All Posts from March 11, 2013

Fatima Group to introduce non-explosive fertilizer

News, News Briefs

Karachi, Pakistan — The Fatima Group reported that it will introduce a newly formulated fertilizer in Pakistan for the next Rabi season that cannot be used in the making of bombs. The news comes as Fatima’s plans for a nitrogen plant in Indiana’s Posey County remain suspended (GM Feb. 11, p. 1) due to revelations earlier this year that the company had not cooperated fully with the U.S. Department of Defense (DOD) to eliminate fertilizer-based improvised explosive devices (IEDs) used by terrorists operating in Afghanistan and Pakistan. Fawad Ahmed Mukhtar, CEO of Fatima Fertilizer Company Ltd., said it took the company approximately 18 months to develop the new fertilizer, which will be introduced to markets in Pakistan beginning October 2013 to March 2014. Fatima’s research into the new fertilizer was acknowledged recently by Lt. General Michael Barbero (GM March 4, p. 1), director of the DOD’s Joint Improvised Explosive Device Defeat Organization (JIEDDO), who said JIEDDO greatly appreciated “Fatima’s initiative and innovative approach to seek a reformulated product to render CAN more inert and less explosive, thereby diminishing its effectiveness as an IED precursor material.” Mukhtar said Fatima was under no pressure from other countries, including the U.S., to develop the fertilizer, and he stressed that firms manufacturing fertilizer in Pakistan were not responsible if terrorists were using those products for designing bombs. “China, India, Iran, and Uzbekistan are bigger fertilizer manufacturers in the region that Pakistan,” he added.

Drought leaves more residual N in Indiana fields

News, News Briefs

West Lafayette, Ind. — Soil nitrogen left behind by Indiana’s drought-stricken 2012 corn crop could mean that the state’s wheat growers might be able to apply less fertilizer this spring, according to a group of Purdue Extension agronomists. In a new publication, Carryover Nitrogen – Potential Impact on Wheat Fertilization, Shaun Casteel, Jim Camberato, and Chuck Mansfield discuss how corn plants stressed by extreme heat and too little water yielded less grain and left more nitrogen in soils than in normal years. "Spring fertilization rates necessary to optimize yield may be lower than what is needed following normal corn crops," Casteel said. "Wheat planted in the fall has an advantage in that it will accumulate some nitrogen prior to dormancy. Wheat’s primary advantage is the established root system that can take up nitrogen in the early spring before corn is even planted." In a more normal year, leftover nitrogen is removed from the crop root zone because of winter and spring precipitation, which typically totals 18-24 inches from October and April, Camberato said. This year, parts of Indiana have received less rainfall, particularly in the northeastern and northwestern parts of the state, where rain has ranged from 10-20 inches. Nitrogen carryover potential is much higher in these regions than in southern Indiana, the authors said. The full report is available for free download at http://www.agry.purdue.edu/ext/soilfertility/news/carryovernitrogenwheat.pdf.

Rig crashes in Montana, spills MAP load

News, News Briefs

Wolf Creek, Mont. — A hazmat cleanup crew was able to keep 30 st of monoammonium phosphate (MAP) from getting into a nearby stream after a tractor-trailer overturned on Interstate 15 and spilled its load between here and Craig on Saturday, March 2. “But it came close,” according to Paul Spengler, Lewis and Clark County disaster and emergency services coordinator. Spengler told Green Markets the load spread from the truck at the crash site, went down a 30-foot embankment, and landed above Little Prickly Pear Creek. “There is nothing at this point we can see that is in the creek,” Highway Patrol Sgt. Jay Nelson reported, adding that firefighters from the Wolf Creek/Craig Fire Service Area had climbed down the bank to confirm that none of the material had reached the water. Nelson said the mishap occurred when the driver reported seeing a deer in the roadway and swerved to avoid it. The result was a collision with the guard rail, as well as the product release onto the roadway and down the embankment. The rig landed on its side and forced highway patrol troopers to close I-15 in both directions and route traffic along side roads until late in the evening. No one was transported to the hospital. Meanwhile, J&D Trucking said the trailer and fertilizer are locked up in the company’s yard in Helena until everything is settled.

