Fertilizers: agribusiness in Brazil is now ‘Russian free’ – 7/8/2023 – Panel SA

The war between Russia and Ukraine opened up a market for the Norwegian company Yara, which, in Brazil alone, already sells 45 million tons of fertilizers, a vital input for agribusiness. With this brand, the president, Marcelo Altieri, claims to have replaced Russia as the main supplier.

The goal is that, by 2050, its fertilizers will be green (with no pollutant emissions), increase production in the same cultivation area, and improve soil nutrients, the basis of the new business: regenerative agriculture.

What was the impact of the war on Brazil?
We had a hard time finding inputs. Russia is one of the biggest producers of gas and fertilizers, but today Yara Brasil is “russian free” [100% independente dos russos].

Was this a result of war sanctions?
Undoubtedly. We are a Norwegian company and we follow all sanctions [impostas pela União Europeia à Rússia]. We buy from other countries, mainly from Canada and the USA.

How long did this replacement take?
Two years.

Do emission reduction policies hinder the business?
There is a big shift going on. We already manufacture using biogas obtained from sugarcane bagasse. In this process, the fertilizer that comes out is completely green. [não houve emissões poluentes no processo] and helps fix more carbon in the soil.

This is the basis of what we call regenerative agriculture.

Is there already industrial production?
We started at the factory in Cubatão (SP) in partnership with Raízen. We intend to have industrial scale in the first quarter of 2024.

What is Brazil’s weight in this field?
This year, the expectation is for a market of 45 million tons [de fertilizantes convencionais]. The rest of Latin America turns 20 million. By 2030, we hope to reach 50 million in Brazil and, by 2050, we want to be completely green.

What is the government’s role in this?
We had a meeting with Minister Marina Silva (Environment) in Davos. Said we got tools [para uma agricultura regenerativa]but that regulation is needed to encourage [a transição]. In Europe, there is a strong rule. And a recent survey showed that 70% of Europeans are already concerned about knowing about the emissions generated by the production of the food they buy. And half of them are willing to pay more for a “carbon free” product.

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