Construction of the Iowa Fertilizer Co. plant in Wever, Iowa, reportedly hit a snag over the weekend. The local press reported that work stopped at the facility on Friday, April 17.

Iowa Fertilizer issued a statement: “Iowa Fertilizer’s engineering, procurement and construction contractor has reassigned some of the work from a specific sub-contractor to other sub-contractors on the site including Iowa-based sub-contractors. Qualified labor will be assigned to these sub-contractors for continuing the work. Construction work will continue to progress on the job-site.”

“Iowa Fertilizer remains committed to Lee County and the economic revitalization that has occurred from this project. We continue to work for completion and operation in the fourth quarter of 2015.”

Tampa anhydrous ammonia business has been concluded for May at $465/mt CFR, $20/mt down from the April price of $485/mt CFR. Sources had been anticipating a lower price due to weaker pricing in the international market in recent weeks.

Israel Chemicals Ltd. has decided that it will proceed with the layoff of 115 workers from Dead Sea Works and Dead Sea Bromine Compounds within 48 hours. ICL informed the National Labor Court of its decision to rescind its agreement not to fire workers as long as negotiations were taking place. The announcement by the company follows the breakdown of talks between management, the unions and the Histadrut Labor Federation. The talks broke down over the issue of the right of management to lay off workers without negotiating with the unions and reaching an agreement. The move by management is likely to lead to calls for expanding the strike at ICL and for a wave of protest actions.

G3 Global Grain Group (G3), a new agribusiness joint venture between Bunge Canada and SALIC Canada Ltd., announced on April 15 that it has acquired a majority ownership interest in the Canadian Wheat Board (CWB).

The transaction is expected to close in July 2015. Bunge Canada is a subsidiary of U.S. grain trading company Bunge Ltd., and SALIC Canada Ltd. is a wholly-owned subsidiary of the Saudi Agricultural and Livestock Investment Company (SALIC). G3 will be headquartered in Winnipeg, Man.

"CWB is pleased to complete the initiative to commercialize CWB and are excited at the prospect of G3 as our strategic investor,” said Ian White, CWB CEO. “G3 brings substantial financial strength and extensive operational experience to execute on this growth strategy, and we are pleased that the farmers will be able to continue to participate in the commercialized CWB.”

G3 paid C$250 million for its 50.1 percent interest in the CWB, subject to certain closing conditions and adjustments, with the minority interest to be held in an independently managed trust for the benefit of farmers who sell their grain through the CWB. CWB’s assets include seven grain elevators in Western Canada; port terminals in Thunder Bay, Ont., and Trois Rivieres, Quebec; and an additional four grain handling facilities that are currently under construction in Bloom and St. Adolphe, Man., and Colonsay and Pasqua, Sask.

“Our vision is to establish a highly efficient coast-to-coast Canadian grain enterprise that provides stronger market access solutions for growers and delivers value to our stakeholders and the Canadian agriculture industry as a whole,” said Karl Gerrand, G3 CEO. “We welcome the CWB team and farmer equity owners, and look forward to working together to build a new and dynamic company."

"Bunge’s relationship with Canadian farmers extends nearly 50 years through our grain operations in Eastern Canada and our oilseed processing facilities throughout the country," said Todd Bastean, CEO of Bunge North America. "The investment in G3 and CWB complements our existing Canadian footprint and strengthens our origination and export capabilities in one of the world’s premier growing regions."

"The launch of G3 will enable us to invest in infrastructure across Canada, providing more market choices for Canadian producers,” said Abdullah Al-Rubaian, SALIC chairman. “We are committed to G3’s growth strategy and are excited to work with Bunge, CWB, and the Canadian farming community."

CWB rejected an ownership offer last fall by Farmers of North America (FNA), the Saskatoon-based farmers’ alliance (GM Nov. 17, 2014), which hoped to use CWB’s assets to form a fertilizer and grain distribution company called Genesis Grain & Fertilizer. FNA launched an aggressive capital drive with its 10,000-plus farmer members to fund its reported C$250-$300 million offer for CWB, stressing that the formation of Genesis was a key component of FNA’s proposed C$1.7 billion ProjectN nitrogen plant near Belle Plaine, Sask.

CWB’s rejection of FNA’s offers was criticized by some Canadian government officials and farm groups (GM Dec. 14, 2014). Some critics also took aim at the G3 agreement, saying that Canadian farmers risk lose grain marketing leverage. The trust that makes up the minority ownership interest in CWB will reportedly be capped at roughly C$250 million, with shares already being allocated to farmers based on how much grain they have sold to the CWB since 2012.

For its part, FNA has since announced that it is proceeding with its plans for Genesis without the CWB, and has launched a second capital drive for the project (GM March 9, p. 1).

Terra Nitrogen Company LP said April 13 that the turnaround at the Verdigris, Okla., complex is complete. It represented approximately one-half of the production capacity at the nitrogen complex. The turnaround of the ammonia plant took approximately nine weeks, and the turnaround of the UAN plant took approximately eleven weeks. The turnaround work included upgrade projects to improve the production capacity and efficiency of the units.
 
“We are pleased to have restarted ammonia and UAN production following the completion of our maintenance and upgrade project,” said Phil Koch, senior vice president, manufacturing for Terra Nitrogen GP.

CHS Inc. reported net income attributable to CHS dropped to $92.8 million on revenues of $8.4 billion for the second quarter ending Feb. 28, 2015 compared to the year-ago $260.1 million and $9.7 billion. A huge fall off in Energy income to $14.1 million from $229.1 million was the prime factor for the drop.

Income from the CHS Ag sector was up for the quarter at $58 million from the year-ago $38 million. And while the CHS Wholesale Crop Nutrient business reported a 10 percent drop in volumes for the quarter, income for the unit was up $20 million due to increased margins.

CHS-wide six month income was $471.5 million on revenues of $17.9 billion, down from the year-ago $502.2 million and $20.7 billion, respectively.

Whatcom Farmers Cooperative (WFC), a full-service ag co-op based in Lynden, Wash., announced on April 6 that its voting members have approved a merger with CHS Inc. The proposal will become effective in July 2015, pending appropriate due diligence by both organizations and approval by the CHS board of directors.

"I want to thank the producers of Whatcom Farmers Co-op for turning out and making a clear statement that we should move forward with the merger. A lot of time and effort by the board of directors went into the decision to bring this proposal to our members," said WFC Board Chairman Jeff Bedlington. "WFC will remain a locally based company, staying true to its roots. We are excited for the opportunities that CHS and WFC can provide for our employees and customers."

WFC was founded in 1941 as Whatcom Grange to serve the growers of Washington’s Whatcom County. The company began operating under its present name in 1982, and currently provides agronomy, energy, and retail products and services out of Washington locations at Lynden, Bellingham, Fairhaven, Ferndale, Blaine, and Nooksack. Don Eucker, WFC CEO, will continue as general manager after the merger. WFC said customers should expect a smooth transition, including continuity of staff at all locations.

"CHS continually looks for strategic opportunities that strengthen our ability to help our farmer-owners grow their businesses," said Lynden Johnson, CHS executive vice president. "We’re very pleased to be able to build on the already-strong local expertise for producers in this trade territory."