The Twin Cities, MN, is home to major agriculture companies, so our staff, all local, are privy to talk around town aboutgiants like Cargill,Mosaic, CHS,General Mills and Syngenta.Today while I was driving in our first major snowstorm of the season I heard on our local 830 WCCO radio station an interview with John VomHoff Jr., staff reporter for the Minneapolis / St. Paul Business Journal. He was talking about how fertilizer company Mosaic, a spinoff of Cargill, is moving its offices to the trendy Uptown neighbor, hoping to attract employees looking for a vibrant and urban work aesthetic .
The radio host asked VomHoff Jr. to talk about some of the developments at Mosaic, and, specifically, if a price war is looming. Here’s where I pulled off to the side of the road to take some notes.
“Fertilizer isn’t a sexy business, but there are some concerns there because one of Mosaic’s biggest rivals, Potash Corporation of Saskatchewan is cutting jobs, 18% of its workforce, shutting a mill and mine,” VomHoff Jr. responded.
He then went on to discuss potash prices falling now as supply is spiking, leading customers to cut back on purchases in hopes of a price drop. “The market has been rallying since this summer, when the Russian-led cartel that helped set prices for the industry collapsed,” he said. “Former members of cartel are engaged in a price war. Everyone is uneasy about that.”
“Mosaic is saying for now that they will monitor market conditions and align their resources to meet short term and long-term demand. “Mosaic has already been making some moves to cut costs,” VomHoff Jr. added. “After its 3rd quarter profit fell, it said it will close mine in Michigan.”
Here’s a link to that interview.