Detroit — John Clark, who got tangled up in this city’s Synagro biosolids contract scandal that surfaced some four years ago, is under court order to surrender himself by mid-June to serve a five-month prison term. The clerk’s office in the U.S. District Court for the Eastern District of Michigan confirmed that the 41-year-old Clark was sentenced on Feb. 16, and according to the judgment commitment order is required to surrender for serving his time at the institution designated by the Bureau of Prisons before 2 p.m. on June 18. According to the local press, federal prosecutors had sought a 16-month sentence for Clark’s part in the scandal, including lying to the FBI about his role in influencing the $1.2 billion contract. Clark, a one-time aide to Councilman Kenneth Cockrel Jr., had long insisted he never accepted any bribes. He said his only crime was lying to federal agents about giving $3,000 back to a company official, which he didn’t do. Cockrel wasn’t implicated. U.S. District Judge Avern Cohn, who gave Clark the five-month sentence, also ordered him to serve five months of home confinement and two years of probation.
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B.C. protestors block biosolids trucks
Prince George, B.C. — Protestors here who are worried about biosolids contaminating water and spreading odors around Salmon Valley have been putting up barricades to keep city dump trucks from transporting their loads to farms for storing and spreading in May or June. In at least one instance RCMPs have had to order demonstrators – without much success – to clear their blockade. “I need to know if it’s going to seep into the waterways, and whether it’s going to be harmful for the environment out here,” declared protestor Andy Angele, despite assurances by city officials and proponents who insist use of treated biosolids as fertilizer on farmlands is safe. But that’s not convincing everyone. “The regulations and their own material say there is potential for water contamination from biosolids,” Angele claimed. So city officials are advising these individuals that their concerns would be addressed at a city meeting at a later date. But protestors said they plan to keep blocking the dump trucks until the city holds an independent review studying the effects of spreading sewage on agricultural land. Suntanu Dalal, communications officer for the Ministry of Environment, told Green Markets the project is in compliance with the City of Prince George’s existing waste management permit, and is being conducted under the conditions set out in the provincial organic matter recycling regulation. “This disposal option has been ongoing at a number of different locations in the Prince George area for more than five years,” added Dalal.
K+S reports 2nd best operating income
Kasel — Germany’s K+S Group reported its second best operating income in history during the year ending Dec. 31, 2011. Operating income was up 36.6 percent, to €975.5 million on revenues of €5.15 billion, compared to 2010’s €714.5 million and €4.63 billion, respectively. Potash/Magnesium income was up 55.4 percent for the year to €739.4 million on sales of €2.1 billion, up from 2010’s €475.9 million and €E1.87 billion, respectively. Nitrogen income was up 60.3 percent to €69.4 million on sales of €1.16 billion, up from 2010’s €43.3 million on sales of €902.4 million. Despite a lull in fourth-quarter fertilizer markets and a weak winter season for salt, fourth-quarter income was up 9.2 percent to €216.9 million on revenues of €1.3 billion, versus the year-ago €198.6 million and €1.28 billion, respectively. Higher prices helped move up Potash/Magnesium income 43.2 percent, to €181.4 million on sales of €542.7 million, up from the year-ago €126.7 million on sales of €470.7 million. The company said it ended the year with potash inventories of approximately 1 million mt, versus the year-ago 800,000 mt. Nitrogen income was down 43.8 percent in the fourth quarter, to €9 million on sales of €279.4 million from the year-ago €16 million on sales of €246.3 million. The company will pay a dividend of €1.30 for 2011, up from 2010’s €1.00. Going forward, K+S expects stable revenues in 2012, with a modest decrease in earnings due to a mild winter. The 2013 outlook is more positive, with expectations of a slight increase in revenues and a moderate increase in operating earnings.
