Potash prices began to trend upward in key markets as the quarter progressed, but the sharp decline during the second half of 2013 weighed on realizations. As a result, our first-quarter average realized potash price of $250 per tonne was well below the $363 per tonne of the same period last year.

With improved demand, potash production reached 2.4 million tonnes, exceeding the 2.0 million tonnes produced in 2013's first quarter. Higher operating rates, savings from workforce changes, optimization of tonnage from our lower-cost facilities and a favorable impact from a weakened Canadian dollar improved our per-tonne costs by 13 percent compared to the same period last year.