Employees
U.S. phosphate operations, including SFMLM, employ approximately 1,540 people.
Production and Properties: China
The Cargill Fertilizer Businesses have supplied DAP to China since they entered the phosphate business in December 1985.
Cargill has exported from its Florida operations on average approximately one million tonnes of DAP to China each year since the mid-1990s. Cargill has developed a strong brand identity in China by offering a high-quality product and on-the-ground
service to Chinese customers.
In 2000, Cargill expanded its
presence in China by investing in a state-of-the-art domestic phosphate granulation facility known as Yunnan Three Circles Sinochem Cargill Fertilizers Co., Ltd. (Yunnan). Yunnan is a joint venture owned by Cargill Fertilizer, Inc. (35%), Yunnan
Three Circles Chemical Co. (35%), China International Fertilizer Trading Corporation (25%) and Yantai Municipal Agricultural Means of Production Co. (5%). Yunnan’s phosphate granulation project near Kunming in the Yunnan province in south
central China brings together the technical expertise of Yunnan Three Circles Chemical Co. and Cargill, the importing and marketing capabilities of China International Fertilizer Trading Company, the local distribution network of Yantai Municipal
Agricultural Means of Production, and the product quality and brand recognition of Cargill.
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Yunnan commenced production in August 2002, and currently has an annual DAP production capacity of
approximately 600,000 tonnes. The joint venture began marketing DAP under the Cargill brand in February 2003.
Yunnan produces DAP for shipment to north and northwest China. Phosphoric acid used in the production of DAP at Yunnan is purchased from Yunnan Three
Circles Chemical Co. Ammonia used in production of DAP is sourced from local producers. China International Fertilizer Trading Corporation is among Yunnan’s largest customers. Yunnan’s operation is limited by access to raw materials and
railcar supply. Improvements, however, are expected in the coming years as local suppliers increase production capacities.
Crop Nutrition
The Crop Nutrition segment markets fertilizer products and services to wholesalers, cooperatives, independent retailers and agents and other agricultural
customers that, in turn, market these products and services to farmers and other end users in North and South America, Europe and Asia. In South America, the Crop Nutrition segment also markets fertilizer products and services directly to farmers
and end users. The Crop Nutrition segment operates fertilizer blending and bagging facilities, port terminals and warehouses in nine countries, and maintains a sales presence in six additional countries. Past expansions include the acquisition of a
joint venture interest in an NPK production facility in China, and the construction of port and warehouse facilities in Argentina. Pursuant to a marketing agreement, the Crop Nutrition segment also markets exported phosphate products produced by WMC
Fertilizers, Ltd. in Australia. The marketing agreement with WMC Fertilizers, Ltd. will expire by its terms on December 31, 2004. Cargill and WMC have not yet determined whether to enter into any new or renewed marketing agreement after the
expiration of the current agreement. The Crop Nutrition segment also marketed phosphate products produced by Lifosa A.B. in Lithuania, however, the parties mutually agreed to terminate the relationship in May 2004.
The principal Crop Nutrition products include straight fertilizers such as
phosphates, nitrogen and potash, as well as blended and NPK fertilizers. Services include tailored agronomic services as well as the loading, unloading and storage of fertilizer, grains, meal, salt and coal for both Cargill affiliates and third
parties.
Net sales to external customers for Crop Nutrition
were $905 million, $662 million and $571 million for the fiscal years ended May 31, 2004, 2003 and 2002, respectively.
Gross profit for Crop Nutrition was $65 million, $58 million and $53 million for the fiscal years ended May 31, 2004, 2003 and 2002, respectively.
Total assets for Crop Nutrition were $264 million, $201
million and $215 million at May 31, 2004, 2003 and 2002, respectively.
Crop Nutrition employs approximately 751 people.
The
following is a description of the principal marketing and distribution operations and production facilities operated by the Crop Nutrition segment of the Cargill Fertilizer Businesses.
United States
Since entering into the business in the early 1960s, Cargill’s U.S. Crop Nutrition segment has been comprised of a wholesale distribution business
that has focused on providing quality crop nutrients as well as innovative and customized solutions to its retail dealer customers in the United States. In servicing the needs of retail dealers, Cargill owns and operates a network of warehouse
distribution facilities strategically located along or near the Mississippi and Ohio Rivers as well as in other key geographic regions of the United States. From its
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distribution facilities, Cargill markets each of the three vital plant nutrients – nitrogen (typically in the form of urea or UAN solution), phosphate
(typically in the form of DAP, MAP, MicroEssentials
™
or triple superphosphate (TSP)) and potash – to dealers who in turn resell the product to U.S. farmers. In addition to sales of dry and liquid fertilizer products, Cargill provides tailored agronomic services to
meet the specific needs of retail dealers and their customers. Cargill also leverages its distribution network by offering warehousing and throughput services for third parties.
