Brazil’s phosphate market is gaining momentum due to the sustained growth of the agricultural sector of this Latin American country, one of the most populous in the region.
Rising incomes have increased the quantity of food consumed by millions of Brazilians. The country is leading the world in production and exports of coffee, beef, sugar and poultry.
Brazilians spend between 25 & 50 pc of their income on food, while Americans spend between 7 and 10 pc. Experts say Brazilian government should grow incomes of their citizens while unleashing the country’s agricultural capacity to keep up with rising inflation.
Brazil has huge natural assets: 14 pc of the world’s fresh water and 11 pc of its arable land. These resources have already played a large part in the country’s growth which stands only behind the US in corn and soybean production and exports globally.
But Brazil’s GDP growth is deemed the lowest of all BRIC nations. Beyond its slow growth, food inflation rates are soaring higher and are reducing domestic consumption in a country where more than 26 pc of the population lives below the poverty line.
Phosphate producers believe they can help Brazil meet its needs as the country seeks to expand its agricultural production while bringing more land under intensive cultivation.
Experts expect an increase use of fertilizer, both nitrogen and phosphate by farmers to achieve higher yields. Thus, phosphate producers are gearing up for continued phosphate demand.
