Canadian fertilizer producer and retailer Nutrien said it has put assets in Argentina, Chile and Uruguay up for sale in order to focus on its retail business in Brazil and elsewhere, after posting losses in the region last year.
“Nutrien is simplifying and focusing our business strategy, prioritizing key markets and opportunities that best align with our integrated model to drive growth and bolster shareholder return,” the Saskatoon-based company said in a statement in response to questions from LatinFinance. “For Nutrien’s global retail business, we have decided to put the retail assets in Argentina, Chile and Uruguay up for sale and focus on our retail business in Brazil and other markets globally.”
Nutrien has more than 300 retail outlets in the three countries and two factories in Argentina, as well as a 50% stake in Profertil, a fertilizer producer co-owned by YPF, Argentina’s state-owned energy company.
The proposed sale comes after Nutrien’s finances suffered in South America last year. Russia’s invasion of Ukraine led to a surge in fertilizer prices in 2022, as global supplies tightened, only for prices to collapse in 2023 as supplies stabilized and farmers delayed purchases. Nutrien reported a non-cash impairment of $465 million last year, compared with zero in 2022. Most of the loss was related to its retail business in South America, according to its 2023 financial report.
The loss stemmed from the volatility of crop input prices, as well as “more moderate long-term growth assumptions and higher interest rates,” the company said in the report. Despite the setback, Nutrien said it has strong expectations for its business in Brazil.
“We believe the long-term prospects for agriculture in Brazil are strong and it remains an important crop input market for Nutrien,” the company said at the time.
In November 2022, Nutrien agreed to buy Brazilian agricultural retailer Safra Rica in a bid to grow its business in Latin America.