Profile: Agrium Inc (AGU.TO)

Agrium Inc. (Agrium), incorporated on December 21, 1992, is a global producer and marketer of nutrients for agricultural and industrial markets. The Company operates through its three business units: Retail, Wholesale and Advanced Technologies (AAT). AAT uses three production methods: coating methods, where various fertilizer substrates are encapsulated to provide a desired release profile; reacted slow release production, where urea is combined with other nitrogen elements to produce a slow release profile; and the packaging and blending of fertilizers. During the fiscal year ended December 31, 2012, Agrium reported its business through three business units and a fourth non-operating business unit for Corporate and inter-company eliminations.

Retail

Agrium’s Retail business unit markets crop nutrients, crop protection products, seed, merchandise, application and other agronomic services through 1,220 retail locations in the United States, Canada, Australia (including franchise outlets), Argentina, Chile, Brazil and Uruguay. North American Retail locations include approximately 591 branches, which are facilities supporting a specific market area and customer base, and approximately 209 satellites, which are used to position equipment and product to specific markets and customers in support of a branch. In 2012, Crop nutrients accounted for approximately 45% of Retail’s total sales. In 2012, Agrium’s Retail crop protection business was approximately 34% of Retail’s total sales.

In Australia, in addition to crop nutrient, crop protection and seed, Retail, through Landmark, also offers a variety of livestock-related merchandise, including fencing, animal identification merchandise and various animal health products and services. Some of Landmark’s subsidiaries are also involved in the export of cattle and wool.

Agrium’s Retail business unit offers several agronomic services in addition to the custom application services and soil and petiole testing previously mentioned. The Company owns and operates a laboratory in California where soil and petiole tests are performed. In the Western United States, the Company uses a system of weather tracking stations to monitor crop disease conditions and irrigation requirements in high-value crops.

Wholesale

Agrium’s Wholesale business unit manufactures, purchases and markets a full range of nutrients including nitrogen-based, potash and phosphate-based crop nutrient products. Wholesale owns and operates five North American nitrogen facilities, four located in Alberta, Canada and one in Borger, Texas, United States. The majority of the nitrogen produced in Alberta is sold in Western Canada and the North Western and Northern Plains regions of the United States. Nitrogen products from Borger are sold in the Texas Panhandle area and ammonia is sold by pipeline to the Western Cornbelt. Wholesale has a 50% joint venture ownership in a nitrogen facility located in Bahia Blanca, Argentina (Profertil). Product from Profertil is sold within Argentina and to other South American destinations. The Company also owns and operates a number of facilities that upgrade ammonia and urea to other products such as urea ammonium nitrate (UAN) solutions and nitric acid.

Wholesale owns and operates a potash mine and production facility at Vanscoy, Saskatchewan, Canada. As of December 31,2012, its potash mine capacity was two million product tons. Approximately 37 % of Vanscoy’s potash production is sold internationally. The Company’s Redwater, Alberta facility produces sulphur and phosphate-based fertilizers.

Advanced Technologies (AAT)

Agrium’s AAT business unit is a producer of fertilizers, including controlled-release crop nutrient technologies and professional products. AAT utilizes urea produced at the Company’s Wholesale Carseland facility in their production of ESN and Duration.. Crop nutrient technologies include the manufacturing and marketing of controlled-release crop nutrients and micronutrients that are sold to the crop nutrient industry worldwide. AAT has arrangements with distributors in North America. Controlled-release and micronutrient technology products are produced in six production facilities located in the United States at Sylacauga, Alabama; Reese, Michigan; Fairbury, Nebraska and New Madrid, Missouri; and in Canada at Courtright, Ontario and Carseland, Alberta.

Professional products include the sale of controlled-release nutrients and pest control products, primarily in North America, to the professional turf market (golf courses and lawn care companies), horticultural market (greenhouse, nursery, specialty agriculture), and the structural pest control industry (residential and commercial structures). Professional products are marketed through a network of distributors through a direct to market approach. Professional products are purchased from suppliers or produced in four production facilities located in the United States at Sylacauga, Alabama; and in Canada at Brighton, Ontario, Putnam, Ontario, and Courtright, Ontario.