OK lets all put money in for the FNA seed capital

[dave4441]

Nothing wrong with the idea, just the vehicle won't
stay on its wheels before it hits a slimy spot.

[SASKFARMER3]

care to explain dave!!!!!!!!!!!!!!!!

[ColevilleH2S]

I think Dave meant to say, If the chicken leaves the hen house before 5 AM and crows twice, the Goat eats grass that day ;-)

[SASKFARMER3]

WD why do you not like FNA? they are my
lowest supplier for years of glyphos. Shed
is full from last year at a nice price for
2013 and some of 2014. so yes they save me
money.
Give it to Viterra and rest if you want!
Because they are looking out for the
company not you!

[bucket]

I think FNA would gain alot of traction if they would bring fertilizer in from overseas to reduce the cost and look at building a plant.

Had they stuck with the importing a few years back, I think the plant could be built pretty quick.

FNA seems to jump to the front of a parade to get the visiblity but never follows through.

I bought glyphosate from them one year but it got to my farm so late in the spring I used it for pre-harvest. Had to go to Viterra to get spring glyphos and stuck with them ever since.

[ado089]

What's a $1,000 these days? Two bags of
seed, a little over a tonne of phos, a
couple of jugs of proline, a box of
innoculant. Who cares if it get's pissed
away? If it does work to put some pressure
on the the fertilizer industry in Canada
you could get that $1,000 back the first
fill of the air-cart. I think I'm in, even
if I never buy a tonne from them, I like
the idea.

[dmlfarmer]

Some interesting facts from Page 59 of Agrium 2011 annual report:
"Nitrogen cost of product sold was $258 per tonne..."
"Nitrogen gross profit (wholesale) was $322-million in the fourth quater of 2011, more than double the $160-million reported in same period last year due to higer realized prices and sales volumes."
"Nitrogen margins were a fourth quater record $304 per tonne this quarter."

There is huge profits and profitability in Nitrogen fertilizer production in N.A. at this time because of high fertilizer demand world wide, low N.A. natural gas prices, and the lack of competition in the vertically integrated N.A. fertilizer industry.

Nitrogen prices are high because of high natural gas prices outside N.A., high shipping and handling costs for fertilizer, and because of a lack of competition in the vertically integrated N.A. supply chain.

N.A. N Pricing is not based on cost of production or supply and demand in N.A. but on what it would cost to replace N.A. produced N fertilizer with off shore supplies. If you do this calculation you will find the Canadian nitrogen prices are the same as the Black Sea prices (biggest fertilizer market in the world) plus freight and handling costs to get the fertilizer delivered here. So even though Canada produces more nitrogen fertilizer than we can use and exports 25% of N production, we are paying world prices PLUS freight and handling for nitrogen in Canada. That is why fertilizer in the US is cheaper than in Canada; less freight from the Black Sea even though the fertilizer is more likely to come from Canada than the Black Sea region.
That is also why FNA or other groups cannot compete by importing fertilizer.
Higher natural gas prices outside N.A. plus shipping and handling costs will inflate the price they would need to charge here to the price we are currently being charged.

Until there is real competition in N.A. fertilizer production and retail AND lower world fertilizer prices, we are not going to see lower fertilizer prices even if new N.A. production facilities are built.

[bucket]

You can't eat up $304 in margins in freight from the black sea region. I would say maybe at best $120 bucks to get it here from the black sea area.

I have no problem with the NA fertilizer companies making profits, but they are gouging and colluding now.

[wmoebis]

Why can't we build a plant right in the middle of gas field sized to meet shareholders demands. Sell the fertilizer to the shareholders at cost of production. When I'm done I can sell my shares to who ever is going to need the extra fert to farm my land.

If I want to make money on world fert prices I can buy shares in Agrium. If I want to make money on my crops I buy fert at C.O.P. and make it on increased production.

[ado089]

The status quo is not working! Anytime it
looks like production is gaining on demand
they shut down plants. It's pretty hard
to have a market when the big three are basically profit sharing on the market as
a whole.