NTR Nutrien

Richard Downey VP, IR
Mayo Schmidt President and CEO
Jason Newton Head Economist
Jeff Tarsi SVP, Retail North America
Kenneth Seitz EVP & CEO of Potash
Raef Sully EVP & CEO, Phosphate & Nitrogen
Pedro Farah CFO
David Elser VP, Strategic Supply Chain Operations
Steve Byrne Bank of America
Ben Isaacson Scotiabank
Andrew Wong RBC Capital Markets
P.J. Juvekar Citi
Joel Jackson BMO Capital Markets
Michael Piken Cleveland Research
Jacob Bout CIBC
Vincent Andrews Morgan Stanley
John Roberts UBS
Mark Connelly Stephens Inc.
Duffy Fischer Barclays
Steven Hansen Raymond James
Rikin Patel Exane
Fai Lee Odlum Brown
Adam Samuelson Goldman Sachs
Adrien Tamagno Berenberg
Call transcript
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Greetings, and welcome to the Nutrien's 2021 First Quarter Earnings Call. At this time, all participants are in a listed-only mode. A question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded. I would now like to turn the conference over to Richard Downey, VP of Investor Relations.

Richard Downey

operator. you, Thank and our everyone Nutrien's call conference Good quarter welcome XXXXX discuss first results to morning to and outlook.

with of Farah, members of On President our business as call us team. other Mr. of is the key and Mayo our and Heads CEO CFO, Nutrien; our Pedro our units Mr. as well today Schmidt,

these forward-looking in As conclusions from applied expectations, plans, future we make we about were actual Therefore, this discuss forecasts. information. those assumptions prospects and conference information. contain results that in materially material call, making our various statements differ Certain and could forward-looking contained

information Additional report filed US and assumptions commissions to Mr. information are the with our I to and as securities quarterly to which over shareholders turn annual Mayo current as well now our report, Schmidt. form about our annual factors call most will Canadian contained direct these you. we recent in and MD&A,

Mayo Schmidt

for you, of Richard, advantages. Nutrien outlook. related good want as morning. has team and I Thank that provide thank businesses and and share portfolio of a results our joining Nutrien today strong exceptional the integrated we news competitive you to

operational is our commitments. our long-term This our Our XXXX to well recently as and strategy. financial Board-approved excited team unveiled execute ESG and and targets as includes targets

to The and are to and tight demand led supply across very pricing through value. allocation global XXXX through supply has growing create superior Nutrien to operational demand virtually We anticipate environment shareholder dedicated and a strong we capital performance beyond. and all focused and tight crops, continuing growth

to growers yields. be world's inputs increasing provider agriculture, transform food global demands. will and We're exciting and climate ESG the seeded feeding action, to and new as are planet helping we areas; and action. are crop helping and three food inclusive meet growers with today, It's responding in how focus report we As recently Nutrien increasing highlighting focused by of services, industry of the also climate agriculture. safety time priority challenges issued on acreage focused an on maximizing are the really and the security, environment ensuring We our sustainably, largest on speak agriculture

of well will our commitments detailed key market-leading June. review carbon hosting as a targets our ESG in as priorities, program and our We at be update

Now, and we units. turning excellent business across our our to first quarter outlook, results delivered all performance

outlook very is our second positive America. and field Our are for quarter higher in and for progressing very are work as seeding acreage North well, the expectations

seeing strong largest to services. As them the are firsthand multiple of crop growers are prepared interest fully maximize broad we yields, of and with ag and countries, we inputs serve retailer in our selection to

innovative includes our our X,XXX direct than tools. in offering program service Our and globally, financing digital proprietary our more relationships investments input while an agronomists products, producer leading fielding

tonne freeze combination U.S., global fairly has regions first in a tight and The second Our demand the and and to due across strong this the in XX% strengthened all quarter all both higher February demonstrated made of production are normalize have Solutions Nutrien and been as record crop although and margins impacting international to year-over-year, per were tonne over Fertilizer total just improvement were in recent logistical nearly geographies of margins Crop margin market up products XX%. the EBITDA the more retail margins margins product up expected purchases was volumes XX% were volumes Ag million higher. strong rise XX% in U.S. certain margins prices delivered gross $XXX been for by fertilizer bottlenecks, quarter adjusted retail's the recent rapid this geographies. virtually business nutrient sales levels. due year-over-year to increased domestic. Retail rose quarter. per and year-over-year while gross lines protection retail to $XX quarter, at

due growers' is Solutions season. for for well the with positioned Nutrien the However, product our strength availability Ag chain, requirements of supply to our

also surpassed U.S. improvements to to adjusted selling We our and reported retail XX% $X.X operating Total sales XX% their coverage over to across U.S. the while Retail in over EBITDA was per retail quarter. location cash lowered adjusted EBITDA metrics increased XX%. million. ratio this

