $35.6 million from 2006’s $30.5 million. Compass sold 423,000 st of product at an average sales price of $321.82, versus 2006’s 377,000 st and $292.39. Fourth-quarter fertilizer earnings were $11.3 million on sales of $39.4 million, up from the year-ago $8 million and $29.2 million, respectively. Fourth-quarter volumes were 115,000 st with an average price of $341.29, versus the year-ago 96,000 st and $303.69. Company-wide, Compass reported 2007 net income of $80 million ($2.43 per diluted share) on sales of $857.3 million, compared to 2006’s $55 million ($1.69 per share) on sales of $660.7 million. Fourth-quarter net income was $50.4 million ($1.53 per share) on sales of $326.1 million, versus the year-ago $26.2 million ($.80 per share) and $211.1 million. “Our record results this quarter and for all of 2007 demonstrate Compass Minerals’ improving performance,” said Angelo Brisimitzakis, Compass president and CEO. “As the leading North American producer of sulfate of potash, our specialty fertilizer segment is realizing increasing benefits from the dynamic growth of the fertilizer industry. Our salt segment also posted substantial sales and earnings gains, aided by a significant year-over-year weather benefit in the fourth quarter.”
All posts by traceybg@gmail.com
Rentech 1Q sales up, continues to post loss
Los Angeles-Rentech Inc. reported sales of $47.5 million for the first fiscal quarter ending Dec. 31, 2007, versus the year-ago $35.4 million. The increased revenue reflects the strong demand and prices from the company’s Rentech Energy Midwest Corp. (REMC) fertilizer plant in East Dubuque, Ill. “We expect pricing and demand for REMC products to remain strong for the remainder of the fiscal year,” said Hunt Ramsbottom, Rentech president and CEO. “REMC continues to provide significant cash flow to support Rentech’s synthetic fuels commercialization efforts.” Rentech reported a net loss for the quarter of $23.4 million ($.143 per share), versus a year-ago loss of $8.7 million ($.061 per share).
Raytec acquires new potash claims
Vancouver-Raytec Metals Corp., an upstart potash company, said Feb. 11 that it has signed an agreement to purchase a 100 percent interest in Exploration Permit Application Area (“EPAA”) KP452, located in Saskatchewan. EPAA KP452 covers an area of approximately 92,160 acres in south-central Saskatchewan. The newly acquired EPAA is in the south-eastern portion of the evaporite formation, located approximately 380 kilometers southeast of the company’s EPAA KP441. The new EPAA lies approximately 42 kilometers southwest of the Mosaic Co. – Compass Mineral Group’s K-1 and K-2 Potash-Salt Mines, and 53 kilometers west of Potash Corp. of Saskatchewan’s Rocanville Potash-Salt Mine. Raytec says it now has a total of 290,880 acres of prospective potash ground under permit application within the extensive Middle Devonian Prairie Evaporite formation of south-central Saskatchewan. It says Saskatchewan Ministry of Energy and Resources data indicates that EPAA KP452 is underlain by both the Belle Plain and the Esterhazy potash members. Exploratory drilling has been conducted on the newly acquired ground in the past. This historic information will be reported once the company has reviewed all pertinent data. It says that currently there is no NI43-101 report on this property, nor are there proven, indicated, or inferred resources. Raytec adds that the presence of the Belle Plain and the Esterhazy potash members does not guarantee the presence of economic quantities of potash. Terms of the acquisition with the arms-length vendor are as follows: 1) On acceptance by the TSX Venture Exchange ?Çô $150,000 cash, 275,000 common shares of the company, and 275,000 share purchase warrants, which may be converted to common shares of the company for a period of 12 months following TSX Venture Exchange approval at a price of $1.00 per share; 2) Six months after receiving acceptance by the TSX Venture Exchange – $150,000 cash, 250,000 common shares of the company, and 250,000 purchase warrants, which may be converted to common shares of the company for a period of 18 months following TSX Venture Exchange approval at a price of $1.00 per share; 3) After issuance of the final Exploration Permit from the Saskatchewan Ministry of Energy and Resources – 250,000 common shares of the company.
