Russia Supplies Over 1 Million Tons of Fertilizers to Brazil for Three Consecutive Months

Russian satellite news agency Moscow, August 10 telecommunications: According to the latest data released by the Brazilian customs, Russia has supplied more than one million tons of fertilizer to Brazil for three consecutive months, especially in July, its delivery climbed to an unprecedented height, a record high. Since May 2024, Russian fertiliser exports to Brazil have crossed the one million tonne threshold, increasing by 5% in June and by 7.5% in July, reaching a total of 1.14 million tonnes. This achievement not only marks an all-time high for single-month fertilizer trade between the two countries, but also surpasses the previous record set in May 2022. Exports also rose 8% to $364.4 million, the highest since March 2023. Russia has solidified its position as the main supplier of fertiliser to Brazil, while China is also aggressively expanding its share of the Brazilian market, with fertiliser supplies surging 90 per cent to 783,400 tonnes in July.

The overview of the Brazilian fertilizer market is summarized as follows:

On the demand-driven side, agriculture is a solid pillar of the Brazilian economy, with its output contributing more than 20% of GDP, and Brazil is one of the world's largest exporters of agricultural products, and fertilizer demand for key agricultural products such as soybeans, corn and sugarcane is extremely strong. As the population grows and the demand for food continues to rise, the demand for fertilizer also shows an upward trend.

At the supply structure level, Brazil's local fertilizer production capacity is relatively limited, and about 70% of its demand depends on imports, the main source countries of imports include Russia, Canada, China and so on. The Brazilian government is actively taking measures to improve local fertilizer production capacity and encourage foreign companies to invest in the country, which has achieved some success in recent years.

In terms of market characteristics, the Brazilian fertilizer market is highly competitive, imported products occupy a dominant position, and price and product quality have become the key factors affecting the market trend. At the same time, the market shows significant regional differences, with the southern and southeastern regions having the strongest fertilizer demand.

In terms of import suppliers, Russia, Canada, China, Morocco and the United States occupy an important position. Among them, Russia as Brazil's largest source of fertilizer imports, its supply accounts for about 30% of Brazil's total imports, thanks to its rich mineral resources and strong fertilizer export capacity. Canada is close behind, accounting for about 20%, and also occupies an important position in the Brazilian market. As a global fertilizer producer and exporter, China supplies about 15% of Brazil's total fertilizer imports. Morocco and the United States also account for about 10% and 80% of the market share, respectively, and are important players in the Brazilian fertilizer market.

Trade relations between Russia and Brazil in the agricultural sector are becoming increasingly close, and Russia's continued large supply of fertilizer to Brazil is expected to provide strong support for agricultural productivity and food security in Brazil.