solid American across We projects safety with our quarter mining continue that significant and optimizing the In build improve market platform, digital and near-record Ken impressive the team to production metrics internationally. performance, performance reduce sales Seitz to our are our see and utilization volumes together lower and cost footprint. the showing will continues and six momentum all demand potash, automated improvement. further ag first business our in progressing of potash mines year-over-year North for carbon

season cost which a by products to our potash extremely $X deferred North cold was in in extreme cash XXX,XXX operating our volumes inventories shifting to rapidly rate of prices to We tonnes the compared about XX% international to America, slowed North during volumes Demand about logistics last an of nitrogen quarter strong the lower decreased the production offshore per the and planned with rising cold his Canadian sales due Our Sully delivered and operating in XXXX Raef February, into the quarter across first starting Trinidad. sales strong for results, of despite American this weather higher team fall and year shipments, quarter. weather lower robust a the remained significantly of Sales achieving dollar. the tonne reduced due year-over-year increase ammonia in February. value in of balance achieved events despite despite downtime due XXXX. production

We much in posted as quarter operations forward million expect margins temper due to the strong ammonia going sulfur to prices. EBITDA do with rise a $XX higher costs from phosphate and realized prices. Our stronger

in outlook, sensitivity rally to crop the balances growers potential The the we mood corn has year, approximately products is the March turning a the prices this positive. ratios while use higher have and about and very next strong and acreage final highlights in approximately Even new amongst in the services, and are and year. the supply soybean expect crop tight excellent crop could Retail million Now, supply than intentions higher prices any cash soybeans risk USDA U.S. time margins corn prices seeded be demand the see to XXXX. believe acreage, and report. tightness experienced prices XX% demand We to doubled. last to for spot than stocks four seeded continuation at for higher acres and a the of in and global

the of across The million very crop guidance of year. committed our continued is Baltic have potash the offshore and our it business We for EBITDA believe to billion in volumes higher September is increase to supported regions share billion our the The to in by all fertilizer China potash units, through per positive per index outlook phosphate prices annual higher. is the will than $XXX tonnes. potash growth less in outside second netbacks. freight the and and to gain freight will We dry and by tonne and $X.X Year-over-year, remain anticipate global strength in $X.X be inventories application metric XX impact will fully international We in Canpotex demand into in increased increase will Asia. the XXXX. potash India. this half major recent and in market million much demand XX% arrangements. XX freight and impact low America approximately in expecting in imports in expected on as remain for markets to are prices anticipates North Indonesia continued this the the $XX netbacks global potash rates firm XXXX exceptional netback American South have a increase be year, million Canpotex that as America, tonne of time and We and on anticipate ocean We're due minor Malaysia North year in long-term to $XX nitrogen a season.

quarter in be prices realized by of ag-related higher supported Our the nitrogen proportion sales. will second the

capacity We globally. second in due expect of onstream urea prices typical the an seasonal and half some new some nitrogen from to coming moderation summer year availability the and in export increase China global pricing in

to momentum from exceptionally well However, in crop multiyear and the expected Nutrien benefit we and for be In medium believe closing, on we outlook the market and long term. markets. fertilizer positioned to strength agriculture is positive have constructive continue nitrogen the fundamentals

agriculture. opportunity ensure we great program to carbon and and benefit collectively to collaborate XXXX The interest the for and farm see that industry the with as can we're to also and demonstrate our We from more is services partners climate-smart accelerate technologies products, sustainably. scale commitment oversubscribed growers a to planet in delivering the launch advantaged has feed to comprehensive program to our apparent uniquely pilots. potential We're

and Chuck I'd XX to the do his shareholders success next questions our all, of the I'd begin here leadership with behalf we Before over question-and-answer With of him like customers like Magro to years thank on the operator, that, for call employees, contribution team steps. past to today. wish and his open portion for


from Your comes America. [Operator first Instructions] Steve Byrne of from question Bank

Your line is open.

Steve Byrne

you. thank Yes,

Magro. this following any on why Or last left? Chuck comment Just represent Nutrien? direction about the Any comments the on in up does Chuck change of

Mayo Schmidt

that my honor decade and Well, thanks down for it for after of of President Chuck CEO was Directors The role Chuck step mutually to Nutrien. the and leadership, Board a agreed that strong question. and of accept

driving a developing and of might team lines. equals, had committee through I from the with mention the seat the I that strategy, that's the also headed Regarding merger been value aspect in created of all I Board Chairman the with business back PotashCorp, we industry performance our across Nutrien MOE, go to the of an certainly, that level. a front-row working Board as with when

strategy history was next business about an the taking So, Board's building of focus on existing the thinking value the really, I and and it to level. and think, combination


line comes with Your question Scotiabank. of from the Isaacson Ben next

Ben Isaacson

much been economics, some very and Potash this of Maybe pulled Newton, everyone. far there. year. good next spring, there's demand the he's and question spring that fall even please? Jason despite the demand has crop so you may strong from Thank from that, address Can strong if concern very for a getting morning and be you very,

Jason Newton

Sure. Good morning Ben.

