New business beginning to grow.

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AM: What is the origin of the business?

Mittag" Agrium Advanced Technologies (AAT) has been a strategic business unit of Agrium, Inc. for the past three years. It is the result of the integration of Agrium's specialty fertilizer business and the acquisitions of Nu-Gro Technologies and Pursell Technologies, which were both acquired by Agrium in 2006.

AM: What are its current products and markets it serves?

Mittag: AAT is the leading manufacturer and marketer of slow- and controlled-release fertilizers and micronutrients for the agriculture, professional turf and ornamental, consumer lawn and garden and specialty agriculture markets.

Our manufactured brands include: ESN (Environmentally Smart Nitrogen), POLYON, XCU, NITROFORM, NUTRALENE and DURATION CR slow- and controlled-release fertilizers, PRECISE controlled-release plant protection, and ULTRA YIELD micronutrients.

In addition, we provide a wide range of products to the professional turf grass, horticulture, customer lawn and garden markets in Canada and the U.S. through our professional products distribution businesses.

AM: How has the demand for its products been?

Mittag: We have experienced consistent growth in demand for our products over the last five years across all our business lines.

As you would expect from the financial headlines, the recent economic downturn has hurt the entire professional business, particularly golf courses and nurseries. However we do not feel our market leading position has been eroded, but rather we have maintained our market share during a difficult time for the entire market. The other side of the professional business, the lawn and landscape and consumer markets, has proven very resilient to the economic downturn and we believe that the inclusion of the former Eastern Division of the UAP Professional Products Division will balance our portfolio of customers.

The demand for our agriculture products, Ultra Yield Micronutrients and ESN, has continued to be strong and grow rapidly. Agriculture has not historically had access to controlled release fertilizer products, and ESN is the only polymer coated product currently available for broad acre agriculture. This is our fastest growing sector and we continue to increase our market penetration over traditional forms of nitrogen as growers recognize the proven value ESN provides to their fertility program. This growth is illustrated by our recent announcement to expand our capacity for ESN through the construction of a new 120,000 ton capacity plant in New Madrid, MO.

AM: How does AAT take them to the market (type_of distribution, sales force, etc.)?

Mittag: AAT utilizes multiple distribution channels across our business. For our agriculture business, we distribute through select retailers who then sell directly to growers. We have a full-time sales staff for North America as well as a contracted sales staff in western Canada to serve our retail partners. In addition, we have a full-time staff of agronomists who are dedicated to continuing our research as well as supporting our customers in the appropriate use of these products.

For the professional markets, we have additional full-time sales staff across North America. We sell our products through a combination of formulator/blender customers, distributors, and joint venture partners.

AM: How do you see the unit's future?

Mittag: AAT is a very new business that is just beginning to grow. We are looking at a variety of opportunities for rapid growth over the next five years. Three of the key areas of growth will come from expansion of our existing products, continued product development and international expansion.

To help us with product development, we have a dedicated research and development group which is continually looking at developing new, smart technologies for all of our customers as well as ways of making our existing products better and more affordable. Our strong position in the professional markets allows us to develop new products and bring them over to the agriculture markets when possible. In addition, to enhance our new product development opportunities, we will be investing in pilot plants that will reduce the time and cost to bring new products to the market.

Finally, our international business represents less than 5% of our business today. However, we still receive numerous inquiries for access to our products from outside North America. A huge opportunity remains for us to explore international business. Overall, ] am very excited about the growth opportunities for Agrium Advanced Technologies and the benefits to our customers and our employees.