Saskatoon-PotashCorp said March 23 that it will introduce a non-binding advisory shareholder vote related to executive compensation at its annual meeting in 2010. PotashCorp said it is among the first Canadian companies to voluntarily adopt the advisory vote, commonly referred to as “say on pay.” PotashCorp said after monitoring recent developments and trends, its board of directors has opted to hold such a vote in 2010. In view of this commitment, Meritas Mutual Funds has withdrawn its shareholder proposal scheduled for consideration at PotashCorp’s 2009 annual meeting. “Listening to stakeholders is one of our company’s core values,” said Dallas Howe, chair of PotashCorp’s board. “Executive compensation is increasingly a top-of-mind issue and shareholders in many companies have recently expressed their support for ‘say on pay’ resolutions. Given such sentiment, this is an appropriate and timely action for us to take.”
U.S. Gulf/Tampa: Tampa business for April has been concluded at $318/mt DEL, up $43/mt from March.
Anhydrous ammonia imports were off 50 percent in January, to 361,648 st from the year-ago 717,984 st, according to the U.S. Department of Commerce. July-January imports were off 20 percent, to 4 million st from the year-ago 5 million st.
Correction: The U.S. Department of Commerce cargo mentioned in this section last week was for June 2008, not February 2009. The rest of the information was correct. DOC determined that the Russian cargo to Savannah, which was originally reported as 23 metric tons valued at $506,855/mt, was really 23,107 mt at $504.51/mt.
Eastern Cornbelt:Sources reported fairly brisk preplant ammonia movement in southern Illinois, at least prior to the midweek moisture. The regional cash market for ammonia was pegged in the $440-$480/st range FOB terminals to the dealer, with the lower end out of spot Illinois River locations.
Planters were rolling already in some southern locations of the region, but it was spotty at best. One source said soil temperatures still aren’t there yet in his trade area, but early April should see a rush of field activity if weather conditions are cooperative.
Western Cornbelt:Snow, hail, and rain, depending on location, slowed fieldwork in the region last week, but Iowa sources said some ammonia was being applied before rains stalled any movement. The anhydrous ammonia market remained at $400-$440/st FOB most regional terminals for spot tons to the dealer. “There is a lot of prepay on the books to ship, and we’re wet and nothing is moving,” said one regional supplier last week, who added that some preplant applications might be skipped if planting delays persist.
California:Anhydrous ammonia pricing was unchanged from last report at $495-$540/st DEL in the state, with the low for trucked tons and the high for rail. Aqua ammonia was referenced at $135/st FOB.
Pacific Northwest:Fieldwork was underway in some areas of the region last week despite the cooler weather. Central and eastern Washington sources said potatoes were being planted, and spreading was underway “when the wind isn’t taking them out of the field.”
The anhydrous ammonia market was down considerably from last report. Sources said spot pricing in the region had dropped to $425-$465/st DEL, with the low for railed tons and the upper end for the truck market. Out of terminals in eastern Washington, the dealer market was pegged at $425/st FOB.
Western Canada:Sources reported minimal spot pricing changes for fertilizer products. Fertilizer movement and field activities remained on the backburner.
Anhydrous ammonia was quoted at $844-$889/mt DEL in Western Canada following a slight pricing increase at mid-month.
Black Sea:Sources in Asia say that an earlier 15,000 mt deal by Transammonia with OPZ came in at $285/mt FOB. One trader said Trammo ended up paying a bit more than it should have because it was short and desperately needed to service a contract. Others said the price is about right for the way the market was heading.
Industry observers disagreed on how fast the price was heading up, but all were in agreement that the price is moving up. For producers, the price is not moving fast enough. Asian sources continue to argue the break-even price for the producers is about $320/mt.
There was more good news as Asian sources report Asian demand into May looks to be as strong as March and April. Eventually, they say, some of the new buying will reach directly to the Black Sea.
