All Posts from December 14, 2018

Agrinos – Management Brief

Management Briefs, Specialty

Biological crop input provider Agrinos, Davis, Calif., reported on Dec. 11 that Terry Stone, vice president of regulatory affairs and sustainability, has been recognized by the Biological Products Industry Alliance (BPIA) as the organization’s 2018 Volunteer of the Year. Stone received the award at the BPIA Fall Meeting in Rochester, N.Y. The award recognizes a BPIA member who has demonstrated a deep personal commitment to advancing the organization’s mission and achieved significant results through their volunteer work.

“For the past two years, Terry has effectively led BPIA’s Biostimulant Integration Committee, in addition to leading a multi-association workgroup effort to develop a regulatory structure for biostimulants in the United States,” said BPIA Executive Director Keith Jones. “Terry is bringing together BPIA members and nonmembers to advance important biostimulant issues in a positive way and move the entire industry forward. He has been a key participant in BPIA Hill Days and instrumental in our meetings with USDA and EPA.”

Stone helped establish and currently leads the Biostimulant Industry Workgroup, an initiative between the BPIA biostimulant integration committee and the U.S. Biostimulant Coalition. The workgroup was formed to ensure industry alignment in working with federal and state agencies to gain regulatory clarity for biostimulants in the U.S.

Stone was among a contingent of representatives from the workgroup who met with U.S. House and Senate staff members this year and explained the need for creating a federal definition of agricultural biostimulants. As a result, the House of Representatives’ draft 2018 Farm Bill includes a definition of plant biostimulants for the first time. Negotiations between the House and Senate are ongoing and will determine whether the language is included in the final Bill.

“The inclusion of a definition for biostimulants sets the stage for the USDA to establish a formal regulatory framework to ensure the appropriate process for review, approval, and uniform national labeling of agricultural biostimulants products,” said Stone. “That’s a critically important step for the industry. I truly appreciate the opportunity to advocate for these advances alongside my colleagues and partners at BPIA.”

Agrinos also said Stone and his colleagues played an important role in helping to harmonize regulations for biostimulants across the globe. The European Biostimulants Industry Council (EBIC), of which Agrinos is a founding member, agreed on a definition of biostimulants in 2011.

CHS – Management Brief

Management Briefs

During the 2018 CHS Annual Meeting on Dec. 7 in Minneapolis, members elected a farmer from Nebraska and re-elected four other farmers to serve three-year terms on the board of directors. CHS directors must be full-time farmers or ranchers to be eligible for election to the 17-member board.

Newly elected Director David Beckman of Elgin, Neb., succeeds Don Anthony of Lexington, Neb., who retired after serving on the board since 2006. Along with his brother and their families, Beckman raises irrigated corn and soybeans and operates a custom hog-feeding operation. He received his bachelor’s degree in agronomy from the University of Nebraska-Lincoln, and he serves as board chairman for Central Valley Ag Cooperative, York, Neb., and secretary of the Nebraska Cooperative Council.

Re-elected were Steve Fritel, Rugby, N.D., David Johnsrud, Starbuck, Minn., David Kayser, Alexandria, S.D., and Russ Kehl, Quincy, Wash.

The CHS board re-elected Dan Schurr, LeClaire, Iowa, to a one-year term as chairman. Other directors selected as officers for 2019 were: C.J. Blew, Castleton, Kan., first vice chairman; Johnsrud as secretary-treasurer; Jon Erickson, Minot, N.D., second vice chairman; and Steve Riegel, Ford, Kan., assistant secretary-treasurer

CF Industries Holdings Inc. – Management Brief

Management Briefs

CF Industries Holdings Inc., Deerfield, Ill., reports that its board of directors has elected Javed Ahmed, 58, former CEO of Tate & Lyle PLC, as an independent director. The election brings board membership to twelve. Ahmed is expected to stand for re-election by stockholders at the company’s 2019 Annual Meeting.

“We are pleased to welcome Javed to the CF Industries board,” said Stephen A. Furbacher, CF board chairman. “Javed’s extensive international experience, expertise gained in the agriculture and food sectors as CEO of Tate & Lyle, and understanding of our industry will benefit the board and our management team greatly. We look forward to his contributions as we work together to create long-term value for our stockholders.”

Ahmed also spent 17 years with Benckiser NV (later Reckitt Benckiser Group plc), a consumer products group, in a number of senior roles. He began his career with Procter & Gamble before spending five years with Bain & Co. He holds an MBA from the Stanford Graduate School of Business and a B.A. from Williams College.

