Brazil expands fertilizer production for Brazilian agriculture with new factory

Inauguration of the EuroChem Mining Industrial Complex, in Minas Gerais, took place this week; forecast is to supply 15% of national production

14.03.2024 | 15:14 (UTC -3)
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Photo: Disclosure
Photo: Disclosure

This week, the Minister of Agriculture and Livestock, Carlos Fávaro, participated, alongside the President of the Republic, Luiz Inácio Lula da Silva, in the inauguration of the EuroChem Mining Industrial Complex, in Serra do Salitre, in the Triângulo Mineiro. It is the company's first mining unit outside the European continent and is expected to supply 1 million tons of phosphate fertilizers per year for Brazilian agriculture. 

All of the Complex's production will be destined for the domestic market, to support Brazilian agricultural productivity and increase the sector's competitiveness. Furthermore, as a consequence, strengthening food security for present and future generations. The project involved an investment of US$1 billion, generating around 3,5 jobs during construction. 

President Lula highlighted that Brazilian economic growth and investments in the country are attracting foreign companies. “Eurochem’s arrival in Brazil is not just a demonstration of belief in Brazil. It is proof that our country is becoming the breadbasket of the world and a reference in agricultural production, with renewable energy and the capacity to generate jobs and growth”, he pointed out. 

It was also reinforced by President Lula that Brazil wants to reduce Brazil's external dependence on fertilizers. “We want to stop being importers. The money we paid to import fertilizers to Brazil could have been invested in businesspeople, which creates jobs here, which generates salaries here, which generates quality of life here”. 

Minister Fávaro explained the importance of the factory. “This plant opened today represents 15% of the national production of phosphate fertilizers. Fertilizers that we declare to be national sovereignty, because it means food. They are investing in the right place, for dedicated producers,” he highlighted. “Increasing fertilizer production will be essential to encourage programs such as pasture conversion, to increase food productivity in the country,” he added. 

The Complex integrates, in a single location, everything from the extraction of phosphate, the main raw material, to the production of granulated fertilizers. In addition to 1 million tons of phosphate fertilizers, the industrial plant will produce 1 million tons per year of sulfuric acid and 240 thousand tons of phosphoric acid, byproducts used in the fertilizer production process itself. 

The Minister of Mines and Energy, Alexandre Silveira, highlighted the economic impact of the factory. “We inaugurated a new integrated fertilizer plant, which means reducing Brazil's dependence on fertilizers. It means more competitiveness for agriculture. Fair mining, in three words, means: job creation. All this effort meant the creation of 3,5 jobs during the construction phase. And now, we will have almost fifteen hundred direct jobs and another three thousand indirect jobs for the region.” 

National Plan 

Brazil is one of the largest food producers and exporters. The country is currently responsible for around 8% of global fertilizer consumption, ranking fourth, behind only China, India and the United States. However, more than 87% of fertilizers used in Brazil are imported, demonstrating a high level of external dependence. 

To change this scenario, the National Council for Fertilizers and Plant Nutrition (Confert), led by vice-president Geraldo Alckmin, approved in November the guidelines, goals and actions of the new National Fertilizer Plan (PNF). The main objective is to reach 2050 with national production capable of meeting between 45% and 50% of domestic demand, in addition to generating opportunities and jobs for Brazilians. 

LS Tractor February