Middle East:Sources report no new tons heading to India under long-term contract arrangements. The lack of new loadings, however, has not deterred producers from holding firm to the idea of $300/mt FOB as a new price.
Strong Indian and Southeast Asian demand, combined with the shutdown of several plants in the Arab Gulf for maintenance, means prices could continue to rise in the next few weeks.
Producers say they will only entertain bids at $300/mt FOB. But Asian sources say that price is closer to what might get bid for immediate spot tons. The contract and long-term deals are still at least $25 below that level.
With no new business confirmed last week, sources say the price remains in the $260s/mt FOB.
Asia: Industry observers are optimistic about the second quarter. Reportedly, more buyers are making inquiries about buying tons for May. One trader noted that some of the buyers are even willing to make vessel nominations now for May deliveries.
In the past few months buyers would only look at nominations two weeks before they absolutely needed the material.
For traders and producers, the strengthening demand into May is a hopeful sign that industrial and fertilizer users are moving into a stronger period of sales. With stronger sales, sources say, more ammonia can be sold on a steady basis.
To back up claims of a stronger Asian market, Mitsubishi sold a cargo of 8,000 mt to Mitsui for $300/mt FOB out of Indonesia.
The deal is unusual, because while the two Japanese powerhouses often swap cargoes, purchases between the two companies are a rarity. One trader said he was not familiar with any actual purchases between the two in recent history.
UREA
U.S. Gulf: New granular barge business was reported at $288-$290/st FOB. Some argued prices may have been lower if netted back from a delivered basis. Sources generally attributed the wet weather across much of the nation’s heartland as putting a damper on urea’s psychology.
Prills were reported to be in very short supply, though sources wondered if there was also short demand as well. While in the recent past most have put prills in the same range with granular, some are now arguing that it should receive a premium.
U.S. urea imports in January were off 29 percent, to 720,621 st from the year-ago 1.02 million st, according to DOC. July-January imports were off 19 percent, to 3.43 million st from 4.24 million st.
Eastern Cornbelt: Granular urea was quoted at $330-$350/st FOB, with the upper end out of shipping points in northwestern Ohio. The Cincinnati market was pegged at $330-$340/st FOB last week.
Western Cornbelt: Granular urea continued to show some weakness. Sources pegged the dealer market at $325-$340/st FOB most regional terminals to the dealer, reflecting a $5/st drop from the previous week. The low end was reported in St Louis. Iowa sources quoted the common dealer price in the $330-$335/st FOB range last week.
California: Granular urea was quoted at $425-$450/st FOB. Delivered urea was pegged at the $450/st level as well. There were reports of railed tons from the Midwest at lower numbers, but no actual levels were confirmed. Agrium’s granular urea posting moved on March 15 to $465/st FOB West Sacramento, $485/st truck-DEL in Central California, and $490/st truck-DEL in Northern California.
Pacific Northwest: Granular urea was pegged in a broad range at $395-$440/st DEL. Effective March 15, Agrium’s urea postings firmed to $410-$425/st DEL in Montana and Wyoming, depending on location; $435/st FOB Washington warehouse locations at Glade, Kennewick, Warden, and Wilson; $440/st DEL in Washington, Idaho, Oregon, and northern Nevada; $450/st DEL in northern and central Utah; and $455/st DEL in southern Utah.
Western Canada: Granular urea was pegged at $575-$600/mt DEL, up some $15/mt from last report.
Black Sea: March has not been a good month for area urea producers. The month started with anticipation of higher prices thanks to anticipated strong demand from Europe, a tender from Pakistan, and an expected tender in India. The European demand has been steady but not strong. Pakistan bought what it needed and then stopped. And India has not returned to the market.
Producers entered March at $290/mt FOB, with every expectation that $300/mt FOB was possible. The longer India stayed out, the softer the market became. Then Pakistan stopped buying.
