By Mrinalika Roy and Tanay Dhumal
Aug 15 (Reuters) - Nutrien ( NTR ), the world's largest
potash producer, said on Thursday it was concerned that the
impending Canada rail stoppage would hurt its ability to ship
products.
Canada's two main rail companies said last week they would
lock out employees on Aug. 22, if talks to negotiate a labour
contract fail. A strike or lockout could bring the transport of
goods in the country, which relies heavily on its railway
network, to a halt.
"Nutrien ( NTR ) relies on reliable rail service and we are
concerned that labour action would impact the ability to move
our products, which consequently may negatively impact farmers
and food security around the globe," it said in an emailed
statement to Reuters.
Fertilizer is the third-highest volume commodity shipped by
the Canadian railways, according to industry group Fertilizer
Canada.
Nutrien ( NTR ) said it was taking proactive measures to mitigate
the impact to its customers in the event of a short-term
disruption. It also urged the parties involved to reach a timely
resolution.
Chief Commercial Officer Mark Thompson had said earlier this
month a strike would put potash volumes towards the lower end of
the company's forecast for the year.
Nutrien ( NTR ) expects potash sales volumes to be between 13.2
million tonnes and 13.8 million tonnes for 2024.
Seth Goldstein from Morningstar expects lower potash volumes
from both Nutrien ( NTR ) and peer Mosaic in the event of a rail
strike.
"The vast majority of potash if not all, is transported from
the mines via rail, so any strike would impact volumes and the
longer the strike, the larger the impact."
Mosaic did not immediately respond to a Reuters request for
comment.