Ministry of Agriculture signs agreements with Bolivia to increase the supply of fertilizers in Brazil

The Minister of Agriculture and Livestock, Carlos Fávaro, signed two acts this week with Bolivia focused on increasing the supply of fertilizers in Brazil, aiming to increase the productivity of Brazilian agriculture and increase the competitiveness of the sector. The signatures took place during the bilateral meeting between the President of the Republic Luiz Inácio Lula da Silva and the President of Bolivia, Luis Arce, in Santa Cruz de la Sierra.

The first document is a cooperation agreement on the commercialization of fertilizers and sodium chloride, signed with the Minister of Hydrocarbons and Energy of Bolivia, Franklin Molina Ortiz. The second is a memorandum of understanding to export fertilizers to Brazil, signed with the Minister of Rural Development and Lands, Santos Condori.

The objective is to establish the terms and conditions for the export of fertilizers and their raw materials to Brazil, with a focus on strengthening local agriculture. The acts also seek to promote and implement technical and scientific cooperation through technological exchange, research, development and innovation between the parties.

“Increasing the supply of fertilizers in the country is fundamental for the development of Brazilian agriculture. It is to bring more competitiveness to the sector and, as a consequence, strengthen food security. Increasing fertilizer production will be fundamental to increasing food productivity in the country”, highlighted Minister Fávaro.

It was also reinforced by the Minister of Mapa that it is President Lula's determination to seek opportunities for businesspeople and the Brazilian population. “We found a very favorable environment thanks to the president’s good international relationship. We have already opened 155 new markets to sell national products,” he explained.

Mission

President Luiz Inácio Lula da Silva and the President of Bolivia, Luis Arce, participated in a bilateral meeting followed by an expanded meeting with authorities from both countries. On the occasion, advances were discussed in strategic themes for both nations, such as agriculture, energy and infrastructure, in addition to joint actions aimed at protecting the environment and energy transition.

Lula highlighted the cooperation between Brazil and Bolivia in industrial policy for the exploration and manufacture of lithium and highlighted the importance of joint development between the two countries, with the strengthening of commercial cooperation, especially in the production of fertilizers.

“What we did here aims to improve the quality of life of the people of Bolivia and improve the quality of life of the people of Brazil. That's why we are signing these documents. It is because it is necessary to give a chance, in the 21st century, so that Brazil, Bolivia and other South American countries stop being treated as developing countries, or third world countries”, highlighted the President of the Republic.

Business relationships

In 2023, Brazil exported approximately US$1,84 billion to Bolivia. The main products exported were raw iron bars, various food preparations, and automobiles. In agribusiness, it was around US$350 million, on average, in the last five years, mainly beverages, forestry products and animal feed.

In terms of imports, Brazilians imported approximately US$1,61 billion from Bolivians. Among the highlights are natural gas, nitrogen fertilizers and borax.

In terms of fertilizers, Brazil imports mainly Urea and Potassium Chloride from Bolivia. An average, over the last three years, of US$59 million and US$9,5 million, respectively.

Events

Minister Carlos Fávaro also participated, this Tuesday, in a meeting with the Minister of Planning and Budget, Simone Tebet, and with the Minister of Public Works, Services and Housing of the Plurinational State of Bolivia, Edgar Montano Rojas, to discuss the works in Brazil and Bolivia to facilitate the logistical integration of South America. The focus was on the Quadrante Rondon route, which aims to encourage and reinforce trade, in addition to reducing the time and cost of transporting goods.