Large Increase in Micronutrient Sales in 2017
The growth was brought on by North American farmers’ increased demand for micronutrients says Fran Malecha, president and CEO of Compass Minerals.
“Specialty micronutrients are critical for farmers seeking to achieve the maximum value of each acre they farm, each seed they plant and each pound of fertilizer they use,” says Malecha.
Sales volumes for micronutrients and sulfate of potash were up 11 percent in this year’s fourth quarter compared to that of last year. Full year adjusted operating earnings were also up 19 percent from 2016.
The company introduced an improved go-to-market strategy which helped to increase the value of their specialty nutrient portfolio.
“This business tends to be more sensitive to ups and downs of farmer economics because it serves smaller growers who have fewer resources,” says Jamie Standen, CFO of Compass Minerals. “There is however, increasing interest from these customers to have access to our more innovative products, which will be something we pursue in 2018.”
In response to this growth in interest, Compass Minerals plans to expand their product portfolio in 2018.
“It won’t be as much of a price play in 2018 as much as a volume growth play,” says Standen. “We’ll be adding more high value stuff but we will pick up some of the lower value too as farm incomes are now stabilized.”
The company’s outlook for 2018 predicts a continued steady growth in micronutrient sales.