Seven drums of fertilizer in yard spark concerns
New Haven, Conn. — Seven large drums of fertilizer found in the backyard of a home in a New Haven neighborhood late last month brought out the police bomb squad, local firefighters, state environmental department investigators, and the FBI, who were concerned that it could be the ingredients for bomb-making. “If we find fertilizer that’s not at a company providing lawn care or some other legitimate service, concerns of terrorism obviously are on our minds,” explained New Haven police spokesman David Hartman. “That’s why the FBI and all the others showed up.” Hartman didn’t say, but Yale-New Haven Hospital and the Yale School of Medicine being in the same neighborhood could have heightened concerns. Sgt. Peter Moller told the local press that officials were exercising due caution with the response. After concerns were put to rest, the state Department of Energy and Environmental Protection was contacted to remove and dispose of the drums, which were tucked in the backyard of the home, located near Interstate 95. Their investigation indicated that the homeowner had had what he described as liquid organic fertilizer in the yard for some time, and tests indicated that the contents of the barrels were neutral Ph and did not constitute any danger. One neighbor reported that the fertilizer had been in the back yard for at least eight years, saying the owner even offered some to her in the past for her plantings.
$107,100 fine includes ammonia violations
Raleigh, N.C. — The North Carolina Department of Labor has fined the Union County, N.C., Pilgrims Pride plant $107,100 for 27 alleged serious and seven non-serious violations, including an ammonia release on Aug. 16 last year. An unspecified number of the citations involved the ammonia leak, including an emergency plan that reportedly didn’t include procedures to determine safe exit routes and assembly areas and didn’t specify the personal protective equipment emergency responders were required to wear while responding to such situations. The leak led to the evacuation of 550 employees and 25 families who lived nearby. There were no injuries as a result, though the plant itself was damaged. Officials stated that the emergency plan was not implemented during the leak, as "four employees did not evacuate and remained in the (ammonia) release area to perform various activities."
FMC and Kumiai partner on new herbicide
Philadelphia — FMC Corporation and Japan-based Kumiai Chemical Industry Co. Ltd. on March 5 announced that they have entered into an exclusive agreement to evaluate a new herbicide discovered by Kumiai for potential global development and commercialization. Kumiai and Ihara Chemical Industry Co. Ltd. discovered the chemistry in their research labs, and Kumiai is partnering with FMC to evaluate and develop its commercial potential. The companies will evaluate the chemistry on a number of global crops and weed problems over the coming years. Terms of the agreement were not disclosed. "Our relationship with Kumiai is an extremely important one for FMC’s agricultural business, and I am delighted to be working with Kumiai on this new active ingredient, and we expect to progress rapidly in our evaluations," said Milton Steele, president of FMC Agricultural Products Group. "The chemistry is a new herbicide that offers the potential to address some of the emerging herbicide resistance problems that farmers all over the world are experiencing.” According to Dr. Eisuke Ishihara, president of Kumiai, “Working with a proven partner such as FMC on the evaluation and potential development of this new chemistry is a sign of our company’s vision to maximize the value of our rich chemistry pipeline, through appropriate and strategic global partnerships. Collaborating with FMC and their growing innovation and commercial organization will help us supply new and innovative products to the global crop protection industry.”
Madison video spotlights fertilizer cleanup
Madison, Wisc. — State environmental quality officials are so proud of the cleanup of fertilizer impacted soils at the old 27-acre Royster-Clark fertilizer plant property here they’ve produced a short film and made it available online. Considered the largest such project ever undertaken by the state, the 27-acre site – acquired and operated briefly in 2006 by Agrium Inc. – posed a few unique problems. Focusing at first on cleaning up the outdoor soils, the effort shifted to contamination under concrete buildings and exterior concrete slabs slated to be removed to make way for redevelopment. More than 30,000 cubic yards of contaminated soil were excavated and will be land-spread on farm fields in eastern Dane County to reduce fertilizer requirements this spring. "Without this cleanup, nitrogen from that fertilizer would eventually have leached into groundwater at the site, and would likely have discharged into nearby Lake Monona and the Yahara River basin," reported Stan Senger, section leader. “Removal of these contaminants nearest the source helps to protect our groundwater as well as nearby lakes and streams.”
Viterra fertilizer, ag inputs continue stellar performance
Viterra Inc.’s Agri-products segment, which includes fertilizer and other agricultural inputs, continued its strong performance in the first quarter ending Jan. 31, 2012.
