Iran may triple urea exports to Brazil

The Iranian National Petrochemical Company (NPC), the body in charge of developing and operating the petrochemical industry, confirmed that Iran might triple its urea shipments to Brazil.

After a meeting with the Brazilian Minister Tereza Cristina (Agriculture, Livestock, and Supply) on the 18th, the company’s president, Morteza Shah-Mirzaei, said that urea exports to Brazil could reach 2 million tons a year. Currently, the amount exported is 600 thousand tons/year.

The minister said that Brazil is interested in increasing the purchase of Iranian urea and highlighted the quality of the Iranian fertilizer.

“This arrangement guarantees that Brazil is in a position to receive enough imports from Iran to step up the game at our agroindustry. Through this partnership, we will ensure the strategic purchase of these inputs to secure efficient, continuous food production”, said the minister. Urea is most used as a fertilizer to supply nitrogen to crops.

NPC president highlighted the company has more than petrochemical products, including urea, ready to supply to the market. NPC is a subsidiary of the Iranian Ministry of Petroleum, responsible for developing and controlling the Iranian petrochemical sector. It is currently the second-largest producer and exporter of petrochemical products in the Middle East.

The minister also visited Shiraz Petrochemical Company, one of the country’s main urea manufacturers. Iran’s annual urea production is estimated to be over 5 million tons. The majority is sold on the domestic market, while the remainder is exported.

Trade

During lunch at the Brazil-Iran Business Forum, the minister stated that with the importation of soy-derived products, corn, and meat, Iran became the largest client of Brazilian agriculture in the Middle East. However, Brazil is interested in expanding its exporting portfolio to include cotton, rice, and sugar.

Check below the list of the main commodities exported by Brazil to Iran in the years 2020 and 2021. The data are from DataLiner.

Brazilian exports to Iran | Jan to Dec 2020 – 2021 | WTMT

Source: DataLiner (click here to request a demo)

Conversely, Brazil can increase the import share of products like walnuts, chestnuts, and dried fruits and acquire other products such as saffron and wheat. “I am confident that we will pursue the right path to overcome any eventual adversity and intensify bilateral trade for our mutual benefit,” she said.

Tereza Cristina recalled that barter trade is an excellent alternative to take grains and other commodities to Iran and, in the same vessels, bring urea and other petrochemicals to Brazil. “There are Brazilian trading companies that are experienced in operations like this and, thus, can offer products at more attractive prices,” mentioned Cristina.

She also highlighted Iran’s interest in soil and water management technologies and irrigation systems. In this context, cooperation between Embrapa and the Agricultural Research, Education and Extension Organization (AREEO) can address these issues.

Source: Agrolink

To read the full original article, please access: https://www.agrolink.com.br/noticias/ira-podera-triplicar-exportacao-de-ureia-para-o-brasil_462504.html

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