Sources report that $247/mt FOB was done late last week. Sources could not confirm who bought the tons and how many tons the buyer took. Despite the vagueness of the deal, sources were convinced the deal was done and that it represents a serious downward trend in pricing. By the end of the week, one Asian source pegged the market at $245-$250/mt FOB. Other observers agreed on the low end, but said the spread was wider.
Middle East: Long-term contracts are the only thing helping the producers. Asian sources point to an end of buying from smaller purchasers such as Sri Lanka and Thailand, and a complete absence from the market from big buyers such as Pakistan and India.
With no new spot business to guide players in pricing, sources say prills remain in the low $300s/mt FOB. Granular is just a few bucks more expensive.
India: Industry sources are now pretty well convinced there will be no new tender from India until the end of April, at best.
Indian sources report the country has reserves of 1 million mt. While some dispute that number, there is no doubt the country has more than enough urea on hand to start the next application season without fear of quickly running out.
Industry sources add that the Indian fiscal year ended March 31. A full understanding of how much money will be available for urea imports and subsidies is still up in the air.
Even if the fiscal year ended at another time, sources say that the national elections that start April 16 are the largest deterrent to a quick tender.
Opposition politicians have been hammering the government about alleged urea shortages in key electoral districts. The government has replied by pressuring the buying companies to import more urea and countering the opposition’s points.
Pakistan: So far TCP has not made any awards in its last tender. Industry sources say the money is available, but no one has heard anything yet. And TCP has not officially scrapped the tender.
For some in the industry, it makes no difference what TCP does at this point. The validity dates for the offers have long expired. Add to that the fact that urea prices are now slipping and, say industry observers, there is no reason for TCP to accept prices from last month.
China: The price of urea is dropping as the application season draws to an end. Just a couple of weeks ago the price was around RMB1,900/mt ex-factory (US$280). Now it is pegged at RMB1,600/mt ex-factory (US$235).
The lower prices are also affecting plant operations. Sources say some of the less-than-efficient plants are at a point where they might have to close down. Observers in the region say shutdowns are expected.
Vietnam: With the end of the application season, sources say there is an excess of urea in the country. Reportedly, even producer Phu My has been making inquiries to international traders looking to sell tons to the regional market. The producer backed away once traders reported the softening of the global market would not support a price the producer wanted.
NITROGEN SOLUTIONS
U.S.Gulf: Barge prices continued to weaken, said sources, who were putting the market in the $185-$190/st FOB ($5.78-$5.94/unit) range. There was an unconfirmed report of a tow of barges sold at $180/st FOB. Others said it would take another $20/st drop to see much movement in UAN.
The good news for UAN may be the bad news for other nitrogens – rain and snow that covered much of the heartland last week. One source wondered if there is a bad ammonia season if there would be enough UAN to meet demand, even if inventories are full now.
January imports were off 74 percent, to 73,420 st from the year-ago 278,588 st, according to DOC. July-January imports were off 50 percent to 1.05 million st, down from 2.1 million st.
Eastern Cornbelt: The UAN-28 market was quoted at $212.80/st ($7.60/unit) FOB Cincinnati to the dealer last week, with reference prices as high as $8.50/unit FOB to the dealer out of some regional shipping points. On the low end, sources confirmed spot pricing to wholesalers at $7.00-$7.25/unit FOB in Illinois and Indiana. In areas where wet weather continued to delay fieldwork, some sources said growers might consider foregoing preplant ammonia in favor of later sidedress applications of UAN.
Western Cornbelt: UAN pricing continued to slip in the region. Iowa sources tagged the dealer market at the $8.00/unit FOB level with confirmed sales, while cash sales to wholesalers were said to be as low as $7.00-$7.10/unit FOB the St. Louis market from some suppliers. At the upper end of the pricing spectrum, reference pricing to the dealer remained at the $280/st ($8.75/unit) level FOB spot Missouri River terminals last week.
