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Eric Balsley Russ Dunlap Dave Jaggard Brad Patt Jordana Weiss PowerPoint PPT Presentation


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Agrium Corporation Fertilizer Production in Brazil. Eric Balsley Russ Dunlap Dave Jaggard Brad Patt Jordana Weiss. Price of Potash. Competition in Brazil Distribution Conglomerates Canpotex (70% of dsn ) Large Mining Companies Vale – Own potash mines, Brazilian

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Eric Balsley Russ Dunlap Dave Jaggard Brad Patt Jordana Weiss

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Eric balsley russ dunlap dave jaggard brad patt jordana weiss

Agrium Corporation

Fertilizer Production

in Brazil

Eric Balsley

Russ Dunlap

Dave Jaggard

Brad Patt

Jordana Weiss


Eric balsley russ dunlap dave jaggard brad patt jordana weiss

Price of Potash

  • Competition in Brazil

  • Distribution Conglomerates

    • Canpotex (70% of dsn)

  • Large Mining Companies

    • Vale – Own potash mines, Brazilian

    • BHP Billiton - capacity

  • Existing Potash Companies

    • Cargill (Mosaic) and Bunge

  • Brazilian Market

  • Currently imports 90% of potash (1st)

    • Largest in world

  • World’s 3rd largest potash reserves

  • Self sufficient in 10 years

  • $1.8B/year potential market

  • 4.1% growth rate (3rd)

  • Agrium Potash

  • 5% of global potash supply

  • Concerns Moving Forward

    • Overreliance on Canpotex for intl. dsn.

    • Distance from growing markets

    • N.A market growth slowing

    • Growing organic sector


Financial considerations

Financial Considerations

  • MACRO-ECONOMIC CONDITIONS

Inevitable demand & profit impact


Political considerations

Political Considerations

  • Federal Republic, robust checks & balances (1988- )

  • Respected world citizen, WTO & IMF member

  • Socialist/populist leanings


Market entry recommendation

Market Entry Recommendation

  • Produce fertilizer in Brazil via JV

  • Focus on large-scale wholesale market

  • Joint Venture Characteristics

    • Leverage Agrium’s capabilities in manufacturing & logistics

    • Partner with other multinational (BHP, Cargill/Mosaic)

    • 30% share in $0.9-$1.1B investment in mining & production

  • Risk assessment

    • Financial & political risks moderate & manageable

    • Domestic entry aligns with government

    • Preserves Agrium presence in Brazil

    • JV model spreads risk & overcomes holdup problems


Eric balsley russ dunlap dave jaggard brad patt jordana weiss

Q & A


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