Yara International reports that it has purchased 25 percent of Agrico Canada Ltd., a leading supplier of fertilizer products and services in Canada and the U.S. Yara says its partnership with Agrico Canada marks a logical progression for two companies committed to serving the needs of Canadian agriculture.
“Agrico has a long tradition and commitment to our business and is focused on growth. We welcome the opportunity of a closer working relationship,” says Thorleif Enger, President and CEO of Yara International ASA.
Besides providing an improved fertilizer import position, the cooperation will enhance operational efficiency. The partners have complementary flagship terminals at Hamilton (Agrico) and Contrecoeur (Yara).
“We have been providing Canada with top quality fertilizer products for over 75 years,” says Robert Whitelaw, President of Agrico Canada Ltd./Limitee. “We are pleased to have found a partner that shares our focus on value-added service based on tradition and customer care. We look forward to working together with a truly global player in our industry.” It expects the move will enhance access to product and new technology.
Agrico Canada owns 5 storage terminals, including one deep-water facility, and leases a further 5 terminals, for a total storage capacity of 235,000 tons. These facilities are located across Canada to supply key markets with primary nutrients, micronutrients, and specialty fertilizers.
Agrico’s nationwide distribution system consists of 4 company-owned retail outlets, 11 joint ventures, and a number of independent dealers. Agrico has 42 full-time employees and had revenues of approximately C$160 million in 2007. It has been supplying fertilizer in Canada since 1931, when its first Canadian office opened in Port Hope, Ont.
Yara Canada has strategic liquid and dry fertilizer terminals at Montreal and Contrecoeur, Quebec, respectively, that service Eastern Canada and Northeast U.S. The companies say this strong eastern presence will be an excellent fit with the facilities and resources that Agrico Canada utilizes in Ontario and Western Canadian markets.
“This investment provides the basis for a closer cooperation from an operational standpoint,” said Pete Valesares, president of Yara North America. “The cooperation between Yara and Agrico creates an improved fertilizer importation position, and complementary flagship terminals at Hamilton, Ont. (Agrico) and Contrecoeur, Quebec (Yara) will mean increased efficiency.”
Yara International, Oslo, is the world’s largest fertilizer producer/supplier. While it focuses mainly on nitrogen products, it also markets a broad range of macronutrients and proprietary specialty products. It has operations in over 40 countries, with sales to more than 120 countries.