Agri-product EBITDA was up 45 percent, to C$15.3 million from the year-ago $10.6 million. Adjusted gross profit for the segment was $62.5 million on revenues of $417 million, up from the year-ago $53.5 million on revenues of $292.6 million.
Fertilizer revenues were up 40 percent, to $244.3 million from the year-ago $175 million. Fertilizer margins per mt were up 31.5 percent, to $129.79 from the year-ago $98.71, while volumes were up 4.5 percent, to 390,000 mt from 373,000 mt.
Viterra President and CEO Mayo Schmidt told analysts what made first-quarter fertilizer margins particularly strong was the fact that last fall there was an early harvest in Western Canada. “We had great weather and as such it gave the farmers an opportunity to put down a lot of ammonia in November. And with the ammonia a lot of that is our own manufactured ammonia, so that drove the fertilizer margins up significantly.”
Going forward, Viterra told analysts that it is bullish on fertilizer, even more so than when it reported earnings last quarter, and it expects fertilizer volumes to be up in 2012. It said historically strong grain prices should continue to drive solid returns for producers, as well as demand for crop inputs. In addition, Western Canada seeded acreage is expected to increase, which should be beneficial for crop input demand.
Viterra says in Western Canada the majority of the 6-8 million acres that were affected by excess moisture in the spring of 2011 is expected to return to production in the upcoming season. Barring further adverse weather conditions, Viterra is forecasting Western Canadian seeded acreage will total approximately 57-59 million acres in 2012, an increase of about 8-10 percent from last season. This forecast is still below the 10-year average of about 60 million acres.
Viterra is also bullish on canola, which is a heavy user of fertilizer. The company believes those acres will range from 18.5-19.5 million, up from the year-ago 18.5 million.
In addition to increased acreage, Viterra believes high commodity prices will spur increased application rates overall, and that margins will also be positively impacted by low natural gas prices. Viterra is forecasting fertilizer margin guidance of $115-$135/mt for fiscal 2012.
Viterra also sees fertilizer prices moving up. “Urea pricing has been somewhat weak up until about two weeks ago,” said Doug Wonnacott, senior vice president, Agri-products. “However, as we saw product begin to move in the Southern U.S., we’ve seen a significant uptick in the urea price so that pricing now in the U.S. Gulf is north of $500/st FOB. So that’s going to have a significant impact.
“And then on the gas side … we’ve seen a significant decrease in the price of natural gas. We are now down below $2 per gigajoule, and that is going to enhance our manufacturing margins significantly for both ammonia and urea.”
Wonnacott also noted that the company is growing its ag input business in Australia, adding four outlets in 2011, with expectations of adding four-to-six more in 2012, which will either be standalone or associated with existing grain handling facilities. “We are also continuing to look at acquisition opportunities, and we are spending a lot of time with a lot of independent operators there.”
As of last summer (GM June 13, 2011, p. 11), Viterra said it operated 16 Agri-product depots in Australia, along with six fertilizer warehouses in South Australia and Victoria.
Viterra operates approximately 260 retail outlets in Western Canada and owns a 34 percent stake in Canadian Fertilizer Ltd., the nitrogen plant in Medicine Hat,
The Week in Fertilizer Stocks
The Week in Fertilizer Stocks
| Producer | Symbol | Price | Week Ago | Year Ago |
| Agrium | AGU | 83.15 | 83.41 | 87.88 |
| CF Industries | CF | 181.15 | 183.00 | 124.78 |
| Intrepid Potash | IPI | 23.62 | 23.34 | 34.24 |
| Mosaic | MOS | 55.26 | 55.57 | 76.30 |
| PotashCorp* | POT | 42.87 | 43.72 | 54.04 |
| Terra Nitrogen | TNH | 225.99 | 223.06 | 95.72 |
| CVR Partners | UAN | 25.22 | 24.64 | N/A |
| Distribution/Retail | ||||
| Andersons Inc. | ANDE | 47.87 | 44.37 | 45.29 |
| Deere & Co. | DE | 81.64 | 80.38 | 85.94 |
| Scotts | SMG | 53.11 | 48.00 | 55.70 |
| * represents three-for-one stock split | ||||