Slow Market Conditions Lead Mosaic to Reduce Potash Production
Softening crop nutrient market conditions have lead The Mosaic Company to reduce production in its potash business by extending maintenance downtime at its Colonsay mine and to maintain slower production in its phosphates business.
Those softer market conditions are primarily related to delayed fertilizer purchases in Brazil and North America, according to the company.
According to Mosaic, a number of factors contributed to this decision: currency volatility, lower grain and oilseed prices, political and economic uncertainty, as well as global equity market declines.
“The long-term positive outlook for crop nutrient demand has not changed, but the industry faces some near-term challenges in the current environment. In these times, we will continue to be diligent in looking for opportunities to create shareholder value. It is a time for leadership, and we are managing our production levels to match current demand, controlling our costs, and maintaining our discipline,” said Joc O’Rourke, president and Chief Executive Officer.
Read more about Mosaic’s plan.