Brasília – This Thursday (17th) the Brazilian president, Dilma Rouseff, stated that Brazil is going to pursue self-sufficiency in the manufacturing of fertilizers, which are crucial inputs to agricultural production and have a direct influence on the price of food to Brazilian consumers. Dilma informed that a potassium reserve owned by Petrobras in the Amazon will be explored. The reserve is considered to be one of the largest in the world, according to Dilma.
"We want to be self-sufficient in fertilizers. It makes no sense to import 60% [of domestic consumption], because we will always be subject to large market oscillations. There will be times when they [the fertilizer manufacturers] will charge us extremely high prices," she said in an address in the city of Uberaba, in the state of Minas Gerais, adding that Brazil will invest approximately 11 billion reals (US$ 6.5 billion) in the fertilizer industry. The president underscored that during the world food crisis, in late 2007 and early 2008, the government made a decision to increase Brazilian fertilizer production.
During the ceremony in Uberaba a protocol of intention was signed by Petrobras, the government of the state of Minas Gerais Power Company (Cemig) for building an ammonia factory in the city. Just like potassium, ammonia is used in fertilizer manufacturing, and the goal in building the plant is to reduce the need for importing ammonia, which is currently imported mainly from Trinidad Tobago and Venezuela.
Petrobras estimates that the plant should produce 520,000 tonnes of ammonia per year, making the Triângulo Mineiro region into the leading hub for phosphate fertilizers in the country. It should supply the states of Mato Grosso, Goiás and part of São Paulo.
*Translated by Gabriel Pomerancblum
