The US-China trade battle has benefited Yara’s operations in Brazil, a country not topic to newly enforced Chinese tariffs on agricultural products, executives at the Norwegian fertilizers.
The export-oriented United States agricultural sector has been at the center of the trade war as China is a big client of soybeans, corn, and different products produced within the US.
Yara’s sales in the US haven’t been enormously affected by the conflict and, furthermore, the dispute has assisted its operations in Brazil where producers are replacing US suppliers to China.
“If anything, in the quick term we’re benefiting [from the US-China trade war]. We have now a clear position in Brazil, and because of the trade conflict but additionally, due to the weather – production is coming to that country from the US,” stated Terje Knutsen, Executive vice president for sales and marketing at Yara.
“The response is in Brazil, and this gives a lift to production there, where our position is relatively for much longer than within the crop section in the US.”
Knutsen added that Yara’s operations within the US the place not centered in the Midwest farmlands, however on the East and West coasts, where there are “high value” crop operations.
The Executive said – For that cause – whereas the Midwest was profoundly affected by floods in the second quarter, procrastinating the planting season, extreme weather didn’t affect Yara’s operations.
In Canada, weather patterns are different, allowing Yara to whether the flooding issues which affected farmers additionally.
Yara is due on a report of second-quarter financial results on 16 July.
The fertilizers major declared earlier it was to carve out its industrial nitrogen operations by early 2020.