Mosaic Company SWOT Analysis, USP & Competitors

Mosaic Company

Parent Company

Formed by the merger of Cargill Inc.’s crop nutrition division and IMC Global, a fertilizer company.

Category

Crop nutrient/agro-chemicals

Sector

Industrial Products and Chemicals

Tagline/ Slogan

Helping the World Grow the Food it Needs

USP

The world's largest producer of phosphate and second-largest producer of potash—two crop nutrients which are primary ingredients in producing fertilizers.

Mosaic Company STP

Segment

Businesses looking for quality and higher yield with a long-term availability of raw material resources.

Target Group

Agri-businesses manufacturing fertilizers made of potash and phosphate and exporters/retailers in businesses of selling the same.

Positioning

Mosaic is the world's leading producer and marketer of concentrated phosphate and potash, two of the primary nutrients required to grow the food the world needs.

Mosaic Company SWOT Analysis

Strengths

1. One of the largest potash producers in the world with 10 million tonnes
2. Mosaic’s potash production represented approximately 15 % of global production and nearly half of North American production.
3. Well diversified international sales to leading exporters such as Canada Potash Exporters (Canpotex) and Phosphate Chemicals Export Association Inc. (PhosChem); this is done in order to counter the seasonality in the planting cycles of fertilizers.
4. Demand for the Company’s products is extremely sustainable as global fertilizer market grows annually
5. Expected capacity of 17 million tonnes following completion of several expansion projects

Weaknesses

1. Limited market share due to stiff competition in the sector
2. There have been labor union upheavals due to exposure of workers to harmful, toxic chemicals with severe after-effects.

Opportunities

1. Strong potential for growth in the fertilizer market, as the Company can expand into production of fertilizers as well.
2. The Company has engaged into several joint ventures to acquire phosphate mines outside North America, especially in the East African and Latin American belt.
3. There has been an increase in long-term contracts with Global purchasers and exporters to aid in international sales and growth.

Threats

1. Increased competition, especially from PotashCorp, which has initiated an acquisition of Canpotex’s subsidiaries.
2. There is also competition from state-owned producers in emerging markets of Asia and Africa.
3. Tightening of environmental regulatory policies have affected the production processes and resulted in great losses for the Company.

4. Unpredictable climatic conditions have created several facility losses and added to the increasing pressure on shifting plants outside of North America.

Mosaic Company Competition

Competitors

1. Potash Corp. of Saskatchewan Inc.
2. Agrium
3. CF Industries