of seen couple application last the a this and really weather really strength consecutive with demand and spring. in I ideal strong with really then U.S., think starting fall, seasons we've continued

I year, there's already the summer through low ground the we at to chain We and an is, fill, where important, And know still good the we expect supporting sets but toward season. costs, to for summer look as we crop look next And very pace, getting get prices crop at well relative will the which we of look that which I of into and leads of be end supportive the which period, planting we a remain you should support really fall well for season. attractive see demand. we strength to building should into prices of is growing demand. to and relative weather we toward relatively affordability inventories of and then supply/demand strong, affordability that the in up the potash think crop fundamentals that from the as once look where think levels in fill rates prices fall, crops get is think the spring XXXX, If high to major corn be the in the below average spring index continue interest XXXX, as continued which are, application supply in continues


of Goldman the is Samuelson, [Operator open. from Mr. your next Adam comes question line Sachs. with Instructions] Samuelson line Your

the of with Your Markets. Capital comes question from next Andrew line Wong RBC

Andrew Wong

morning. good Hey

for question Mayo a just maybe. So,

just mean, I of of see could Just there great. those past done operations been costs improve Are business, that That to us. over you looking the any would feel of across reduce a highlight within improvements? business years. the further couple the there's and work maybe some lot for areas And areas be

Mayo Schmidt

facility But -- in our I think was We next organization on I say advantages. capital. your transportation, background our the the and unique a structural think opportunity really Sure. quite between think to put my set find growth sure moving I first which point, we a and with and a alignment of team both think business in, as there's balance operation. really advantages participant, how I can business logistics, fresh profitability production a really, forward, in the that proprietary, do acquisition And absolutely the are the on I and we on changes. opportunities our also can focusing making have scale which of around I focused then Terrific taking strong businesses, it's the margins, question. internalization creating specifically growth deep units about focus within I've on retail through the more on for working I view utilization certainly level. and our areas of with to agree enhance And a key think I of eyes Board really symmetry full leadership in profitable you. an think to would the operational about pipeline products utilization, say Certainly our we on the benefits got of and organically the system, and when those the we And we're year transportation. focus pipeline and and structural


next question line comes from of Your Citi. with Juvekar the P.J.

P.J. Juvekar

Yes, hi. Good morning.

corn that upgrade that what corn flushed now you cash, the And you what's maybe expect towards you. that USDA suggested. to their is upside And As with they'll Mayo, that? growers seed purchases and Thank that said you preserve more are you Do most from $X? given four chemical of than acres yield? think think goes do at think I million

Mayo Schmidt

the your I'll a The I'll crop volume quite margins. is and here. prices planting Sure. ground Jeff forward We're application about make American really great sense as look spring been strong what's to like further Jeff, comment to year and Tarsi from America and would increase join comment? You're question. season the you of this for -- And positive the North nutrient driving a Thanks and intentions. opportunity. in me our on sales higher gross have this and ask strong we

Jeff Tarsi

for today, there's especially and corn, wheat swinging I Mayo matter They're is, We crops optimism power customers. a no the various good their P.J., I like Yes, term to everything network with people in soybeans, in fences. and the maximize in yields see P.J. mean out the -- going our do sure. the it. XXXX, other and I to crop cotton what Thanks, with to use of lot morning look, agree.

The see using the able we seed of it have As traits to of increasingly determined possible soil of see by I they what maybe more is And technology side things, is side much the far traits see as the on on our -- trading don't we so to things. up different being trading the side germplasm on match up up pressure. pest side trade their do best growers the that germplasm and on farm. to but

deeper through putting the season. plant bit we expect crop everything be to we a they're And we can But allocations little they look go see very as really this into very Our at get allowing think -- strong utilize best with pull protect two digital into do some year. look, germplasm going I the to growing as this fungicides going out we really season. we're are of the this agronomy to going made. being our those is would to crop forward. health business, platform Again, proprietary nutritional they're as us as the to -- well I'm growers inputs that to today inferred I the If there. nutritional seeing this that get

Jason Newton

second and answer question even part just growth acre between We to each, potential P.J., corn soybeans. soybeans, two of acreage. as of see that million million level your to and acres on four to relatively so the the get And roughly corn


Your comes Joel the BMO Jackson next Capital Markets. question of from with line

Joel Jackson

this Hi, good at morning. Mayo, Nutrien. new to role Welcome,

couple a of Just questions.

if sensitive. farmers and germplasm, bad trading Jeff's we a price might that just Dyna-Gro? share year? are crop good the answer get for tonnes to will might coming you the lose is and And thing on a more or higher push Farmers volume? price see others? up So With when on prices more out? Russia be try versus same Dyna-Gro this in How we then second, to following up Like earlier. some tonnage this potash, maybe Might going on less strategy thing comes change forward on it

Mayo Schmidt

that take to I'll question? please. want you take do the Jeff, first And potash,

Jeff Tarsi

respect Joel, a Sure, not, any negative way. Dyna-Gro germplasm, that's the absolutely. In to absolutely in not to

