1 / 6

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. Price of Potash. Competition in Brazil Distribution Conglomerates Canpotex (70% of dsn ) Large Mining Companies Vale – Own potash mines, Brazilian

jalena
Télécharger la présentation

Eric Balsley Russ Dunlap Dave Jaggard Brad Patt Jordana Weiss

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Agrium Corporation Fertilizer Production in Brazil Eric Balsley Russ Dunlap Dave Jaggard Brad Patt Jordana Weiss

  2. 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

  3. Financial Considerations • MACRO-ECONOMIC CONDITIONS Inevitable demand & profit impact

  4. Political Considerations • Federal Republic, robust checks & balances (1988- ) • Respected world citizen, WTO & IMF member • Socialist/populist leanings

  5. 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

  6. Q & A

More Related