RE: Control of Brazil's Fertilizer marketI get it! So here's what you are saying;
1. Brasil imports almost all of it's Potash from Russia and Canada
2. Those producers don't just sell Potash to Brasil, but Nitrogen and Phosphates too
3. Farmers require Nitrogen, phosphates, and Potash for their crops
4. Blenders put togther these ingredients and sell them to the Farmers
5. Farmers pay a premium for imported Potash due to it's high FOB import price
6. Thermopotash will replace the Potash component in the NPK blended formula and cost the blender half of what it costs for traditional imported FOB Potash from the global market players
7. The blender can then sell NPK blended product at either the same price or even a premium to Farmers in Brasil because the new NPK blend can be considered a Super Blend due to it's slow release (no need to re-apply 2-3 times a year for the farmer - just once a year now!)
I think the company said it best here. My comments highlighted:
Benefits of ThermoPotash blended formulas to farmers:
-- Provides 13.4% of the potash in a slow release form;
Like I said, no need to
re-apply (buy $) 2-3 times a year!
-- Allows farmers to reduce their use of limestone for pH correction by 164
kg per tonne applied;
From the prior news by AMZ, this reduces the costs by
$20-$25 p/tonne + delivery charges paid by farmers! In Brasil, farmers buy 20
million tonnes per year. Cut that in half now using Thermopotash
blended NPK and the savings to farmers on this alone is $200 million+ per year!!!
-- Provides substantial doses of other macronutrients (calcium, magnesium
and bio available silicon);
Not sure how to quantify this but there is a
benefit and a savings in there somewhere!!!
-- No change in application method or cost.
This is huge. "I'm gonna give you our new and improved product that does more for the
same price or less and you don't gotta change nothin'. Just reap the benefits of
higher yeild on yer crop!"
Benefits of adopting ThermoPotash to the fertilizer blenders:
-- There are virtually no losses to fines in ThermoPotash (up to 10% of KCl
delivered in Brazil as granules ends up as powder due to transportation);
- In the days I worked in a bar, we called it breakage!
-- Lowers inventory risk due to long lead times (Brazilian blenders have to
wait approximately 60 days to receive KCl bought from Russia or Canada);
- Thermopotash is literally just down the street from the Farmers!
-- Increased profit margins (Blenders' margins average less than 5%).
"Dear Mr Blender; I have a better Potash product down the road from you right
here in Brasil and I'm gonna give you and infinate supply of it. It's gonna work
better than what yer using right now, yer customers don't gotta do nuttin different,
the government is gunno love that its got a made in Brasil label on it - yer customers
too! - and you're gonna make a higher % profit on it too! Do we have a deal????"