Five Top Fertilizer Stocks to Consider with a Potential $240 Billion Opportunity
Investors may want to keep an eye on the fertilizer market. Between now and 2030, the industry could be worth $240 billion from just $193.3 billion in 2021, according to Global Market Insights. According to the analysts,“The market is getting a lot of traction since it helps to increase crop output by giving critical nutrients to crops including nitrogen, phosphate, potassium, and other nutrients that promote soil fertility. Fertilizer consumption has risen fast, particularly in the agriculture sector, as the world's population has grown, resulting in increasing food need. Furthermore, agricultural output has decreased due to a shortage of nutrients in the soil caused by the use of pesticides and other toxic chemicals.” All could be beneficial for companies, such as Progressive Planet (TSXV: PLAN) (OTCQB: ASHXF), Nutrien Ltd. (TSX: NTR) (NYSE: NTR), The Mosaic Company (NYSE: MOS), CF Industries (NYSE: CF), and FMC Corporation (NYSE: FMC).
Look at Progressive Planet (TSXV: PLAN) (OTCQB: ASHXF), For Example
progressive planet , a leader in developing CleanTech solutions for the planet, advances its strategy to become a global supplier of natural fertilizers, with a confirmed reorder from a major North American manufacturer of fertilizer.
On February 27, 2023, progressive planet announced it had received an initial 40-tonne order of its volcanic-derived fertilizer ingredient , swelling bentonite, used in popular sulphur bentonite fertilizers. This additional 96-tonne order continues to expand Progressive Planet's entry into the $60-Billion USD North American fertilizer and agrochemicals market.
“Based on our historic customer-retention record, we were highly confident the initial fertilizer order would be the first of many,” said Progressive Planet COO Ian Grant.“Because the fertilizer ingredient is a mineral by-product from our established operations, each additional sale is important not only for building our fertilizer business, but also to boost margins of some of our branded products.”
“These branded products are an important piece of our growth strategy as they provide ready market access to many of the largest retail chains across North America for launching new, proprietary fertilizer products,” added Grant.
The dry-form fertilizer segment of the North America fertilizer market is expected to surpass $24-Billion USD in revenue by 2028, owing to the potential for easy storage and slow-release rate, which helps in efficiently feeding the crops for a longer time. Progressive Planet is aggressively developing and commercially introducing new, proprietary fertilizers into this market over the next 12 months.
Other related developments from around the markets include:
Nutrien Ltd. announced its first quarter 2023 results , with net earnings of $0.6 billion ($1.14 diluted net earnings per share). First quarter 2023 adjusted net earnings per share was $1.11 and adjusted EBITDA was $1.4 billion.“Nutrien delivered adjusted EBITDA of $1.4 billion in the first quarter and continued to demonstrate the advantages of our flexible, low-cost production assets and global distribution network. We invested in initiatives to sustain and grow our asset base and returned $1.1 billion to shareholders during the quarter,” commented Ken Seitz, Nutrien's President and CEO.“Crop input demand has strengthened as the spring planting season progresses in the northern hemisphere and higher cost inventory is moving through the channel. We are encouraged by the continued stabilization of fertilizer markets following a year of unprecedented volatility and anticipate increased demand in the second half of 2023 due to strong agriculture fundamentals, improved grower affordability and lower inventory levels. With fertilizer prices near mid-cycle levels, we expect to generate strong operating cash flows in 2023 and to maintain a balanced and disciplined approach to capital allocation.”
The Mosaic Company reported net income of $435 million, or $1.28 per diluted share, for the first quarter of 2023. Adjusted EPS was $1.14 and Adjusted EBITDA was $777 million. Gross margin was $670 million.“Mosaic delivered another strong first quarter,” said President and CEO Joc O'Rourke.“While fertilizer prices have pulled back from last year's peak levels, they remain constructive. At the same time, North American fertilizer demand has accelerated as growers are being incented to maximize yields.”
CF Industries , a leading global manufacturer of hydrogen and nitrogen products, announced results for the first quarter ended March 31, 2023.“The CF Industries team executed our business well in the first quarter of 2023 as we worked safely, delivered strong operational performance and advanced our clean energy and growth initiatives, including our agreement to buy the Waggaman ammonia production complex,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc.“Despite downward pressure in the global nitrogen market compared to the unprecedented pricing environment in 2022, industry fundamentals remain positive and forward global energy curves suggest attractive margin opportunities for our cost-advantaged network for the foreseeable future. As a result, we expect to continue to drive strong cash generation, enabling us to create long-term shareholder value through disciplined investments in clean energy, inorganic growth opportunities and returning substantial capital to shareholders.”
FMC Corporation and syngenta crop protection announced today an agreement to bring to market a breakthrough technology to control weeds in rice in Asia. The new active ingredient, tetflupyrolimet, was discovered and developed by FMC with support from Syngenta for development in rice. It is the first major herbicide with a novel mode of action (DHODH – HRAC Group 28) in more than three decades, providing relief to farmers challenged by increasing weed resistance to existing herbicides.
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