SQM income up for year, off for 4Q

News, News Briefs

Santiago — While Sociedad Quimica y Minera de Chile SA (SQM) posted an increase of net income before minority interest of 18.9 percent, to $657.4 million ($2.47 per share) for the year ending Dec. 31, 2012, from 2011’s $554.1 million ($2.07 per share), net income for the fourth-quarter was off 11 percent, to $144.4 million ($0.54 per share) from the year-ago $161.7 million ($0.60 per share). SQM full-year sales were $2.43 billion, up from $2.14 billion. Fourth-quarter sales were also up, at $601 million from the year-ago $538.9 million. SQM only saw a revenue downturn in its largest segment – Specialty Plant Nutrition (SPN) – and this was both for the year and quarter. SPN 2012 sales were $675.3 million, down from $721.7 million, while fourth-quarter were $159.5 million, slipping from $174.6 million. Within the SPN unit, only potassium nitrate volumes dropped, and they were 469,300 mt for 2012, down from 2011’s 551,100 mt. SQM said that was due to increased supply from a competitor (likely Haifa Chemicals, which had a strike in 2011), and low market growth, due mainly to the financial situation in Europe since this region is one of the most important markets for the SPN business. SPN prices were up almost 2 percent for the year. The next largest segment, Potassium Chloride/Potassium Sulfate, saw volumes increase by almost 10 percent in 2012, to 1.21 million mt from 2011’s 1.1 million. Revenues were $605.1 million, up from $555.7 million. Fourth-quarter revenues were also up, at $148.5 million from the year-ago $129.8 million.

Agrium expects 2Q close to Viterra deal

News, News Briefs

Calgary — Agrium Inc. recently told analysts that it expects its acquisition of the bulk of Viterra Inc.’s retail outlets to close toward the end of the second quarter. Regardless, Agrium said it would get the earnings all the way back through April 2012. Agrium said it was able to get the assets at less than 6x, pre-synergy, and on its ability to take both the nitrogen plant and the retail business. Earlier, it said when it sought to buy Viterra it was offered at 10x of 11x range. As for its own Retail prowess, Agrium said revenue per facility has gone up 21 percent since 2007, and EBITDA 24 percent. In other news, Agrium said that its sale of 34 percent of the Medicine Hat nitrogen plant to CF Industries Holdings Inc. could close within 30 days.

Muntajat to market Qafco urea

News, News Briefs

Doha — Qatar Chemical and Petrochemical Marketing and Distribution Co. (Muntajat) has assumed exclusive responsibility for the marketing, sales, and distribution activities of Qatar Fertiliser Co. (Qafco), completing the second phase of a comprehensive marketing consolidation of Qatar’s chemical and petrochemical industry. Qafco has transitioned to Muntajat, created in December 2012, for the marketing of urea, ammonia, melamine, and urea formaldehyde condensate (UFC-85) produced by Qafco, Qatar Melamine Co. (QMC), and Gulf Formaldehyde Co. (GFC). Qafco became the world’s fourth largest urea producer in December 2012, when its QAR 2.2-billion QAFCO-6 plant came online and boosted the company’s annual production to 5.6 million mt. Yara International ASA owns 25 percent of Qafco, and to date has marketed 50 percent of its product, with Qafco marketing the other 50 percent. Sources tell Green Markets the only change is that now Yara will take 50 percent via Muntajat, the new marketing arm, and not Qafco. Yara/Qafco product coming to the U.S. is not expected to be impacted. The migration of marketing, sales, and distribution activities for Qafco’s entire product range to Muntajat was completed on March 1. Muntajat plans to complete the proposed consolidation of all nine operating entities by mid-2013, resulting in a single focal point for the marketing and distribution of the country’s chemical and petrochemical products.

Fire won’t put Hintzsche out of business

News, News Briefs

Kaneville, Ill. — A fire that broke out Tuesday night, Feb. 26, in a maintenance facility won’t be putting Hintzsche Fertilizer on County Line Road west of Kaneville out of business. "It looks like we’ll be able to lease a nearby building, and we’re back in business,” Dave Hintzsche, company president, told Green Markets. “A lot of contractors and others stepped up to help out. Fortunately, none of the retail business was affected by the fire." Hintzsche reported that the fire affected the original facility and one addition. However, the main office and production facility were not involved. Indications are that a large truck parked in the shop experienced an electrical fire, which then spread to the maintenance building. Hintzsche reported that none of the chemicals were involved, and employees were able to remove some equipment from the maintenance building. “We’ll rebuild and it won’t impact retail business. We’re also looking for an alternate maintenance facility,” said Hintzsche. Kaneville firefighters arrived at the scene at approximately 5:50 p.m. At present, there are no estimated damages, and the company was open for business the next day. Hintzsche is a leading agronomy retailer in north-central part of Illinois.

