Top Fertilizer Manufacturer Nutrien to Exit Argentina and Chile

23 April 2024, Argentina: Nutrien Ltd, the largest global fertilizer manufacturer, has announced its intention to sell its retail operations in Argentina, Chile, and Uruguay. The company aims to shift its focus to Brazil and other international markets, prioritizing key areas to enhance investor returns, according to a spokesperson’s statement to Bloomberg.

Nutrien, which has had a presence in South America for over 25 years, is striving to recover from a disappointing performance in the last quarter of 2023. Plunging fertilizer prices had a negative impact on retail outcomes during this period.

In its annual report, Nutrien highlighted that currency controls in Argentina resulted in financial losses when transferring funds out of the country due to the utilization of a more expensive exchange rate. The newly appointed President, Javier Milei, has pledged to eliminate these controls as part of his agenda to deregulate the economy.

Several other companies have also withdrawn from Argentina’s challenging business environment in recent years, including HSBC Holdings PLC and Walmart Inc. In 2021, Bayer AG divested its Argentine soy seed business.

Nutrien has not disclosed its plans for its 50 percent stake in Profertil SA, a joint venture with the state-run oil company YPF SA that focuses on urea and ammonia manufacturing. YPF, under new management appointed by President Milei, is actively considering asset divestment to concentrate on shale drilling.

Nutrien has assured its commitment to supporting all customers and partners throughout the divestment process.

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