Minimum freight law raises transportation costs in the fertilizer sector by more than 35%

Scheduled to begin last Monday (20), the intensification of electronic monitoring of the Minimum Freight Floor, through the MDF-e (Electronic Manifest of Fiscal Documents) — implemented by the National Land Transport Agency (ANTT) based on Law 13.703/2018 — is raising concerns from the Union of the Fertilizer and Agricultural Lime Industry of the State of Paraná (Sindiadubos). The organization estimates that the measure will increase transportation costs in the sector by more than 35% and advocates for a review of the criteria in ANTT’s table and the suspension of electronic fines. “The new freight pricing will cause distortions not only in the price of the service but also in the price of food, especially those that make up the basic food basket,” said agronomist Veríssimo Cubas, executive manager of Sindiadubos.

Cubas pointed out that the fertilizer sector is mobilizing to defend the postponement of the imposition of fines for non-compliance with the current table, which came into effect this month, and the revision of the criteria for the minimum freight rate table. Sindiadubos also calls for adapting Law 13.703/2018 to the real market, logistics, and infrastructure conditions, as the current text does not take into account various market factors, such as return freight, loading and unloading times, and the useful lifespan of transport equipment, among others.

Law 13.703/2018 came into effect after the truck drivers’ strike, and the ANTT updated the minimum freight table in June 2021. “The electronic monitoring that began in October this year is causing problems for the fertilizer industry, especially regarding the payment of 92% on return freight, which is impossible for a sector that operates with profit margins of 3 to 4%,” said Cubas. Therefore, according to the Sindiadubos manager, it is necessary to alert society that the measure creates a ripple effect, as it is not only about the minimum freight price for agricultural transport but also about all economic activities. “The fertilizer sector ends up being the most affected due to the volume we move, which involves the entire logistical planning of transporting inputs from the ship to the factory and from the factory to the farm,” he noted.

“The minimum freight table causes distortions, with short- and medium-distance freights, for example, priced at R$75/ton in the table but costing R$180/ton in the market, while long-distance freights are R$380/ton in the table and around R$250/ton in the market,” explained the executive director of the Brazilian Association of Blenders (AMA Brasil), Antonino Gomes. According to him, these discrepancies, along with the requirement for the electronic freight manifest (MDF-e) and the fines applied since October 1, create significant uncertainty for fertilizer companies when contracting freight services and affect the entire production chain. “The implemented freight table has disrupted free market operations in the food sector, leading to higher agricultural production costs and, consequently, increasing prices in the basic food basket,” he pointed out.

According to the executive manager of Sindiadubos, it is essential at this time to convene a discussion among representative associations, the federal government, and companies on how these values are applied and the best approach to implementing the National Policy for Minimum Freight Rates in Road Cargo Transport. To promote discussions within the executive, judiciary, and legislative branches, the Institute for Agricultural Thought (IPA), an organization composed of 58 agricultural representative entities, is assisting productive sectors in engaging with the National Congress. “The Ministry of Transport required compliance with Law 13.703/2018, and with that, the new freight table was applied. Our sector presented to IPA, which works alongside the Parliamentary Agricultural Front (FPA), a report highlighting inconsistencies in the values and how this will inflate the market,” explained the AMA executive director.

“By bringing the discussion to Congress, we understand the importance of debating measures to improve the requirements and applicability of the freight table,” said Cubas. Also with this goal, Sindiadubos will hold a discussion panel on the topic at the opening of the NPK 2025 Symposium on October 30. The panel will feature Fertipar president Alceu Feldman and federal deputies Pedro Lupion and Tião Medeiros, from the FPA, to discuss the challenges the sector faces due to the values imposed by ANTT’s minimum freight rate table.

Sindiadubos NPK 2025 Symposium

To address agribusiness trends and the changes that have occurred so far, both nationally and internationally, Sindiadubos will hold the 19th edition of the NPK 2025 Symposium on October 30 in Curitiba (PR). The event is expected to bring together approximately 1,000 participants and 300 companies from across the agribusiness chain, including fertilizer producers in Brazil and abroad, logistics operators, and end consumers.

The symposium will feature the following program: Industry Discussion Panel; Performance and Outlook for the Sector in 2025 and 2026; National and International Agribusiness Scenario; and Cost and Profitability Projections for the 2025/2026 Harvest. The event will feature the participation of Sindiadubos president Aluísio Schwartz Teixeira, Agroinvest fertilizer analyst Jeferson Souza, and agribusiness expert, journalist, and presenter Kellen Severo.

About Sindiadubos

Founded in 1987, the Union of the Fertilizer and Agricultural Lime Industry of the State of Paraná (Sindiadubos) represents, defends, and promotes the rights of the fertilizer and agricultural lime industry in the state, offering legal, technical, and labor advisory services, as well as disseminating information and market data on fertilizers and mineral fertilizers. The union is a maintainer of the National Association for the Diffusion of Fertilizers (ANDA) and is affiliated with the Federation of Industries of the State of Paraná (FIEP). For more information, visit: www.sindiadubos.org.br

Source: Sindiadubos

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