Unrest at the top of fertilizer giant Nutrien

Things are rumbling in the board of Canadian fertilizer manufacturer Nutrien. CEO Mayo Schmidt is stepping down eight months after taking office, the fertilizer giant announced yesterday (Tuesday, December 4). Ken Seitz, the current director of Nutrien's potassium division, will temporarily succeed him as interim CEO.

Nutrien claims to be the largest fertilizer producer in the world. The company annually produces and distributes approximately 27 million tons of potash, phosphate and nitrogen fertilizers. The reason for Schmidt's departure is left open by Nutrien. “Nutrien's board of directors, together with a recruiter, will begin the search for a long-term CEO who will take the company to the next stage,” writes Russ Girling, chairman of the board of directors of Nutrien.

Investors don't like turmoil
Schmidt's departure raises the necessary questions for (stock exchange) analysts. Girling's words 'the next stage' raise eyebrows. Does this mean the increasing competition in the potash market, which is very important for Nutiren, or is it more the requirements in the field of climate-neutral production and the energy transition? Due to unrest in the top of the company yesterday, the stock price dropped 4% compared to the previous day after the news was announced.   

According to analysts, Nutrien's current position is excellent, especially with the boom in the agricultural sector in mind. Fertilizer prices have risen sharply, demand is good and analysts say the company is in a position to take advantage of competitors' supply problems. In the third quarter of 2021, this already resulted in the highest net profit in the history of the company and the value of Nutrien's share more than doubled in just under two years from $36,30 in March 2020 to $97,30 in December 2021.

Jurphaas Lugtenburg

Is editor at Boerenbusiness and focuses mainly on the arable farming sectors and the feed and energy market. Jurphaas also has an arable farm in Voorne-Putten (South Holland). Every week he presents the Market Flash Grains

j.lugtenburg @boerenbusiness. Nl

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