Canada is a great place to start if you want to invest in the fertilizer industry. Canada is a significant player in the global fertilizer market, with abundant natural resources, a favourable climate, and an intense agricultural sector.
But with so many fertilizer companies, how do you know which ones are worth investing in? This article will examine Canada’s top fertilizer company stocks and what makes them stand out.
Whether you’re a seasoned investor or just starting, understanding the fertilizer industry and the companies that drive it is vital to making informed investment decisions. So let’s dive in and explore the top fertilizer company stocks in Canada.
Why invest in fertilizer in Canada?
Investing in fertilizer stocks in Canada can be a good opportunity for investors as Canada is one of the world’s largest producers and exporters of fertilizers. In addition, the country has a favourable climate for agriculture, and its vast landmass provides ample opportunities for the cultivation of crops.
Additionally, the demand for fertilizers has steadily increased globally due to the rising population and food demand. This trend is expected to continue, and fertilizer production and distribution companies will likely benefit from it. The Russian war in Ukraine recently led to the recent fertilizer price rally, which may help shares in some top fertilizer and potash stocks continue their rise on the TSX.
Furthermore, the Canadian government has supported the agriculture industry, which could provide a stable and favourable environment for the sector’s growth.
Best Canadian Fertilizer Stocks
With the abundant fertilizer industry in Canada, there are many established companies to choose from that sell their products across the globe.
Nutrien Ltd. (NTR.TO)
Nutrien is the world’s largest crop inputs and services provider, operating in over 14 countries. In addition, it produces and distributes various fertilizers, including nitrogen, phosphate, and potash. With a diverse portfolio of products and a solid global presence, Nutrien is well-positioned to benefit from the growing demand for food and agricultural products.
Agrium Inc. (AGU.TO)
Agrium is a major global producer and distributor of agricultural products and services, including fertilizers, seeds, and crop protection products. It has a strong presence in North America and other key markets, focusing on innovation and sustainability. As one of the most significant players in the industry, Agrium is well-positioned to benefit from the growing demand for agricultural products.
Mosaic Company (MOS.TO)
Mosaic is a leading producer and marketer of concentrated phosphate and potash crop nutrients. It operates mines, processing plants, and distribution facilities in the US, Canada, Brazil, and other countries. With a strong portfolio of assets and a focus on innovation and sustainability, Mosaic is well-positioned to capitalize on the growing global demand for food and agricultural products.
Canpotex Limited (private)
Canpotex is a private company that markets and distributes Canadian potash globally. It is owned by three Canadian potash producers: Nutrien, Mosaic, and K+S Potash Canada. With a focus on optimizing potash supply chains and meeting customer needs, Canpotex is well-positioned to benefit from the growing global demand for potash.
K+S Potash Canada GP (KSP.TO)
K+S Potash Canada is a subsidiary of K+S Group, a leading producer of salt and fertilizer products. It operates a potash mine and production facility in Saskatchewan, Canada. With a focus on sustainable production and customer service, K+S Potash Canada is well-positioned to benefit from the growing global demand for potash.
Western Potash Corp. (WPX.TO)
Western Potash is a development stage potash company focused on developing its Milestone project in Saskatchewan, Canada. The project will produce high-quality potash for agricultural, industrial, and other applications. With a strong resource base and a focus on innovation and sustainability, Western Potash is well-positioned to capitalize on the growing global demand for potash.
Potash Ridge Corporation (PRK.TO)
Potash Ridge is a development stage company focused on developing its Valleyfield project in Quebec, Canada. The project is expected to produce sulfate of potash for use in specialty crop markets. With a strong resource base and a focus on sustainability, Potash Ridge is well-positioned to benefit from the growing demand for high-quality fertilizers.
Agrocorp International Pte Ltd (private)
Agrocorp is a private company involved in producing, processing, and distributing agricultural products, including fertilizers. It operates in over 25 countries and strongly focuses on sustainability and innovation. With a diverse portfolio of products and a strong global presence, Agrocorp is well-positioned to capitalize on the growing global demand for agricultural products.
Terra Nitrogen Company LP (TNH.TO)
Terra Nitrogen is a leading producer and marketer of nitrogen fertilizer products, including ammonia and urea ammonium nitrate. It operates production facilities in Oklahoma and Iowa and distributes its products throughout North America. With a strong focus on quality and customer service, Terra Nitrogen is well-positioned to benefit from the growing demand for high-quality nitrogen fertilizers.
CVR Partners, LP (UAN.TO)
CVR Partners produces nitrogen fertilizers, including ammonia and urea ammonium nitrate.
How to buy Fertilizer stocks in Canada
Investors can buy fertilizer stocks in Canada through a broker or an online trading platform that provides access to the Canadian stock market. Some popular online brokers in Canada include Questrade, TD Direct Investing, and Scotia iTRADE.
To buy fertilizer stocks, investors must first open a brokerage account and fund it with the desired amount. They can then search for fertilizer production and distribution companies, such as Nutrien Ltd., Agrium Inc., and Potash Corporation of Saskatchewan Inc.
Once the desired company is selected, investors can place an order to buy its shares. This can be done through a market order, where the shares are purchased at the current market price, or a limit order, where the shares are bought at a specified price.
It is vital to conduct thorough research on the company before investing and to keep track of any news or developments that could impact the stock’s performance. Additionally, investors should consider diversifying their portfolio by investing in multiple fertilizer companies and other industries to minimize risk.
What is the largest fertilizer company in Canada?
The largest fertilizer company in Canada is Nutrien Ltd. Nutrien is a leading provider of crop nutrients, inputs, and services, with operations and investments in 14 countries.
The company was formed in 2018 following the merger of Agrium Inc., and Potash Corporation of Saskatchewan Inc. Nutrien is the world’s largest provider of potash and the second-largest producer of nitrogen fertilizer.
It also has a strong presence in phosphate fertilizers and other agricultural products and services. As of 2021, Nutrien has a market capitalization of over CAD 50 billion and is listed on the Toronto Stock Exchange (TSE) under the ticker symbol NTR.
Will You Invest in Canadian Fertilizer Stocks?
Fertilizer stocks can be a good investment opportunity for those interested in the agriculture industry and the global food stocks & supply chain. With Canada being a major player in producing and exporting fertilizers, investing in fertilizer companies like Nutrien Ltd., Agrium Inc., and Potash Corporation of Saskatchewan Inc. can offer exposure to a growing and essential sector.
As the global population continues to grow, the demand for food and fertilizers is expected to rise, providing a favourable environment for companies in the industry. However, investors should conduct due diligence, consider the risks, and diversify their portfolios to maximize their returns.