Federal Government launches National Fertilizer Plan to reduce imports of inputs

As a strategy to reduce Brazil's dependence on fertilizer imports, the Federal Government launched the National Fertilizer Plan, this Friday (11), at Palácio do Planalto. The ceremony was attended by the President of the Republic, Jair Bolsonaro; the Minister of Agriculture, Livestock and Supply, Tereza Cristina; the Minister of Mines and Energy, Bento Albuquerque; the Minister of Economy, Paulo Guedes; and the Special Secretary for Strategic Affairs of the Presidency of the Republic, Flávio Rocha.

The National Fertilizer Plan (PNF) is a reference for planning the fertilizer sector for the next 28 years (until 2050), promoting the development of national agribusiness and considering the complexity of the sector, focusing on the main links in the chain: industry traditional, rural producers, emerging chains, new technologies, use of mineral inputs, innovation and environmental sustainability.

In a global context of uncertainty, the preparation of the plan began in 2021 and was formalized by Decree, signed this Friday. The document also establishes the National Fertilizers and Plant Nutrition Council, a consultative and deliberative body that coordinates and monitors the implementation of the National Fertilizers Plan.

Currently, Brazil occupies the 4th position in the world with around 8% of global fertilizer consumption, with potassium being the main nutrient used by national producers (38%). Next, phosphorus accounts for 33% of total fertilizer consumption, and nitrogen accounts for 29%. Together, they form the acronym NPK, widely used in rural areas. Among the crops that most require the use of fertilizers are soybeans, corn and sugar cane, accounting for more than 73% of national consumption.

According to data from the National Association for the Diffusion of Fertilizers, more than 85% of fertilizers used in the country are imported, demonstrating a high level of dependence on imports in a market dominated by few suppliers. This growing dependence leaves the Brazilian economy, heavily supported by agribusiness, vulnerable to fluctuations in the international fertilizer market.

The implementation of PNF actions could minimize external dependence on these nutrients, which arrive in the country mainly from Russia, China, Canada, Morocco and Belarus. The United States, Qatar, Israel, Egypt and Germany complete the list of the ten largest fertilizer exporters to Brazil in 2021, according to data from the Ministry of Economy (Figure 2).

The PNF will seek to readjust the balance between national production and imports by meeting its growing demand for fertilizer products and technologies. The aim is to reduce dependence on imports, in 2050, from 85% to 45%, even if the demand for fertilizers doubles.

Minister Tereza Cristina explained that it is not about the country achieving self-sufficiency, but rather about having autonomy, with a reduced percentage of external dependence to supply fertilizers to the producer. According to her, it is necessary to reinforce “fertilizer diplomacy”, expanding purchasing relationships for these nutrients on a global scale. 

"We are not seeking self-sufficiency, but rather the ability to overcome challenges and maintain our greatest wealth, agribusiness, which is thriving and competitive, which ensures food security in Brazil and the world. Our demand for nutrients for plants is proportional to the size of our agriculture. But we will have our external dependence greatly reduced", he said, reinforcing that the Plan is not just to react to a crisis, but to deal with a long-term, structural problem. On the 12th, the minister will travel to Canada to discuss the issue, after having recently visited Iran and Russia last year. 

The Special Secretary for Strategic Affairs, Flávio Rocha, informed that the plan foresees 80 goals to be achieved, including encouraging the use of innovative techniques. “We have a priority to expand the focus from traditional fertilizers to emerging chains. Instead of continuing to insist only on the use of fertilizers called NPK, we will encourage, through the plan, bio-inputs and other plant nutrition technologies”, he said, adding that since the 1980s Brazil has not had a policy designed for national production of fertilizers.

PNF objectives

In addition to reducing external dependence, the PNF also presents opportunities in relation to emerging products such as organo-mineral and organic fertilizers (organic fertilizers enriched with minerals, for example) and by-products with potential for agricultural use, bio-inputs and biomolecules, remineralizers ( example, rock dust), nanomaterials, among others.

The development of technologies appropriate to the Brazilian tropical production environment and the formation of technological support networks for rural producers and technicians also make up the Plan and are part of the Embrapa FertBrasil Caravan.

The action, carried out by Embrapa, includes technical visits to the main agricultural hubs. By addressing practical issues of how to increase fertilizer efficiency, the Caravan will have an immediate impact capable of promoting savings of up to 20% in the use of fertilizers in Brazil in the 2022/23 harvest, which could result in up to US$ 1 billion savings for Brazilian rural producers. 

The PNF guidelines also address a fiscal policy favorable to the sector, increased support lines for producers, incentives for private actions, expansion of installed production capacity, improvements in national infrastructure and logistics. All this to expand the competitive production of fertilizers (covering fertilizers, correctives and conditioners) in Brazil.

The Minister of Economy, Paulo Guedes, highlighted that the plan will enable the expansion of the production chain. "Brazil is a mineral and agro-environmental power and will, in fact, from an economic point of view, deepen the production chain." 

The Minister of Mines and Energy, Bento Albuquerque, highlighted that the consolidation of the PNF reflects the government's stance, which continues to integrate competencies and generate fundamental instruments for the country's development. “The National Fertilizer Plan is the result of the excellence achieved in this effort set containing guidelines and actions that will help us continue to transform, in a sustainable way, natural resources into prosperity and social well-being for Brazilians”, emphasizes the minister.

Importance of fertilizers

Responsible for providing one or more nutrients to plants, fertilizers are essential inputs in Brazilian production and are associated with the implementation of new sources and technologies in plant nutrition to allow for better productivity standards per cultivated hectare. Considered the world's breadbasket, Brazil is the world's fourth largest producer of grains (rice, barley, soybeans, corn and wheat), being responsible for 7,8% of total world production.

Therefore, the PNF considers that, for Brazil to meet national and global food production expectations, it is necessary to improve the business environment, invest in science and technology for the tropical environment and guarantee investments in national production, in order to reduce dependence on imported inputs.

According to forecasts by the Department of Economic and Social Affairs Population of the United Nations (United Nations, 2019), the world population should reach around 9,6 billion individuals in 2050, making it essential to use arable land with the greatest possible productivity and in an agroecological way.

The fertilizer chain is highly complex, interacting with the food production sector, energy sector, chemical, mining, oil and gas industries, as well as foreign trade.