Brazil Operational Challenges
Q: With significant write-downs and challenges in Brazil, what's your long-term plan there?
A: We're conducting a complete commercial review of our Brazilian business, which represents less than 2% of the market there. " Despite recent $1 billion in challenges, including write-downs and FX issues " , we believe in the long-term growth of Brazilian agriculture. We're assessing how to continue accessing this market, focusing on proprietary products, and strategically reviewing our operations to determine the best path forward. "

Retail Guidance Downgrade
Q: You've lowered retail guidance by $150 million shortly after Investor Day. Do you still stick to your targets?
A: Yes, we absolutely believe in our targets and are progressing towards them. " The downgrade is mainly due to challenges in Brazil, such as a shift to generic products, unfavorable weather, and changes in buyer behavior. " We've initiated measures like closing 21 locations, curtailing 3 blenders, and cost reductions. " Additionally, a wet spring in North America contributed about one-third of the adjustment " , but we expect a strong fall season. "

Potash Market Outlook
Q: Can you elaborate on potash supply, demand, and potential disruptions like rail strikes?
A: We've increased our global shipment estimate by 1 million tonnes, largely due to higher demand in China. " The market remains balanced, with supply from Canada, Russia, Belarus, and Laos. " We've considered a potential rail strike in our guidance, embedding a few days to a maximum of a week of impact. " If there's no strike, we could trend toward the midpoint or upper end of our potash sales volume guidance. "

Path to $2 Billion Retail EBITDA
Q: How will you achieve $2 billion in retail EBITDA by 2026?
A: We have a clear path involving three key areas " : First, continue growing our proprietary products business at over 10% annually, focusing on plant nutrition and biologicals. " Second, maintain steady growth in our core North American and Australian operations through network optimization, organic growth, and tuck-ins. " Third, stabilize and improve our Brazilian business. "

Capital Allocation and Share Buybacks
Q: With a strong balance sheet and low CapEx needs, will you increase share buybacks?
A: We have a disciplined capital allocation plan, with $2.2 to $2.3 billion in CapEx, including investments in retail and upstream businesses. " As we generate incremental cash beyond our commitments, we will consider share repurchases among other opportunities like retail tuck-ins. "

Impact of Phosphate Prices
Q: Are high phosphate prices hurting demand and affordability?
A: Yes, we're seeing concerns about phosphate affordability among growers. " While potash affordability is strong, phosphate prices have not aligned, potentially leading to demand softness in the fall season. " We're monitoring this closely, though our diversified phosphate business mitigates direct impact on our volumes. "

Brazil Crop Chemical Challenges
Q: How are generic crop chemicals impacting your business in Brazil?
A: The crop protection sector in Brazil faces intense price competition from generics, affecting margins. " Crop chemicals represent one-third of our Brazilian business. " We've proactively reduced our inventory by $250 million to position ourselves better. " We aim to improve margins, focus on cash generation, and manage inventories tightly. "

Derivatives Contract Issue in Brazil
Q: What led to the unauthorized derivatives loss in Brazil, and how are you managing risk?
A: The issue was due to challenges in segregation of duties and controls in Brazil during organizational changes. " It was not normal course. " We quickly identified and remediated it and have strengthened controls. " We use standard forwards and options for hedging but are ensuring compliance with our policies. "

Weather Impact on Retail Guidance
Q: How much did U.S. weather contribute to the retail guidance reduction?
A: The wet spring in North America accounted for about one-third of the $150 million retail guidance reduction. " Despite this, we anticipate strong demand in the fall season. "

Proprietary Products Growth
Q: Despite aiming for 10% growth, why did proprietary product share slip?
A: The apparent slip is due to last year's fertilizer market reset affecting percentages. " Our proprietary products continue to perform well, with adjuvant sales up 7% and strong growth in plant nutrition and biostimulants. " Tight market conditions favor our proprietary offerings. "

Supply from Laos in Potash Market
Q: How is supply from Laos affecting potash capacity?
A: Laos has faced production challenges due to water inflow issues. " We expect some incremental supply over the next 2-3 years, potentially 1 million tonnes, but larger expansions have been deferred. " The market remains balanced, and we anticipate potential tightening in the coming years. "

North American Potash Demand
Q: How is potash demand looking in North America given lower crop prices?
A: Despite softer commodity prices, potash affordability is strong. " We had a very successful summer fill program and are effectively sold out through Q3. " We're confident in consistent consumption patterns. "

Rail Strike Potential Impact
Q: What is the potential impact of a Canadian rail strike on your operations?
A: Any rail stoppage would impact our potash exports, especially through Canpotex. " We've embedded a possible short strike in our guidance. " We're hopeful for a resolution to avoid significant disruptions. "