Nutrien Exits Argentina, Chile, and Uruguay; Focus Shifts to Brazil

Nutrien, the global leader in fertilizer production, has announced its intention to sell its retail operations in Argentina, Chile, and Uruguay. The company aims to streamline its focus on Brazil and other key international markets. A Nutrien spokesperson, in a statement to Bloomberg, cited the company’s prioritization of boosting investor returns as the driving force behind this decision.

Nutrien’s operations in South America span over 25 years. The recent downward trend in fertilizer prices significantly impacted retail results, causing the company to miss profit expectations in the latter part of 2023.

Argentina’s currency controls also contributed to Nutrien’s challenges. The company’s annual report stated that losses were incurred when transferring currency out of the country due to unfavorable exchange rates. However, with newly elected President Javier Milei promising deregulation and the removal of these controls, the economic landscape may shift. In recent years, other multinational companies like HSBC Holdings PLC and Walmart Inc. have exited Argentina’s difficult business climate. Bayer AG followed suit in 2021, discontinuing its Argentine soy seed business.

Nutrien has not disclosed its plans for its 50% stake in Profertil SA, a urea and ammonia manufacturing joint venture with Argentina’s state-run oil company, YPF SA. Under Milei’s leadership, YPF is aiming to divest assets for a greater focus on shale drilling.