Mosaic Co. on Tuesday said it will cut phosphate fertilizer production, a move that will result in lower operating rates at the company's mines and plants, but is not expected to cause layoffs.
Plymouth-based Mosaic said the production cut stems from rising input costs coupled with weak commodity prices. Fertilizer prices often track corn and soybean prices, and both are down compared to a year ago. At the same time, prices for sulfur and ammonia — key ingredients for phosphate fertilizer — are high.
"Phosphate raw material input costs are disconnected from fundamental agricultural economics," Jim Prokopanko, Mosaic's CEO, said in a news release.
Mosaic's stock closed down 2.2 percent, or $1.01, to $44.41 Tuesday.
Mosaic, one of world's largest fertilizer producers, has phosphate operations in Florida and potash fertilizer operations in Saskatchewan.
Mike Hughlett
