Brazil eyes more investments on fertilizer production in the country

Brazil is still heavily reliant on fertilizer imports, and the federal government is seeking to attract investments to bolster domestic production. The Brazilian Trade and Investment Promotion Agency (Apex Brasil) will host its first-ever business roundtable with global fertilizer manufacturers from July 29 to August 2 in Rio de Janeiro during Rio + Agro, an international agribusiness forum.

This initiative is part of the National Fertilizer Plan (PNF), which the Ministry of Development, Industry, Commerce, and Services (MDIC) updated in 2023. The PNF aims to reactivate factories, incentivize new industrial plants, and invest in the production of sustainable nutrients.

Carlos Padilla, investment coordinator at Apex Brasil, emphasized that this trade round is a directive from the Ministry, coordinated by Vice President Geraldo Alckmin, who led the PNF negotiations in 2023. “Our goal is to reduce the significant dependence on imported fertilizers,” Padilla stated. He reaffirmed the PNF’s target to meet 45% to 50% of domestic demand with national production by 2050. Currently, Brazil imports 86% of its fertilizer consumption.

This initiative, which targets fertilizer companies and green energy projects, is co-funded by the Ministry of Agriculture and the Secretariat of Economic Development, Industry, Commerce, and Services of the State of Rio de Janeiro.

“We are identifying gaps in productive sectors, and that goes for agriculture. The goal is to understand precisely what is needed to strengthen these sectors and reduce Brazil’s dependence on imported fertilizers,” Padilla explained.

Eleven companies are set to participate in the roundtable, including multinationals Eurochem, Casale, and Yara, which are already in Brazil. In June, Casale opened an office in São Paulo through Apex Brasil to strengthen partnerships in nitrogen fertilizers, green ammonia, and other inputs. According to a company statement, the next step is to implement industrial plants.

While some companies already operate in Brazil, Padilla noted that the goal is to secure additional investments and strengthen the country’s research and logistics capabilities. Apex Brasil plans to take company representatives to Porto do Açu in northern Rio de Janeiro, where Minasport recently opened warehouses with a capacity of 70,000 tons of grains. Visits will also include the Fertilizer Excellence Center of the Federal University of Rio de Janeiro (UFRJ), expected to open in 2025, and technology parks in the capital. The aim is to demonstrate the state’s potential for investment in research and development and distribution and storage facilities.

Swiss company Atlas Agro, which is constructing Brazil’s first green nitrogen plant in Uberaba (MG), and the Spanish group Solatio, which is developing a green hydrogen project in Piauí, will also participate in the rounds. Two Bolivian state-owned companies, YPFB and EBIH, have been invited and are not yet operating in Brazil.

Carlos Padilla mentioned that discussions with these companies aim to establish a bilateral agreement to supply Bolivian natural gas to Brazil, a cooperation process already underway at the MDIC.

“Attracting international investment to build fertilizer factories in the country is a fundamental strategy. We need to expand our production and, to do so, we need investment,” said Apex Brasil Investment Manager Helena Brandão.

This concerted effort by Apex Brasil and its partners is crucial for reducing Brazil’s dependency on imported fertilizers and boosting the domestic agricultural sector.

Source: Globo Rural

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