Arab fertilizers take Brazil by the storm
Morocco, Egypt, Qatar, Kuwait, Bahrain and the United Arab Emirates are currently the leading providers of artificial fertilizers for Brazil. According to data published by the Arab-Brazilian Chamber of Commerce, in the first three quarters of 2013 the import of fertilizers grew by 41% in comparison to the same period in 2012. In dollars, this import growth was worth USD 1.1 billion.
Leaders in fertilizer sales
Morocco took the lead in the above-mentioned period. The trade grew by 19% from Q1, Q2, Q3 2012 to Q1, Q2, Q3 2013. The value of goods exported to Brazil was 933 million USD. Qatar took the second place with a spectacular growth by 268%. The goods sold by Qatar to Brazil were worth 325 million USD. Next in the ranking were Egypt (export worth 133 million USD), Tunis (96.49 million USD), Bahrain and the UAE (35 million USD) and Kuwait (32 million USD).
A change of direction
The fact that export to Brazil is growing in leaps and bounds results from demand for food in this huge country inhabited by nearly 200 million people, but there is another reason as well. Brazil took the market over from another major consumer of fertilizers, India, which limited the purchasing of this product. Due to unfavorable rupee exchange rate, the government in Delhi was forced to limit the subsidizing of imported phosphorous-based fertilizers. Consequently, global market prices fell and fertilizer manufacturers were forced to look for new markets.
This country proved an excellent alternative to the manufacturers of fertilizers, especially those from Arab countries. Fertilizer sales grew by almost 65% from Q1, Q2, Q3 2012 to Q1, Q2, Q3 2013. From January to September 2013, Brazil imported 24% more fertilizers than in the same period of the previous year, 20.4 million tonnes in total, including 3.9 million tonnes manufactured in Arab countries.