DOHA: Qatar emerged as the second top supplier of fertilizers to Brazil during the first three quarters of 2013 with a huge 268 percent growth from the previous year. Brazil’s fertiliser import bill for Qatar reached $325m during the first three quarters of 2013, the Arab-Brazilian Chamber of Commerce revealed yesterday.
The Brazilian market has reportedly spent over $1.6bn on fertilizers coming from Arab countries during the first three quarters of 2013, reflecting a 41.07 per cent increase from the same period in 2012 or $1.1m in growth. Products imported came from top Arab countries, including Qatar, Morocco, Kuwait, the UAE, Egypt and Tunisia.
Morocco was the top supplier of fertilizers to Brazil during the first nine months of 2013 with a spending of $ 933m and a growth of 19.05 percent from the previous year. This is followed by Qatar. Egypt and Tunisia take third and the fourth place with $133m and $96.49m, respectively.
Of the four countries mentioned, Qatar supplies nitrogenised products while Egypt provides quality urea at reasonable prices. Both Tunisia and Morocco are known in the industry as key suppliers and traditional producers of phosphates. In addition to the four countries, Bahrain and the UAE supplied fertiliser worth around $35m each to tie a fifth place, while Kuwait is listed in sixth with $32m.
In addition to this, fertilizer producing countries are now turning to the Brazilian market due to India’s recent move to reduce its fertilizer imports. The country was once the leading importer of fertilizers, however, the depreciation of the rupee has prompted the Indian government to remove subsidies to phosphate imports, thereby driving in a reduction in local purchases. This move, in turn, has resulted in an impact on the global market, driving fertilizer prices down.
Fertiliser shipments from Arab countries to Brazil have displayed a reduction in product value. In fact, the volume of imports made from Q1 to Q3 of last year has grown to 64.55 percent as compared to 2012. Brazil bought a volume figure of around 3.9m tonnes from Arab countries. However, the country’s greater fertilizer imports are not restricted to Arab suppliers alone.
The Brazilian National Fertilizer Association has reported that during the first nine months of 2013, Brazil bought abroad a 23.83 percent greater volume of fertilizers, or a total of 20.4 million tonnes. The growth is attributed to the growing demand for food, coming mainly from emerging nations, which has prompted Brazil to produce more agricultural commodities and thus needing more fertilizers.
Established in 1952 with the mission of strengthening commercial bonds between Brazil and the Arab countries, the Chamber represents 22 Arab countries. Source: The Peninsula