Yara announced on Nov. 18 that it has acquired the German water sensor company ZIM Plant Technology GmbH. ZIM’s crop water sensor technology is mostly used in high-precision irrigation systems to improve yields and water use efficiency. The deal is expected to close Jan. 1, 2014, subject to normal closing conditions.

“We will incorporate the knowledge and technology into Yara’s existing Crop Nutrition solutions, providing a valuable add-on for our offering to irrigated farming,” said Egil Hogna, Yara’s senior vice president and head of Downstream. “This clearly improves Yara’s leadership position within the growing fertigation segment. This is a strategic step for Yara into a new segment of the precision farming business, and it is also a response to our ‘Creating Impact’ strategy of addressing resource scarcity.”

Yara said integrating the water precision tool with Yara’s expertise in precision application of water soluble and liquid fertilizers will multiply the market potential for both. Freshwater availability is predicted to become one of the major global challenges, the company said, as agriculture currently uses about 70 percent of freshwater withdrawals. If water use efficiency is not improved, the agricultural sector alone will need more water by 2030 than is sustainably available. As a conservative estimate, Yara said the water sensor technology reduces water usage by 20 percent, so farmers who use it will reduce water consumption while increasing yields and crop quality.

“After receiving several innovation awards, I am excited to see that my invention will now be implemented on a large scale through Yara,” said Prof. Dr. Ulrich Zimmermann, founder of ZIM.

In other news, Yara reported that its distribution agreement with American Plant Food Corp. (APF) for bulk standard ammonium sulfate at Yara’s dry facility in Stockton, Calif., has come to an end. Yara said it will instead dedicate resources and warehouse space at Stockton to its recently introduced Amidas™ fertilizer, which the company describes as a 40-0-0 5.5 percent sulfur homogeneous fertilizer that combines urea and ammonium sulfate into one particle.

Yara said the 7.3:1 nitrogen to sulfur ratio in the product is optimal for grain crop fertilization, while ammonia volatilization is reduced by acidity formed from ammonium sulfate.

APF, which is headquartered in Galena Park, Texas, will continue to supply the California market with ammonium sulfate from its Woodland, Calif., inventory.

Suleiman Kerimov, OAO Uralkali’s major shareholder has agreed to sell his stake in the company, a move that may persuade Belarus to extradite Uralkali CEO Vladislav Baumgertner back to Russia. The sale may also open the door to Belarus and Uralkali working together once again.

Russia’s Onexim Group said Nov. 18 that it has agreed to buy a 21.75 percent stake in Uralkali owned by the Suleiman Kerimov Foundation. The parties expect the transaction to close shortly. The deal does not require any regulatory approvals. The terms of the transaction are confidential, as agreed upon by the parties.

“The purchase of the stake in Uralkali is a long-term investment in a company that is unique from the standpoint of its position in its industry and its role in the world economy. We are certain that the potash industry has strong fundamentals and that Uralkali, as the world’s leading producer and the key player in the industry, has considerable potential for growth in value. Onexim Group, in turn, has extensive experience in managing major industrial assets and creating shareholder value in public companies,” said Dmitry Razumov, Onexim CEO.

“Over the time of our investment in Uralkali, we have achieved the strategic goal of putting together Russia’s two largest potash producers, which led to the creation of the global leader in the potash industry. We are now moving towards different goals and challenges. And we are positive that with the arrival of the new investor, Uralkali will enjoy new opportunities for its continued strategic development” – said Pavel Grachev, chairman of the Kerimov’s holding company Nafta Moskva.

Israel Chemicals (ICL) reported a sharp drop in third-quarter net profits and revenues, with net profits falling by 50 percent, to $196 million versus $395 million in the third quarter of 2012. Revenues were down 18 percent, to $1.445 billion versus $1.762 billion in the corresponding quarter last year.

ICL attributed the decline to weakness and instability in the potash market, which led to a reduction in volumes sold and to lower fertilizer prices. Operating profit for the quarter fell to $222 million, compared with $483 million in the third quarter of 2012.

The company also noted that its tax expenses rose in the third quarter due to a non-recurring $118 million payment to the Israel Tax Authority, as well as an increase in the corporate tax rate. The one-time payment was for ‘”trapped profits” amounting to more than $1 billion from various tax breaks that expired on Nov. 12.

Sales at its largest division, ICL Fertilizers, declined to $780 million for the quarter, down from last year’s $1.06 billion. ICL attributed the drop to a decrease in potash sold to China and India and lower potash and phosphate prices. The main factor in the potash sector was the delay in purchases by customers following Uralkali’s announcement in late July that it would no longer direct export sales through Belarusian Potash Co. (BPC).

The company reported some improvement in potash demand toward the end of the quarter, with sales to India picking up following a cut in prices. Potash production during the quarter rose by 9 percent, to 1.27 million mt versus 1.16 million mt in the same quarter last year, due to improved efficiency at the company’s mine in England.

Operating profit in the phosphate fertilizer sector was down sharply for the quarter due to lower demand in India and increases competition, which led to lower prices. ICL said operating profit was approximately 5 percent, or $22 million out of $421 million in revenues, down from last year’s 12 percent, or $52 million out of $436 million in revenues.

