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Brazil’s Galvani to Expand Fertilizer Output Just in Time

May, 12, 2022 Posted by Gabriel Malheiros

Week 202220

Brazilian fertilizer company Galvani is ramping up production as the nation begins to grow desperate for hard-to-acquire crop nutrients.

The closely held company will double phosphate output at its plant in Luis Eduardo Magalhaes in Bahia state to 1.2 million tons in two years, Chief Executive Officer Marcos Stelzer said in an interview. While the expansion was planned before the latest fertilizer crisis began, the increased output will still be a welcome addition for local farmers struggling to afford the inputs they need in a runaway global marketplace.

Brazil, the top destination for Russian fertilizer shipments, currently imports around 85% of its fertilizer demand and 75% of its phosphate use. With Russia’s invasion of Ukraine causing prices to skyrocket, the Brazilian government has been looking for alternative suppliers from Canada to Iran; otherwise, it risks lower fertilizer use curbing yields and contributing to soaring food prices around the world.

In addition to the Luis Eduardo Magalhaes plant, Galvani is also a partner in an early-stage fertilizer project in the nation’s northeast, which is classified as strategic by the federal government. Known as Santa Quiteria, the phosphate-uranium project is waiting for environmental and operation licenses to proceed, the CEO said.

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