Oct 27, 2009
Brazil Is Searching For Ways To Become Self Sufficient In Fertilizers
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Brazilian farmers and politicians are in agreement that Brazil needs to become self-sufficient in fertilizer production if it wants to stay competitive with other food producing countries. Currently, Brazil consumes 24.6 million tons of fertilizer annually, but only 8.8 million tons are produced domestically. The remaining 15.8 million tons are imported at a cost of R$ 14 billion. Potassium chlorate is the number one fertilizer imported into Brazil and imports account for more than 90% of the potassium consumed within the country. Recent price hikes convinced farmers that more domestic supplies are urgently needed. During the 2002-03 growing season, potassium chlorate sold in Brazil for R$ 800 a tons. In February of 2009, the price had risen to R$ 1,800 a ton.
Increased domestic supplies can only come from expanded exploration within Brazil. The Brazilian Minister of Agriculture, Reinhold Stephanes, is proposing renewing efforts to expand the search for more domestic supplies of fertilizers. He was joined recently by the president of the Brazilian Agricultural Federation (Condederacao do Agricultura e Pecuaria do Brasil - CAN) in calling for renewed efforts to increase domestic supplies.
Scientists at the University of Brasilia and the Embrapa Cerrado Research Center have been conducting research on the use of pulverized minerals as a source of essential plant nutrients. Instead of importing chemical fertilizers, they proposed a renewed effort to identify sources of the same nutrients in existing rock formations. This method of fertilizing is already being used in southern Brazil and they feel it will work in central Brazil as well. One of the big advantages of this method is that these minerals are less soluble than chemical fertilizers and they only needs to be applied every four years as compared to chemical fertilizers that need to be reapplied every year.
The price of fertilizers is especially important in the expanding agricultural areas of central Brazil. The soils in central Brazil have a very low natural fertility so potassium and phosphorus must be routinely applied if top soybean yields are to be achieved. In Mato Grosso for example, fertilizers accounted for about 49% of the cost of producing the 2008-09-soybean crop in the state. The cost of fertilizers has declined this year, but they still account for approximately 40% of the cost of growing soybeans in the state. In areas such as Mato Grosso, Farmers had to reduce fertilizer rates last year in order to cut costs.