en.Wedoany.com Reported - Brazil's Chamber of Deputies has approved the Fertilizer Industry Development Plan (Profert), aimed at addressing the country's structural dependence on imported fertilizers for domestic agriculture, though industry insiders remain skeptical about whether the measures can translate into long-term production strategies.
Representatives from the fertilizer industry have given the plan a positive assessment, considering its diagnosis accurate: the fertilizer supply security of one of the world's largest food exporters should not be overly subject to international market fluctuations or geopolitical events. However, industry evaluations point out that the issue typically only gains attention during times of crisis. The National Fertilizer Plan was launched in 2022, amid the impact of the Russia-Ukraine war on global raw material trade; with current international raw material prices under pressure and tensions in the Middle East, the discussion has returned to the center of the political agenda. Industry insiders believe this recurring phenomenon indicates that the debate on production sovereignty remains strongly linked to international shocks, rather than necessarily being integrated into the long-term planning of the national industry.
As Profert advances, domestic production costs remain persistently high. According to representatives of the fertilizer supply chain, Brazil's industry, already burdened by a cost structure higher than some international markets, now faces additional pressure from rising sulfur (enxofre) prices. Sulfur, a key raw material for phosphate fertilizer production, has seen its international market price exceed $1,250 per ton, reaching historic highs. The goal of mandating the blending of domestically produced fertilizers gains momentum precisely at a time when raw material costs make local production economically unviable.
Industry insiders believe that maintaining domestic production concerns not only fertilizer companies but also other links in the agricultural chain. In an environment of high costs, high interest rates, and financial challenges for rural producers, fertilizer supply has become a critical factor. The main question is whether Profert can produce structural effects commensurate with its objectives. Building new industrial facilities, expanding capacity, and attracting investments require planning cycles of several years, while emergency incentives typically address short-term needs and have limited validity periods.
Bill No. 699/23, approved by the Chamber of Deputies, provides tax credits, financing lines, support for factory modernization and expansion for certified companies, and establishes a fund specifically for fertilizer industry development. The bill sets minimum blending targets for domestically produced fertilizers: starting at 2% in 2027, reaching 10% by 2037, with the possibility of further increases based on domestic production capacity. In addition to traditional mineral fertilizers, the proposal also includes incentives for biological inputs, biofertilizers, and remineralizers, aiming to expand the national industry's participation in the agricultural supply chain.
The text has been incorporated into broader discussions in Brasília regarding the fiscal impact of agricultural measures. The federal government is coordinating an effort to limit the budgetary impact of congressional bills, which include rural debt restructuring, expanding agricultural insurance resources, Profert, and modifications to projects related to tax incentives. This context subjects Profert to scrutiny from industrial, production, political, and fiscal perspectives. The plan now returns to the Senate, which must review the amendments made by the Chamber of Deputies to complete the legislative process.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
