Nutrien raises concerns over potential rail stoppage as it prepares to increase Potash production

Mar 21, 2022

Given the war in Ukraine and the global uncertainty of supply from Eastern Europe, Nutrien is looking at increasing its potash production by nearly 20 percent.

Interim President and CEO Ken Seitz says while they hope for an immediate de-escalation of the conflict in Ukraine, there's concern over the impact it will have on global food security with the supply of key agriculture, fertilizer and energy commodities.

"Nutrien is responding to this period of unprecedented market uncertainty by safely expanding potash production to help provide our customers with the crop inputs they need. We continue to closely monitor market conditions and will evolve our long-term plans to ensure we utilize our assets in a safe and sustainable manner that benefits all our stakeholders."

The company announcing plans to increase it's 2022 potash production to approximately 15 million tonnes.

The move marks an increase of nearly one million tonnes, the majority of which is expected to be produced in the second half of the year.

Nutrien notes that the increased production at it's mines in Saskatchewan will also result in the hiring of additional staff across the network.

The company says it's also disappointed that CP Rail and their main operating Union, the Teamsters Rail Conference Canada (TCRC), have been unable to achieve a resolution to their dispute.

Megan Fielding, Vice President of Brand and Culture Communications, says a rail disruption at a time when fertilizer supply chains are already stretched may have immediate and significant global consequences.

"Nutrien relies on rail transport to move fertilizer and retail products in Canada, to the US, and to export ports. A rail service interruption at this time will severely impact the ability to deliver those increased potash tonnes to export ports and to move some of our products for the upcoming spring application season, potentially reducing crop yields later in the year. We urge CP and the union to come to a speedy agreement and get goods moving again."

Nutrien is the world's largest provider of crop inputs and services, producing and distributing approximately 27 million tonnes of potash, nitrogen and phosphate products world-wide.

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