https://www.miningweekly.com
Business|Lifting|Logistics
Business|Lifting|Logistics
business|lifting|logistics

New Nutrien CEO to carry out current strategy, focus on potash price

Mayo Schmidt

Mayo Schmidt

4th May 2021

By: Reuters

  

Font size: - +

WINNIPEG - Canadian fertilizer and farm dealer Nutrien will continue its existing business strategy, including a focus on supporting global potash prices over maximizing sales, new CEO Mayo Schmidt said on Tuesday.

Surging prices of corn, soybeans and canola have given North American farmers more incentive to spend on fertilizer, lifting crop nutrient prices too. Even so, Canada's biggest agriculture company hired Schmidt as CEO last month to replace Chuck Magro, who resigned.

Saskatoon, Saskatchewan-based Nutrien, the biggest global fertiliser producer by capacity, has historically limited production to support potash prices rather than pursue maximum market share.

It has five-million tonnes of idled annual capacity, but Nutrien likely won't need to restart any of it this year after adverse Canadian weather delayed shipments, Schmidt said in an interview, following his first conference call with analysts since taking the top job.

"We need to be thoughtful about how we bring that production on," he said. "If we see prices continue to rise, we should be able to deliver more, but we're going to be sensitive to the returns that we need."

Schmidt said he sees steady potash demand growth for the next decade.

BHP Group is expected to decide this year whether to complete its Jansen, Saskatchewan potash mine, potentially adding stiff new competition.

Mosaic Co may restart an idled Canadian mine in the next year or two if prices rise further, CEO Joc O'Rourke said separately.

In changing CEOs, Nutrien's board of directors wants to see better execution of its existing strategy under a fresh set of eyes, Schmidt said, listing focus areas such as logistics and transportation.

Schmidt, who was previously Nutrien's chairman, said the company is stronger by keeping together its wholesale fertilizer production business and its farm retail network.

Nutrien's retail stores, which sell fertilizer, seed and chemicals to farmers, make up the largest US network. Schmidt said the company plans to expand its retail operation in Brazil, which it sees as underserved.

The company expects US corn and soybean plantings to exceed US government estimates by two-million acres each, but Schmidt said crop prices look to remain strong throughout the year.

Nutrien raised its full-year profit guidance and swung to a bigger-than-expected quarterly profit on Monday.

Edited by Reuters

Comments

Showroom

Yale Lifting Solutions
Yale Lifting Solutions

Yale Lifting Solutions is a leading supplier of lifting and material handling equipment in Southern Africa. Yale offers a wide range of quality...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.069 0.108s - 89pq - 2rq
Subscribe Now