Canadian Farmers Building the Next Generation of Fertilizer Production
Canadian Farmers Building the Next Generation of Fertilizer Production
Building Your Fertilizer Future in Belle Plaine, Saskatchewan
Genesis Fertilizers is proposing to finance, design and construct a highly efficient ammonia urea fertilizer manufacturing complex. One central production facility constructed near low cost raw materials serving a Western Canadian network of strategically located farmer centric SuperCenters.
Belle Plaine, Saskatchewan: Proposed Location of Genesis Fertilizers Nitrogen Fertilizer Manufacturing Complex
Configuration of Nitrogen Fertilizer Manufacturing Complex
THE SITUATION
How the Fertilizer Market Works Today
External Global Factors Control the Current Fertilizer Market for Canadian Farmers
Landlocked location away from shipping lanes.
Rising freight costs and increasing delays.
Fertilizer price volatility impacting profit margins.
Exposure to exchange rates and USD pricing.
1. Sources: The Alberta Government, Economic Dashboard. US Energy lnfonnation Administration. German Federal Office of Economics and Export Control (BAFA). ICIS Heren Energy Ltd. PJSC Gazprom public filings.
Western Canadian farmers use 2,800,000 mt of nitrogen annually with an average growth rate of 4% annually2.
2 Source: Alberta Nitrogen Price Update: Alberta Government Ag Fertilizer Report – Alberta.ca
THE SOLUTION
Local Fertilizer Production Owned by Farmers
A farmer-owned urea production and distribution network serving Western Canada. Farmers invest based on their fertilizer requirements, securing their future supply and receive financial distributions based on plant profits, off-setting the cost of fertilizer.
Ammonia urea fertilizer production complex 1,128,000 MT/annum
850,000 mpta – 75% of the plant’s annual urea production is being sold direct to farmers based on the number of tonnes used in their operation.
280,000 mtpa – 25% of the annual production is not locked in and will be sold on the open market.
Network of SuperCenters: Fertilizer Distribution Facilities
Strategically located across Alberta, Saskatchewan and Manitoba to efficiently source, store, blend, and distribute fertilizer directly to farmers, coming on-line with completion of the manufacturing complex.
Estimated Cost of Production
$ 106/mt Debt and Maintence
$ 61/mt Operations and overhead
$ 126/mt Variable costs and direct labour
$ 300/mt Total cost of production
Building the Future in Our Own Backyard
Southern Saskatchewan offers an abundance of accessible natural resources and is central to a large percentage of Western Canada’s farmland.
“ The Government of Saskatchewan has made it a priority to create a competitive business environment that supports major projects such as the Genesis Fertilizers urea facility. This new facility near Belle Plaine will undoubtedly benefit the people of Saskatchewan, creating more than 100 jobs and support farmers, producers, and related business owners. We look forward to continuing to work with Genesis towards completion of this project.”
Trade and Export Development Minister Jeremy Harrison, Government of Saskatchewan
LEVERAGING OUR RESOURCES
Western Canada Natural Gas Advantage
1. Sources: The Alberta Government, Economic Dashboard. US Energy lnfonnation Administration. German Federal Office of Economics and Export Control (BAFA). ICIS Heren Energy Ltd. PJSC Gazprom public filings.
TIME TO OWN IT
Take Control of Your Inputs and Your Farming Future
An estimated 20% of Western Canadian farmer-owned acres have the unique opportunity to own part of a fertilizer production and distribution network. This ownership both secures future urea requirements and annual cash distributions from plant revenues. They will be invested to own enough of the plant to cover their individual fertilizer needs and realize the profits on those tonnes through their ownership. Investors may also purchase units without fertilizer offtake.
Project Team Members
Business Plan and Strategic Planning
Complete Legal Services
OWNED BY FARMERS FOR FARMERS
“I invested because I truly believe in this vertical integration of farming and the fertilizer side…”.
Ward M – Kelvington, SK farmer
Ward M.
Kelvington, SK
Brian C.
Tadmore, SK
Jim M.
Moose Jaw, SK
Balfour and Sharon R.
Alberta
Donald K.
Cudworth, SK
James G.
Avonlee, SK
OWNED BY FARMERS FOR FARMERS
“I invested because I truly believe in this vertical integration of farming and the fertilizer side…”.
Ward M – Kelvington, SK farmer
Ward M.
Kelvington, SK
Brian C.
Tadmore, SK
Jim M.
Moose Jaw, SK
Balfour and Sharon R.
Alberta
Donald K.
Cudworth, SK
James G.
Avonlee, SK