Yara Simplifies Operating Model

Europe, Featured, News

Yara International ASA, Oslo, announced on Dec. 11 that it is simplifying its operating model. The members of Yara executive management remain the same following these changes. Yara’s activities will be structured within three segments, effective Jan. 1, 2019.

The Sales & Marketing segment will be led by Executive Terje Knutsen. The segment will comprise all of Yara’s existing Crop Nutrition business units, in addition to the following business units, which are transferred from the former Industrial segment: Base Chemicals, Industry Reagents, and Animal Nutrition (excluding South Africa).

The Production segment is unchanged, and will continue to be led by Executive Vice President Tove Andersen.

The New Business segment will be led by Executive Vice President Yves Bonte. The segment will comprise the following units: Two businesses will be established to commercialize innovation within decarbonization and circular economy, in collaboration with the other Yara segments, as well as a separate business unit for autonomous logistics operations, including the Yara Birkeland autonomous electric ship project; and a portfolio of businesses that will be operated more independently with distinct strategies – Environmental Solutions, Mining Applications, Animal Nutrition South Africa, and Industrial Nitrates.

Yara will continue to actively manage its portfolio of businesses. However, it said it is currently undertaking a process to evaluate strategic options for the Environmental Solutions business.

“Earlier this year, we set out our strategy as the crop nutrition company for the future, and we are now adapting and simplifying our operating model accordingly. Following a period of substantial investments, our main focus going forward will be on operational excellence, innovation, and growing scalable crop nutrition solutions,” said Yara President and CEO Svein Tore Holsether.

“Our crop nutrition focused strategy naturally also includes a strategic evaluation of businesses that are further away from Yara’s core, to determine the most value-creating way forward for these, either within or outside Yara,” he added.

Bunge CEO to Step Down; Exit Opens Door to Potential Deal with Glencore, ADM

Featured, News

Bunge Ltd., White Plains, N.Y., announced on Dec. 10 that CEO Soren Schroder, 57, will step down. To ensure a smooth leadership transition, Schroder, who has served as CEO since 2013, will continue in his current role until a successor is named. The board has established a search committee to identify the company’s next CEO.

“It has been an honor to serve as Bunge’s CEO,” said Schroder. “We are making solid progress, and it is the right time to turn over the leadership reins. The company has a strong legacy and an exciting future ahead.”

Schroder joined Bunge in 2000 and has held a variety of agribusiness leadership roles, including CEO of Bunge North America.

Bunge noted that Schroder’s tenure included a significant strengthening of Bunge’s core activities in agribusiness and growth in food and ingredients, notably with the recent acquisition of Loders Croklaan. It said he has focused on creating a simpler, more efficient organization, establishing a series of global partnerships, building a first-class team and increasing Bunge’s focus on customers. However, Bloomberg noted that 2017 was Bunge’s worst year since 2009, and that after promising investors a strong 2018 second-half, Schroder trimmed the outlook for the year.

Schroder was seen as having resisted attempts by Glencore Plc and Archer Daniels Midland Co. to forge a deal with Bunge, sources told Bloomberg. And the news comes just a little over a month after activist shareholders joined the Bunge board (GM Nov. 9, p. 24) to initiate a strategic review. Incoming Continental Grain Co. Chairman and CEO Paul Fribourg was put in charge of the review.

Bunge volumes went up Dec. 10, the day of the announcement to 3.67 million shares, from 2.16 on Dec. 7. Shares went up just a bit to close at $59.64 from $59.47.

In addition to the Schroder news, Kathleen Hyle, 60, who has served on Bunge’s board of directors since 2012, will become board chair, effective immediately. L. Patrick Lupo, who has served on Bunge’s board since 2006 and in the role of chairman since 2014, will remain a board member. Hyle will serve on the CEO search committee, along with board members Fribourg, J. Erik Fyrwald, and Mark Zenuk.

“I am very pleased to become chair of Bunge’s board of directors,” said Hyle. “The company is well positioned for long-term growth with the strong foundation that has been established under Soren’s leadership. We have a world-class global position in agribusiness and food and ingredients, and, with our excellent management team, we will continue to strengthen and evolve our business. I want to thank Pat for his tremendous contributions to Bunge over the course of many years and his leadership as board chairman.”

