Russia sets new records for fertilizer exports to Brazil and Africa

Russia has been supplying record volumes of fertilizers to Brazil, establishing itself as the leading supplier to the South American nation. According to recent data from Brazilian customs, Russia’s fertilizer exports to Brazil exceeded one million tons for three consecutive months—May, June, and July 2024. July alone saw a historic high, with shipments reaching 1.14 million tons, marking a 7.5% increase from the previous month and setting a new record for single-month trade between the two countries. The export value also rose by 8% to $364.4 million, the highest since March 2023.

Brazil, the world’s largest importer of fertilizers, has ramped up its purchases amid challenging weather conditions and the growing demand for agricultural products such as soybeans, corn, and sugarcane. Fertilizer demand in Brazil is expected to continue rising as the country’s agriculture sector, which contributes over 20% to the national GDP, expands in response to population growth and increased food needs.

Brazil’s local fertilizer production is limited, with approximately 70% of its demand met through imports. In addition to Russia, other significant suppliers include Canada, China, Morocco, and the United States. Despite efforts by the Brazilian government to enhance domestic production and attract foreign investment, imported products dominate the market. Russia, in particular, accounts for about 30% of Brazil’s total fertilizer imports, followed by Canada with 20% and China with 15%.

The strong trade relations between Russia and Brazil, bolstered by their BRICS membership, are evident in the expanding economic ties. Bilateral trade between the two countries reached a record $11 billion, further supported by Brazil’s stance of recognizing only UN Security Council sanctions and disregarding Western-imposed trade restrictions on Russia.

Russia’s fertilizer producer EuroChem has capitalized on this growing demand by opening a new factory in Brazil, with an annual production capacity of one million tons of advanced phosphate fertilizers. This $1 billion investment is part of Russia’s broader strategy to strengthen economic ties within the BRICS group, which now accounts for approximately 35% of global GDP.

In parallel, Russia has more than doubled its mineral fertilizer exports to Africa over the past five years, increasing from 772,000 tons in 2018 to 1.7 million tons in 2023. The Russian Fertilizer Producers Association (RFPA) has emphasized its commitment to helping African countries build food sovereignty by providing environmentally friendly agrochemicals and expanding its supply network. Russian fertilizer producers are also focused on developing products tailored to Africa’s unique climatic and soil conditions, further solidifying their role in supporting global food security.

These efforts underscore Russia’s growing influence in the global fertilizer market, as it continues to expand its exports and strengthen partnerships with key agricultural regions like Brazil and Africa.