Jordan Lee

Jordan Lee asked for further discussion on the different possibilities for the Trinidad asset, including whether Nutrien would consider selling it and if there would be interest from potential buyers.

Answer

Ken Seitz, President and CEO, reiterated that the current focus is on finding an optimal path forward for the Trinidad operations. This path is dependent on securing reliable and affordable natural gas supply in the region and ensuring access to ports for exporting volumes. He did not specifically comment on a potential sale or buyer interest at this time.

Jordan Lee asked about the different possibilities Nutrien sees for its Trinidad asset following the closure, specifically if selling the asset is being considered and if there would be interest from potential buyers.

Answer

Ken Seitz, President and CEO, reiterated that Nutrien's current focus is on finding an optimal path forward for its operating configuration in Trinidad. This path is dependent on securing reliable and affordable natural gas supply in the region and ensuring access to ports for exporting volumes off the island.

Jordan Lee from Goldman Sachs asked about the competitive environment for packaged meats, promotional activity, and the progress of the company's shift toward higher-value products, including any future capacity needs.

Answer

Steven France, President of Packaged Meats, stated their strategy focuses on quality merchandising over price-based promotions, noting a 200 basis point increase in feature and display activity. He and CEO Shane Smith confirmed the successful shift from commodity items to value-added products is a key initiative, supported by 50% of CapEx being allocated for growth projects, including capacity expansion in higher-margin categories.

Jordan Lee from Goldman Sachs inquired about the competitive and promotional environment in packaged meats and asked for an update on the shift toward value-added products and any related capacity needs.

Answer

Steven France, President of Packaged Meats, stated that Smithfield focuses on "quality versus unprofitable quantity" in its promotions, which drives its strong margins. He and CEO Shane Smith confirmed the strategic shift to value-added items is a key initiative, with capital spending being directed toward increasing capacity in these higher-margin categories, guided by strategic customer partnerships.

Jordan Lee from Goldman Sachs inquired about the price divergence between urea and ammonia and whether farmers would face supply constraints for spring nitrogen application.

Answer

EVP Bert Frost explained the international price divergence is due to new ammonia supply coming online, while urea remains strong. CEO Tony Will added that interior U.S. agricultural ammonia prices remain strong and are distinct from the traded market. Bert Frost also stated that while urea and UAN supply is tight, strong farmer economics favor corn, and he expects application rates to be high, potentially with more ammonia side-dress.