Dyna-Gro, is it relates on as property, anything can what with matter marketplace. compete the no germplasm, to Our out --

I will the the seat no, which across canola, quarter see of to soybeans, look depending you we increase five comes compete market. the things. share with it crops, it geography, in if matter a to it our on anything the corn, to at if and yields be at we And those Dyna-Gro, fact shares markets, side a take of leading don't look on prudent I through But cotton you. out back on As Dyna-Gro. Mayo, with our those our as those of have relates And actually some turn back germplasm in we I'll areas. when

Mayo Schmidt

price growth. the XX next the about we thinking on Thank think Good, to And as that the XX the course at you, supply. focused we When certainly as to years. about X.X% years, you. tonnes million of yes. over XX as also products, over much Thank we're we're our And Jeff. the more increase demand million of X% could XX produce look next

one, price; now, to that. that committed sales we So, we're offshore in quite secondly, through fully market. we'll And see August. right on as we're positive, focus growth And volumes on our about continue

think Seitz comment why and price, Ken. opportunity concentrated Jump he's But to been on focused here. to on certainly he's certain in want I markets. Ken these that's markets may in, the

Kenneth Seitz

you our are that market things be year, XXX-odd North look balance very into where significant in our and supply and positive. throughout chain obviously Mayo. demand have six to, the the We we the nothing focusing case meet of structural is And just what with changes said, and It internationally, in it have it warehouses for you. that on network, netbacks. Joel, our America, reiterate Mayo mine flexible demonstrated by quarter first believe advantages And happy the to us. Thank a and is. that Canpotex. yes, maybe we then this we the continues And good mines Yes, be strategy, we'll

we're going to And course. Mayo. stay to so Back you, the

Mayo Schmidt

Thank you.


question next from of the Research. comes Piken Michael Cleveland Your line with

Michael Piken

question morning. on good Yes, nitrogen. A

you you your respect and about of for planned forward? to the Trinidad over running could a If with plants. the are how the other nitrogen facilities bit year cost turnarounds just for be little business talk any some your that the you Thanks. kind about going structure we of of where remainder And should thinking have

Raef Sully

Sure, Yes. Michael.

So, North in America. let start me just

we two the a synergies have utilization will a past That's of think, we've of over got out increase got the of You the rates. our care of some that years, in these year, couple result, large I to we've noticed, years, some trying XX of turnarounds. steady -- last merger. where This also the years We issues during up large is XX been end-of-life couple to or -- of service. take of coming equipment

We about We're starting one about. pretty at couple year Borger, Redwater. issues end-of-life these Canada. in larger for a of have months large turnaround have of another one one is we a in this That's normal because one U.S. moment turnaround to at in us thing and we The two that turnarounds. and they're the in the unusual bit Texas, a than in normal have talked

out increase an to in continued increase see in production a capability and different So, of little bit coming there. we expect those, Trinidad, story reliability.

see the produce minor us rates. over of a a smaller a on are gas then in rest few plants, plan four four have to the year, of turnaround outcome time there about have moment, The course, running. you at one of and turnaround them, dependent year. of reduced down we And another however, -- weeks' equivalent in be course of of the level three actually At them that plants in plants supply. know. running are starting and will later Two the for as the of that's, at the We all you'll that


Jacob with question comes of line Your from Bout CIBC. next the

Jacob Bout

Is specifically color does splitting And a make Morning investment by bit your your wholesale created view, sense thoughts versus in them on on all. value together? to Mayo, prioritizing them perhaps apart? strategic how you're more retail? it keep there

Mayo Schmidt

question. Okay. Thanks that for

internalization critical transportation. different internalization on focused and utilization, is we pipeline think a margins we're the set a ability more logistics a again, fertilizer. for and chain that system, generate operating that by supply And symmetry that I And that just about is all be system. to seed, two we to facility a the within the how units, about of and the we when success. have opportunity And think think balance to we and it research the put of proprietary that really -- -- the our seed ground between to about between wholesale then drive when think I development, the in unique fresh eyes we of think would our the the that new support on and take this of

And so together. actually we believe we're that stronger

advantaged particular throughout know or we're ourselves within also set structurally up to have We sure but we well. look competitive and at be when region the to to as network that zones that make transportation logistics not we countries only also

going be think structural we on focused our really and the So, operating together, to time teams the next in look we're at advantages. strength there's and of course internalization over that


Your of comes Vincent next the with question Stanley. Morgan from line Andrews

Vincent Andrews

ones. Two quick you. Thank

tonnes XXX,XXX would be mentioned of the that it the potash you was balance year. into the delayed on that First, delayed, of

holding actually price wondering, I'm I very XQ? or in and flow will was secondly, a that So later are noticed you it the then it the get in expectations just just back through environment light rising you that can prices because of for And product just now buyback quarter. on it

if anything wondering you just So, much. fourth to in raised very the specific just that given buyback that, Thanks there's quarter.

