Potash stocks nourished by 230 % increase $400/tonne price hike but Canadians Where PROFITS go

- Canadian and U.S. potash stocks were bursting with life Wednesday after a consortium of major Saskatchewan producers announced a US$400-a-tonne price increase for sales this year to Sinofert Holdings Ltd., China's biggest fertilizer distributor. The new contract calls for shipment of one million tonnes of potash at US$576 per tonne when delivered to the Port of Vancouver, representing a 230 per cent increase over the price in 2007 (not counting the cost of shipments to China.) The contract negotiated by Canpotex Ltd., the offshore marketing agency for the Saskatchewan potash industry, was announced by Potash Corp. of Saskatchewan Inc. (TSX:POT) - the world's largest potash producer. In addition to PotashCorp, Canpotex represents Calgary-based Agrium Inc. (TSX:AGU) and Mosaic Co. of Plymouth, Minn. (NYSE:MOS), which has potash mining operations in Saskatchewan. PotashCorp stated that "as a result of the timing of this settlement and unprecedented demand in other markets," Canpotex has only one million tonnes it can commit to Sinofert through the rest of this year. "Significantly higher potash prices and extraordinarily tight supply have become much more firmly entrenched since China's previous contract was signed 14 months ago," stated PotashCorp chief executive officer Bill Doyle. "With the intense pressure on global food production and continued growth in potash demand, this is the reality for our industry for the foreseeable future." Doyle noted that the settlement with Sinofert - which is one-fifth owned by PotashCorp and is the largest fertilizer distributor in China - "highlights the importance of securing supply in an increasingly tight market." PotashCorp supplies 54 per cent of Canpotex's requirements.