California: UAN-32 pricing covered a wide range. The low was pegged at $258-$267/st ($8.06-$8.34/unit) rail-DEL from the Midwest for March and April shipments, while the truck market was pegged at $280-$310/st ($8.75-$9.69/unit) DEL in the state. One supplier was reportedly listed at $290-$300/st ($9.06-$9.38/unit) FOB to the dealer in late March
Pacific Northwest: UAN pricing was down from last report, reportedly due to the availability of cheaper railed tons from Midwest suppliers. Sources tagged the regional UAN-32 market at $255-$305/st ($7.97-$9.53/unit) DEL, with the low for those Midwest railed tons and the upper end for trucked product. One source speculated that the lower priced tons will probably be short-lived, however, as field activities heat up in the Midwest.
Western Canada: UAN-28 pricing had reportedly firmed to $362-$378/mt ($12.93-$13.50/unit) DEL in the region.
AMMONIUM NITRATE
U.S.Gulf: Information about new ammonium nitrate barge business was hard to find last week, with the most recent reports still in the $225-$230/s FOB range.
Imports were off 56 percent in January, down to 60,085 st from the year-ago 135,585 st. July-January imports were off 44 percent, to 389,041 st from the year-ago 691,015 st.
Western Cornbelt: Ammonium nitrate remained at $270-$280/st FOB in the region. One Iowa source tagged the dealer market at the $275/st FOB level last week.
California: No market was reported for ammonium nitrate in the state. CAN-17 was moving on orchards in some sections of the state. The dealer market for that product was quoted at $255-$285/st FOB, down some $15/st from last report.
Pacific Northwest: Ammonium nitrate was unchanged at $353-$361/st DEL in the region, with the upper end reported in Idaho. CAN-17 pricing was steady as well at $250-$255/st FOB and $260-$265/st DEL in eastern Washington and northern Idaho.
AMMONIUM SULFATE
Eastern Cornbelt: Granular ammonium sulfate was steady at $225-$245/st FOB in the region. Effective March 23, Honeywell moved its ammonium sulfate postings to $225/st for granular and $215/st for mid-grade FOB warehouse and/or rail-DEL in Illinois, Wisconsin, Minnesota, Arkansas, and Mississippi.
Western Cornbelt: Granular ammonium sulfate was quoted at $225-$240/st FOB in the region, with the low in Iowa and the upper end in Missouri. Effective March 23, Honeywell moved its ammonium sulfate postings to $225/st for granular and $215/st for mid-grade FOB warehouse and/or rail-DEL in Iowa and Missouri and out of Omaha, Neb., and to $235/st for granular and $225/st for mid-grade FOB or rail-DEL in the Dakotas, Kansas, and the rest of Nebraska
Southern Plains: American Plant Food Corp. also announced new ammonium sulfate postings. Effective March 30, APF’s reference levels for granular ammonium sulfate will move up to $225/st FOB Freeport, Texas, $235/st FOB Galena Park, Texas, $250/st FOB Fort Worth, Texas, $255/st FOB Mermenau, La., and $265/st FOB Littlefield, Texas. APF’s coarse grade postings will move on March 30 to $215/st FOB Freeport, $225/st FOB Galena Park, $240/st FOB Fort Worth, and $255/st FOB Littlefield, while standard grade postings will firm to $205/st FOB Freeport and $245/st FOB Littlefield.
California: The ammonium sulfate market was steady at $255-$290/st FOB, with the low FOB Lathrop after discounts and the upper end FOB El Centro.
Pacific Northwest: The granular ammonium sulfate market was quoted at $220-$235/st DEL in the region. Agrium will raise its granular ammonium sulfate postings on April 1 to $250/st FOB warehouse locations in Washington, Idaho, Oregon, and Nevada, and $255/st DEL in those same states plus Montana and Wyoming. Those levels reflect a $20/st increase from Agrium’s March 1 postings in the region.
Western Canada: Granular ammonium sulfate was quoted at $370-$375/mt DEL in the region.
