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Who Are Mosaic’s Customers and How Does It Reach Them?

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Mar. 29 2016, Published 2:17 p.m. ET

Who does Mosaic sell to?

The end customers of Mosaic’s (MOS) crop nutrients are farmers, but Mosaic does not sell directly to farmers. The company sells its phosphate and potash products to cooperatives, wholesale distributors, national accounts, retail chains, and independent retailers. These intermediaries, in turn, sell to farmers. The company serves customers located in over 40 countries.

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Mosaic’s top countries

The top four countries that contribute to Mosaic’s revenue are the United States, Brazil, India, and Canada. The above breakdown excludes sales from Canpotex, which is an export association of potash producers in Saskatchewan, Canada, including Mosaic, PotashCorp (POT), and Agrium (AGU).

With Canpotex included, about 58% of net sales come from outside of the United States. The VanEck Vectors Agribusiness ETF (MOO) invests a combined 10.6% in these three Canpotex members.

How does Mosaic reach its customers?

Mosaic has warehouses in key agricultural areas in the United States and Canada. Together, both account for over half of Mosaic’s market by sales. Besides having warehouses in strategic locations, Mosaic reaches its customers through an owned or leased distribution network in the United States. Needless to say, Mosaic also reaches its potash customers through Canpotex, as we saw earlier in this series.

Internationally, Mosaic has deployed its sales force to target specific geographies for its phosphate products, while its potash products are funnelled through Canpotex. Brazil, India, China, Indonesia, and Malaysia account for the biggest market for Mosaic’s potash products. The company also recently acquired Archer Daniels Midland Company’s (ADM) distribution business in Brazil and Paraguay.

Next, we’ll look at how much revenue Mosaic is bringing in from its customers.

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