The Brazilian government has expressed concern about the possibility of an increase in the price of fertilizers in the face of economic sanctions against Russia because of the attacks on Ukraine.
According to reports made to CNNthe Ministry of Agriculture has been in contact since Thursday morning (24) with exporters of the product and Brazilian diplomats to assess the impact of the conflict on the Brazilian trade balance.
The fear is that the interruption of exports by Russia and Belarus will raise the price of the product, harming this year’s Brazilian crop.
To avoid the scarcity scenario, the Brazilian government has discussed increasing imports from countries such as Canada and Iran, as it currently does not have enough stock in the country.
Brazil imports more than 80% of the fertilizers used in agricultural production. In the case of fertilizers with potassium, the dependence reaches 96%. Russia is one of the biggest fertilizer producers in the world, along with China, Morocco and Belarus.
Last week, Agriculture Minister Tereza Cristina traveled to Iran in an attempt to increase imports of urea, used as fertilizer. Last year, the minister traveled to Canada, one of the main global suppliers of potash.
Today, in addition to Russia and Belarus, only Canada produces adequate potash for Brazilian production.
Brazilian government technicians point out, however, that the effort to compensate for the import of fertilizers may not be enough to avoid impacts on Brazilian agricultural production. According to them, Brazilian ports currently face difficulties in receiving international cargo.
This Thursday (24), technicians from the Ministry of Agriculture also got in touch with the National Secretariat for Ports, of the Ministry of Infrastructure.
If there is a delay in delivery, a logistical bottleneck in unloading creates the risk that Brazilian producers will not receive the product in time for the planting period, harming this year’s crop.
They also point out that operations usually take place during the first half of the year. If they are concentrated for the month of July, due to delays caused by the armed conflict, the risks should increase.
After weeks of tension, Russia attacked Ukraine, prompting reactions from world leaders and NATO. Explosions and sirens were heard in at least 16 regions of the country, including the capital Kiev and breakaway areas of eastern Ukraine.
wanted by CNNthe Ministry of Agriculture reported that it is monitoring the situation.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
