Anglo American has announced the signing of a new polyhalite (organic) fertiliser agreement with Cefetra.
Cefetra Group is a leading European integrated agri-business with access to a large network of customers across the agricultural supply chain and a logistics platform across Europe with direct access to the farmgate.
The agreement provides Anglo American with greater control of its commercial strategy for its POLY4 product in Europe, with Cefetra supplying its expertise in marketing, distribution and supply chain management services.
Anglo American has said that this will allow it to maximise the value and pricing potential from European POLY4 sales when its Woodsmith project comes online.
The Woodsmith Project is a polyhalite (organic) fertiliser mine being developed in the north east of England.
CEO of Anglo American’s Crop Nutrients business, Tom McCulley, said: “Cefetra, and more broadly BayWa, have been involved in the Woodsmith Project since 2019 and I’m delighted to strengthen this valuable strategic partnership.
“Cefetra has long-term and trusted relationships with farmers, cooperatives, food value chain companies and retailers, as well as the extensive sales platforms and logistics capabilities that are important for success in Europe, which we expect to be one of the largest and most valuable regions for our organic, low carbon POLY4 fertiliser.
“This agreement reflects our improved understanding of the demand opportunity for polyhalite and is a great vote of confidence in POLY4’s potential from one of Europe’s largest and most recognised agri-businesses.”
The Anglo American boss said that this is the latest in a series of improvements the company has made to its commercial arrangements to meet expected demand and achieve favourable returns for investors as swiftly as possible when production begins.
“The European fertiliser sector is particularly advanced, with strong demand for large volumes of high-performance products,” he continued.
“In addition, increasing environmental pressures, expectations and targets from within the agricultural supply chain mean that there are significant opportunities to attract premiums for products which can deliver environmental value.
“POLY4 is expected to benefit from this trend due to its low carbon footprint and suitability for lower emission, nature positive farming practices.”
CEO of Cefetra Group, Daan Vriens, added: “This new agreement demonstrates our shared commitment to delivering more sustainable solutions for farmers across Europe.
“By using our extensive supply chain network and marketing POLY4 effectively, we believe we can help Anglo American to optimise its entry into Europe and drive incremental value for our respective businesses.
“POLY4 is a new and differentiated fertiliser which fits with our vision of how we expect farming practices and products to change in the coming decades, in the face of productivity and environmental challenges,” he added.
Cefetra Group is a global supplier of agricultural ingredients to the animal nutrition, food ingredient and energy industries.
Anglo American describes itself as a global mining company focused on the responsible production of copper, premium iron ore and crop nutrients – future-enabling products that are essential for decarbonising the global economy, improving living standards, and food security.
