Minister inks agreement with Bolivia to increase fertilizer supply to Brazilian agriculture

On Tuesday (July 9), Brazil’s Minister of Agriculture and Livestock, Carlos Fávaro, signed an agreement with Bolivia to increase the country’s fertilizer supply. This initiative aims to enhance the productivity and competitiveness of Brazilian agriculture. The signing ceremony occurred during a bilateral meeting between Brazilian President Luiz Inácio Lula da Silva and Bolivian President Luis Arce in Santa Cruz de la Sierra.

The first deal pertains to a cooperation agreement on the trade of fertilizers and sodium chloride, signed with Bolivia’s Minister of Hydrocarbons and Energy, Franklin Molina Ortiz. The second is a memorandum of understanding regarding exporting fertilizers to Brazil, signed with the Minister of Rural Development and Lands, Santos Condori.

The agreement establishes terms and conditions for fertilizer exports (raw materials included) to Brazil, focusing on strengthening local agriculture. They also seek to promote and implement technical and scientific cooperation through technological exchange, research, development, and innovation between the two countries.

Political Mission

President Luiz Inácio Lula da Silva and President Luis Arce held a bilateral meeting on Tuesday (July 9) in Santa Cruz de la Sierra, followed by an expanded meeting with authorities from both countries. They discussed advances in strategic areas such as agriculture, energy, and infrastructure, as well as collaborative actions aimed at environmental protection and energy transition.

Lula emphasized the cooperation between Brazil and Bolivia in industrial policy for lithium exploration and manufacturing, highlighting the importance of collective development and strengthening commercial collaboration, especially in fertilizer production.

“What we did here aims to improve the quality of life for the people of Bolivia and Brazil. That’s why we are signing these documents. It is necessary to give Brazil, Bolivia, and other South American countries a chance to stop being treated as developing or third-world countries in the 21st century,” President Lula stated.

Trade ties

In 2023, Brazil exported approximately US$1.84 billion to Bolivia. The main exported products included raw iron bars, various food preparations, and automobiles. In agribusiness, exports averaged around US$350 million over the past five years, mainly comprising beverages, forestry products, and animal feed.

Brazil imported approximately US$1.61 billion from Bolivia in 2023, with natural gas, nitrogen fertilizers, and borax among the top imports.

Regarding fertilizers, Brazil primarily imports urea and potassium chloride from Bolivia, averaging US$59 million and US$9.5 million, respectively, over the past three years.

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