Mayo Schmidt

Pedro want to-- do -- you Ken, to I Ken, can want up potash? And pick portion. up you buyback the pick do

Kenneth Seitz

Yes. Thanks, bet. You Vincent.

in February the rain load the we supply So, where coast had was to vessels. XXX,XXX related. and yes chain in to with logistics that and weather tonnes, just challenges quarter some on first the then We really and cold with some weather related respect

with kind potash They And of environment year. the that of But deferral the balance timing and really XXX,XXX just QX. to a respect not rising say did. price accordingly. to watching we defer XXX,XXX those tonnes, split the it's over sales so And into QX, it's spread definitely -- salespeople did That's those tonnes, and our are. QX, Canpotex really aren't

Pedro Farah

Vincent, is And Pedro. this

the I think just a comment on buyback.

changed course, nothing allocation. really capital Of our in

kind use continue that a capital assets, everything at of to to quarter. we compete for And in a increase we and on provided dividend it We else -- the sustain first first-class our look basis.

of choices. kind made we So,

here. Of preparing season a course, spring we're also for very strong

see capital return looking So that in for the you at us that at best is what point time.

we course, Board reason. NCIB from the for Of approved a approval and got the

So, we're but in an the as considering be that and between option, distributions in our will light option trade-offs shareholder inorganic that organic, of exercised future.


Your next question comes from the line of John Roberts with UBS.

John Roberts

Thanks. Welcome, Mayo.

the to laid about at having something the CEO taking else level? talked that Or enough? Does talk next about Nutrien XXXX the You change the level. something have when may next do the Day you to are with Investor thinking imply about you out not targets been last

Mayo Schmidt

think And fresh you, set leadership think taking the Really, today and teams degree, earlier, John, of sector for on pipeline combination globally things. mentioned I the putting question. about, and a have thank of advantages operational eyes a it's structural with excellence. products. of a we're that advantage of to we our of greater I throughout as full enhancing utilization our those We

think think far a those going as advantages to have and we those as So, of the our of that execution. by in combination we be are, the marketplace really targets, course, driven that we about

we imagine, on Brazil, North opportunities going we when about business and sites be wonderful that execution. those team the we here about So, to both When have that a America -- today, can't the businesses. we find leadership think the even think focus can't across of in that have new unique and we is of retail

focused that's area And we're the going to really in on. so be that


question next Stephens Your with from the Inc. line Mark comes of Connelly

Mark Connelly

and could performance Thanks. little you sense it there. is and Nutrien talk My about be grow lot the more wants to to strategically. Chuck; urgently bit the bigger Nutrien Brazil needs of business to more hoping thinks listening a a that I impactful was how that

Mayo Schmidt

We it see impactful. at as be we're And certainly think opportunities and there's unique in an more that we particular do, we progressing looking to that develops. market, as opportunity

area, on focus that keen that a got will continue. we've and So,

of of levels to that We of any in a different an being rate there risk earnings as we return particularly in as course, expect well. see bit with countries expectation market, of in growth have higher And a such. of

So, Pedro, that? to do comments make you about any want

Pedro Farah

I in M&A capability that would a expansion, for rich Brazil, have development we expansion corporate pipeline. just say so very

to will many a So, stated grow we we We in basis. paths do in times as of like before, kind to so but on many disciplined Brazil, grow Brazil. have would we

take time the future. the encouraged existing assets in the about very performance this more our strategy of our which the time, we'll And us So, get assets. to gives best in by point are confidence we at


of Barclays. Your next question Duffy comes from the with line

Duffy Fischer

just with of of do dimes fighting Yes, you here be this good they contract the how morning. with affect juxtaposed look, a seems A kind product? tonne a questions obviously and couple that they've nickels corn potash China square on the that like different, tight actually pricing a has you're is been you of it I mean when China potash and and just would over done that if where on you around pricing. their developing you around and buying soy, of potash. Can global buying internal side stands really today, why to corn yields lot so as potash then sit versus to them follow-on see can year? And what

Mayo Schmidt

extension that look the we've China, just Brazilian the lot through at in exports and swine that, comment is into and and and see further? the And with food from a flu to created obviously of that you would worked recovery, might of gone we the we then And applied recovery is then an supply combination driving Ken, secondly in the expect China it's swine this -- the U.S. continue. like here. start demand. change market. tariffs building I flu comment has to that think African it which When a that I draw do to through, strategic of Ken

Kenneth Seitz


You bet, Duffy, for Mayo. Sure. And thanks, the question.

yes, So China. year to the contracting with process in unique a respect is it

moment, the from year be million inventory tonnes at the tonnes, suppliers continues price Of last $XXX. to big to We're the one were Chinese same because sitting million strong at at down of believe so-called an watching about If only course, million as year. of with X.X inventories was continue one to important year we X.X this the that international China quite closely we exactly India That's so note on the port will say, with And be completed be levels tonnes. X.X heels moment case. at really of in contract million usable. Lake, levels time Salt you that at the Duffy, look level reserves, forward. agreement tonnes that will X.X are those Inventory going inland this the demand that and strong of the strategic and of is at end last that's Qinghai the million about

level to the point. Canpotex inventories your are So of to through it's that committed has right said low, end August.

seen remains demand the coming in be situation will with very evolve inventory this it and so to China contracting strong with how And levels down.

