Potash purchases rebounding; transportation hampered

decrease font size  Resize text   increase font size       Printer-friendly version of this article Printer-friendly version of this article

The potash fertilizer industry has struggled to be profitable after last summer’s breakup of the Belarusian Potash Company and in the past few weeks, several manufacturers have seen slow sales and lower profits.

Mosaic Company dropped a bombshell on the industry when it announced this week that its Q4 profit had plunged 79 percent as phosphate and potash prices fell. The company blamed the Belarusian Potash Co. breakup with Uralkali as the main reason. But it was not the only fertilizer manufacturer that felt the squeeze. PotashCorp announced in late January that it had its smallest quarterly profit in four years.

However, where the two companies differ is in their projections for 2014 sales. PotashCorp expects a weak year ahead and that its forecasts were significantly below Wall Street expectations. PotashCorp expects the market has a long way to go to recover from the plunge it’s taken after the fallout of the BPC and Uralkali.

Mosaic, on the other hand, is reportedly expecting record global shipments of potash this year.

“Customers believe a bottom in potash prices has been reached and are now exhibiting improved confidence in their buying decisions,” Jim Prokopanko, Mosaic CEO, said in the company’s fourth-quarter earnings statement.

Earlier, Prokopanko had said fertilizer buyers were delaying purchases out of anticipation of further price declines.

Despite Mosaic’s rosy expectations, it’s having trouble transporting the crop nutrient due to the very cold winter North America is having this year. Prokopanko announced Feb. 11 that the company was facing unprecedented transportation backlogs in North America.

Frigid temperatures and heavy snow have hampered railway movement of commodities, he said on a conference call discussing quarterly results.

Buyers Guide

Doyle Equipment Manufacturing Co.
Doyle Equipment Manufacturing prides themselves as being “The King of the Rotary’s” with their Direct Drive Rotary Blend Systems. With numerous setup possibilities and sizes, ranging from a  more...
A.J. Sackett Sons & Company
Sackett Blend Towers feature the H.I.M, High Intensity Mixer, the next generation of blending and coating technology which supports Precision Fertilizer Blending®. Its unique design allows  more...
R&R Manufacturing Inc.
The R&R Minuteman Blend System is the original proven performer. Fast, precise blending with a compact foot print. Significantly lower horsepower requirement. Low inload height with large  more...
Junge Control Inc.
Junge Control Inc. creates state-of-the-art product blending and measuring solutions that allow you to totally maximize operating efficiency with amazing accuracy and repeatability, superior  more...
Yargus Manufacturing
The flagship blending system for the Layco product line is the fully automated Layco DW System™. The advanced technology of the Layco DW (Declining Weight) system results in a blending  more...
Yargus Manufacturing
The LAYCOTE™ Automated Coating System provides a new level of coating accuracy for a stand-alone coating system or for coating (impregnating) in an automated blending system. The unique  more...
John Deere
The DN345 Drawn Dry Spreader can carry more than 12 tons of fertilizer and 17.5 tons of lime. Designed to operate at field speeds up to 20 MPH with full loads and the G4 spreader uniformly  more...
Force Unlimited
The Pro-Force is a multi-purpose spreader with a wider apron and steeper sides. Our Pro-Force has the most aggressive 30” spinner on the market, and is capable of spreading higher rates of  more...
BBI Spreaders
MagnaSpread 2 & MagnaSpread 3 — With BBI’s patented multi-bin technology, these spreaders operate multiple hoppers guided by independent, variable-rate technology. These models are built on  more...

Comments (0) Leave a comment 

e-Mail (required)


characters left

Tube Series (TS) Conveyors

USC’s Tube Series Conveyors combine the gentleness of the signature Seed Series with the traditional stability of a tube-style conveyor, ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form