President’s Message: Dear Valued Partner
Farming has always been a challenge. But it’s worse today, with unpredictable weather, volatile markets, and tightening margins, so farmers are working harder than ever to manage input costs while continuously improving crop performance.
At AgraCity we understand the challenges you manage daily, and we are deeply committed to supporting growers. We are a proud Canadian company with deep roots in Canadian Agriculture. Our head office is in Saskatoon, with employees across Canada. We have the largest portfolio of crop protection and crop nutrition products in Canada and are constantly adding more products.
AgraCity’s disruptive business model has always been to offer affordable high-quality generic products directly to growers. In our first 10 years of business we successfully launched over 20 crop protection products, and as more and more chemistries have come off patent, we are increasing our 2020 product line to more than 100 products. AgraCity exists to create grower choice and savings by offering affordable off-patent alternatives to name brand products. You get the same high quality and performance, with better prices. That is AgraCity’s commitment to our valued partners.
In addition to our complete lineup of high-performance crop protection solutions, this year we are also delivering new or improved resources to our customers. We’re excited to offer an AI enabled digital agronomy platform that offers growers enhanced field scouting capabilities while reducing application time and costs (see pages 138-141). We also have an updated website and mobile app that enables easy, on-the-go, access to online tools and educational materials for our 100+ products. We are also continuing our efforts to develop the Canadian fertilizer business to integrate farmers into the value chain..
The ‘Amazoning’ of crop protection products is just getting started and AgraCity is leading the way by helping farmers save money on their crop inputs. We won’t stop until we become your most trusted supply partner.
I, and the entire AgraCity team, wish you a successful season in 2020.
“Over the years I can always rely on AgraCity to provide my farm with the most competitively priced generic herbicides that work. This in turn helps me net more dollars per acre.”
Wholesale Direct Market Disruptors
AgraCity Crop & Nutrition, Ltd. is a Canadian-owned generic agricultural business that creates farmer savings by cutting out the distributors and retailers as middlemen in the supply chain. The result is cost effective, high value crop protection products and fertilizers delivered direct to the farm. AgraCity’s market disruptor business model has transformed Canadian Agribusiness through investment in innovative agriculture solutions and state-of-the-art projects which are empowering farmers up and down the value chain.
In their first 10 years of business, AgraCity has invested over $20 million in the development and registration of over 50 generic crop protection products, making AgraCity one of the largest and most complete product portfolios in Canada!
AgraCity and Farmers of North America (FNA) were started by a Saskatchewan farm family with the objective of improving farm profitability. Together, the companies have created many unique benefits through their common vision of a business alliance of farmers. AgraCity and FNA have worked relentlessly to successfully generate value for famers by creating market competition, grower choice, and driving efficiencies in the value chain. The companies have executed many farmer value-added initiatives including the glyphosate Own-Use-Import program, fertilizer delivery through the port of Churchill, and various opportunities for farmers to gain equity ownership in the value chain. The AgraCity and FNA partnership has changed the landscape in crop protection and fertilizer for the betterment of its alliance of farmers.
In 2005, the AgraCity/FNA team saved Canadian farmers hundreds of millions of dollars by utilizing a regulatory provision that allowed the importation of crop protection products for significantly less money than the current market prices in Canada. This little-known regulation, known as the “Own Use Program” or OUI, brought down the price of glyphosate in Western Canada by at least $2.00 per litre! AgraCity organized this initiative on the behalf of Canadian farmers by introducing a new glyphosate supply and distribution system. By introducing significant competition to the glyphosate market, and saving farmers millions of dollars, the AgraCity/FNA team realized its’ first of many, historic, game-changing victories for Canadian farmers!