Distribution facilities owned by Cargill’s U.S. Crop Nutrition segment include the Port Cargill fertilizer operations
in Savage, Minnesota, with approximately 104,000 tonnes of dry product storage capacity, as well as warehouse distribution facilities in Pekin, Illinois (storage capacity of approximately 72,000 tonnes), Louisville, Kentucky (storage capacity of
approximately 39,000 tonnes) and Houston, Texas (storage capacity of approximately 51,000 tonnes), which has a deep water berth providing access to the Gulf of Mexico. In addition, Cargill is a 50% owner of River Bend Ag, LLC, a wholesale
distribution joint venture located in New Madrid, Missouri with storage capacity of approximately 25,000 tonnes for dry products and 22,000 tonnes for liquid products, respectively. Cargill also owns a distribution facility in Buffalo, Iowa.
In addition to the key geographically situated facilities
owned by Cargill, the U.S. wholesale distribution business also includes leased distribution space or contractual throughput agreements for dry or liquid storage in California, Florida, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland,
Minnesota, Nebraska, New York, North Dakota, Ohio, Pennsylvania and Texas.
Cargill’s Crop Nutrition segment acts as the exclusive marketing agent for phosphate products sold in the United States by the Phosphate Production segment and for nitrogen products sold in North America by
Saskferco Products, Inc. (Cargill’s 50% owned joint venture which operates an ammonia, urea and UAN solution facility in Saskatchewan, Canada). Under each arrangement, Crop Nutrition earns agency fees for sales of the phosphate and nitrogen
products.
Crop Nutrition’s U.S. operations employ
approximately 151 people.
Canada
The Crop Nutrition segment is also the wholesale distribution arm for the
Cargill Fertilizer Businesses in Canada. Customers include independent dealers, national accounts and Cargill “AgHorizons” in Canada, a retail fertilizer business unit owned by Cargill that will not be contributed to Mosaic. The Crop
Nutrition segment in Canada also serves as marketing agent for Saskferco Products, Inc.
Major customers in western Canada are primarily large grain companies with integrated crop inputs businesses. In eastern Canada, major customers include the Cargill AgHorizons retail locations in Ontario, which
purchase approximately 310,000 tonnes per year, as well as other national accounts in Quebec. In total, non-Cargill national account sales are approximately 250,000 tonnes per year, and independent dealer sales are approximately 275,000 tonnes per
year.
Crop Nutrition’s Canadian operations employ
approximately five people.
Argentina
Crop Nutrition’s Argentina fertilizer business commenced in 1987,
distributing imported fertilizer using leased warehouse space at the port in Buenos Aires. In 1998, the Cargill Fertilizer Businesses built the Quebracho port facility and moved their principal operations for the northern half of Argentina to this
location.
Crop Nutrition serves as a sales and marketing agent
for the Phosphate Production segment in Argentina and supplies products and services to national accounts from the operations of the newly expanded Quebracho port
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facility and warehouse. In addition, Crop Nutrition distributes approximately 230,000 tonnes of nitrogen, phosphate and blended fertilizers to farmers
through retail dealers and sales agents.
Key assets in
Argentina include the Quebracho port facility, located near Rosario on the Parana River, with storage capacity of 120,000 tonnes. Quebracho put-thru totals roughly 440,000 tonnes per year, of which 160,000 tonnes are for Cargill retail dealer/sales
agent customers and 280,000 tonnes are for national accounts. Cargill Argentina also leases space at Necochea and Bahia Blanca to serve customers in the southern region.
Crop Nutrition’s operations in Argentina employ approximately 71 people.
Chile
The Crop Nutrition segment markets bulk blended and straight fertilizer
products to retail dealers in Chile. A small percentage of sales are made directly to farmers. Sales total approximately 250,000 tonnes per year, or 23% of the 1.1 million tonne market. Straight products such as urea, DAP, MAP and TSP account for
55% of Cargill sales and bulk blends, tailored to meet specific soil and crop requirements, make up the rest. Nearly all of the product is sold in 50 kilogram bags. Most of the nitrogen products are imported from Argentina and Venezuela. Phosphate
products are sourced from the United States and Mexico. Potash is produced locally.
