All Posts from December 11, 2017

Growmark Posts Record Fertilizer Sales Volumes

Growmark, Bloomington, Ill., reported $7.3 billion in sales for fiscal year 2017, which ended Aug. 31, 2017, up from $7.0 billion in 2016. Pretax income for the year was $91 million, down from $116 million in 2016.

Growmark’s Crop Nutrients Division had record sales volumes for the year, led by shipments of phosphates and potash. Growmark noted that it has posted record crop nutrient sales volumes in six of the last seven years. The company’s Crop Protection Division also posted record chemical sales, with nitrogen stabilizer and adjuvant sales up significantly from 2016.

Growmark’s overall system seed acres remained relatively flat, with an uptick in soybean sales but a slight downturn in corn sales compared with 2016. The Energy Division posted its third highest sales volumes on record, led by increases in distillates and propane. Growmark’s Retail Grain Units saw improved earnings as well, with record-high bushel volumes reported.

“The fiscal year was not without its challenges, with economic conditions putting continued pressure on farm net incomes,” said CEO Jim Spradlin. “Warm winter weather lowered demand for home heat, and the challenges of Hurricane Harvey on the energy supply chain impacted energy results. Crop Nutrients endured a devaluation of nitrogen products during the peak spring season.”

Growmark estimates patronage refunds at $59 million, distributed in a combination of cash and stock, followed by stock redemption. Spradlin noted the Growmark has distributed $976 million in patronage earnings to members and $815 million in cash over the past ten years.

Richardson Acquires Ag Retail Business in Manitoba

Richardson International Ltd., Winnipeg, Man., announced on Dec. 11 that it has acquired Bestland Air Ltd., an independent crop inputs retailer located near Starbuck, Man. Richardson said the transaction, which closed on Dec. 8, adds to its growing network of retail crop input facilities across the Canadian Prairies.

“This business is an excellent addition to our Richardson Pioneer network as it will be an extension of our full-service Richardson Pioneer Ag Business Centre in Starbuck,” said Tom Hamilton, vice president, Agribusiness Operations. “It will provide us with additional capacity and enhance our ability to continue providing local producers with leading seed, fertilizer, and crop inputs technologies.”

Richardson has been expanding its crop inputs network through both acquisitions and new builds. The company acquired 10 retail crop inputs locations from CHS Canada in October (GM Nov. 3, p. 1), purchased two independent, full-service retail facilities in Vermilion and Forestburg, Alta., last summer (GM Sept. 1, p. 1), and acquired Crop First Agro in Grenfell, Sask., earlier this year (GM Feb. 3, p. 12)

Richardson also opened new crop inputs centers in Pasqua, Sask., in November, and Elrose, Sask., last summer. A third new facility is under construction in Wakaw, Sask., and is scheduled to open in 2018. The company announced plans for the three new facilities in fall 2016 (GM Sept 23, 2016).