Brazil in need of fertilizers

| Foreign Markets |

The largest Latin American country is one of the fastest-developing economies in the world. Agriculture is undergoing a technological revolution, which involves a growth of demand for mineral fertilizers.

Importation-oriented

Despite multi-billion dollar investments in the domestic fertilizer-chemical industry, Brazil remains the leading importer of products containing nutrients for cultivated plants. The country is one of the main exporters of food, but 70% of fertilizers bought by Brazilian clients is shipped from other countries.

Planning changes

Investment projects are currently drawn up to double phosphorous fertilizers production by 2023 and cut the imports of those products by half. The situation with NPK fertilizers is slightly different, with the plan to reduce imports to 59% of market demand in 2018 r. However, the demand from Brazilian farms is constantly growing and this proportion may start rising again, and reach c. 63% in 2023.

When it comes to nitrogen-based products, the proportion of imported goods may well remain as high as 93% for over a decade! Dilma Rousseff’s government is introducing various measures, including tax incentives, to encourage national enterprises and international companies to invest in fertilizer-chemical industry. And still, in the sector of mineral fertilizers, the foreign trade exchange deficit of Brazil is estimated at 33 billion USD in 2013.