|
Customers | |
|
PotashCorp has a diversified customer base. In potash, Canpotex Limited (Canpotex), the offshore marketing company owned by the three Saskatchewan producers, handles all sales of Saskatchewan potash destined for markets outside of the US and Canada. Apart from sales through Canpotex, no one customer accounted for more than 10 percent of the company's sales in 2006. In North America, PotashCorp sells all three fertilizers to retailers, cooperatives and distributors that provide storage and application services to farmers, the end users. Governments and private importers in China and India tend to buy under contract, while spot sales are more prevalent elsewhere. Nitrogen and phosphate are important to industry as inputs for a wide range of products. Industrial customers for nitrogen products and phosphoric acid, including purified acid, are mainly based in North America. The company enjoys long-term relationships with industrial customers, such as BASF and DSM in nitrogen and ICL Performance Products and Innophos in phosphate. Offshore growth in industrial products that require nitrogen and phosphate inputs is being driven by rising incomes. Sales of animal feed products have significantly less seasonality and cyclicality than fertilizer sales. US bulk feed producers are the main feed customers, and their relatively close proximity to the company's plants is an advantage. Brazil and Mexico are the largest offshore customers for animal feed products. |
|

