Hormuz Closure Puts Fertilizers at the Top of Brazilian Foreign Minister’s Agenda

The closure of the Strait of Hormuz as a result of the war involving Iran pushed fertilizer imports to the top of Foreign Minister Mauro Vieira’s agenda during his visit to Beijing earlier this week. Prices for agricultural inputs have surged since the conflict involving Iran, the United States, and Israel began, raising concerns among Brazilian farmers ahead of the summer planting season.

The move echoes the minister’s visits to Uzbekistan and Kazakhstan in May, where fertilizer purchases were also a key topic. The trips are part of the government’s strategy to diversify suppliers and reduce dependence on a limited number of countries.

In China, the objective is to secure fertilizer supplies before the start of Brazil’s main crop season and prevent further price increases. The issue was one of the main topics discussed in meetings with Chinese Vice President Han Zheng and Foreign Minister Wang Yi.

The Brazilian foreign minister’s official destination was Beijing, where he attended the 5th Brazil-China Global Strategic Dialogue, a political consultation mechanism between the foreign ministers of both countries that has been held since 2014.

World Bank data show that fertilizer prices rose 12% in the first quarter of 2026, reaching their highest level since 2022 in April. According to the institution’s report, prices are expected to increase by 30% this year.

Brazil remains heavily dependent on imported fertilizers, with products sourced abroad accounting for 93% of all fertilizers used in the country in 2025, according to government data compiled by the Brazilian Confederation of Agriculture and Livestock (CNA).

Urea has been among the products most affected by the conflict. The nitrogen-based fertilizer depends on natural gas, which has also experienced significant price increases. Urea is widely used in corn, sugarcane, and pasture cultivation, creating concerns for Brazil’s livestock sector as well.

Last year, China was Brazil’s largest fertilizer supplier, accounting for 26% of total imports. Russia ranked second, supplying 25% of the country’s fertilizer needs.

Brazil’s reliance on China for fertilizer supplies also exposes it to the risk of safeguard measures. China has a history of imposing export restrictions to ensure domestic food security by stabilizing supply and demand, as well as in response to geopolitical instability.

In 2021, for example, when China faced rising prices, Beijing issued guidance to major fertilizer manufacturers, urging them to make additional efforts to guarantee domestic supply, prompting companies to announce the suspension of exports.

That same year, Chinese authorities began requiring inspection certificates for fertilizer exports and related products, creating obstacles to shipments abroad and leading some observers to view the measure as a de facto export restriction.

There have also been reports from anonymous industry sources cited by Reuters and Bloomberg indicating that, following the escalation of the conflict involving Iran, China may have restricted exports of certain fertilizers and strengthened customs inspections.

A report published by the CNA states that the costs of geopolitical conflicts are increasingly being borne by farmers and emphasizes the need for Brazil to anticipate risks, diversify suppliers, and strengthen domestic productive and technological alternatives.

Source: Folha de S.Paulo

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