MOS Overview - by Better Trades

As the world’s largest producer of phosphate and the second largest producer of potash, the two key ingredients in the production of agricultural fertilizer, the Mosaic Company (MOS) is headquartered in Plymouth, Minnesota and is a member of the Fortune 500.

As expected, the company operates in three primary business segments, Phosphates, Potash, and Offshore industries. Mosaic markets their products directly to wholesalers, independent retailers, co-operatives, and through national accounts.

Within the company’s business segments, is the Phosphates industry. this portion of the company’s business model produce phosphate fertilizer and feed phosphate that are used in crop nutrients and animal feed ingredients, respectively. Phosphate, an inorganic chemical, is the salt, or the neutralization reaction of acids and bases, of phosphoric acid.

Phosphate rock, sulfur and ammonia are the principal elements used in crop nutrient production. Phosphate rock minerals are the only significant global resources of phosphorus, which is an essential element for plant and animal nutrition.

The United States is the leading importer of phosphate rock. However, the U.S. is also the leading producer and exporter of phosphate fertilizers, accounting for about 37% of world’s exports. Mosaic’s phosphate rock production totaled approximately 15.8 million tons in fiscal 2008, with all of the company's phosphate mines located in central Florida.

The use of sulfur at Mosaic’s phosphate plants is the primary catalyst to produce sulfuric acid, which is then used to make phosphoric acid. It is the key building block for the production of concentrated phosphate fertilizer and animal feed products. During 2008, Mosaic purchased nearly 4 million tons of sulfur. In addition, during the year, Mosaic produced more than 4.5 million tons of phosphoric acid.

Mosaic's principal phosphate fertilizer products are diammonium phosphate (DAP), monoammonium phosphate (MAP) and Granular triple superphosphate (GTSP). Its production facilities include plants that produce single superphosphate (SSP) and granulated single superphosphate (GSSP) fertilizer as well.

The Potash segment mines and processes potash that is used in the manufacturing of crop nutrients and animal feed ingredients, as well as in industrial applications throughout Canada and the United States. Mosaic produces and sells potash internationally as well, with other applications used for de-icing and as water softener regenerates.

As for the company’s Offshore industry, this segment produces and markets fertilizer products that are phosphate-, potash-, and nitrogen-based crop nutrients and animal feed ingredients. In addition, the company also operates fertilizer blending and bagging facilities.

Incorporated in January 2004, Mosaic is a privately controlled public company that is a subsidiary of Cargill Inc., a private agriculture company that is headquartered in Minnetonka, Minnesota. As of May 2008, Cargill owned more than 64% of Mosaic’s interest. Cargill also has a 50% interest in Saskferco Products Inc., a Saskatchewan-based producer of nitrogen fertilizer and feed ingredient products.

Being a component of the Basic Materials sector, and more specific, the Agricultural Chemicals industry, Mosaic competes primarily with such public companies as Potash Corp. of Saskatchewan Inc. (POT), Agrium Inc. (AGU), Dow Chemicals Co. (DOW), EI DuPont de Nemours & Co. (DD), BASF SE ADS (BASFY.PK) and Total SA (TOT).

Mosaic also competes with privately owned companies like Yara International ASA, ExxonMobil Chemical Company, Shell Chemicals Limited, Mitsubishi Chemical Corporation, and Formosa Plastics Corporation

By Better Trades