U.S. Imports: Imports were off 33 percent in January, to 23,868 st from the year-ago 35,839 st. July-January imports were off 16 percent, to 185,968 st from 220,590 st.
PHOSPHATES
Central Florida: Truckloads of phosphates were moving out of Central Florida heading to Georgia last week, until rain began to slow business late in the week. Meanwhile, the planting season was coming to an end in Florida, while much of the rest of the country was waiting for better weather. Rain and flooding were a growing problem in some areas of the Midwest and parts of the Northeast.
“It looks like we are not going to have an early spring,” one source said, commenting on the obvious.
A high-ranking executive at Mosaic commented last week that retail fertilizer sales to farmers were a problem in some areas, as a result of older, higher-priced inventories.
Many in the industry believe spring will begin to bloom for fertilizers sometime in early April, and sales may actually return to something near normal. The fall market never really happened last year, but spring offers some hope for redemption.
Mosaic has increased its phosphate production to about 75 percent of capacity, but much of what was being produced was destined for India under the recently signed contract.
The Central Florida DAP price range was unchanged from the previous week’s $315-$320/st FOB last week. PCS Sales had no published price. Mosaic’s price was $315/st FOB for DAP and $325/st FOB for MAP. CF was at $315/st FOB for DAP and $20/st FOB higher for MAP. The price from Agrifos remained at $350/st FOB for trucks and $345/st FOB for rail shipments.
U.S. Gulf: As heavy rain pelted dry areas of Texas and Oklahoma, winter wheat crops were already far too gone to benefit some farmers, who will collect the insurance and plow the crop under. In Oklahoma, snow flurries were expected this past weekend, and temperatures were expected to fall back into the low thirties. Farther north in North Dakota and Minnesota, the Red River North was passing the flood stage as heavy, winter snow melted, and rain added to the problem. Spring may have arrived on the calendar, but was not in the weather forecast.
As a result of rotten weather, NOLA DAP barge sales slacked last week on the river system, but most were still hopeful spring would come soon and save farmers and the fertilizer industry.
The price of corn for December remained relatively healthy, around $4.20/bushel, which should encourage farmers to use plenty of fertilizers to obtain maximum crop yields. Last week, the December price was about $0.40/bushel above those at grain elevators.
Sales of DAP and urea along the Arkansas River were picking up speed, and supplies of DAP in some areas of Oklahoma were running low last week.
Although sales were down, the NOLA DAP barge range last week rebounded a little from $310-$315/st FOB up to $315-$319/st FOB. Mosaic has a $10/st FOB additional charge for MAP, while CF’s MAP was $20/st FOB higher than its DAP price.
Eastern Cornbelt: DAP pricing out of regional warehouses remained in the $355-$375/st FOB range, with the low out of spot Illinois River locations and the upper numbers in Ohio to the dealer. MAP was $10-$15/st higher than DAP.
10-34-0 pricing remained in a broad range at $650-$750/st FOB in the region, with the low in Illinois and the upper end in Ohio. One Ohio source talked of some suppliers hanging their hats on $800/st FOB to the dealer for new 10-34-0 sales, but no actual business was confirmed at that level.
Western Cornbelt: DAP was steady at $360-$370/st FOB river terminals to the dealer, with the upper end reported at the $390/st FOB level out of some warehouse locations in western Missouri. MAP remained at $370-$400/st FOB to the dealer. 10-34-0 market remained in a broad range at $575-$680/st FOB in the region.
California: MAP and DAP were steady at $455-$460/st DEL or FOB warehouse locations in California. The 16-20-0 market was unchanged as well at $320-$327/st FOB in the state, and 10-34-0 was pegged at $477-$487/st FOB in California.
Phosphoric acid postings remained at the $11.00/unit DEL level for both SPA and MGA, with Simplot also referencing MGA at $11.20/unit FOB California warehouse locations.
