Canadian potash exporters secure supply for Brazil

Before announcing her trip to Canada this month to try to guarantee the supply of inputs for Brazil, Minister of Agriculture Tereza Cristina had already been informed about the country’s inability to expand its exports in the short term and about the logistical difficulties faced by Canadian potash exporters

A statement transmitted by the agricultural attaché in Ottawa, Paulo Márcio Mendonça Araújo, at the end of October, reports conversations between Brazilian diplomacy and the three main Canadian companies in the sector. But despite the logistical difficulty for a substantial increase in potash sales to Brazil, Nutrien, Mosaic (headquartered in the US), and K+S Canada rule out the possibility of a supply shock and guarantee a “reliable supply at competitive prices ” to Brazilian rural producers.

After visiting Russia, the minister stated at the 8th National Fertilizer Congress in November that she would go to Canada to continue talks about the supply of inputs. The president of Nutrien, Mayo Schmidt, told the Brazilian embassy he was “confident in contributing heavily to supplying Brazil, even in a possible scenario of accelerated growth”, says the statement.

The executive expressed concern about the logistical challenges of transporting to certain Brazilian regions, such as the north of Mato Grosso. “Nevertheless, he stressed that Nutrien will be able to maintain itself as a reliable supplier with competitive prices for Brazil”, stated the letter from the attaché.

Congested port
Another problem is that there are also logistical difficulties in Canada, especially in the port of Vancouver, which would be congested. “The Canadian production, however, could in part be shipped through the port of Saint John, as an alternative,” says the letter sent to the Ministry of Agriculture. The document reports that McKenzie “estimated that the supply shock of potassium fertilizers is not likely in the short term, but the uncertainties arising from the sanctions on Belarus are expected to impact prices, which have been high since the pandemic”.

Source: Valor Econômico

To read the full original article, access the link: https://valor.globo.com/agronegocios/noticia/2021/12/07/exportadores-canadenses-de-potassio-garantem-fornimento-ao-brasil.ghtml

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