Brazilian minister travels to Canada in search of alternative potash sources

Tereza Cristina, the Minister of Agriculture, began a new round of negotiations with fertilizer exporters on the 11th. This time, the destination was Canada, the primary supplier of potassium chloride to Brazilian manufacturers.

The goal is to meet with Canadian executives in Ottawa and convey the message that ensuring fertilizer supply to Brazil at this time is strategic for the world’s food security.

People close to Tereza Cristina see the trip a few days after leaving the ministry’s command as a personal effort to guarantee the supply of inputs for national agriculture and strengthen ties with Canada.

Since last year, she has been in contact with Canadian potash companies, trying to convince them to increase their exports to Brazil by at least 500,000 tonnes.

Though negotiation

All things considered, this mission will not be easy. The fertilizer agenda is mainly a private business, and the government lacks the authority to regulate purchases or enter into trade agreements. However, the minister will emphasize that Brazil is a reliable customer with the ability to increase potash purchases.

Brazil, as the primary buyer of Canadian fertilizers, a key product to the country’s trade balance, supports its potash exporters’ expansion plans. However, this does not imply that Canada will expand the offer to the point of filling the gaps left by Russia and Belarus. Capacity for production expansion is limited.

In fact, these are multi-billion dollar investments that do not take immediate effect. The Canadian private sector will also assess the risk of making high investments considering the possibility of the market shifting its focus back to Eastern Europe. In the short to medium term, an eventual normalization of the geopolitical scenario could flatten potash prices, which are currently rising sharply, and reintroduce exporting countries into the game.

Source: Valor Econômico

To read the full original article please see:

https://valor.globo.com/agronegocios/noticia/2022/03/11/tereza-cristina-viaja-ao-canada-em-busca-de-mais-potassio.ghtml

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