Fertilizers: Brazil approves national plan aimed at reducing dependence on imports by 50% by 2050

Brazil’s National Council on Fertilizers and Plant Nutrition (Confert) approved the National Fertilizer Plan on November 29th, aiming to reduce the country’s dependence on imports to 50% by 2050. The plan includes the reactivation of idle factories, incentives for new industrial plants, and investment in sustainable nutrient production, among other actions, according to the ministry.

Currently, Brazil imports over 87% of the fertilizers used in its crops, which costs $25 billion. The central goal of the National Fertilizer Plan is to meet  45% to 50% of domestic demand by 2050. “The plan will make it possible to reduce external dependence and contribute to better food security in the country,” said the acting president and MDIC minister, Geraldo Alckmin, at the opening of the board meeting.

The plan is a long-term policy to decrease Brazil’s reliance on imported fertilizers. The scope of the plan was established in the previous administration with 80 goals and 130 aimed at boosting the local market with the overall principle of achieving 50% autonomy in 30 years (by 2050). Now, Confert has revised the project to include five guidelines, 27 goals, and 168 short, medium, and long-term actions. The government’s idea is to align the goals, priorities, and projects under the new government perspective.

Confert decided to monitor each goal and project through specific indicators. “The main short and medium-term actions aim to reactivate, complete, or expand strategically important fertilizers, especially nitrogen and phosphate. Petrobras, which holds a seat at Confert, has announced the reactivation of nitrogen factories in Paraná and Mato Grosso do Sul, as well as the intent to ramp up output in Sergipe and Bahia. The private sector is also increasing investments, such as in the construction of the Serra do Salitre complex for phosphate production,” stated MDIC in the note.

See below the volume of Brazilian fertilizer imports on a month-by-month basis from Jan 2019 and Oct 2023. The data is from DataLiner.

Brazilian Fertilizer Imports | Jan 2019 – Oct 2023 | WTMT

Source: DataLiner (click here to request a demo)

Another measure included in the national production support package is the new rendition of the Special Chemical Industry Tax Regime (Reiq), which will be worth R$500 million this year and R$1 billion in 2024, extending the regime’s benefits to industries investing in new fertilizer plants. The plan will also address tax equality for domestic and imported goods, as well as state and municipal law harmonization.

Among the National Fertilizer Plan guidelines is the improvement of the business environment to attract investments in production and distribution and the expansion of emerging fertilizer chains, especially organic, organomineral, and remineralizing waste. The ministries of Finance, Agriculture, Agrarian Development, Family Farming, Mines and Energy, Environment, and Science, Technology, and Innovation also make up Confert, along with Embrapa, Petrobras, the National Confederation of Industry (CNI), and the National Agriculture Confederation (CNA).

Source: BroadCast Agro

Click here to read the original text: http://broadcast.com.br/cadernos/agro/?id=bS9BdkpXamtxMFRFZkJvcFVJc0RiQT09

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