Brazil seeks to reduce 85% fertilizer import dependency

Brazil remains heavily dependent on imported fertilizers, with the Ministry of Agriculture reporting that approximately 85% of substances used in plant nutrition are sourced from abroad. This reliance leaves the country's massive grain production sector vulnerable to geopolitical shifts and international price volatility, such as recent spikes in sulfur prices due to conflicts in the Middle East.

While the Brazilian Senate recently approved the Fertilizer Industry Development Program (Profert) to reduce production chain costs, the National Association for the Diffusion of Fertilizers (ANDA) argues that additional measures are required. The association is advocating for further initiatives, including a proposed tax credit of up to 20% on investments to stimulate domestic production of raw materials.

Challenges to self-sufficiency vary by nutrient type. For nitrogen-based fertilizers, the high cost of domestic natural gas—the primary feedstock for ammonia—makes Brazilian urea less competitive against cheaper imports. Other segments face different hurdles related to geographic availability and raw material quality.