Pacific Northwest: MAP was unchanged at $445-$455/st FOB or DEL in the region, with DAP at $450-$460/st FOB or DEL. 16-20-0 pricing was steady at $300-$305/st DEL, and 10-34-0 pricing was quoted at $470-$480/st FOB in the region.
Phosphoric acid remained at $11.00/unit DEL in the region for both SPA and MGA.
Western Canada: MAP was quoted in a broad range at $680-$790/mt DEL in Western Canada, with reference levels as high as $825/mt DEL to the dealer.
U.S. Export: The world’s sagging economy was taking a toll on export phosphate sales, as buyers were more reluctant to take a plunge on purchasing new supplies. The only real bright spot was India, and PhosChem was keeping its members busy producing for shipments under the recently signed agreement.
On the bright side, freight rates were on the decline and the cost of shipping to India had declined from around $55/mt FOB to about $40/mt FOB. However, rising prices for oil could reverse that trend.
With no new sales, the export DAP price range remained at $375-$380/mt FOB last week.
POTASH
Eastern Cornbelt: Potash remained at $680-$750/st FOB regional warehouses from brokers or resellers, with the low reported in Illinois on a spot basis. One source reported reference prices holding at $815/st FOB from producers, but said reseller tons were easily available at the $750/st FOB level or lower in his area. He added, however, that spring rates will be “zero to 50 percent” of normal in his trade area due to buyer resistance to high retail potash prices.
Western Cornbelt: Potash was steady at $680-$720/st FOB warehouses to the dealer, depending on grade and location, with most sources quoting $700/st as a common dealer price from brokers or resellers. Despite the posture of producers, one regional source said he is doubtful the potash price will hold through the season, citing the complete absence of new sales. “High prices take care of high prices,” he said. “We’ll have to have a market adjustment.”
California: Muriate of potash pricing remained at $849-$875/st FOB and $875-$900/st DEL in the region. “There’ve been no cuts in potash prices, so we’re not moving any potash to speak of,” said one dealer.
Sulfate of potash remained at $1,015-$1,055/st FOB for bulk tons, with the low for standard grade and the high for water soluble.
Potassium nitrate pricing was tagged at $1,310-$1,380/st FOB in the state, with the low for bulk and the upper end for bagged product.
Pacific Northwest: Potash was pegged at $824-$864/st FOB regional warehouses, with delivered tons reported in the $840-$890/st range in the region. One Washington source quoted delivered granular potash at the $864/st level from Canada in late March.
Western Canada: Reference prices for potash remained at $988/mt FOB Saskatchewan mines to Canadian customers. No updated delivered prices were reported for the region last week.
U.S.Imports: Potassium muriate imports were off 44 percent in January, to 596,232 st from the year-ago 1.07 million st. However, they are only off 14 percent for the July-January period to 5.4 million st, down from 6.34 million st.
SULFUR
Tampa: As the end of the quarter drew near, speculation on the price of sulfur for the second quarter got a boost, although no official negotiations had begun. As could be expected, the range was wide – from a rollover to as high as $50/lt for Tampa. A somewhat clearer picture could emerge this week at a sulfur industry conference at Madrid, where it was certain to be a major topic of discussion.
Generally, the market was continuing to move into balance last week, but there were still areas of both overabundance and shortage. Some producers were seeking better deals on the spot market, while some customers were doing the same in reverse.
Refineries were running fairly smoothly in most cases, as many of the turnarounds were coming to an end before the summer driving season begins. Valero’s Delaware City was still a problem, and was expected to remain down until May, according to a source.
No major transportation issues were found, and surcharges for rail and truck were far down from several months ago – but higher oil prices could change that situation.
Vancouver: Brazil was continuing its negotiations with Canadian sulfur producers for new semi-annual contracts, but was said to be in no great need for new supplies. A new contract, which would begin in April, could see prices fall from $200/mt to somewhere between $30-$40/mt.