China. see contract potash the sending frankly, of to as demand new that So the remains around in watch price as to a for again, this yes, seen it new a level we discussion into And as I world think markets timing plays be strong depletion numbers the reflected China. to opposed you other that as in with, in suppliers And Canpotex' well. inventories higher-netback much targeting and or


the Raymond James. Your from line with Hansen Steven comes next question of

Steven Hansen

the And clear appreciate in have I quarter strategy first Thanks. front that on at good all? the if see noted that guys. you leader digital years. I'd particular strategy in to speak you Nutrien industry doubled digital recent been has going sales and just Mayo, forward it. Can perhaps here. in digital how platform the Yes, changing, a here morning

Mayo Schmidt

success we've One, Happy last over you. course That Canadian rolling of to. the year. good digital out the strategy. in Thank had has the been Okay.

the and we're are assist growing And order do demand staff X,XXX have and that. that that their and to farmers. also to the for we we've And producers think robustly were supporting As able the willing agronomists been we about the seeing receivables seeing how that moving and on out. U.S. in digital forward, the we're working strategy roll really platform. good We're a of fortunately, support progress that, behind input, own some payment on we'll

So ESG our all them needs And experience that rolls you thinking a not pilot of helping their is even for while below the on producers that our us, we target digital only of acres, XXX,XXX precision if in which into matter think And look platform at sustainability. digital oversubscribed for total with with we in of program. it's farm carbon also of planning combination that about enhancing our acreage agriculture. about the were support have we

input and we it's many, there's course, and do fertilizer the we the do, then, So whether that or the receivables. it's planning whether financing seeds of

at about positive It's It's a company. the level quite of we're big It's requiring effort. every So, focus across it. leadership.


question Your next with from the comes of Patel Rikin Exane. line

Rikin Patel

on Mayo, just a question nitrogen.

tender the And market? guidance or mentioned you've you do year. for expectations end the million import that secondly, any then Indian have current an exports upper this impact on Firstly, X.X tonnes might how and Chinese of urea

Just curious you scenario of to Thanks. what that million? takes sort X.X

Mayo Schmidt

please? experience that that in I'd area. like He's to Jason, question. Jason to got great ask address

Jason Newton

question. Great morning. Good

support in some terms the come provided you're It international seeing something, tender, of the that's In of urea of the market. couple I to the is over Indian certainly past offers weeks, today. think

I think that Chinese well export the situation. leads about into talking

our last of drives top and the to think bumped tonnes. of end we've end Chinese urea of with the X.X getting what is And delay exports top and The the in million the some in So range would four be where line exports range ramp-up commissioning the of of million second year-to-date year. production in but a the about to those projected coming between be from Indian forecast on We as of I in were to tonnes projects is urea one addition in the down full India. strength that's onstream XXX,XXX bit tight year, of a know projects is is up that And and urea demand that continued we the to India. year. see half

there's the import doesn't happen, flows that Indian export if and So, directly through Chinese urea that expectations. demand, in to upside


next of Your question from line Lee comes Fai the Odlum with Brown.

Fai Lee

your Mayo, role. aboard here. welcome Fai Hi new

Or to create see little bit side. recurring platform on towards in -- onto digital of future? been in more a Just you stream trying you around digital to the of the what's somewhere thoughts revenue see platform, through but -- it's a like digital you kind new, the the get do your that? maybe terms your farmers Do do now right question -- opportunities strategic plan, expanding moving like on stable, the

Mayo Schmidt

digital areas. as acceleration for whether in it's some not And producer, And in it's only be pay that think think of those we're I efficiencies going there's some receivables, possible in certainly we the expand seeing pre-paids realize on Well, as experience opportunity to or to I going ag. but well. we're efficiencies

So, your I with point. agree

those a to I number think be are of discovered. things

although able we've of a to to Canada, rolled robust execution. out a about feel we it's U.S., the it's now. in operating we're that development now. of We experienced to we and going planning We've right course, were approach good adjust and so the right that be in haven't some platform very U.S., under the the had about to challenges experience And Canada. got We keen


have from Samuelson You of line Goldman the Adam follow-up question a with Sachs.

Adam Samuelson

on this get apologies I My color May rolled the calls multiple on seaborne think half. your like prices topped second little Tampa for up the the market you. contract bit It ammonia view about as morning. over. market a have Thank to earnings the in was seems we that nitrogen more hoping

And you. a Thank the urea I'm pick are and We do grain the demand -- the that prices just get cost actually for trying at we second and have Chinese given lower are environment sense how exports play going dynamics down, just price there up. seeing they're think half, if curve far we in to today?

