Potash leads the way in Saskatchewan exports
“The future will always be bright for potash,” says Saskatchewan Trade & Export Partnership president and CEO Chris Dekker.
Now more than ever, potash is vital to Saskatchewan's growing economy. In 2022, potash became Saskatchewan's number one export, overtaking crude oil as the leading economic driver for the province.
“Potash has been an economic staple in Saskatchewan since it was first commercially produced in the province in the early 1960s,” says Chris Dekker, president and CEO of the Saskatchewan Trade & Export Partnership (STEP).
“In a province that is dependent on trade, potash has consistently been our No. 1 or 2 export. Over the last decade, potash exports have tripled from $5.6 billion in 2013 to a record $16.3 billion in 2022 — a year in which potash represented nearly a third of all exported goods.”
Canada is the largest producer and exporter of potash in the world, and Saskatchewan is home to the largest global potash reserves. While export tonnage remained strong, price was the primary factor behind the significant increase in potash exports.
In response to escalating global demand for Canadian potash, driven largely by concern around global supply and food security, Saskatchewan's potash sector is ramping up production. Russia's invasion of Ukraine caused disruptions and uncertainty to the supply of potash, creating food security concerns, and reinforcing the importance of a stable and reliable supply of potash. While prices have softened somewhat from their 2022 high, they remain strong and elevated from 2021 levels due to the current supply constraints.
Three companies — Nutrien Ltd., The Mosaic Company and K+S Potash Canada — operate 11 potash mines in the province. Once it becomes operational in 2026, BHP Billiton's Jansen Lake mine, located east of Saskatoon, will be one of the largest potash mines in the world, and is expected to create up to 600 full-time jobs. Mosaic and Nutrien (created when Potash Corporation of Saskatchewan merged with Agrium in 2017) produce 90 per cent of Saskatchewan's potash.
Canpotex Limited is a joint venture that is wholly owned by Mosaic and Nutrien, which serves to market and deliver the potash they produce to overseas markets. Canpotex efficiently and reliably delivers potash using a fleet of customized railcars, port terminal facilities, ocean vessels and more.
Canpotex is Canada's largest overseas exporter of potash, delivering more than 13 million tonnes of potash to more than 40 countries every year. As the global demand for food continues to increase as the world's population grows, Canpotex continues to be a vital link in global food security by reliably exporting Saskatchewan's potash to customers overseas. Employees at its overseas offices in Singapore, Shanghai, and Sao Paolo are located close to major markets to better serve customers' needs.
“Canpotex continues to invest in its world-class supply chain so that we can ensure our high-quality potash can be delivered reliably from Saskatchewan to our customers overseas,” says Gordon Mckenzie, president and CEO of Canpotex. “From potash-specific, custom-designed railcars to cascading chutes on our terminals' shiploaders that deposit potash into ocean vessels, we ensure that every aspect of our supply chain is enhanced to responsibly move potash from mine site to overseas port, while maintaining the integrity and quality of the product.”
Canpotex's largest market for potash is Brazil, followed by China, India, Indonesia and Malaysia. Combined, they account for approximately 75 per cent of Canpotex's annual potash exports.
“In our overseas markets, Canpotex has established a strong reputation as a reliable shipper of high-quality Saskatchewan potash,” says Mckenzie. “We've built this reputation by investing approximately US$3 billion in our supply chain over the past 20 years. These investments include port terminal facilities in Vancouver, Portland, and Saint John, and a world-class railcar maintenance facility near Lanigan.”
Canpotex added 1,200 custom railcars to its fleet in 2022, for a total of 8,000 railcars, a commitment to its reputation as a safe and reliable exporter.
Canpotex also provides an extensive education program to farmers in overseas markets, providing support on how best to use potash to increase crop yields and improve food production, and the best agronomy-based plantation management practices.
“We are proud of our programs like the farmer education programs that help educate the end-user on the role potash plays in increasing crop yields,” says Mckenzie. “To date, Canpotex has invested over US$57 million in helping overseas farmers become more successful at producing more food, ultimately helping ensure global food security.”
Canpotex is committed to continuing these educational programs, ensuring farmers are best supported for economic and agricultural success.
“As Saskatchewan's largest exporter and one of Canada's largest exporters, Canpotex is proud to be contributing to the economy in a meaningful way through potash sales overseas, but also through significant capital investments in the province, like our railcar maintenance facility near Lanigan, and employing almost 130 people in unique global jobs right here in Saskatchewan,” says Mckenzie.
Saskatchewan is well-positioned to meet the world's increasing potash needs.
“The future will always be bright for potash,” adds Dekker. “The world population reached 8 billion in 2022, and the United Nations estimates that we will reach 10 billion in the year 2058. That is an extraordinary number of mouths to feed — the world needs what Saskatchewan produces.”