07:26 AM EDT, 08/30/2024 (MT Newswires) -- Fertilizer producer Nutrien Ltd. ( NTR ) is scaling back operations in Brazil, the world's largest agricultural exporter, after a series of setbacks in the region that included a US$220-million loss on unauthorized derivatives trades, The Globe and Mail is reporting.

Over the past four years, the report noted, Saskatoon-based Nutrien ( NTR ) expanded its fertilizer sales business in Brazil by making a series of acquisitions. In August, the company announced a US$335-million impairment on the value of the division there -- the latest in a series of writedowns in the South American unit totalling roughly US$800-million over the past year.

Nutrien ( NTR ), the world's largest potash producer, also announced an employee made currency derivatives trades in Brazil "outside of the company's internal policy and authority limits," resulting in a US$220-million loss. Nutrien ( NTR ) vice-president Megan Fielding said Nutrien ( NTR ) closed the derivatives positions in July and the employee is no longer with the company.

Nutrien ( NTR ) chief executive officer Ken Seitz said in a conference call with analysts this month the company launched a strategic review of its Brazilian operations and has already closed 21 retail outlets in the country. When questioned about the derivatives losses, Seitz said: "We identified that quickly, we dealt with it quickly and we have remediated the issue."

Last year, the report noted, Nutrien's ( NTR ) global sales were US$29-billion, with Brazil accounting for U$1-billion of the total. The South American nation is the global leader in arable land and agricultural exports.

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