U.S.Imports: Imports were down a whopping 83 percent in January, to 34,873 st from the year-ago 206,179 st. However, they are only off 3 percent for July-January, to 1.19 million st from 1.23 million st.
New Orleans-A proposed cold storage facility to be constructed by the Port of New Orleans is getting opposition from downtown New Orleans residents concerned over both the anhydrous ammonia to be used at the facility as well as heavy truck traffic to and from the facility. The Port told Green Markets that the refrigeration facility, which would hold 40,000 pounds of anhydrous ammonia, will be built with a monitoring system that will alert the operators if it detects a leak of half of an EPA reportable release. The Port said it and the terminal operator that will be running the facility both have excellent safety records handling ammonia refrigerant. The Port said this is the only site that meets its construction and operational criteria, and that the funding is coming together. It will take 18 months to construct. The local Faubourg Marigny Improvement Association says the facility is being built too close to its neighborhood as well as the French Quarter. It is just across the railroad tracks from the French Market. It also says that some 100 18 wheelers per day will have to come through the tourist area and local neighborhood as a result. A local blogger drew attention to the proposed facility by terming it “Bhopal in the making,” though he later recanted this term, saying it was part of his “drama queen tendencies.” He reiterated that it is not the project that is offensive, but the location. The new facility is reportedly necessary to aid the growing chicken export market.
Toronto-PhosCan Chemical Corp. said March 26 that it has signed an agreement with IAMGOLD Corp. for the evaluation of the potential to recover and sell niobium contained on the Martison phosphate property near Hearst, Ont. IAMGOLD, which owns and operates the niobec underground mine located near Chicoutimi, Québec, will pay for niobium testing and a possible feasibility study, which could lead to a joint venture with PhosCan to extract, process, and market niobium from the Martison deposit. PhosCan says the project contains low grade niobium mineralization and is also overlaid by a higher-grade niobium-enriched lateritic oxide cap in the northern portion. Niobium is used in alloys to strengthen steel.
Nampa, Idaho-TerraLife Inc. reports sales of its Save-a-Tree fertilizer, which has found a devoted following for restoring health to dying fruit trees, exceeded 90,000 gallons last year, and more growth is expected this year after being awarded the 675,000-member National Home Gardening Club’s seal of approval. The organic product, which was tested by more than 100 NHGC panel members over a three-month period, is featured in the organization’s magazine Gardening How-To. “Last year we sold more than 75,000 gallons of Save-a-Tree in the Nampa-Boise area alone,” said Jos Zamzow, TerraLife vice president. “It is particularly popular with people raising fruit trees. It has been so successful in organic gardening circles here that we are concentrating on national distribution this year. There is a much greater focus on organic gardening and products that are safe for the environment.” Calloway’s Nursery, Inc. and Cornelius Nursery, Inc. recently introduced Save-a-Tree at 23 locations in Texas, and additional outlets have signed on in Fremont, Calif., Salt Lake City, Spokane, Wash., and Boise. Save-a-Tree was concocted 20 years ago by Jos’s father Jim Zamzow, popularly known as Dr. Jim, who started by giving his Idaho nursery customers a brown liquid organic fertilizer in used two-liter soda bottles. Customers kept coming back, the family recalls, and after his first 55-gallon batch was depleted he named the product Save-a-Tree and started selling it. Save-a-Tree’s recipe is a secret, but is known to contain nitrogen and phosphate in a base of sugar cane molasses, selected because it smells good, does not attract ants, and discourages nematodes.
