Nutrien is considering whether it should increase its potash production capacity by five million tonnes by 2023, then by another five million tonnes after that.
At an event for investors in Toronto on May 28, Susan Jones, Nutrien’s executive vice president for potash, said they have five million tonnes of capacity in place at existing operations that can be quickly brought online with minimal investment if there’s a need.
“In other words, all of this available capacity has already been bought and paid for over the last decade, putting us in a unique position as the only producer with available tonnes to move tonnes into the market quickly, nimbly and flexibly as needed,” she said.
Nutrien said they produced 13 million tonnes in 2018. The potash executive said they are predicting consumption rates to increase at a rate of 2.5 to three per cent over the next five years, with prices remaining stable.
“We do intend to strategically utilize our excess capacity to ensure we remain in a stable price environment throughout the period,” she said. “We know that escalating prices are not in the best interest of growers and we intend to ensure the prices remain stable.”
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