Key assets include warehouse and bulk blending facilities at Conception Bay and San Antonio. The Conception Bay facility, built in 1991, mainly serves dealers in central Chile. Cargill leases warehouse space at the
Lirquen port on Conception Bay where straight materials are imported and bagged. The bulk blending plant at Conception Bay (also known as Cosmito) includes a 20,000 tonne warehouse. The San Antonio facility, built in 1997, serves retailers in
northern Chile. Cargill Crop Nutrition also leases a facility at Puerto Montt that includes a 15,000 tonne warehouse and bulk blender as well as five satellite warehouses to serve customers in the southern Chile.
Crop Nutrition’s operations in Chile employ approximately 54 people.
China
Crop Nutrition has been executing a strategy since the early 1990s to
develop a significant fertilizer presence in the People’s Republic of China. Since the mid-1990s, Cargill has developed and expanded its fertilizer distribution businesses in the world’s largest phosphate market, both by growing businesses
owned solely by Cargill, as well as through the formation of alliances with local strategic Chinese partners who Crop Nutrition believes are well positioned to promote business growth and service the needs of the Chinese fertilizer market.
Bonded Warehouse Program
Cargill Hong Kong Ltd., an affiliate of Cargill and a portion of whose
operations are part of the Cargill Fertilizer Businesses, began distributing DAP as an agent for the Phosphate Production segment throughout China in 1990. Acting as agent, Cargill Hong Kong Ltd. handles 600,000 to 800,000 tonnes of DAP annually
through bonded warehouse programs in China. Over the years, Cargill’s bonded warehouse program has become recognized as a premium customer solution offering to the Chinese fertilizer markets.
Chinese importers, including central agencies, provincial governments and
city-level entities, are able to pull fertilizer products from strategically located bonded warehouses at Chinese ports. The bonded warehouse program is attractive to Chinese importers because it permits customers to purchase product on a
just-in-time basis, reducing market risks from both large vessel purchases and long ocean voyages.
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As a customer and quality assurance service, Cargill Hong Kong Ltd. handles and manages the supply chain
deliveries for fertilizer vessels until discharged in China, and also acts as a bagging, warehousing and dispatch liaison in moving fertilizer products onto trucks or railcars. Today, Cargill operates bonded warehouses at five ports throughout
mainland China.
Since the early 1990s, Cargill has built a
brand presence in China, which the Cargill Fertilizer Businesses believe has allowed Cargill to be viewed as a premium supplier of products in the Chinese market. During the three-year period following the closing, Mosaic will be permitted to
continue to use the Cargill name on a royalty-free basis. The bonded warehouse program is operated by employees of the Cargill Fertilizer Businesses from their Hong Kong and Beijing offices.
The Hong Kong office employs approximately 10 people.
Tianjin Cargill Fertilizer Co. Ltd.
Tianjin Cargill Fertilizer Co. Ltd. (Tianjin Cargill) is a joint venture
formed in 1996 among Cargill Asia Pacific Limited (52.5%), Cargill Investment (China) Limited (37.5%) and Tianjin Zhongjia Agricultural Means of Production Limited Liability Co. (10%).
Tianjin Cargill’s bulk blending facility, which was commissioned in 1996, culminated a two-year effort to develop a
market for bulk blends in the region through a series of field experiments, farmer meetings and other promotional activities. Located in Tianjin, Tianjin Cargill’s bulk blending facility has an annual capacity of approximately 80,000 tonnes,
and primarily uses granular urea, MAP and potash as raw materials for production.
Tianjin Cargill each year sells approximately 25,000 tonnes of high analysis blends in the north, 25,000 tonnes in the northeast, and 25,000 tonnes in the northwest regions of China. Tianjin Cargill also provides
agricultural services to corn, wheat, vegetable and fruit farmers along the Beijing-Tianjin corridor and in other nearby provinces.
Tianjin Cargill employs approximately 60 people in its fertilizer operations.
Cargill Fertilizer (Yantai) Co. Ltd.
In 2000, Cargill continued its in-country growth strategy when Cargill Investments (China) Limited formed Cargill
Fertilizers (Yantai) Co., Ltd. (Yantai Cargill). Yantai Cargill owns and operates a 120,000 tonnes per year bulk blending facility in the port of Yantai, China, which was recently upgraded in 2004, and represents Cargill’s second investment in
a bulk blending operation in China. Yantai Cargill primarily uses granular urea, DAP, MAP, single superphosphate (SSP) and potash as raw materials to formulate blends tailored to specific soil and crop requirements.
