TAMPA, Fla.–(BUSINESS WIRE)– The Mosaic Company (NYSE: MOS) today announced that it intends to reduce fertilizer production until markets improve. The company plans to decrease phosphate production at its Central Florida facilities by 150,000 tonnes per month, in addition to the 500,000 tonne reduction it implemented in the second half of 2019 primarily in Louisiana, and will continue to operate at lower rates in its Canadian potash business. Production in both phosphates and potash will return to full rates when required to meet customer needs.
“A third consecutive disappointing application season in North America has led to continuing high inventories and price weakness. Mosaic will not produce at high rates when we are unable to realize reasonable prices,” said President and CEO Joc O’Rourke. “We believe our extended production curtailments will contribute to balancing the global supply-and-demand picture as we move into 2020. With fertilizer-depleted soils and rising agricultural commodity prices, we continue to expect robust demand and strong business conditions in the year ahead.”
The company expects its potash and phosphates shipment volumes for the fourth quarter to be modestly below its most recent guidance ranges. In addition, Phosphates segment gross margin per tonne is expected to fall significantly below the guidance range as a result of the low volumes and realized prices.