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Dependent on imports, Brazil sees fertilizers becoming a concern in agriculture as the conflict involving Iran pressures freight, insurance, and agricultural production.

Published on 16/05/2026 at 13:38
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Dependence on 85% to 90% of imports leaves Brazilian agribusiness vulnerable to rising fertilizer prices, while conflict involving Iran and the United States pressures freight, insurance, and production costs

Brazil sees fertilizers as a central concern amid the escalation between Iran and the United States, pressure on oil, and discussions of BRICS foreign ministers in India. External dependence increases risks for agribusiness.

The sector imports 85% to 90% of the fertilizers consumed in the country. Any conflict in strategic regions can raise costs, pressure freight, insurance, and reduce margins for Brazilian producers.

Fertilizers are impacted by the conflict

Eduardo Marrei, commercial director of Brasil Agro, stated that the effects are appearing in the market. Iran is a producer of natural gas, an important input for nitrogen fertilizers, and the Strait of Hormuz concentrates part of the imported flow.

The instability increases maritime transport and insurance costs related to cargo. This movement makes imported fertilizer more expensive and increases production costs in the field.

Domestic production is still limited

The resumption of production by Petrobras entered the discussion as an attempt to reduce part of the dependence. The state-owned company intends to absorb 35% of the national market, with domestic production of urea and ammonia in Sergipe.

Marrei assessed that the reactivation helps in price composition. Even so, the progress is considered incipient given the weight of imports in the Brazilian supply of fertilizers.

The National Fertilizer Plan returned to the debate after the war between Russia and Ukraine. The cited goal is to reduce external dependence from the current 85% to about 50% by 2050.

BRICS can expand alternatives

With Iran in BRICS since 2024, the search for new partners has gained relevance. Brazil is dependent on suppliers like Russia, China, and Canada, but other countries in the bloc can contribute.

For Marrei, the country needs to be active in diversification. Having more purchasing options can reduce impacts in times of conflict and prevent fertilizers from making agricultural production more expensive.

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Fabio Lucas Carvalho

Journalist specializing in a wide variety of topics, such as cars, technology, politics, naval industry, geopolitics, renewable energy, and economics. Active since 2015, with prominent publications on major news portals. My background in Information Technology Management from Faculdade de Petrolina (Facape) adds a unique technical perspective to my analyses and reports. With over 10,000 articles published in renowned outlets, I always aim to provide detailed information and relevant insights for the reader.

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