New Mexico levies $270,600 fine against Helena
Santa Fe, N.M.-State environmental regulators are assessing a $270,600 penalty against Helena Chemical Co. for 11 air quality violations at the company’s Mesquite fertilizer plant. The New Mexico Environmental Dept. (NMED) said it considered two of the violations major because they involve failing to perform a compliance test that indicates emissions levels and not controlling dust – some believed to be toxic air pollutants – from escaping from the facility. The $270,600 is the largest of three environmental penalties against Helena since 2004, but could have been even larger. Four of the original 15 violations, which involved having open chutes that allowed fertilizer to escape and failing to keep toxic air pollutants and engineering records, were subsequently dropped because Helena was determined not to be liable. Dave Thomas, Helena’s division manager in charge of Mesquite operations, responded, “We are certainly pleased to learn that four of the alleged violations were dropped by NMED. Helena believes that this is a direct result of NMED and Helena’s continued working relationship and NMED’s increased understanding of Helena’s operations. Helena, NMED, local residents in the Mesquite area, and Southern New Mexico agriculture can only gain from increased communication and understanding among all concerned.” Thomas said Helena “will continue to working with NMED” regarding the remaining 11 “alleged” violations. Branch Manager Jeff Elmore added, “We intend to work with NMED and the community of Mesquite to ensure that we are able to continue to serve the agricultural industry in a manner that is compliant and beneficial to all New Mexico residents.” Ed Brister, Helena’s director of regulatory compliance and engineering, stated “The remaining violations are, we believe, primarily record keeping in nature, and Helena has already addressed those concerns. Further, at no point have Helena’s operations posed a threat to human health or the environment. We look forward to NMED’s cooperation in reaching workable solutions to all remaining issues.” However, NMED Deputy Secretary Jon Goldstein wasn’t so understanding in his statement that “Helena Chemical fails to understand the gravity of its past environmental violations and continues to disregard the welfare of residents by its lax behavior. Helena potentially put residents at risk by failing to monitor pollutants from the plant.” NMED issued the notice Feb. 8, which was related to a Nov. 14 enforcement action at the facility. The notice requires Helena, within 30 days, to pay the penalty and submit a certificate of compliance for the violations, the majority of which included failure to control emissions from the fertilizer at the company. NMED issued a NOV and assessed a penalty of $238,000 to the company in November 2004 for failing to obtain a permit to operate the facility. The department also issued a $36,000 penalty to Helena in October 2006 when the company failed to report a chemical fertilizer spill. NMED also began investigating all Helena facilities in March 2007 after a fire broke out at another Helena facility in Humboldt, Tenn., to ensure local operations were safe.
Legislation introduced to limit restoration
Boise-The Idaho Mining Association has introduced legislation, backed by phosphate mining companies such as the J.R. Simplot Co. and Monsanto, that would prevent state regulators from requiring them to restore mineral-tainted water beneath their operations to its natural condition after their open pit mines are shut down. In early 2007, the Idaho Department of Environmental Quality, the mining industry, and environmentalists agreed that the Idaho Groundwater Quality Plan enacted in 1992 by the Legislature to protect aquifer quality while allowing mining activities was unclear and needed changes, but negotiations broke down. In November, IDEQ postponed talks until April 2008. Mining companies expressed concern that uncertainty about cleanup requirements could stifle new projects such as the expansion of phosphate mines in the Caribou-Targhee National Forest near the Idaho/Wyoming border, while environmentalists said vagueness makes it easier for the companies to pollute. Selenium from defunct phosphate mines contaminated water and killed livestock in Eastern Idaho in the late 1990s. The IMA disagreed with IDEQ’s plan to force companies to clean up groundwater within eight years after a mine closes, and environmentalists objected to DEQ’s provisions that allowed groundwater pollution below waste rock piles and reclaimed areas. On Feb. 4, the Idaho Senate Health & Welfare Committee printed an IMA-backed bill that would expand IDEQ’s definition of mining areas and clear the way for companies to pollute groundwater beneath waste rock disposal sites, reclaimed areas, and processing plants in perpetuity. IMA lobbyist Jack Lyman said nothing in the bill absolves companies of responsibility to protect neighboring property. Justin Hayes of the Idaho Conservation League said the IMA legislation is an attempt to circumvent unfinished negotiations. He said he wants IDEQ to develop rules that require mining companies to engineer projects to prevent groundwater pollution, rather than accepting it as inevitable. Hayes commended Canadian-based Agrium Inc. for using such high standards at its North Rasmussen Ridge Mine 25 miles from Soda Springs.