Hyle has served as the head of the audit committee for the board for the past five years. She has also served as senior vice president of Constellation Energy and COO of Constellation Energy Resources from 2008 until her retirement in 2012, when Constellation completed its merger with Exelon Corp. She joined the company in 2003, and served in a variety of senior-level finance and operations positions, including as CFO of Constellation New Energy Inc. Previously, she served as CFO of ANC Rental Corp., the parent company of Alamo Rent-A-Car and National Rent-A-Car; vice president and Treasurer of Auto Nation, Inc.; and vice president and treasurer of The Black & Decker Corp. She is currently a director of AmerisourceBergen Corp. and is a former director of The ADT Corp.

Abattis Signs LOI for NutriVida

News, News Briefs, Specialty, Vancouver

Cannabis-focused Abattis Bioceuticals Corp., Vancouver, a life sciences and biotechnology company, said it signed a nonbinding letter of intent (LOI) on Dec. 7 to acquire a 100 percent interest in NutriVida Corp., Langley, B.C., through an arm’s length transaction. NutriVida is a privately held fertilizer and nutrient company.

Abattis said NutriVida, which began operations in the spring of 2018, offers a complete line of plant products as well as a detailed “feed schedule” for soil and hydroponic systems to facilitate the harvest of large, healthy crops without sacrificing the environment. NutriVida also has a wide array of proprietary fertilizer brands specifically formulated for cannabis and cannabis cultivation, as well as other horticultural areas.

Abattis said NutriVida brings both experienced management and a heavily developed client list, two integral components the company intends to leverage as it continues to grow in Canada’s new legalization framework. It said NutriVida management has been a prominent force in the fertilizer and cultivation industry, with over 35 years of experience  providing a vast wealth of knowledge and experience in researching, innovating, manufacturing, and selling all-natural, bio-safe, fertilizers and plant nutrients.

Abattis said the acquisition plays directly into its push to add to its current and future cannabis growth assets, including, but not limited to, its acquisition of Gabriola Green Farms Inc. earlier in 2018.

Abattis plans to negotiate a definitive agreement, which will include a purchase price up to C$15 million to be paid in shares based on milestones. The initial payment, which will be defined in the agreement, will be based on a deemed share price of $0.12. Based on the deemed share price the transaction will result in the shareholders of NutriVida owning 26 percent of the company.

“This is another very significant growth milestone for Abattis,” said Rob Abenante, Abattis president and CEO. “Acquiring and working with NutriVida not only adds to our company’s revenue, but also expands our cannabis growth potential going forward by improving our ability to provide quality cannabis products.

“With the recent legalization of cannabis, Canada is now setting itself up to be a global powerhouse for the provision of medical and recreational cannabis,” Abenante continued. “Abattis is working hard to be one of the best positioned companies in this quickly accelerating market, and we feel that NutriVida’s influence will directly benefit our future cultivation of cannabis moving forward.”

Anuvia Recognized in U.S., China

China, Florida, News, News Briefs, Specialty

Anuvia™ Plant Nutrients, Zellwood, Fla., reports that its fertilizer technology was recognized in both the United States and China in two separate competitions. On Dec. 4, the company announced that it has been named a winner of the 2018 SEAL (Sustainability, Environmental Achievement, and Leadership) Award recognizing leadership and commitment to sustainable business practices. Anuvia was among 12 companies honored for their specific environmental and sustainability initiatives. Key criteria for selection included impact metrics, innovation, sharing of insights, and investment levels. Anuvia rated highest on both leadership and impact.

“We are honored to receive this recognition,” said Amy Yoder, Anuvia CEO. “It reflects our mission to help farmers face the challenges to produce more food for a growing world population more sustainably. As an industry, farming has successfully embraced innovation and technologies that boost production to ever-increasing levels. However, we must be careful to steward the soil with sound practices. Anuvia’s technology allows farmers a way to protect the very resource that provides sustenance for all living things.”

Anuvia said its technology reclaims organic waste, creating a high-efficiency, slow-release plant nutrient and when applied, it reduces volatilization and leaching while adding up to 16 percent organic matter back into the soil, thereby improving soil health. It said a key environmental benefit is when Anuvia products are used, net greenhouse emissions can be reduced by as much as 27 percent in multiple crops compared to conventional practices. It said farmers in the U.S. realize a 3 to 5 times return on investment when utilizing the technology.

In related news, Anuvia reported on Dec. 11 that it received recognition for its work in environmental technology at the InnoSTARS Innovation Competition, which focuses on new technologies and is officially supported by the governments of the U.S. and China. InnoSTARS is a nonprofit whose mission is to connect U.S. technology companies to Chinese market and investor resources. The awards presentation was held in Suzhou, Jiangsu Province, China, in November. Approximately 1,000 U.S. companies participated in the InnoSTARS competition. Twenty-one companies were selected to present to a panel of industry expert judges. The questions focused on how the technology would benefit China and which technology represented a strong business plan for the Chinese market. Anuvia was awarded second place in the competition.

