St. Paul, Minn.-Gov. Tim Pawlenty has come to the rescue of retailers and farmers confronted with the possibility of a shortage of anhydrous ammonia for the fall season. “The situation could have had serious consequences next spring,” according to Bill Bond, executive director of the Minnesota Crop Production Retailers. Bond explained that the problem was getting supplies from the terminals to the retailers under restrictions imposed by the Dept. of Transportation’s hours of service regulations affecting anhydrous transporters. The wet fall also complicated things by reducing time available for applying anhydrous. Bond said that Minnesota law based on the DOT rule applies to propane and fuel, but some believed that there was an exemption for anhydrous because of the fall and spring planting seasons. However, a DOT interpretation held otherwise. After a hastily called meeting of agriculture interests, it was decided to appeal to the governor to use his authority to issue an emergency order exempting drivers hauling diesel fuel and fertilizer for agriculture use. Pawlenty signed the executive order Oct. 31 after Bond and other farm group leaders met with the governor’s staff two days earlier. Bond said the order is good through November.
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Illinois stiffens penalties for anhydrous thefts
Springfield, Ill.-Gov. Rod Blagojevich has signed into law a bill aimed at methamphetamine makers by making penalties much more severe for the theft of anhydrous ammonia, according to the Illinois Fertilizer and Chemical Assn. State Sen. Bill Haine and State Rep. Dan Beiser, both Alton legislators, were sponsors of SB274, raising the criminal classification to a Class 4 felony, which calls for to up to six years in prison and $25,000 in fines. Prior to the fertilizer’s industry efforts to work with the legislature to strengthen penalties, stealing ammonia was considered a misdemeanor, which was a $75 fine. IFCA President Jean Payne reported, “This is just the latest effort in Illinois to elevate the seriousness of stealing anhydrous ammonia. IFCA first lobbied to make ammonia theft a felony in the year 2000, and this is the third time since then that the penalty for theft has been upgraded by the Illinois legislature. It’s a sign that the fertilizer industry has been joined by many legislators who now consider the meth problem a truly significant plague on the state of Illinois, and they have made efforts to combat this problem a high priority.”
K+S earnings up 65.8 percent for potash/mag
Kassel, Germany-The K+S Group reported a 65.8 percent increase in operating earnings from its potash/magnesium segment for the third quarter ending Sept. 30, 2007. Earnings were E65.0 million on sales of E313.5 million, versus the year-ago E39.2 million and E288.3 million, respectively. Nine-month earnings from the segment were up 41.2 percent, to E173.7 million on sales of E1.02 billion, versus the year-ago E123 million and E943.3 million, respectively. Company-wide, third-quarter earnings after taxes were E47.6 million (E1.15 per share) on sales of E727.1 million, versus the year-ago E31.5 million (E.76 per share) and E670.1 million, respectively. Nine-month earnings were E152.4 million (E3.70 per share) on revenues of E2.45 billion, versus the year-ago E141.7 million (E3.44 per share) and E2.22 billion.
Sherritt fertilizer volumes up
Toronto-Sherritt International Corp. reported third-quarter fertilizer volumes were up due to demand for ethanol production. Prices were also up. However, Sherritt continued to report a fertilizer operating loss at C$300,000 on sales of $4.9 million (12,949 mt), versus the year-ago loss of $1.7 million on sales of $3.1 million (7,614 mt). Nine-month fertilizer earnings were $600,000 on sales of $44.7 million (140,421 mt), versus the year-ago $1.3 million and $35.8 million (107,830 mt). Sherritt-wide, the company reported a drop in net earnings for the third quarter ending Sept. 30, 2007, to C$65.4 million ($.28 per diluted share) on sales of $301.3 million, versus the year-ago $74.1 million ($.43 per diluted share) and $271.2 million. EBITDA, however, was up, at $158.6 million from $146.8 million. Nine-month earnings were up, at $286.9 million ($1.45 per share) on sales of $1.01 billion from the year-ago $167.0 million ($.95 per share) and $810.2 million. EBITDA was up considerably, at $577.4 million from $381.4 million. Sherritt says it continues to benefit from strong production across its business segments and robust commodity prices.
Innophos reports positive net income
Cranbury, N.J.-Innophos Holdings Inc., a North American specialty phosphate producer, reported a $10.6 million increase in third-quarter net income, moving the company into the plus column. “We are proud to report our first ever positive net income quarter,” said Randy Gress, Innophos CEO, “highlighted by continued improvement in our U.S. and Mexican businesses. We believe we are well positioned in the marketplace, and are making the right investments to further improve our financial performance.” Third-quarter net income was $5.6 million on sales of $146.4 million, versus the year-ago loss of $5 million on sales of $140.6 million. The company reported a nine-month net loss of $1.6 million, down from the year-ago $8.1 million. Third-quarter sales in Mexico increased 11 percent and were up .7 percent in the U.S., though they were off 4 percent in Canada. In October, the company’s Coatzacoalcos plant had two planned shutdowns ?Çô one non-annual to maintain its sulfuric acid unit and to perform scheduled cogeneration tie-in work, and one annual maintenance shutdown of one train of its merchant green acid unit. During the outages, the facility also experienced an unplanned downtime in other production units due to a shortage of sulfuric acid from local suppliers caused by terrorist actions, which affected natural gas distribution and sulfur production in Mexico. Tight world sulfuric acid supplies were also a factor. Innophos reports that all units at the facility have been up and running since Oct. 30.