ICL said its Rotem Amfert subsidiary is going through one of its most difficult crises in years due to the phosphate fertilizer downturn. The company noted that its competitiveness is well below the average of its competitors. ICL also reported that current resources will last only 6-9 years as the Israeli government has yet to grant a license for mining at the Barir field, which would enable the company to improve its competitive position. ICL said it is working to advance approval of Barir and is also evaluating phosphate mines outside of Israel.

In August ICL announced a new strategic program aimed at enabling the company to continue its growth over the next decade. The plan calls for streamlining key processes, reducing production costs, and increase competitiveness, which ICL hopes will lead to $400 million in savings over the next three years.

ICL also noted that it is moving ahead with plans to dual list its shares on the New York Stock Exchange. No timetable was given, but the company believes dual listing will improve ICL’s access to the international financial markets and provide greater flexibility in financing future M&A activities.

PetroChina, one of China’s leading oil and gas companies, reported on Nov. 13 that it has stopped supplying natural gas to fertilizer producer Cangzhou Dahua Co. Ltd. due to a country-wide fuel shortage heading into winter. Gas supplies are instead being funneled to residential and transportation uses.

Cangzhou Dahua said the idled gas supply would lead to a production halt at its facilities in the Hebie province. It did not say how long the gas suspension would last, but reported that it would conduct equipment maintenance during the shutdown.

Cangzhou Dahua Group Co. Ltd., a state-owned subsidiary of China National Chemical Corp., has six subsidiaries with total production capacity of 580,000 mt/y of urea, 360,000 mt/y of synthetic ammonia, 30,000 mt/y of concentrated nitric acid, and 50,000 mt/y of ammonia. It is also one of China’s largest toluene-diisocyanate (TDI) producers, with annual capacity pegged at 150,000 mt/y. Cangzhou Dahua’s total 2013 urea production to date stands at 465,000 mt. In 2012, the company produced 512,000 mt of urea.

Both PetroChina and the country’s other major energy provider, Sinopec Corp., say they will boost gas supplies in the coming months by maximizing domestic production or raising imports. Sinopec also said it would free up gas supplies over winter partly by cutting deliveries to its vinylon plant in the southwestern province of Sichuan.

Israel Chemicals Ltd. has announced plans to lay off 130 workers from its Rotem Amfert subsidiary in an effort to cut costs. ICL said that the drop in phosphate and fertilizer prices necessitated the move. ICL said that it hoped to propose early retirement to 100 long-time workers and reduce by another 30 the manpower levels at the company which has three plants in southern Israel which currently employ 1,200 workers.

ICL which reports its third quarter results on Wednesday is expected to show losses in the phosphate and fertilizer sector. An ICL statement said that the company had swung into losses due to high production costs which are substantially higher than those in Morocco, Kazakhstan, Russia and Saudi Arabia. The statement went on to say that Rotem Amfert is facing one of the worst crises in recent years.

A union leader at Rotem Amfert said in a radio interview that every three to four years there is a slowdown in the fertilizer market and the management has never talked about layoffs and significant cuts in the number or workers. He added that every management failure can’t be placed on the workers.

Yesterday ICL workers including those at Rotem Amfert shut down four ICL subsidiaries in southern Israel as part of the protest against management plans to implement a reorganization plan. They are demanding that management hold talks with them about planned changes. The workers are threatening to intensify their sanctions.

The plan was announced in August by ICL CEO and President Stefan Borgas and includes efficiencies that would lead to a savings of $400 million over three years.

LSB Industries Inc. today announced that a subsidiary in its Chemical Business entered into agreements with SAIC Constructors LLC to construct a 360,000 st/y nitric acid plant and a 40,000 sty nitric acid concentrator plant at an LSB subsidiary’s site in El Dorado, Ark. The agreements provide for SAIC to manage the construction of the plants. The obligations under the agreements are guaranteed by each party’s parent company.

The total cost of the plants is estimated to be approximately $120 million. The plants are expected to be completed by mid-2015, subject to timely receipt of environmental permits and assuming no unexpected delays.

SAIC has already signed on to build an anhydrous ammonia plant at the site.

USDA today forecast 2013 corn production at 14.0 billion bushels, up 1 percent from the previous forecast and up 30 percent from 2012. If realized, this will be a new record production for the United States. Based on conditions as of Nov. 1, yields are expected to average 160.4 bushels per acre, up 5.1 bushels from the previous forecast and 37.0 bushels above the 2012 average. If realized, this will be the highest average yield since 2009. Area harvested for grain is forecast at 87.2 million acres, down 2 percent from the previous forecast and down slightly from 2012.

Soybean production is forecast at 3.26 billion bushels, up 3 percent from the previous forecast and up 7 percent from last year. If realized, production will be the third largest on record. Based on Nov. 1 conditions, yields are expected to average 43.0 bushels per acre, up 1.8 bushels from the previous forecast and up 3.2 bushels from 2012. Area for harvest in the United States is forecast at 75.7 million acres, down 1 percent from both the previous forecast and last year.

All cotton production is forecast at 13.1 million 480-pound bales, up 2 percent from the September forecast but down 24 percent from last year. Yield is expected to average 808 pounds per harvested acre, up 79 pounds from last year. Upland cotton production is forecast at 12.5 million 480-pound bales, down 25 percent from 2012. Pima cotton production, forecast at 625,500 bales, was carried forward from the previous forecast.