Fertilizer Brazil
Less fertilizer means weaker harvests and higher prices.

The war in Ukraine is shaking value chains worldwide. For example, agriculture from Morocco to Mexico suffers from a lack of potassium or ammonia, which form the basis for fertilizers. The problem is particularly evident in Brazil, whose export business is dominated by soya, corn and coffee. In 2021, Brazil's agricultural industry imported fertilizers worth USD 3,5 billion from Russia - now the Russian Ministry of Commerce has recommended stopping all fertilizer exports due to logistical problems. "Brazil feeds a tenth of the world's population," says Klaus Hofstadler, WKÖ economic delegate in São Paulo. “It will be impossible to maintain the planned production volumes in the short term. Food prices are therefore already rising significantly – in exports and in Brazilian supermarkets,” says Hofstadler. Brazil's Agriculture Minister Tereza Cristina has already traveled to Canada to explore new sources of artificial fertilizer.

Photo: Marinos Karafyllidis/Canva