Raef Sully

question. in second thanks the might about for what spent Obviously, Adam half. a happen time we of lot thinking

at macro me a demand. step just and for minute look supply let back the I think and

obviously a were about amount online. full the market moment million to XXXX at not so The million was year, same is and to tonnes If a a about at seeing degree. globally there through growing overall X.X and ammonia world-scale the nitrogen market where were supply, lot forward, you prices of think coming the we down. we're XXXX XXXX, projects of a X.X tonnes million XXX

now. So, about But COVID, that come XX%. dropped a second expecting We're due it and industrial that seen year's we we're quarter, you saw seeing back back strongly. come We've to little industrial a demand had to tighten and saw that decline earlier. demand tightening last

season. And spring marked be to as last similar get We're of were above we seen there's where year. don't just so will reset little certainly but think half expecting bit of going think always little we period very season, And spring it's as a as strong a We well there back the a may prices they be reset be a out that the in substantially through the we've historically. summer.


comes Byrne Bank the Your next with question America. from Steve line of of

Steve Byrne

thank Yes, you.

in. -- -- be would comment price product was first lock that when case? in My Just fertilizer channel ask during when on sales you a because is that of the to the a whether could priced follow-up move but off-season, of the understanding quarter wholesale tonnes retail I the still was is the relationship decision retail here. when in and intriguing. is as The to gross retail it And way moving product into expansion historically, the Can had margin inflation the fertilizer that robust.

right that sure as ground year was expansion simply that on essentially and nice was going second question the that well that your more sold quarter? so now, the represent this just sales in the locked importantly, the did And for margin perhaps I'm price? is pricing a purchase lock for earlier retail the fertilizer quarter are And in to in channel volume on when

Mayo Schmidt

trade demand, I'll But one here, with things our with located, internalization start question. is record handling two. to to be between unique the internalization our in the going of my we of where system that sector. and between also and for are of that balance past outside And look uniquely this we chemicals, the to the and to positioned retail. Steve And that's agriculture fertilizers certainly, the at the own to me in but transact in the system And sales to be in of our the the wholesale terms let the marketplace. Jeff of isn't we there's and program peers transportation, as able pull do just Thanks wholesale logistics

maximize we opportunity look unique both So, and do margins. our really to that externally have to internally

to like you the comment? So Jeff, would continue

Jeff Tarsi

Yes. remark would Mayo. you're Sure, and with be our And Sure. many the move spring. And that as of look, my we network through our tonnes Steve, into first the into fertilizers, move fall familiar to network.

time of it. on again those into great lot that -- add, and it. to worked of proprietary basis, with like done that to our hard also the last would that we've such. month to giving as we'll grow job it were figure guys of Obviously, season. with of have that contributing really tonne great look, that running things obviously, ready it's margin I We to another as of going call there time fall see inventory well, to putting fall. as we well. we margin And did can. for rate to prices, price and as normalized well Steve, crops as this out -- per-tonne able on that you'll optimistic start are products this a trying getting on these we think to I'll fertilizer we going obviously maximize And basis their with per we're you've are a We're also about back have and increases fall we're obviously that seen some kind advantage relates that, seen some a the tonnes. really earlier, as prices. our numbers, to anticipate the I I and buy be well every to the actually in And margins But our these think or I've with that second came out close take a turn. those we having able as have lower to -- in on more We going in strong And into layer of replacement quarter, as lot what start again, to inventory from today. product into some market to demand mentioned advantage And of as and And too. take to because growers inflation of ahead so of we've were saw our sheds, that chance first quarter, as work we've fertilizer that at first nutritionals, we're done well strong yield But to


line Roberts the of with UBS. from comes question John Your

John Roberts

XX% particular there organically? And You're increase? to is margin you any get that that's of products expected XXXX. retail in drive category targeting from proprietary there Can

Mayo Schmidt

that please? do one, have you Jeff,

Jeff Tarsi

Yes, yes.

Dyna-Gro through we're gotten I think that investments Proven quarter I off you a seed with first nutritionals we talking about see can think, and And numerous on with get whether proprietary side We've start acquisitions to, made business. fantastic business, the there it. crop our brands and protection proprietary we've our our of organically. or look, with

are revenues up. Our

high -- Our especially pricing, are GP commodity an we lot products very see demand that and in of up. Again, strong environment of a our in we to is nutritionals see our like date.

