Santa Catarina Agriculture Federation defends reducing external dependence on fertilizers

Security in the supply of fertilizers is one of the concerns of the Federation of Agriculture and Livestock of the State of Santa Catarina (Faesc) in 2024. The concern lies in the fact that more than 87% of fertilizers used by Brazilian agriculture come from abroad, while Santa Catarina annually needs around 500 thousand tons of fertilizers to prepare the planting of 1,4 million hectares of crops. The crops that most require fertilizers are soybeans, rice, wheat and corn, as well as fruits and vegetables.

The president of Faesc and vice-president of finance of the Brazilian Agriculture and Livestock Confederation (CNA), José Zeferino Pedrozo (in the photo), argues that the country adopts a policy of seeking self-sufficiency to “reduce the level of exposure of the Brazilian economy to unpredictable and uncontrollable external factors”.

Last year, the war between Russia and Ukraine worsened this situation. Despite being the world's fourth largest consumer of these inputs, Brazil, unable to guarantee its own demand, faces warnings due to external dependence.

But there is hope on the horizon. Brazil launched the National Fertilizer Plan in March 2022 to reduce external dependence, with the goal of producing half of this input demanded by agriculture by 2050. In this sense, the president of Faesc asked the Parliamentary Front for Agriculture for support for the proposals in proceedings in the National Congress aiming to reduce the vulnerability of Brazilian agribusiness in relation to imported inputs.

Bill (PL) 3507/2021 that creates the Fertilizer Industry Development Program (Profert) was approved in the Senate and awaits approval in the Finance and Taxation (CFT) and Constitution and Justice and Citizenship (CCJ) committees. in the Chamber of Deputies to become law. Profert aims to grant tax incentives to companies that invest in fertilizer production, suspending the payment of taxes on inputs and services intended for this purpose.

Restructuring

Faesc understands that it is necessary to restructure fertilizer production, addressing different models and soil recovery processes. Pedrozo remembers that fertilizers play a vital role in agriculture, providing essential nutrients for plants and increasing crop productivity. Brazilian soil, with its low natural fertility, depends on these inputs to enable agricultural production in the country.

The director remembers that producing in Brazil is expensive and uncompetitive, which is why agribusinesses concluded that it is cheaper to import. “We need to seek self-sufficiency in this area because global suppliers are few”, he warns. Brazil imports 25% of Russian fertilizers, but can seek other suppliers such as China, Canada, Israel and African countries.

The main nutrients applied in the country are potassium 38%, calcium 33%, nitrogen 29%. Soybean cultivation requires more than 40% of the fertilizers applied. Brazil imports 9 million tons of inputs per year and is the fourth largest consumer of fertilizers in the world, behind China, India and the USA. The country is dependent on imports, but has all the raw materials to produce, such as natural gas, phosphate and potassium rocks and micronutrients. Potassium reserves are located in Sergipe and Amazonas. “The National Fertilizer Plan needs to find a way to meet the needs of Brazilian agriculture”, he concludes.