Mar 14, 2022

Brazil Announces National Fertilizer Plan

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

Last Friday, the Brazilian government announced Brazil's National Fertilizer Plan (PNF). Making the announcement were President Jair Bolsonaro, Minister of Agriculture, Tereza Cristina, Minister of Mines and Energy, Bento Albuquerque, Minister of the Economy, Paulo Guedes, and Special Secretary for Strategic Interest for the President of the Republic, Flavio Rocha. The list of the attendees illustrates how important fertilizers are taken in Brazil.

Currently, Brazil imports 85% of its fertilizer needs and the goal of the plan is to reduce that to 45% by 2050 while at the same time doubling the amount of fertilizers used. They hope to accomplish that goal by increasing domestic production, more efficient use of fertilizers, new technologies, use of mineral inputs, innovation, and environmental sustainability.

The war in Ukraine has instantly put fertilizer availability front-and-center in Brazil because Russia is Brazil's largest supplier of fertilizers and the concern is that sanctions on Russia and Belarus could put fertilizers from those two countries off limits for Brazilian importers.

Facts concerning Brazil's fertilizer sector include:

Brazil is desperately looking for additional sources of fertilizers from Canada, Middle East, Chile, etc. Brazil's Minister of Agriculture will travel to Canada this week to discuss additional fertilizer imports from Canada.

On the international front, the Brazilian Minister of Agriculture has joined with other agricultural ministers from South America to petition the Food and Agriculture Organization of the United Nations to exempt food and fertilizers from international sections

The Agricultural Commission of the Brazilian Congress held open hearing last week to debate the best way to reduce the countries dependence on imported fertilizers. It was a heated debate with representatives from agricultural areas stressing how important agriculture is to Brazil's economy with representatives from indigenous areas emphasizing indigenous rights and potential environmental degradation from additional mineral extraction.