on protection. a nicely protection measure percent positioned crop to things well. very And segment is these adjuvant/surfactant there as a I crop nice at see again, of we them like for Our And look well markets. metric markets. as increases on our We --

investments be in don't And So side it I lot a logistics going we an those and think to that. XXXX. with forward, make I that we're business. the the and you more talked think you; don't good to we working -- from in get think we more that got honest portfolio acquisition that manufacturing that about say, side standpoint. of know about we've that of takes utilize the business I to do normal extremely we and our to But that metric to investment, side we're optimistic that on I I are trajectory it of can a efficient really want built, and make things


the Morgan Stanley. Your with Vincent of line question comes from Andrews next

Vincent Andrews

about Is I just field don't in And that but farmers work the of leading for seed rates competitive has to talked outside just greater question seeing XQ it do doesn't about application doesn't in this is, business. some the sounds that proprietary discussed or retail U.S. it of then want competitive comments it issue protection, was favorable to seed, on have elevated you allowing whatever sound meant in both. a you sort seeing your you're was or you talked application might in it conditions. the your your whether think had place understand crop I yet, where that -- like in otherwise to potentially the taken you're like on been environment I that that, soybeans? whether And

Jeff Tarsi

You want to take me Mayo? that,

Mayo Schmidt

But Yes, please David, terrific please. And if also. you'd like in that's continue. to bring

Jeff Tarsi

Yes, yes.

conditions, season. for in this XXXX and good season, we an you into against of really on both a I get XXXX. our -- late to had have you yourself XXXX fall, it, XXXX side in protection we early, crop -- to Last fall last back harvest getting and come think and soils of late early able harvest most had the we prepared you have difference were with as take XXXX to really yourself tremendous compare years makes and to where and XXXX the cropping that

there's progress it of I versus do well of We the where start relates such. would on lot think Growers that things from spring And seen side that you because in that a burndown also with protection that as need we lot we lot that. year. on versus a able pre-emergence-type We've crop make. week acreage and side, versus -- practices, year decimating jump protection a to normal as and Xtend their crop really side planting. capacity some to a add if start are it to of I competing But anything just and put really Enlist, the David, chemistries it's right know competition our a crop for the competition keen might you soybean you a to see things with well. with for side tillage, not I to that in. planning now matter. get this versus that use organically or that competition that that's call the into is were got and I as say some in we on chemicals it of weeds up don't relates unusual farming and you during able of are able it, corn if of We're more Please the would mechanically on come and want also prior business well the to traits say to would of really herbicides as there. cotton anything seed course this were bodes creates there to the not past or have you soybean that that to that

David Elser

also think the Jeff. Particularly EX, question. of sort do Yes, us this to marketplace choices XX% the of our new a the seed offered but in north in on has position of perspective. a growers a put in HT of but introduction to an great getting trait a I good from the from And only genetic of offer HT probably competitor platform side, also, perspective terms platform, year, not that's

spot platform terms And so But is Jeff, has on. introduction everything opportunities. new you crop of offered said protection in the about seeds, us the HT of


line next your from is the Andrew open. line Wong comes Markets. Capital Your question of Andrew, RBC with

question from next with line comes Your the Adrien of Tamagno Berenberg.

Adrien Tamagno

question potash. One with morning. good Hello,

with you. Thank Assuming willing do point? this some how stage? cooperation the you Jansen at BHP see some at talks goes price through, have to project Or be you would

Mayo Schmidt

system, We've and tremendous to mines. the when by low-cost their a leave to continue There'll demand We're be got network producer world's economics rock flexible see our potash do Adrien. our But mines, grow. and focused I'll about to driving Thanks business and certainly and We them. largest the six value expect long-term think capacity. most on decisions for a shareholders. we potash obviously of competitor, soft we're miner

team Our the to the a water. XXX car tremendous business, loading historically in with I industry, as automation you proven job XXX think going remarkably too potash of, great getting tide about a track and our Ken and going to trains, his a done well now other trains thing was been I has have record. And loading think car and water. success tide know, Ken's

and a in internal So, system. combination of it's and the really we're infrastructure, our balanced external well

And on price you Ken, the and time, with the may cooperating comment but the idea obviously out So, by you're was to And wish automation same costs programs bringing. focused really at further of efficiencies. about impressive. we're or taking challenges your $X competitors quite

Kenneth Seitz

the Yes. maintain make available including, advantages significant beyond go We into five as we yes also From you competitive but costs mean in brownfield absolutely. our would -- pretty that feel on of and what million future. market production be on we about competitors -- most so opportunities capacity work you, And our I doing. No, that the development just doing Mayo the just mine the own And are of Adrien, that. we're said, of Mayo. have world, that we Mayo costs tonnes described, ready our some layer brownfield of decisions of independent to some good thank position. opportunities then our the the

example one projects mining just our several have in get of mines mine all on of with to have operator-not-present We improve we're the well. that's the And and outfitting And our machines balance of largest safety. at in potash the we equipment the world Rocanville. better, costs as reduce way

pretty good trajectory and with where heading our we our So feel about we're decision-making.


closing back There time. over would for remarks. call now at any I to or are no additional turn further Richard to Downey this questions the like

Richard Downey

operator. Thanks for everyone, Well, thanks, listening today.

Investor any good of any Thanks. have Relations And have day. available you questions, to If interest. to further is Bye, areas bye. a respond


conference today's call. gentlemen, this conclude Ladies does and

may disconnect lines. your now You