Nutrien, a leading fertilizer company, has announced plans to increase its production of potash by 40% over the next three years. This decision is seen as a response to the ongoing conflict in Ukraine and Russia, which has disrupted global food supply chains.
The company’s CEO, Dave Stoch, stated that Nutrien sees "long-term structural changes" in the market due to the conflict, and believes that increasing production will help meet growing demand for potash. He added that the company is confident in its ability to deliver strong returns on investment, citing a record $1.4 billion in net earnings in the first quarter of 2022.
Nutrien’s decision to increase potash output is seen as a positive sign for the company and its shareholders. The stock price has risen 23.3% since January 4 to $112.53 per share. Additionally, the company announced plans to spend an additional $2 billion on repurchasing shares this year, bringing the total return to shareholders to nearly $5 billion.
The conflict in Ukraine and Russia has had a significant impact on global food supply chains, with many countries applying fresh scrutiny to the security of their food chain. Nutrien’s decision to increase production is seen as a response to this disruption and an attempt to capitalize on growing demand for potash.
Overall, Nutrien’s announcement is seen as a positive development for the company and its shareholders, but also highlights the ongoing impact of the conflict in Ukraine and Russia on global markets.