NEW YORK (Reuters) – Fertilizer maker Mosaic Co (MOS.N) posted a 91 percent drop in fiscal first-quarter profit on Monday, but expressed optimism that farmers would increase fertilizer purchases in the near future.
Farmers, many of whom had stocked up on fertilizer earlier this year on fears prices would rise even higher, held back on purchases of key nutrients needed for crop production during the quarter that ended August 31.
The company, which is majority owned by Cargill Inc (CARG.UL), said it remains optimistic that farmers will apply more fertilizer for next year’s crop.
Industry analysts worry that because the 2009 corn crop went in late, there may not be time for a fall fertilizer application.
“We believe farmers will increase application rates in response to high 2010 new crop prices and the need to replenish the large amount of nutrients withdrawn by the record crop this year,” Chief Executive Officer Jim Prokopanko said in a statement.
The company is in the middle of a $5 billion campaign to boost its potash capacity by more than 5 million tons over the next 10 years.