Yantai Cargill produces and sells bulk blend fertilizers and provides
agricultural services in the Shangdong (approximately 60,000 tonnes) and Fujian (approximately 10,000 tonnes) provinces of China, with an increasing trend in volume. Yantai Cargill also acts as a sales agent for other Cargill operations in China as
well as for other foreign owned fertilizer plants. Yantai Cargill’s agency volume is approximately 30,000 tonnes per year.
Yantai Cargill employs approximately 90 people in its fertilizer operations.
Jiangsu Cargill Agricultural Means of Production Co. Ltd.
In 2003, Cargill continued its investment in the interior of China by
forming Jiangsu Cargill Agricultural Means of Production Co. Ltd. (Jiangsu Cargill). Jiangsu Cargill owns and operates a 170,000 tonne per year
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NPK compound fertilizer production facility in the Jiangsu Province of China. Jiangsu Cargill is a joint venture among Cargill Investments (China) Limited
(59%), Cargill Asia Pacific Limited (1%), Jiangsu Huantai Fertilizers Co., Ltd. (39%) and Jiangsu Huantai Group Company (1%).
Jiangsu Cargill produces and sells NPK compounds to the seven China provinces along the Yangtze River and to northern China through other Cargill
operations. There is an increasing trend of consumption of NPK compound fertilizer in China. Jiangsu Cargill’s plant sells its products using both Cargill and Huantai brand names to cater to different market segments. The plant is located on
the banks of the Yangtze River where the operation is able to ship product using barges and realize lower transportation costs.
Jiangsu Cargill uses urea, SSP, MAP, potash and ammonium chloride and other fertilizers in the production of its NPK compounds. The plant sources most of
the raw materials domestically from local producers.
Jiangsu
Cargill employs approximately 200 people in its fertilizer operations.
India
Crop Nutrition serves as the
marketing agent for the Phosphate Production segment in India. Crop Nutrition operates a marine terminal at Rozy, Jamnagar on the west cost of India and is the wholesale distributor of Cargill brand fertilizers within the country.
Crop Nutrition serves three customer segments and markets approximately
320,000 tonnes of phosphate products per year in the Indian market. The first customer segment represents national account customers who typically are large established fertilizer producers or marketers in India. The second customer segment is a
joint marketing program with Tata Chemicals Limited. Crop Nutrition jointly distributes fertilizer through the Tata Chemicals’ retail network and under its own brand name. The third customer segment represents in-country distribution. Crop
Nutrition supplies a line of Cargill brand fertilizers to farmers through a network of wholesale and retail distributors in the northern and western states of India.
In the last two years, fertilizer companies, including Cargill, have faced challenges in India due to the uncertainty caused
by the Indian government’s DAP subsidy policies. Recent policies have nearly closed the door to DAP imports and favored domestic producers who fabricate DAP from imported raw materials or intermediate products. As a result, domestic fabrication
capacity has more than doubled during the last five years.
Crop Nutrition’s operations in India employ approximately 20 people.
Thailand
Crop
Nutrition began distributing fertilizer in Thailand with the opening of a 140,000 tonne warehouse and bulk blending facility at Sriracha in April 1997. The Sriracha plant, located approximately 60 miles south of Bangkok near the deep-water port of
Siam, operates as a business unit of Cargill Siam Limited, a wholly owned subsidiary of Cargill. Crop Nutrition produces and sells approximately 90,000 tonnes of bulk blends and distributes another 50,000 tonnes of straight fertilizers in Thailand
each year.
Crop Nutrition markets bulk-blended products,
ranging from standard blends to premium brands, to various segments in the Thai market. Materials for blending include urea, DAP, potash and ammonium sulphate. These raw materials typically are imported from Malaysia, Australia and Canada through
Crop Nutrition’s Hong Kong office.
Crop Nutrition’s
operations in Thailand employ approximately 38 people.
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Ukraine
Crop Nutrition opened a small bulk blending plant in the Donetsk oblast of the Ukraine in 1997. In June 2002, Crop Nutrition
opened a second bulk blending line at the Donetsk facility. The expansion nearly doubled the size of the plant, increasing its capacity from 240 tonnes per day to 440 tonnes per day. The facility offers a full line of tailor-made blends and also
provides important services such as soil testing and agronomic consulting. Nitrogen, phosphate and potash raw materials are sourced from producers in Ukraine, Russia and Belarus.
Crop Nutrition’s operations in the Ukraine employ approximately 11 people.