CHS plans fertilizer projects in expansion

News, News Briefs

St. Paul — CHS Inc. is including three major fertilizer-related projects in seven significant capital investments in northwest Minnesota and northeast North Dakota, totaling more than $50 million. CHS officials said the projects are intended to add value in grain and fertilizer distribution and handling for CHS producer-owners in that region, but provided no additional details. The fertilizer projects include construction of a fertilizer hub plant at Erskine, Minn., and expansions of fertilizer handling facilities at Crookston, Minn., and Larimore, N.D. CHS officials described these projects as significant enhancements to dry fertilizer handling at three locations. Also planned are a state-of-the-art shuttle train loading elevator, expansion of an existing shuttle loader, and two grain storage units. “By reinvesting in these facilities and communities, we continue to demonstrate the CHS commitment to our producer-owners,” said John McEnroe, executive vice president, CHS Country Operations. “These new projects, expansions, and upgrades provide the farmers we serve with added supply dependability and access to faster, more efficient grain handling.” Some of the updates will begin as early as this May. The company said these projects are very tangible demonstrations of CHS’s commitment to investing in the future on its owners’ behalf.

Tessenderlo Kerley Inc. – Management Brief

Management Briefs

Tessenderlo Kerley Inc. (TKI), Phoenix, has announced a reorganization of its management team spurred on by growth and expansion, as well as the pending retirement of Ron Johnson, who has served as vice president of marketing and sales – broad acres, for nearly 10 years. He has been with TKI for more than two decades and will officially retire during fourth quarter 2013. He will assist with transitional matters until then.

“The changing markets and our need to keep up with our growth have made it necessary to implement some important changes in our management structure,” said TKI CEO Jordan Burns.

Russell Sides has accepted the position of vice president of sales and marketing for all TKI fertilizers sold in the U.S. and Canada, effective immediately. He was most recently director of supply chain and has been with the company for more than eight years. Previously, he served in sales and management positions with other agricultural and industrial companies for more than 20 years.

Rick Letterman has accepted the role of vice president of product development and business administration, effective immediately. His most recent job was vice president of specialty agricultural products, and he has been with the company for more than 22 years.

Sides and Letterman will report to Larry Tryon, group vice president, North America Fertilizers, of the U.S. and Canada Fertilizers unit.

In 2012, TKI was reorganized into five business units, with Tryon leading one. Others include NovaSource, led by David Cassidy, group vice president for crop protection; Global Mining and Industrial, led by Ken Gagon, group vice president of global mining and industrial; Kerley International, led by Geert Gyselinck, group vice president, Kerley International; and MPR, led by Kevin Boltz, MPR president.

CHS and MKC to build grain shuttle facility in Kansas

News, News Briefs

St. Paul, Minn. — CHS Inc. and Mid-Kansas Cooperative (MKC) have approved an agreement to form a limited liability company (LLC) to build and operate a high-speed shuttle loading facility in Canton, Kan. Construction on property currently owned by MKC is expected to begin this spring and will take approximately 12 months. Located on the Union Pacific rail line, the grain shuttle will load 110-car trains bound for export facilities in the Pacific Northwest, the Gulf Coast, and Mexico. Upon completion, onsite storage will be in excess of 3 million bushels. “We are excited about the opportunity to come together with strong partners like MKC and TMA to expand the global reach for Kansas grain farmers,” said John McEnroe, executive vice president, CHS Country Operations Division. “This is a great example of how we can be greater together.” The newly formed LLC will become a member of Team Marketing Alliance (TMA), which will handle grain marketing services for the Canton grain shuttle facility. TMA is a limited liability company that is wholly owned by four central Kansas cooperatives that operate a combined 48 country elevator facilities: MKC, Cooperative Grain & Supply, Hillsboro, Kan.; Farmers Cooperative Elevator Co., Halstead, Kan.; and The Farmers Cooperative Elevator Co., Nickerson, Kan. TMA is the grain division for these four local cooperatives. "MKC has been studying this project for quite some time, and part of our due diligence included the selection of the right partner that could bring us an advantage immediately,” said David Christensen, MKC CEO. “We’re very pleased to be able to develop a partnership with our regional cooperative CHS that will bring considerable value to our member owners.”

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