| Net Sales $ 000 | 3Q-07 | 3Q-06 |
| U.S. | 82,768 | 82,195 |
| Mexico | 56,659 | 51,045 |
| Canada | 7,024 | 7,349 |
Itronics’ fertilizer revenues up in 3Q
Reno-Itronics Inc. reported third-quarter fertilizer revenues of $241,693, up from the year-ago $145,828. The third quarter is normally the lowest sales quarter of the year. Nine-month fertilizer revenues were $1.4 million, up from $1.05 million. Company-wide, Itronics reported third-quarter net income of $544,325 on sales of $543,681, versus the year-ago loss of $3.1 million on sales of $298,149. Itronics had a nine-month loss of $1.16 million on sales of $1.93 million, versus the year-ago loss of $3.1 million on sales of $1.4 million.
Noble reports 92 percent increase in earnings
Singapore-The Noble Group reported a 92 percent increase in net profits attributable to shareholders for the nine months ending Sept. 30, 2007, to $160.2 million ($6.20 per diluted share) on sales of $15.7 billion, up from the year-ago $83.5 million ($3.36 per share) and $9.8 billion, respectively.
Limited shipments resume at Milorganite plant
Milwaukee-Milorganite producers have confirmed that limited shipments have been resumed after last summer’s shutdown because of polychlorinated biphenyl (PCB) contamination. “It’s still on the shaky side,” reported Milorganite spokesman Mike Archer. “It’s a good feeling after all these months (even though) shipping at this point is moving up and down. But it’s still sufficient to resume interstate shipping except to the three states that have lower PCB requirements.” Milorganite hasn’t been produced since June, when the PCBs were discovered at the Milwaukee Metropolitan Sewage District’s Jones Island plant. The PCBs were found to have been dislodged from the sewer system during cleaning. Archer doesn’t expect the pace to pick up until demand starts to increase after the end of the year. He did confirm that costs from lost sales and disposal of contaminated biosolids stockpiled during the shutdown are running around $4 million. Some 4,600 tons, containing more than 50 ppm of PCBs, had to be trucked to a specially licensed toxic waste landfill in Belleville, Mich., with the remainder disposed of at a regular landfill not far away in Milwaukee. That leaves contaminated silos and equipment to be cleaned before Milorganite can get back into full production. So far, only one of 12 storage silos that held tainted fertilizer reportedly has been cleaned. Testing and cleanup also had to be carried out at public recreational areas where contaminated fertilizer was spread last summer.
N.Y. area drafts tight fertilizer restrictions
Hauppauge, N.Y.-Suffolk County is taking aim at fertilizer runoff with a multi-pronged approach, including prohibiting application during cold weather and requiring training for licensed landscapers, according to County Executive Steve Levy. Levy’s proposal also spells out steps to stop using nitrogen-based fertilizer on most county properties; codifies the county’s organic maintenance plan, which will minimize the use of fertilizers for parks, golf courses, and the Suffolk County Farm; and expands existing consumer education programs at the retail level with signs and brochures. “This is an opportunity for Suffolk County to lead by example,” said Levy. “We can have green parks and lavish lawns without sacrificing the health of our groundwater.” Landscapers would be required to take a turf management course that teaches the proper use and application of fertilizers and methods to minimize nitrogen leaching. An estimated 1,200 landscapers are licensed in the county. Retail establishments would be required to post signs to advise consumers about the risks of nitrogen-based fertilizers and assist them in choosing fertilizers that pose the least harm to the environment. Retailers would make brochures available about the proper use and application of fertilizer products. According to Levy, the plan could reduce the amount of nitrogen leached into groundwater and surface waters from residential use by at least 25 percent, or 60 tons annually.
Wisconsin expands nutrient plan requirement
Madison, Wisc.-Effective March 10, Wisconsin is extending requirements for nutrient management plans to land owners of five acres or more to reduce fertilizer runoff. “Farmers are already covered by the regulation (NR151),” reported Mary Anne Lawndes, urban storm water engineer with the Dept. of Natural Resources. Lawndes noted that owners of larger tracts, such as golf courses, school districts, parks, and large company headquarters, will be now covered, while few – if any – home owners will be affected. Lowndes said the state’s objective is to allow owners “to maintain a healthy turf without over-applying nutrients.” Help is available at the DNR web site, which explains how to do a management plan and use a soil test to determine proper amounts of nitrogen and phosphate. Restrictions also apply to areas close to ground and surface water, she added. The University of Wisconsin extension service has been working with golf courses and school districts, and classes are being held around the state. One session will be held in Green Bay early next year. Owners, Lawndes stressed, will be required to update their management plans every five years unless the use of the property changes.