“With the Chinese population exceeding 1.3 billion people (more than four times that of the U.S.), food production is of utmost importance,” said Margaret Richardson, Anuvia vice president and chief legal counsel, who traveled to China to explain how Anuvia’s technology can be applied to Chinese farming. “Our technology represents a good fit in China as it offers an economically viable and sustainable fertilization, delivering benefits of increased food production, improved soil health, and a cleaner environment.”

Richardson said as a finalist, the company met with approximately 20 potential Chinese investors and fund partners who manage funds greater than $50 million.

CROPS Eyes P4 Feasibility Study

News, News Briefs, Peru, Phosphate, Phosphate Rock, Specialty, Vancouver

Junior phosphate miner CROPS Inc., Vancouver, which is developing the Bayovar 12 phosphate deposit in Peru, said Dec. 11 that ongoing discussions with several large consumers of elemental phosphate, or P4, have made it optimistic that the talks may result in a feasibility study in early 2019. CROPS (Certified Reactive Organic Phosphate Supply), formerly known as Focus Ventures Ltd. (GM April 13, p. 31; March 9, p. 28), believes the study will be financed by a joint venture or strategic partnership with one or more of the international players in this market.

CROPS told shareholders in June (GM June 15, p. 30) that it was studying the feasibility of building a P4 plant to utilize phosphate rock from its Bayovar 12 deposit. It noted that the product is an essential ingredient for the production of glyphosate-herbicide such as Roundup, engine oil additives such as phosphorus pentasulphide (P2S5), and fire and flame retardants, as well as products for the lubricant and battery markets.

CROPS maintains that for several years there has been no available P4 production supply in the Americas or Europe to fill the growing strong demand. It said Bayovar 12 has all the required material inputs to produce and transport P4, and initial analysis by management and consultants indicate P4 can be produced at competitive prices, though a feasibility study will be needed for confirmation.

In other news, CROPS also announced that it that it proposes, subject to TSX Venture Exchange approval, to issue a total of 250,000 common shares to pay quarterly interest installments totaling $12,500 due under previously issued convertible debentures. The number of shares to be issued is based on an annual interest rate of 10 percent and a deemed issuance price per common share of $0.05.

Jordan’s Armed Forces to Secure APC

Jordan, News, News Briefs, Potash

The Arab Potash Co. (APC), Amman, on Dec. 11 signed an agreement with the Jordan Armed Forces-Arab Army (JAF) to secure company facilities, according to Petra, the Jordan News Agency, reflecting JAF’s commitment to safeguarding the national economic assets and facilities and its “contribution to the advancement of national development.” The agreement was signed by Southern Military Zone Commander Brig. Gen. Adnan Majali and APC Board Chairman Jamal Sarayrah.

Crystal Peak’s DEIS Published

Canada, News, News Briefs, Specialty, Sulfate of Potash

Crystal Peak Minerals Inc., Toronto, reports that the draft environmental impact statement (DEIS) for its Sevier Playa Project located in southwestern Utah has been published in the Federal Register. The Bureau of Land Management (BLM) prepared the DEIS in accordance with the requirements of the National Environmental Policy Act (NEPA), the Council on Environmental Quality regulations for implementing NEPA, and other governing policies.

Crystal Peak said the DEIS is the culmination of an extensive evaluation process involving years of assessments, as well as feedback regarding the project from federal and state cooperating agencies and the public.

“This is a very important step for us, and we appreciate the hard work of the BLM, other supporting agencies, and their contractors,” said John Mansanti, Crystal Peak CEO. “Publication of the DEIS is a significant milestone in the regulatory process and was completed ahead of the BLM’s original schedule. Crystal Peak will continue to support the BLM and other regulatory agencies in their effort to complete final permitting next year. Pending receipt of Notice to Proceed and project funding, we will be ready to begin construction of the Sevier Playa Project as previously announced.”

Earlier this year, Crystal Peak released a timeline indicating that Notice to Proceed from the BLM was expected in fourth-quarter 2019, with a construction start anticipated shortly thereafter. The company said the publication of the DEIS is consistent with this timeline.

Crystal Peak controls, directly or through agreement, mineral leases on more than 124,000 acres on the Sevier Playa in Millard County, Utah. It is targeting the production of specialty fertilizers, including sulfate of potash (SOP) and associated products, through the use of brine extraction and a solar evaporation process.

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