Yara International: More Than Just Fertilizer
Norwegian-based Yara International (YARIY.PK) is thought of as a fertilizer company, but it is much more than that.

It is true that Yara is positioned right in the middle of the ongoing agricultural boom. It is the world's largest supplier of plant nutrients in the form of mineral fertilizers. The core business of Yara is the production and marketing of nitrates, urea and ammonia.
A key component in the production of urea, nitrates, NPK and other specialty fertilizers is energy. The process involved to produce these fertilizers is quite energy intensive and uses large amounts of natural gas. This is where Yara has a competitive advantage over its competitors. Yara owns 25% of the Qafco, which is based in Qatar. The owner of the remaining 75% of Qafco is Qatar Petroleum. So Yara has access to extremely cheap natural gas, allowing it to produce fertilizers at a much lower cost. Yara also has a similar arrangement in the Caribbean with Trinidad & Tobago, the world's largest exporter of ammonia. Yara is also expanding its reach in the fertilizer market; it entered the phosphate market with last year's purchase of KemiraGrowHow in Finland.
Yara has smartly positioned itself in all the key overseas markets through the use of joint ventures such as Qafco in Qatar. The company has joint ventures in other large markets such as China, India and Brazil, along with smaller markets such as those in Africa. Yara is currently selling products in over 120 countries.
Yara is also involved in other markets. In the commodities-related markets, it produces inorganic phosphates, magnesium supplements and acidifers used in animal feed. Yara also produces nitrates used in explosives for mining and chemicals for the oil industry.
Last year, Yara set-up a joint venture with Praxair for its industrial gases business. These gases are used in all types of industries, such as the food and beverage business where Yara is a leading European supplier of CO2. Yara has a green side to its business as well. The company has products to reduce nitric oxide from the air and hydrogen sulfide from the water.
Yara is not well known in the U.S., but global investors have begun to realize what a fine company Yara is. Over the past 6 months, its stock has more than doubled, which is outstanding even for ag-related stocks.This performance is better than Potash (POT) or CF Industries (CF) and right up there with Mosaic (MOS). It may be a stock to consider adding to the portfolio on any pullback.
Disclosure: Author has a long position in YARIY.PK
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This article has 9 comments:
Programmer
for tons of information including earnings reports. Current p/e is about 18. It is not well followed here so any other information is appreciated.
Having said that, on the daily chart, +DMI in on an upswing and ADX is as well. This could indicate a breakout above it's channel..
Also, fundamentally, it is approaching planting season ( I presume that this holds true for this stock, although I have no idea where it's markets are.. )
Volume is light as it is on the pink sheets, which means that on a downturn, you might not be able to get out and could lose a fair bit, but it definitly is in a good sector. (You might also watch TNH on a pullback for similar rewards...)
I think I'll wait to see if it continues its cycle and look at it in May, or watch for a breakout and retracement above its upper trend line.
Nice suggestion though..
Thx jegan ;-)
Daltorio
Programmer
Singh Shivay
I had just read this article and came to know that Yara is wolrd's largest Fertilizers manufacturing and selling company with high standard quality products. I am from India and working as Senior Scientist (Agronomy), Indian Agricultural Research Insitute, New Delhi 110 012. My specialization of research work is Zinc nutrition of rice and rice-wheat cropping system and also slow release of fertilizers to increase the ferilizer use efficiency, especially in flooded rice field conditions. I would like to know from the Yara Fertilizer Manufacturing management authorities that whether they have product viz. zinc-enriched urea or zincated urea for rice or zinc deficient conditions. Since India's soils are nearly 50% zinc deficient and major problem of to increase the N use efficiency, especially in flooded rice soils. I will appreciate if you kindly respond to my quarries to this mail id: ysshivay@hotmail.com or ysshivay@iari.res.in
I also came to konw that Yara has entered in to the seeling of their fertilizer products in India. I would also like to work for Yara Fertilizer Company, if suitable postion is provided to me as per my qualifications and experince.