Brazil Fertilizer
The Brazil Fertilizer segment began in 1993 when Cargill Agricola, S.A.
(Cargill Agricola), parent company of Cargill Fertilizantes, S.A. (Cargill Fertilizantes), constructed a liquid fertilizer blending plant and warehouse located at Monte Alto, which remains in operation today. Since the late 1990s, Cargill has
expanded its fertilizer presence in Brazil through the acquisition of majority ownership in Solorrico, S.A. (Solorrico) and Fertiza, S.A. (Fertiza), as well as by continuing to invest in the construction and development of additional domestic
fertilizer businesses and assets. Today Cargill Fertilizantes is the second largest producer and distributor of blended fertilizers for agricultural use in Brazil. Cargill’s fertilizer operations, together with its minority investments in
Brazilian fertilizer companies, give Cargill Fertilizantes a significant presence in the Brazilian fertilizer market.
Net sales to external customers for Brazil Fertilizer were $526 million, $383 million and $414 million for the fiscal years ended May 31, 2004, 2003 and
2002, respectively.
Gross profit for Brazil Fertilizer was $55
million, $45 million and $57 million for the fiscal years ended May 31, 2004, 2003 and 2002, respectively.
Total assets for Brazil Fertilizer were $403 million, $351 million and $410 million at May 31, 2004, 2003 and 2002, respectively.
The Brazil Fertilizer segment employs approximately 1,218 people.
Production and Properties
In July 1999, Cargill Agricola acquired approximately a 72% ownership
interest in Solorrico and in October 2000, it acquired approximately an 80% ownership interest in Fertiza. Solorrico and Fertiza were two Brazilian fertilizer businesses that actively operated in the Brazilian market since the 1950s. In November
2001, Cargill Agricola merged Fertiza into Solorrico and changed the surviving entity’s name to Cargill Fertilizantes, S.A., which is the trade name under which the combined businesses operate today. After this merger, Cargill Agricola from
time to time acquired additional outstanding shares of Cargill Fertilizantes, with the remaining outstanding shares acquired by Cargill Agricola in September 2003, making Cargill Fertilizantes a wholly owned subsidiary of Cargill Agricola.
Through these acquisitions, Cargill acquired controlling
interest in significant fertilizer producers and distributors in central and southern Brazil. Today, Cargill Fertilizantes operates two large bulk blending plants in Cubatao and Uberaba, a single superphosphate plant, an NPK plant and a feed
phosphate plant in Cubatao, and distributed approximately 2.4 million tonnes of fertilizer in Brazil, accounting for 10.5% of the 22.8 million tonne market in calendar year 2003.
Cargill’s acquisition of Fertiza in 2000 also included Fertiza’s 62.05% ownership interest in Fospar, S.A.
(Fospar) and a 45% ownership interest in IFC, S.A. (IFC). Fospar operates two major assets located in
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Paranagua, including a single superphosphate granulation plant, which was upgraded by Fospar in 2003, and a deep-water fertilizer import and throughput
warehouse terminal facility, both serving the state of Parana and the Cerrados Region. IFC’s operations include a blending and storage facility in Cubatao, supporting the sale of fertilizer products in Sao Paulo, Mato Grosso and Mato Grosso de
Sul states.
Since acquiring Fertiza in 2000, Cargill
Fertilizantes (including Fospar) has invested through May 2004 approximately $52 million in improving facilities, adding blenders and upgrading production capacity.
The Solorrico and Fertiza acquisitions collectively provided Cargill with an approximate one-third ownership interest in
Fertifos, S.A. (Fertifos), a Brazilian holding company that controls (i) 55.63% of Fosfertil, S.A. (Fosfertil) the largest domestic phosphate based fertilizer manufacturer which operates a phosphate rock mine and phosphate processing facility, and
(ii) Ultrafertil, S.A. (Ultrafertil), a significant domestic nitrogen company wholly owned by Fosfertil which operates two nitrogen plants and a modern port facility at Santos as well as a phosphate rock mine and two smaller phosphate processing
facilities. In addition to its equity ownership in Fosfertil, Cargill Fertilizantes also has an off-take agreement whereby it agrees to purchase approximately 249,000 tonnes of phosphates and 118,000 tonnes of nitrogen from Fosfertil each year for
use by Cargill Fertilizantes in its Brazilian bulk-blending operations.