Washington-The Fertilizer Institute recently attended a Senate Foreign Relations Full Committee hearing titled “Alleviating Global Hunger: Challenges and Opportunities for U.S. Leadership,” where it said fertilizer’s contribution to modern agriculture was recognized. Panel witnesses included Dr. Robert Paarlberg, political science professor at Wellesley College, and Edwin Price, associate vice chancellor and director for the Norman Borlaug Institute for International Agriculture. TFI said both panelists and committee members displayed a generally supportive attitude toward the proper use of fertilizer nutrients as part of the solution to solving the world’s food crisis. Dr. Paarlberg cited examples from his book, Starved for Science, to highlight that African farmers produce less than a fifth of the yields that farmers in other countries produce due to the fact that they have been denied access to productive technologies such as genetically engineered seeds and chemical fertilizers. TFI said that witnesses stated that the decreased yields from organic farming practices are not socially acceptable when you consider the increased yields and efficiencies of production agriculture. Representatives from the Norman Borlaug Institute for International Agriculture emphasized that proper fertilizer use, coupled with other modern agricultural technologies, is the only answer in alleviating global hunger. Several committee members agreed that, for farmers, fertilizer is a return on investment, and when used correctly, can boost yields in an environmentally sound manner.
Boise-The Idaho Conservation League, the Shoshone-Bannock Tribes, and the Sierra Club have filed a petition with the Idaho Board of Environmental Quality to protest the state’s issuance of an air quality permit for a $1 billion coal gasification fertilizer plant near American Falls. On Feb. 10, the Idaho Department of Energy issued the permit to Southeast Idaho Energy (SIE), a subsidiary of Refined Energy Holdings of New York, authorizing SIE to construct the plant, which would produce up to 500 st/d of anhydrous ammonia, up to 1,800 st/d of granular urea, and up to 1,600 st/d of UAN. “This single source would amount to 5 percent of Idaho’s annual C02 emissions – a very large step in the wrong direction for Idaho as the country and the world are focusing on ways to significantly cut greenhouse gases,” the groups said in their March 17 petition. The groups ask that the permit be reviewed because their concerns during a public comment period were not adequately addressed. They contend the permit must be invalidated because many of its conditions violate the federal Clean Air Act, its implementing regulations, and Idaho air regulations. They say the permit fails to demonstrate the project will not cause nor contribute to violating fine particulate standards. The groups also accuse IDEQ of failing to use Best Available Control Technology (BACT) standards in setting emission limits for particulates, carbon monoxide, and nitrogen oxides. The IDEQ also failed to consider sulfur dioxide flares, carbon dioxide, and other greenhouse gas emissions, they argue. On March 18, SIE agreed with the ICL, the Sierra Club, and the Shoshone-Bannock Tribes to stay the contested case process until April 17 so they could work together to address concerns and avoid the need to continue through the contested case process, which “would hinder the opportunity for good faith negotiations to resolve the concerns of the petitioners.” Representatives of the company and the groups met March 24 in San Francisco to try to resolve their differences. Although they did not reach a consensus, participants described the meeting as constructive. Other meetings are likely.
Cairo-Orascom Construction Industries (OCI) and FITCO Tradecom do Brazil Ltda., part of Brazilian-based company Group Fertipar, have confirmed that they have entered into a strategic alliance through the signing of an agreement for the supply and import of granular urea fertilizers into Brazil. FITCO, a fertilizer trading company with a great deal of experience in the Brazilian market, aims to enhance domestic demand, as well as develop further marketing and sales for OCI’s fertilizer products through regular supply to its network and to third parties. FITCO also has a growing presence in several Latin American countries. The strategic supply agreement is initially focused on nitrogen-based fertilizers, specifically for granular urea, during 2009. An initial export shipment for 30,000 mt from OCI’s fertilizer plant in Egypt destined to Brazil is currently being executed under this arrangement. The agreement encompasses a mutual exclusivity arrangement on a right of first refusal basis for the supply and import of granular urea fertilizer into the Brazilian market. “We are pleased to start this new partnership with FITCO International,” said OCI CEO Nassef Sawiris. “The current agreement connects our efficient production infrastructure in North Africa with FITCO’s state-of-the-art fertilizer distribution network in Brazil on a sustainable basis. We believe this partnership has room to grow in the future as we pursue potentially larger synergies.”
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