Canpotex vs CWB

The potential takeover of Potash Corp is a huge political issue. One aspect of that debate involves Canpotex, the marketing arm for all three of the Saskatchewan potash companies – Potash Corp, Agrium and Mosaic. BHP Billiton has suggested that if it is successful in the takeover of  Potash Corp, it would favour marketing on its own outside of Canpotex. The worry is that this would cut the price for Saskatchewan potash. The Saskatchewan government and Premier Brad Wall have expressed this as one of their issues about the pending deal. It seems like a legitimate concern, but it’s inconsistent with their official position regarding the Canadian Wheat Board. While the CWB doesn’t fall under any provincial mandate, the Saskatchewan Party position is that farmers should have marketing choice for their wheat, durum and barley. Farmers are sharply divided on this issue and it’s a hot topic again this fall with CWB elections underway. In many respects, marketing potash and marketing grain are very different. In potash, there are a few producers, while in grain there are tens of thousands. However, it’s interesting to see the Saskatchewan government so supportive of single desk selling for potash while being so opposed to the same approach for grain.

I’m Kevin Hursh.

DynAgra, an independent Western Canada-based Company, is dedicated to providing growers with the tools to manage the risk and maximize the profitability of their farm business through the continued innovation of agricultural products and services. We are committed to developing and providing growers with the latest in precision agronomics, variable rate technology, soil fertility, crop protection, fertilizers, custom application and financial solutions.