Mosaic Co. is cutting potash production at one of its Saskatchewan mines because it deems prices too low.
This is surely another case of agriculture-industry supply management.
Mosaic is one of three members of a cartel that managed potash export marketing from Saskatchewan. The others are Potash Corporation of Saskatchewan and Agrium.
Mosaic says in a news release that it will reduce output at its Colonsay mine by extending maintenance downtime.
It also plans to continue slower production in its phosphates business.
The company says the move is primarily because of delayed fertilizer purchases in Brazil and North America.
It says a volatile dollar, lower grain and oilseed prices, political and economic uncertainty, along with global equity market declines, have weakened prices.
Mosaic president and chief executive officer Joc O'Rourke says the long-term outlook for crop nutrient demand remains positive, but near-term challenges mean production and costs must be controlled.
Keep posted for the other two cartel members to announce similar cut-backs.