Folsom gets waste-to-fertilizer processor
Boston-Converted Organics Inc. has announced the installation of its first fully automatic system utilizing high temperature liquid composting (HTLC) for turning food wastes into organic-based fertilizer at California’s Folsom State Prison. Converted Organics officials said the unit, which runs around the clock and can be monitored remotely, will help to achieve the state-mandated goal of 50 percent waste diversion and recycling. “The HTLC technology is an integral part of our future growth, and we intend to aggressively pursue opportunities in markets that can benefit from on-site organic waste recycling systems, such as prisons, universities, and medical centers,” said President and CEO Edward Gildea. Meanwhile, Alpharetta, Ga.-based Organic Growing Systems has supplied Miami with four tons of TOP 4-2-2 and expects the order to increase to truckload quantities for use as the city, the University of Miami, and EcoZone carry out their “clean and green” environmental plans. Superior Landscape is evaluating the organic fertilizer on a trial basis, but distributor Florida Mulch Inc. believes that “given the anticipated results, future use should be guaranteed.” Florida Mulch also reports that as a result of the Tropical Plant Industry Expo at Fort Lauderdale, orders have been received from separate Caribbean-based contractors for Grand Cayman Island and The Bahamas. Since the initial order three weeks ago, the Grand Cayman contractor has already placed its first reorder.
Wisconsin phos ban would include preemption
Madison, Wisc.-Wisconsin is expected to be getting a statewide ban on the sale and use of phosphorus fertilizer for lawns, which includes preemptive language limiting further regulation by local governments, according to the spokesman for the landscape industry. “This bill will pass due to the strong grassroots efforts of the Wisconsin Lakes Assn. and other environmental groups contacting their lawmakers,” Brian Swingle, executive director of the Wisconsin Green Industry Federation, told Green Markets. Swingle predicted the General Assembly most likely will add to the Senate-passed bill an amendment imposing some form of preemption language on local units of government. He said the federation supports requiring scientific evidence supporting additional regulation at the local level, but opposes the Senate version, which bans display of fertilizer containing phosphorus as a “hide the fertilizer” approach. “Instead,” Swingle added, “we believe the solution is to post a sign at the point of sale educating customers of when phosphorus-containing fertilizers can be lawfully used, and the negative impacts that excess phosphorus can have on water quality.” One way or the other, Wisconsin agriculture interests aren’t much concerned about the phosphorus legislation. Farm Bureau officials reported that agriculture is exempted from SB179 because application of fertilizer for crop and pastureland is regulated through the state’s non-point source prevention program. Spokesman Paul Zimmerman said that growers and producers, with a few exceptions, are required to comply with management standards based on University of Wisconsin research. The lake supporters’ legislative and legal committee chair, Roger Walsh, remarked in the press, “We are pleased that this initiative won strong bipartisan support. The senate has adopted a good bill. We encourage the assembly to pass this bill quickly and get it to the governor’s desk.” Walsh pointed out that the vast majority of Wisconsin’s lawns are saturated with too much phosphorus and that runoff goes directly into surface waters. He said the bill has broad support from county and local governments, local lake groups, statewide conservation organizations, and others interested in protecting the lakes throughout the state. At the same time, a bill has been introduced in the Maryland state senate with 14 co-sponsors to prohibit use of phosphorus fertilizer on all established lawns. One of them, Montgomery County Sen. Brian Frosh, reported in the press that the intent is to make the restrictions voluntary by not establishing any lawn police or setting up fines. Phosphorus would be allowed for establishing new lawns. Frosh also suggested that producers should label their no-phosphorus products for use on older lawns.