The diagram below illustrates the current ownership structure of Cargill’s Brazilian fertilizer business:
Saskferco
The Saskferco segment represents the Cargill Fertilizer Businesses’
50% ownership interest in Saskferco Products, Inc., a world-scale and energy-efficient Saskatchewan based nitrogen joint venture. The remaining 50% ownership interest in Saskferco is owned by Investment Saskatchewan, Inc. (49%) and Citibank Canada
(1%).
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Net sales for Saskferco were $222 million, $196 million and $173 million for the fiscal years ended
May 31, 2004, 2003 and 2002, respectively.
Equity in net
earnings of Saskferco was $12 million, $7 million and $0.2 million for the fiscal years ended May 31, 2004, 2003 and 2002, respectively.
Total assets of Saskferco were $386 million, $388 million and $383 million at May 31, 2004, 2003 and 2002, respectively.
Principal Products
The principal products of the Saskferco segment include the following:
Anhydrous Ammonia
. Anhydrous ammonia is a high analysis
nitrogen product that is used both as a direct application fertilizer mostly in North America as well as the building block for most other nitrogen products, such as urea. Ammonia, a gas at normal temperatures and pressures, is stored and
transported as a liquid either under pressure or in refrigerated vessels. Farmers inject ammonia into the soil as a gas. Ammonia is a low cost source of nitrogen in markets with well-developed distribution infrastructures and specialized application
equipment. For example, underground pipelines connect plants in the southern United States to terminals in the Corn Belt. The 82% nitrogen content of anhydrous ammonia more than offsets the higher costs of storage, transportation and application in
areas near production facilities or distribution terminals. Rapidly escalating costs for regulatory compliance and liability insurance have diminished the advantage of ammonia over other nitrogen products during the past few years in North America.
Urea and Feed Grade Urea
. Solid urea is the most widely
used nitrogen product in the world. Urea solution first is produced by reacting anhydrous ammonia with carbon dioxide (CO
2
) at high pressure. Solid urea then is formed using standard prill-tower or granulation processes. Granular urea is larger and harder than prilled urea and often is physically mixed with phosphate and potash products to make blends
that meet specific soil and crop requirements. Saskferco produces high quality fertilizer grade granular urea and beginning in November 2003, a feed grade urea marketed under the MicroGran
™
brand.
Urea Ammonium Nitrate (UAN) Solution
. UAN solution is the most widely used liquid fertilizer worldwide. UAN solution
is produced by combining urea solution, ammonium nitrate solution and water. It contains between 28% and 32% nitrogen. UAN solution is an ideal fertilizer for no-till or reduced tillage operations as well as for some irrigation systems. UAN solution
also provides an excellent medium for the uniform application of many secondary and micronutrients. The distribution of UAN solution requires specialized infrastructure and equipment for the storage, transportation and application of liquid product.
Production and Properties
Saskferco’s nitrogen plant, located near Belle Plaine,
Saskatchewan, has the capacity to produce approximately 1,860 tonnes of anhydrous ammonia, 2,850 tonnes of granular urea solution, and 650 tonnes of UAN liquid fertilizer solution per day. Saskferco produces granular urea, 28% UAN solution and
anhydrous ammonia for nitrogen fertilizer customers primarily in western Canada and the northern tier of the United States. Saskferco’s plant was commissioned in August 1992 and began commercial operations in October 1992. Saskferco invested
CAN $47 million to expand and improve production effectiveness at its production plant in 1997. Cargill is the exclusive marketing agent for Saskferco’s products.
The growth in nitrogen demand in western Canada and northern tier states of the U.S. since 1992 has enabled Saskferco to
market an increasing share of its output into core markets that are located within a few hundred miles of the facility. Saskferco built an 80,000 tonne urea warehouse at Carmen, Manitoba in 2001 to better serve customers in its core market. The
facility provides next-day delivery of granular urea to customers in Manitoba, North Dakota and the Red River Valley of Minnesota. Saskferco has a 120,000 tonne urea warehouse and a 20,000 tonne anhydrous ammonia tank at Belle Plaine.
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Saskferco employs approximately 140 people at its operations in Belle Plaine and corporate headquarters
in Regina, Saskatchewan.
Seasonality
Sales of fertilizer products by the Cargill Fertilizer Businesses to
agricultural customers are typically seasonal in nature and usually result in the Cargill Fertilizer Businesses’ generating a greater amount of net sales and operating income in the spring. However, quarterly results can vary significantly from
one year to the next due primarily to weather-related shifts in planting schedules and purchasing patterns, as well as the relationship between natural gas and nitrogen product prices. In addition, the seasonal nature of the Cargill Fertilizer
Businesses requires significant working capital for inventory in advance of the spring planting season.
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