Yara continued to execute its strategy of profitable growth in 2013 and to deliver on its strategic ambition of Creating Impact, executing a major acquisition in Brazil and initiating a further acquisition in Colombia. Together with the continued development of Yara’s product portfolio and innovation efforts, Yara’s differentiated downstream position was further strengthened during the year.
Yara has consistently executed its strategy of sustainable profitable growth, reinforcing its position as the world’s leading provider of crop nutrition solutions. By leveraging our unique business model, our unrivaled global position and extensive global presence, we create a strong competitive edge allowing for the creation of long-term value for our shareholders, customers – and for society at large.
Yara is a company that focuses on the production, distribution and sale of nitrogen chemicals. The main application is fertilizers, while industrial uses are an important and faster growing segment. Yara employs its scale, flexibility and global presence to deliver reliable supplies of mineral fertilizer and related industrial products to customers worldwide. Yara is headquartered in Oslo, Norway and is listed on the Oslo Stock Exchange.
Yara has a unique, scalable business model enabling synergies as acquisitions and growth investments improve utilization of its marketing and distribution system. Since its launch as an independent company in 2004 Yara has built an industry-leading track record in profitable acquisitions and green/brownfield investments.
Yara has developed a global presence unrivaled in the fertilizer industry, with a distribution and marketing network including more than 200 terminals, warehouses, blending plants and bagging facilities located in more than 50 countries. Yara has built a knowledge margin in the market, based on its presence and insight into local markets, close customer relations, agronomic expertise and ability to develop new product offerings from its extensive production base.
Yara’s global presence delivers industry-leading flexibility, both in terms of production assets and market presence, meaning that challenging conditions experienced by an individual plant or market can normally be mitigated through sourcing or sales arbitrage within the wider Yara system.
The majority of Yara’s operational cash costs are variable, as purchases and plants are adjustable at short notice in the event of delivery slowdowns. Increased energy costs in Europe can be mitigated by importing instead of producing ammonia as Yara is the global leader in ammonia trading and shipping and most of the company’s European production facilities have access to deep-sea import/export terminals for ammonia. Yara also has the world’s largest fertilizer storage capacity, allowing for building stocks ahead of peak demand periods, managing uneven delivery patterns and taking advantage of geographical arbitrage opportunities.
As the world’s largest producer of ammonia, nitrates and complex NPK fertilizers, and trading approximately 20% of international ammonia, Yara benefits from scale. Historically, the majority of the company’s production system has been located in Europe. However, growth initiatives in recent years have extended Yara’s presence into other markets and regions around the world.