Brazil has approved a program aimed at stimulating the production of fertilizers and raw materials obtained through synthetic, mineral, and organic means, as well as biofertilizers and biofertilisers within the country.
The main goals of this initiative are to ensure food and nutritional security, reduce costs in the agricultural value chain, and guarantee a stable supply of fertilizers and raw materials for Brazilian agriculture.
Production companies operating in Brazil can benefit from the program provided they meet the participation requirements. These requirements include implementing local development initiatives, social integration, dialogue with affected communities, and adopting greenhouse gas emission reduction measures.
Legislation also mandates the blending of national fertilizers in products sold in the country. This percentage is set at 2% starting July 1, 2027, and increases to 10% by January 1, 2037.
Starting in 2038, the National Council for Fertilizers and Plant Nutrition (Confert) must determine the further evolution of this blending ratio, ranging from 10% to 30%, taking into account the availability of domestic products and the industry's production capacity.
The Brazilian government may also allocate funds for revolving credit lines intended for investments in the sector. These investments cover modernization, reactivation, and expansion of industrial facilities, as well as research, development, innovation, and logistics infrastructure.
Funds will be transferred by the Ministry of Finance to the National Bank for Economic and Social Development (BNDES), which can manage these lines directly or through accredited financial institutions, while Confert will monitor the program's outcomes.
When signing the law, the President of Brazil vetoed a clause that defined fertilizers only as those 'extracted and produced on national territory' for regulatory purposes, deeming this segment contrary to public interest.
Since Brazil imports over 80% of its consumed fertilizers, the country is betting on diplomacy, credits, and domestic production to reduce dependence on these resources, according to sources from the Brazilian Government interviewed by Lusa.
The diversification aims to minimize risks associated with geopolitical tensions and potential disruptions in sea routes, such as the Strait of Hormuz, to ensure the availability of necessary resources during the 2026/27 planting season.
A schedule from the Ministry of Agriculture and Livestock, obtained by the publication, shows a significant change in the origin of Brazilian fertilizer imports in the first quarter of the current year compared to the same period in 2025. According to the presentation, purchases increased by 83% from Morocco, 61% from the United States, 60% from Venezuela, 47% from Canada, 46% from Egypt, 34% from Algeria, and 23% from Israel. Meanwhile, purchases decreased by 76% from Oman, 59% from Qatar, 55% from Nigeria, 17% from Russia, and 3% from China, while Turkmenistan appeared as a new supplier.