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Looking at our Brazilian OperationsPotashCorp Makes its Mark in Growing Ag EconomyAs the Brazilian agricultural market grew over the past few years, PotashCorp was preparing to become one of the premier suppliers of high-quality dicalcium phosphate (DCP) in this burgeoning economy. A feed phosphate plant in the southeastern Brazil city of São Vicente made good business sense, so PotashCorp purchased Fosfatos do Brasil in 2000 and invested $11 million to improve its production capabilities and environmental safeguards.  Fosfatos do Brasil, São Vicente
Overall, production has nearly doubled under PotashCorp ownership, according to General Manager H. Sonny Fernandes, from 60,000 metric tons to 110,000 metric tons. Due to the investment in expansion, DCP production jumped by 32 percent in one year ? from 56,000 tons in 2003 to 74,000 tons in 2004. Another good measure of PCS Fosfatos' growth is shown by the number of trucks delivering raw materials to the facility and the truckloads of product leaving it, said Boulanger. "In 2000, a total of 2,274 trucks were weighed and loaded or unloaded," he said. "In 2005, 6,409 trucks were handled at the plant. That's a very significant increase." The local economy has also benefited. The plant's workforce increased by 26 percent, from 74 employees in 2002 to 93 in 2005, and local purchasing has more than quadrupled, from $45,000 in 2002 to $195,000 in 2005. In addition, cash donations of about $6,000 in 2005 helped support two impoverished schools and a local children's home. From an animal feed standpoint, PCS Fosfatos has room for growth, Boulanger said. "We plan to aggressively grow into the expanded plant by developing a stronger market position in mineral salts, which are used in cattle feed nutrition, and in direct sales of DCP to the poultry and swine markets." Newest facility in Lavras Last year, PotashCorp expanded services to Brazilian farmers by building an inland facility at Lavras in the state of Minas Gerais that combines a DCP bagging operation and a potash warehouse. This unit, which is 350 miles from São Vicente, is close to potential fertilizer and feed customers. After potash arrives at a port in Brazil, it is railed or trucked to Lavras and then distributed to fertilizer customers throughout the region. While the first shipment of KCl delivered to the Lavras plant was for 4,000 metric tons, PotashCorp plans to sell 50,000 to 60,000 mt through Lavras in 2007. A closer look at all of Brazil's ag production is available on the World Markets Map portion of the PotashCorp website - www.potashcorp.com/investor_relations/markets_information/ world_markets_map/.  Top
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