Wisconsin governor drops phosphorus suit
Madison, Wisc.-Agriculture interests are applauding the decision by Wisconsin Gov. Jim Doyle that the state will not pursue court action against a Sawyer County cranberry grower for discharging phosphorus into the waterways. “To say that we are very pleased by this would be an understatement,” declared Wisconsin Farm Bureau Federation President Bill Bruins. “We are ecstatic, and we want to whole-heartedly thank Governor Doyle for not pursuing this case any further.” Doyle’s office announced that the state would not appeal a district court of appeals ruling that while the grower was releasing the phosphorus, the action did not constitute a public nuisance. The lawsuit was filed in 2004 by former Atty. Gen. Peg Lautenschlager to compel William Zawistowski to stop releasing the phosphorus, to restore the bay, and to pay damages to nearby landowners. Zawistowski, who owns two cranberry marshes on the bay, withdraws water from the lake to flood the cranberry beds and then returns the water, containing phosphorus, when the beds are drained. “The appeals court decision affirming a trial court’s ruling in favor of the Wisconsin cranberry grower was great news for Wisconsin’s $51 billion agriculture industry,” said Bruins, a dairy farmer from rural Waupun. “To learn that the state will no longer pursue any further appeals builds upon that great news, and allows all of us in the farming community to breathe easier. The ruling gave confidence that our state’s Right to Farm law still affords agricultural producers protection from nuisance lawsuits, and that farming is still welcome in Wisconsin.” According to press reports, the appeals court agreed Musky Bay was changing as a result of the phosphorus, but said the state failed to prove the change resulted in significant interference with recreation or the bay’s ecology. Judge Gregory Peterson wrote for a unanimous three-judge panel that the state produced no evidence showing how many days the public could not use the lake and what part of the bay was inaccessible.
Molasses-based Save-a-Tree fertilizer now in Texas
Nampa, Idaho-The Idaho distributors of the uniquely named Dr. JimZ’s Secret Formula Save-a-Tree fertilizer, which blends nutrients with molasses, has added 23 retail stores in Texas and has its eye on additional outlets in the Midwest and eastern states and Europe. “We are negotiating with a large distributor in the Midwest which covers the Midwestern and eastern U.S., as well as Germany and have selected other European countries,” according to Jos Zamzow, son of Jim Zamzow, the inventor of Save-a-Tree and vice president of TerraLife, Inc. “Our goal is to offer national distribution by the second quarter of 2008 and international distribution in the future.” Dr. JimZ, who was given the title for promoting research, came up with the formula for Save-a-Tree almost 20 years ago. Named as such for saving the 110-year-old Harrison tree near the state capitol, it is also effective on shrubs, flowers, and vegetables. The liquid fertilizer uses as a base sugar cane molasses because it smells good, does not attract ants, and discourages nematodes. Jos Zamzow explained that the molasses is combined with nitrogen, phosphate, and sulfur in a proprietary blending method that involves fermentation. “Suffice it to say that this is the key step to making our product the only non-leaching manufactured product in the world,” Zamzow added. He said the vast majority of the nitrogen is derived from the protein in the molasses, which is considered an ammoniacal source. The phosphorus comes from an unprocessed soft rock phosphate. The 4-1-0 liquid fertilizer, sold in 1, 2.5, and 5 gallon bottles, also contains both macro and micro nutrients, which Zamzow said encourages soil health instead of crop and plant growth, the purpose of commercial fertilizers. Users are mainly home gardeners, Zamzow reported, but some landscape contractors and golf courses in Idaho buy wholesale amounts.
Management Briefs
Agrotain International, St. Louis, has announced the completion of a major personnel expansion. Jeff Whetstine recently joined the company as vice president of global marketing in St. Louis. Whetstine was formerly with Osborn & Barr Communications in St. Louis, working with clients that included Monsanto Co. and Solutia. His responsibilities include working with the three business unit leads on branding, marketing, and communications initiatives around the world for current and future Agrotain products.
Ryan Vidrine was hired as the regional manager in Louisiana in January. He can be reached at rvidrine@agrotain.com.
Jeffrey Perrotti has been hired as the regional manager n the Pacific NorthWest. He can be reached at jperrotti@agrotain.com.
Daryl Clay has been hired as the regional manager to cover Delaware, Virginia, Maryland, and North Carolina. He was most recently with Syngenta seeds. He is a Certified Professional Agronomist, a Certified Professional Soil Scientist, and a CCA. He can be reached by email at dclay@agrotain.com.
Two International regional managers have also been named – Richard Sherman for Mexico and Central America and Gordon Welch for the South Pacific Rim. Previously, Sherman worked as general manager/CEO of a Delta and Pineland (Monsanto) joint venture company in Latin America. He is currently based in Ft. Lauderdale Fla., and can be reached at rsherman@agrotain.com.
Welch recently held the position of national sales manager for Summit-Quinphos Co., a successful formulator and distributor in New Zealand. He can be reached at gwelch@agrotain.com.
The company says it is currently pursuing candidates for a position in China that is expected to be filled in six to twelve months.