Brazil's fertilizer is heavily dependent on imports

Recent data from the Brazilian National Fertilizer Association (ANDA) highlights a growing reliance on imported fertilizers. In 2013, Brazil imported 21.619 million tons of chemical fertilizers, marking a 10.6% increase compared to the previous year. This accounted for 70% of the country's total chemical fertilizer consumption, with import value reaching $8.885 billion—an increase of 3.51% over the prior year.

Every year, Brazil continues to rely heavily on foreign sources for its fertilizer needs. The country’s dependence on chemical fertilizer imports stands at 70%, while its reliance on potassium ore reaches as high as 90%. According to ANDA, fertilizer imports were expected to hit $13 billion in 2018. If local production projects progress well, Brazil could reduce its chemical fertilizer imports by 9 million tons and cut costs by $4.5 billion that year.

Vale, a major mining company, is currently developing the Carnalita Potash Project in Sergipe, Brazil. Once completed, the project is expected to produce 1.2 million tons of potash annually. Experts estimate that this initiative could save Brazil up to $17 billion in potassium ore imports over the next 30 years, helping to ease the country’s fertilizer trade deficit. However, legal disputes over the collection of goods circulation service tax (ICMS) in the cities of Capela and Japaratouba have delayed the project’s development.

In addition to potash, several companies are investing in phosphoric acid production. Vale, Brazilian MbAC Fertilizer, and Galvani are all working on phosphoric acid projects. Notably, Galvani’s project in Minas Gerais and César states will have an annual capacity of 3 million tons. If these initiatives succeed, Brazil could cut its phosphoric acid imports by 50%, further improving its fertilizer trade balance and reducing its overall dependency on foreign markets.