Fertilizers: Brazil may import more from Iran and Canada

  • 5 de April de 2022
1000 667 Packem

Brazil is looking for alternatives to guarantee the supply of fertilizers. The Minister of Agriculture, Tereza Cristina, has been meeting with companies producing this input from Iran and Canada to expand the import of the product before leaving the portfolio to run for the Senate.

Brazilian agribusiness has been suffering from the rise in inputs since the beginning of the pandemic. Spending on fertilizers was BRL 620 per hectare in September 2020 in a soybean crop in the Londrina region. A year later, the value increased to R$ 1,323, more than double. In the period, the participation of fertilizers in the operating cost jumped from 20% to 31%.

This happened because important global producers suspended exports for various reasons. China and Russia stopped shipments to maintain balance in the domestic market. Belarus, which supplies one-fifth of the world’s potash exports, was banned from trade due to European Union and US sanctions on the country.

Shipping fertilizers from Russia

Russia is the biggest supplier of fertilizers to Brazil. (Source: Shutterstock/Reproduction)
Russia is the biggest supplier of fertilizers to Brazil. (Source: Shutterstock/Reproduction)

Days before the start of the war in Ukraine , Brazilian President Jair Bolsonaro even met with Russian President Vladimir Putin. The Brazilian president asked the Kremlin to guarantee the supply of fertilizers.

Russia is the main supplier of Brazilian agribusiness and accounts for a quarter of all imported inputs. According to data from Itaú BBA, the Russians are responsible for 20% of nitrogenous products purchased on the global market, in addition to 28% of potassium and 15% of phosphates.

Despite the difficulties of the armed conflict and the mutual sanctions imposed by the United States, Canada and European countries on the Russians, the Ministry of Agriculture, Livestock and Supply (Mapa) confirmed that the trade flow continues. The Brazilian government is not on the list of sanctions by Moscow.

agreement with the east

Tereza Cristina travels around the world to attract fertilizer exports to Brazil. (Source: NPC/Disclosure)
Tereza Cristina travels around the world to attract fertilizer exports to Brazil. (Source: NPC/Disclosure)

In February, Tereza Cristina met with the president of the National Petrochemical Company (NPC), an Iranian state-owned company, and visited the Shiraz Petrochemical Company, one of the largest urea producers in the country.

NPC said it can increase urea exports from the current 600,000 tonnes to up to 2 million tonnes per year. The state-owned company is part of the Iranian Ministry of Petroleum, a portfolio that aims to promote the development of Iran’s petrochemical sector.

The minister also met representatives of the Arab Brazilian Chamber of Commerce, a bloc responsible for 26% of fertilizers imported by Brazil and made up of Morocco, Qatar, Saudi Arabia, Egypt, Oman and Algeria.

The Middle East is the largest global producer and exporter of petrochemicals, followed by Iran. The Iranian industry produces approximately 5 million tons of urea per year. About half is consumed by the domestic market, and the other part is exported.

Increase in imports from Canada

The minister visited Canada in March to speak with representatives of fertilizer companies. The country is the largest global producer of potash, accounting for a third of the production of the input.

Tereza Cristina was with the presidents of Brasil Potash, Gensource, Nutrien, and Fertilizer Canada. Canpotex, which exports potash from Canada’s two main mining companies, committed to expanding shipments beyond the 4 million tons of the input already shipped to Brazilian ports.

Source: Ministry of Agriculture, Livestock and Supply (Mapa).

Source: https://summitagro.estadao.com.br/noticias-do-campo/fertilizantes-brasil-podera-importar-mais-do-ira-e-canada/

Privacy Preference

When you visit our website, it may be stored via browsing specific services, usually in the form of cookies. Here you can change your privacy preference. It is important to note that blocking some types of cookies may affect your experience on our website and the services we can offer.

Click to enable/disable Google Analytics tracking code.
Click to enable/disable Google Fonts.
Click to enable/disable Google Maps.
Click to enable/disable video embeds.
Our website uses cookies, mainly from third-party services. By clicking accept, you agree to the use of cookies in accordance with our Privacy Preference