Brazil doesn't need fertilizer independence, says Eurochem

Gustavo Horbach, President of Eurochem in South America, states that Brazil doesn't need to be entirely independent from external fertilizer suppliers. 

What truly matters is that Brazil fosters its local production to ensure continuity and sustainability, Horbach said.

"The percentage of this local production is not a discussion for now; we need investments," Horbach said during a panel on the fertilizer market at the Rio+Agro event. In this context, he praised the Brazilian government's National Fertilizer Plan (PNF).

The PNF aims to reactivate factories, incentivize new plants, and invest in sustainable nutrient production. The Plan's goal is for Brazil to reach 2050 with a national production capable of meeting 45% to 50% of domestic demand, halving current import figures.

On the other hand, Eurochem's South American President emphasized that private initiative needs to secure more investments. Eurochem, controlled by Chinese capital, has been in Brazil since 2016 and has already invested US$2.5 billion in the country, with 22 mixing plants and a mining-industrial complex.

"Brazil plays a crucial role in global food security, and we must ensure that the sector is prepared to face climate uncertainty and the demands of an increasingly competitive market. EuroChem is committed to supporting this journey, working closely with farmers, government, and industry partners to ensure that the country continues to grow sustainably and lead the global stage,″ he said.

Another company participating in the event was Atlas Agro, represented by its Chief Operating Officer, Rodrigo Santana. According to him, the company will build the first nitrogen fertilizer factory using green hydrogen.

With a R$4.3 billion investment, the unit will be built in Uberaba (MG) and will use a 100% clean matrix from renewable sources such as solar and wind for the production of green hydrogen, green ammonia, and zero-carbon nitrogen fertilizers.

The unit will have a production capacity of 500,000 tons per year of fertilizers to serve customers in the region. "Atlas was founded three years ago to address the problem of decarbonization in the fertilizer industry," Santana said in conclusion.

These statements highlight some critical points about Brazil's strategic approach to fertilizer supply: Rather than aiming for complete independence, Brazil focuses on a balanced approach that combines domestic production with imports.

The focus on green hydrogen and zero-carbon fertilizers shows a shift towards more environmentally friendly agricultural practices. This balanced approach to fertilizer production and supply could serve as a model for other agricultural nations seeking to balance self-sufficiency with global trade relationships.

(Editing by Leonardo Gottems, reporter for AgroPages)