Laser focused on its future, Nutrien has a new era of growth for its Nutrien Ag Solutions retail division–aiming for $2 billion in EBITDA by 2026. Company leaders are targeting four growth opportunities:
- Proprietary products
- Expansion inside of core markets
- Nutrien Financial and Nutrien Digital Hub
- Business optimization
Specific to its U.S. business, here’s the road map they have shared.
Proprietary Products
“Our strategic priorities will be focused on being the leading customer first ag solutions provider,” says Jeff Tarsi, executive vice president and president of global retail, Nutrien Ag Solutions.
One key driver will be the company’s proprietary product lineup, sold under its Loveland Products, Inc., brand. In the past five years, Nutrien has invested more than $500 million in its crop nutrition and biostimulant portfolio and capabilities through targeted acquisitions, product innovation, and expansion of its manufacturing capacity.
Earlier this year, Nutrien Ag Solutions acquired Suncor Energy AgroScience assets, which consists of several patented and patent pending biocontrols including its chlorin-based photosensitizer technology. Nutrien Ag Solutions will add these chlorin-based photosensitizer technology formulations to the Loveland Products lineup with anticipated product submissions to the EPA in the U.S. by 2026.
Expansion In Core Markets
Transforming its ag retail footprint, Nutrien is optimizing its network, driving efficiencies, and proactively seeking growth opportunities in innovation through acquisitions, value-sharing collaborations, and internal research capabilities.
“We have improved assets, efficiency and operational capabilities that our customer base expects from centrally located, efficient and safe operation sites,” says Nutrien CEO and president Ken Seitz.
Tarsi adds Nutrien Ag Solutions has had a 20-year track record of growing by acquisition.
“The opportunity always and continues to exist to expand into core retail markets through opportunistic acquisitions, we refer to those as tuck ins,” he says.
Being on the ground with agronomic support is foundational.
“We have the largest agronomic force on the planet with the power, knowledge and work history of more than 4,000 agronomists,” says Rob Clayton, Nutrien’s Ag Solutions senior vice president of North America retail. “It’s a big network with a large investment behind it to bring size and scale in our agronomic knowledge and tools.”
Nutrien Financial & Nutrien Digital Hub
With offers that started around seed purchase financing, today, Nutrien Financial products also include crop protection, fertilizers and full acre solutions. Leaders see Nutrien Financial as a competitive advantage to increase sales and grow share of the grower wallet.
“Our goal is to meet the growers at their farm’s end row with advice built to their acre with all- encompassing conversations around agronomics and economics,” says John Maman, senior director with Nutrien Financial. “Regardless of interest rates and commodity prices, we can bring value to the farm gate.”
Nutrien Financial products are available to all Nutrien Ag Solutions customers pending credit application and approval.
Since launching its online digital portal in 2018, known as Nutrien Digital Hub, the customer experience has been the value driver.
“Our digital capabilities are customer facing and focused on improving the ease of doing business with us,” Seitz says. “It also enhances our agronomic capabilities and insights. This allows us to better serve our customers and support our organic growth.”
Clayton adds Nutrien is measuring both grower and internal use of its Digital Hub, which he considers to be an important relationship-building tool in the sales process.
“Digital is going to be part of an omnichannel relationship we have with our grower. Today, a typical agronomist has ‘digital’ interaction already embedded into their daily work activities,” Clayton says. “We see customers using our digital tools to research products, review their purchases and account status, and to receive digital feedback from us regarding questions about crop inputs and agronomic advice.”
Business Optimization
With an effort to improve its business from the inside out, Nutrien leaders have several goals.
“Since 2018, we have increased the amount of internally manufactured NPK supply purchased by approximately 15% in absolute tons. This represents an increase of 400,000 tons sourced with intercompany supply,” explains Mark Thompson, Nutrien’s executive vice president and chief commercial officer.
For its logistics and supply chain, Nutrien is investing in capacity and efficiency. In May, Nutrien commissioned a new terminal in Randolph, Minn. It has a storage capacity of 20,000 metric tonnes along with a 50-car rail yard capacity to provide efficient distribution. Along with the new Minnesota site, Nutrien has a 100,000 metric tons terminal in Hammond, Ind.
Tarsi highlights the organization’s proprietary Dyna-Gro Seeds (U.S.) and Proven Seeds (Canada) seed businesses as a target for ongoing growth.
“We’d like to grow more in the Corn Belt, both western and eastern, with our seed business,” he says. “We’re not trying to pick one seed business–we want to grow our seed shelf, regardless of whether it’s through our proprietary seed offerings or with our multinational suppliers. It’s a matter of just expanding our share of wallet.”
Economic and Supply Chain Realities
In the current economic cycle, Nutrien Ag Solutions leaders say they are ready to serve farmers through challenges.
“It’s about putting customers in the position to win in a changing environment with higher interest rates and lower commodity prices,” says Jeff Tarsi, executive vice president and president of global retail, Nutrien Ag Solutions.
The focus for the leadership team is to manage what they can control and be aware of the uncontrollables.
“Managing working capital is one of the most important things we do,” Tarsi says. “At Nutrien, we’ve done a good job managing down inventory.”
With high interest rates, it motivates the supply chain to avoid holding onto product any longer than necessary.
As such, to ensure adequate, timely supply, more frequent and detailed communication is needed from the field level demands through the supply chain.
“Collaborating with an agronomist is more important today to plan for the crop and type of chemistries needed,” says Rob Clayton, Nutrien Ag Solutions senior vice president retail North America. “The best of the best are thinking three to five years out for a crop plan.”
