Two major Canadian fertilizer companies, Agrium and Potash Corp of Saskatchewan, have merged to form Nutrien Ltd, which is now the biggest fertilizer producer in the world and, according to the Province’s Premiere, the new entity will keep its headquarters in Saskatchewan.

About 95% of potash is used for fertilizer in agriculture and about 5% is used in commercial and industrial products. Potash fertilizers can correct the problem where soil is potassium-deficient, and can boost crop yields and quality.
 
Nutrien is currently producing over 25 million tons of assorted agricultural products annually. The entirety of the company’s potash mining executives are located in Canada, despite having retail operations all over the region, including the largest network of farm retail stores in the US.  The company, which currently runs its executive operations from Chicago, plans to establish its head office in Saskatchewan. The move is expected to increase corporate office jobs to 300, reflecting a 15% jump.

Potash companies have been watching the increase in global demand for potash this year, and believe that the merger by majors will benefit all players including Compass Minerals International, Intrepid Potash and Nutrien.  And while large producers of potash have benefited from stronger pricing over the last year, smaller potash focused companies are playing off market strength.

In response to the merger announcement, Nutrien shares took a slight dive in Toronto, while moving slightly in the opposite direction in New York.  For the long term however, the merger seems to have positioned the company for some impressive growth numbers. Potash and various fertilizer products will be highly sought after commodities in the agricultural sector as the world’s food demands grow with the rising global population.