Businessweek

Agrium Inc. operates as a retailer of agricultural products and services, as well as a multi-national producer and wholesale marketer of nutrients for agricultural and industrial markets. Business Units The company operates through three strategic business units: Retail, Wholesale, and Advanced Technologies (AAT). Retail This business unit markets crop nutrients, crop protection products, seeds, merchandises, applications, and other agronomic services through 1,220 retail locations in the United States, Canada, Australia (including franchise outlets), Argentina, Chile, Brazil, and Uruguay. North American Retail locations include approximately 591 branches, which are facilities supporting a specific market area and customer base, and approximately 209 satellites, which are used to position equipment and product to specific markets and customers in support of a branch. This business unit’s market is primarily retail sales directly to farm customers, and also includes the wholesale sale of crop protection products to other retail operations. In 2012, the company completed various Retail acquisitions, primarily in the U.S. In total it acquired 59 Retail locations, with 44 in North America, 14 in Australia, and 1 in South America. The majority of these consisted of the acquisition of 27 locations through the acquisitions of West Texas Agri-Plex in Texas, Superior Deshler in Nebraska and Kansas, and Ritter Crop Services in northeast Arkansas. In 2012, the company also expanded its footprint in South America through the acquisition of Utilfértil Indústria E Comércio De Fertilizantes Ltda. in Southern Brazil. The establishment of this foothold position in Brazil builds upon its existing Retail presence in Argentina, Chile, and Uruguay. The company offers custom crop nutrient application services and employs a fleet of application and nurse equipment to custom-apply these nutrients at the prescribed rates. Majority of the company’s crop nutrient application rigs are also capable of precision application using global positioning system (GPS) technology, which allows nutrient application rates to be adjusted when required based on GPS grid soil sample test results. The company sells private label and proprietary crop protection products through Loveland Products, Inc. in North and South America. This business unit offers various agronomic services in addition to the custom application services and soil and petiole testing. The company owns and operates a laboratory in California where soil and petiole tests are performed. In the Western United States, the company uses a system of weather tracking stations to monitor crop disease conditions and irrigation requirements in high-value crops. In Australia, this business unit offers various other services, including wool sales and marketing, livestock auction services, insurance, and real estate agency. Wholesale This business unit purchases, manufactures, and markets a range of nutrients, including nitrogen-based, potash, and phosphate-based crop nutrient products for agricultural and industrial customers in the United States and internationally. This segment also operates in North and South America, and Europe. This business unit owns and operates five major North American nitrogen facilities, including four located in Alberta, Canada, and one in Borger, Texas, the United States. The majority of the nitrogen produced in Alberta is sold in Western Canada, and the North Western and Northern Plains regions of the United States. Nitrogen products from Borger are sold in the Texas Panhandle area and ammonia is sold by pipeline to the U.S. Corn Belt. This business unit also has a 50 percent joint venture ownership in Profertil S.A. (Profertil). Product from Profertil is sold within Argentina and to other South American destinations. The company also owns and operates various facilities that upgrade ammonia and urea to other products, such as urea ammonium nitrate solutions and nitric acid. In addition, the company holds a 26 percent interest in a urea facility located in Egypt. This business unit owns and operates a potash mine and production facility at Va