According to financial sources, recently the world's largest fertilizer producer, Nutrien (NTR.US), stated that as part of a broader restructuring, the company will indefinitely close three fertilizer blending plants in Brazil due to the challenging market environment. The company added that it will rely on partners and two other fertilizer blending plants in Brazil to supply fertilizers to local customers.
Before the closure of the three fertilizer blending plants in Brazil, Nutrien had already decided to sell its assets in Argentina, Chile, and Uruguay as part of efforts to make its business in the region profitable. It is reported that the company has also decided to close an older blending plant in São Paulo, Brazil, although this decision has not yet been announced.
The challenges the company faces in South America are part of the broader competition within the fertilizer industry, which has been experiencing market volatility since the Russia-Ukraine conflict in 2022. This volatility, caused by stable global supply and increased farming activity, led to a spike in prices. Due to stable supply, farmers reduced their purchases, resulting in a price crash in 2023. Nutrien confirmed a loss of $465 million in its South American acquisitions, reflecting a decrease in the value of its fertilizer inventory.
The company, headquartered in Saskatoon, Canada, has 22,300 full-time employees. It is the world's largest fertilizer company, the largest potash producer, the third-largest nitrogen fertilizer producer, and one of the largest fertilizer distributors globally, with over 1,500 retail stores in 14 countries/regions and business operations in every major growth area worldwide.
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