Trucks and barges: new bet of Potássio do Brasil to increase fertilizer influx in Brazil

Potássio do Brasil’s primary focus will be to supply the Mato Grosso market with fertilizer extracted from the Autazes mine in Amazonas. As the country’s leading soy and corn producer, Mato Grosso consumes over four million tonnes of fertilizer per year.

To streamline potassium delivery to Mato Grosso’s farmers, the multinational has already signed a contract with Amaggi, the largest national agricultural trading company, to supply 500,000 tonnes annually.

Hermasa, the shipping company within the group led by the family of the former Minister of Agriculture, former Senator, and former Governor of Mato Grosso, Blairo Maggi, will handle the logistics and distribution of fertilizers to the state.

Adriano Espeschit, President of Potássio do Brasil, mentioned that the partnership with Amaggi is set to facilitate product delivery and ensure a low carbon footprint in logistics. The goal is to load trucks and barges transporting soy and corn from Mato Grosso to the Northern Arc ports with fertilizer. Currently, these trucks and barges return to the state empty.

“Out of every 50 trucks carrying soy up, we need one to come down with fertilizer,” Espeschit stated. The potential construction of the Ferrogrão railway could be an additional advantage for the distribution of the potassium that the multinational intends to exploit in Amazonas.

Since potassium is an internationally traded commodity, the prices for future production in the country’s North are unlikely to differ significantly for the end consumer. Nevertheless, the product remains attractive, according to Espeschit.

“We will bring to the market the guarantee of faster delivery. Currently, producers must form complex associations to purchase an entire shipload of fertilizer. They can buy a truck or a bag directly from us,” he explained.

The delay in commencing operations due to the legal process’s interruption has already increased the project’s cost in Autazes. Nevertheless, it remains advantageous since Brazil’s dependence on imports is very high. The price of a metric ton of potassium chloride is approximately $500, whereas the extraction cost is $86 per ton. “The project proves viable and extremely attractive to investors,” Espeschit added.

The multinational also continues to explore the possibility of expanding the area to be mined in Autazes. The company maintains interest in two blocks to the east of the future mine, which belongs to Petrobras. Potássio do Brasil participated in two processes to purchase mining rights for Fazendinha and Araripe in the Amazon Basin, but the deal was not finalized. Currently, the only potassium mine in operation in the country is in Sergipe and belongs to the multinational Mosaic.

Source: Globo Rural

Click here to access the original publication: https://globorural.globo.com/agricultura/noticia/2023/10/potassio-do-brasil-aposta-em-caminhoes-e-barcacas-para-levar-insumos-ao-mato-grosso.ghtml

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