CALGARY – Fertilizer giant Agrium Inc. (TSX:AGU) is feeling the impact as Canadian railroads struggle to ship a bumper crop of grain to market.
Poor weather has slowed rail movements, causing huge stocks of grain to pile up in Western Canada and farmers to grow increasingly frustrated.
Agrium CEO Chuck Magro says his own company – a major exporter – has had trouble moving its crop nutrients to ports by rail.
He says there’s been an impact on fertilizer production as a result, but it hasn’t been big enough to materially affect its business.
Magro says farmers – losing money as their grain sits in bins – may also delay buying fertilizers and other products from Agrium.
Agrium also says an expansion to its Vanscoy potash mine in Saskatchewan is going to cost 25 per cent more than its original estimate due to frigid, windy weather and reduced labour productivity at the site.
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