It’s been almost a year since the official formation of Nutrien (which happened on Jan. 1, 2018 as Potash Corp and Agrium merged). Nutrien CEO Chuck Magro gave an industry and company update at the 2018 Ag Retailers Association conference on Nov. 28. He provided three challenges in the industry today, three changes that are coming, and the two things Nutrien is doing to prepare for the future. “The U.S. ag retail industry is the gold standard around the world,” he says. “And there’s a reason for that. I was in China two weeks ago, and they said they want to duplicate what we have in the U.S. I’ve heard the same in India and Brazil. They see the value the U.S. ag retail industry brings to the farm. Over the past 50 years, this business has proven to be low-cost and value-enhancing to farmers.” He says in the next five years the company will invest $4 billion in its retail business. This includes retail footprint investments in the U.S., Canada, Australia and Brazil. It also includes their investments in the Integrated Digital Platform, which was first introduced in July. According to Magro, the three challenges facing the industry are: The three changes Magro sees coming to the industry are: Magro says with those challenges and changes, Nutrien has decided to not sit still. He references the $4 billion that will be re-invested in the ag retail channel (that sum is part of the $6 – 8 billion expected to be raised after the final sales of properties as part of the company’s regulatory agreement at the time of the merger and from base operations). “These investments will help move our retail business from just an inputs business—buying and selling inputs and services—to be an outcome company not just about improving yields for farmers but also profitability,” Magro says. The company’s investments in technology will help pave this path. Every year, the company intends to spend $100 million on development, with a focus on its Integrated Digital Platform. In the first quarter of 2019, the company will launch e-commerce for limited products on the Integrated Digital Platform. “After five months of launching our new platform, we have 40% of all North American revenue signed up and conducting transactional business with us,” he says. “And we feel compelled to enter the e-commerce space. We want to be seamless to do business with—on the phone, in person, or online.” Also related to technology, Magro says while Agrible had an impressive e-commerce platform, they were most appealing to Nutrien as an acquisition because of their sustainability platform. He says providing this kind of traceability and transparency will be an important value to farmers moving forward.
Fertiliser giant plc is expected to invest $ 200 in its agricultural retail business in the US , Canada , Australia and overseas . The extra funding , which will be injected over the next five years , will also help to grow the company 's Integrated Digital Platform , with the intention of spending $ 100 m per year on developing the technology , along with the Q1 billion launch of an e - commerce platform for limited products . Finance for these ventures will be raised from the $ 6bn-$8bn divestment of assets that was ordered by regulators when Nutrien was formed from the merger of global Corp and Agrium this year .