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Top potash producer Nutrien fears sales hit from potential Canada rail stoppage
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Top potash producer Nutrien fears sales hit from potential Canada rail stoppage
Aug 15, 2024 9:22 AM

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.

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