Mosaic bets on bio-inputs but faces regulatory delays in Brazil

Despite a challenging 2024 for the agribusiness sector, the fertilizer industry maintained its sales volume, marking a victory for companies like Mosaic, a global leader in the industry. 

In Brazil, the company expects deliveries to align with the market, with growth between 0.5% and 1%, reaching 46 million tons, according to Eduardo Monteiro, Country Manager of Mosaic Brazil and President of ANDA (National Fertilizer Diffusion Association).

For 2025, optimism prevails, with a projected 2% growth in fertilizer sales, driven by early sales of potassium chloride. However, demand for phosphate fertilizers remains constrained due to an unfavorable exchange ratio. Mosaic is also monitoring logistical bottlenecks and the agricultural credit situation, adopting strategies to mitigate risks.

Mosaic views bio-inputs as the future of the company, with its Mosaic Biosciences division projected to reach US$100 million in revenue by 2030. Despite expanding the area treated with biologicals to two million hectares in 2024, starting from zero, the company faced challenges. In addition to market setbacks, such as the impact of hurricanes in Florida on Performa Bio production, the main hurdle lies in Brazilian regulation.

The company advocates for greater clarity in legislation for the approval of biologically derived nutritional products, aligned with international practices. Mosaic calls for the ability to register multiple functionalities for a single product and the permission to incorporate biologicals into traditional fertilizers, a practice already adopted in countries such as Canada, the United States, China, and India.

Alexandre Alves	Antônio Josino Meirelles Neto

Executives from Mosaic, including Alexandre Alves, Director of Mosaic Biosciences Brazil, and Antônio Meirelles, Director of Government Relations and Sustainability, argue that current legislation hinders the entry of innovative products into the Brazilian market. One example they point to is a market-leading phosphorus solubilizer in Canada, which could increase soybean productivity by 3 to 4 bags per hectare but is not registered in Brazil. Another product awaiting approval is a biological seed treatment solution with the potential to double productivity.

Mosaic advocates for more robust and simplified legislation that allows the use of hybrid products and the incorporation of biologicals into fertilizers, benefiting farmers with resource and cost savings. The company is in dialogue with the Brazilian Ministry of Agriculture to push for regulatory changes that unlock the potential of bio-inputs in Brazil.

Meanwhile, Mosaic's expansion in the country focuses on the Matopiba region, comprising the Brazilian states of Maranhão, Tocantins, Piauí, and Bahia, with a new investment of R$400 million in a production unit in Tocantins. For now, the production of biologicals remains dependent on international plants and local partnerships, awaiting a more favorable regulatory environment for investments in domestic production in Brazil.

(Editing by Leonardo Gottems, reporter for AgroPages)