AgraCity’s next target farm input was fertilizer. In October, 2007, AgraCity was the first corporation to use the Port of Churchill for the import of fertilizer into Canada. The first fertilizer vessel to arrive into Churchill was met by representatives of the federal, provincial and municipal governments, Churchill Gateway Development Corporation, Hudson Bay Port Company and the Canadian Wheat Board. This shipment saved AgraCity and FNA members an average of $40 per tonne! AgraCity has also imported many cargos of fertilizer into the east coast and up the Mississippi River system, all in an effort to reduce one of Canadian farmers’ largest crop input expenses.
Another great success was realized in 2010 when AgraCity launched the Aurora® clodinafop herbicide which caused an immediate and dramatic drop in wild oat herbicide pricing across Western Canada. Within 30 days of launching Aurora the average price for competitive wild oat herbicides dropped by $4 per acre.
Genesis & Project N
As the farming community is aware, the FNA/AgraCity team have spearheaded farmer investment to vertically integrate farmers interested in fertilizer manufacturing, supply and distribution in Canada. AgraCity thanks those farmers who have invested in these initiatives for their support and trust.
The successful close of Genesis is an important step to show prospective strategic equity investors in Project N that Canadian farmers are serious about owning a fully integrated fertilizer manufacturing, supply, storage and distribution system. The first Genesis SuperCenter begins construction this upcoming Spring. Project N continues to advance the position of Canadian famers as their own Fertilizer Producers, to maximize their own business profits.
These projects are driven by the need for change and more control over crop input costs. As demonstrated in the below diagram, data from Statistics Canada shows fertilizer expenses are the largest farmer expense and these costs have continued to grow an additional 11.7% over the last 10 years. These facts are the reason why the AgraCity/FNA/farmer business partnership model is so instrumental in keeping these unfair, intensifying costs in check!
AgraCity Expanding Generic Portfolio
Today, AgraCity is excited and proud to announce to farmers that its commitment to the business alliance of farmers will pay back in even larger amounts than was achieved through the glyphosate OUI program, the Aurora effect, or the Port of Churchill fertilizer initiative. With the introduction of over 30 new products in 2018, and 30 more new products in 2019, AgraCity’s generic portfolio will be the largest and most successful in Canada! AgraCity continues to make history with its farmer alliance initiatives. AgraCity’s products offer the same high quality and performance as their branded competitors, but at a significantly reduced price.
These unprecedented generic product launches over the next two years are being offered at up to 30% off MSRP!
In addition to the investment in generic product development, AgraCity is in the midst of an extensive investment in people, systems, processes and facilities to increase efficiencies and improve the supply chain and logistics performance which should result in better service to farmers. Included in this investment is a larger distribution warehouse and packaging facility which is required to facilitate the expected increased volume distributed given the unprecedented launch of so many new products in the next few years. This investment in improving the fulfillment process from order to delivery is vital to add value to the farmer members especially during in-season high-demand periods.
Since the onset two decades ago, FNA and AgraCity’s mission has been to create a globally connected and vertically integrated agribusiness solution for Canadian farmers. Canada has lagged far behind the rest of the world in generic crop protection products, and the result has been higher pesticide costs. Globally, well over 50% of the crop protection products used are generic off-patent products, but here in Canada, generics have less than 20% market share due to strict regulatory hurdles and a strong lobbying effort by the multi-national chemical corporations. AgraCity’s growing generic product line up is creating the critical mass needed to force the change to generic options in Canada.
AgraCity is here to create grower choice through generic alternatives to name brand products. The only way for AgraCity and FNA to execute its plans is with the members’ commitments. Nothing is possible without the members. The continued member commitment and support of AgraCity’s diverse product portfolio will allow growers an option to stay competitive in the global marketplace, increase farm profitability, and keep money in Canada, supporting local people and businesses.
With our members continued support, our vision, product offerings and strategic partners is one that will be unmatched by anyone in the industry! AgraCity will, with the support and partnership of the alliance of farmers, continue to expand its innovative product portfolio and return value to the members. This is the AgraCity mission! Make the Shift to Maximum Performance and Minimum Price with AgraCity – the leader in the introduction of generic chemicals into the Canadian marketplace!