US EditionBrazil sounds alarm on fertilizers as price spike spurs cheaper alternatives
Brazil's urea imports dropped 33% in early 2026 while ammonium sulfate imports rose 19%, driven by Middle East conflict disrupting key shipping routes and raising costs.
- On Wednesday, Agriculture Minister Carlos Favaro warned Brazil could face fertilizer supply problems if the Middle East conflict does not ease, citing sharp urea price increases and some sellers suspending sales.
- Closing the Strait of Hormuz has choked seaborne fertilizer routes, with the Gulf accounting for 43% of seaborne urea exports and major suppliers like Saudi Arabia and Morocco facing maritime access problems.
- StoneX reported urea delivered to Brazil jumped about 35% in two weeks, while brokerage data showed urea imports fell 33% in the first two months of the year and ammonium sulfate imports rose 19%.
- Brazil's heavy reliance on imports—over 80% of fertilizers—leaves the farm sector exposed; Favaro warned a prolonged conflict could create broader risks for the sector, which imported a record 45.5 million metric tons in 2025.
- Regional energy disruptions are already straining production: Egyptian urea prices rose 25% to $625 per metric tonne between mid-and-late February, while natural gas cutoffs have reduced capacity in Egypt and elsewhere, with Strait closure also restricting global sulphur supplies.
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6 Articles
Brazil sounds alarm on fertilizer prices
Brazil could face fertilizer supply problems if the conflict in the Middle East does not ease soon, the nation’s farm minister said, criticizing sellers for sharp increases in local urea prices as analysts said farmers may turn to cheaper alternatives.
Brazilian agriculture depends heavily on foreign cotton, including the Middle East
Brazil sounds alarm on fertilizers as price spike spurs cheaper alternatives
Brazil could face fertilizer supply problems if the conflict in the Middle East does not ease soon, the nation's farm minister said, criticizing sellers for sharp increases in local urea prices as analysts said farmers may turn to cheaper alternatives.
Brazil is one of the biggest players in the world agricultural market and, in addition, the world’s leading importer of urea, a key fertilizer whose price has risen more than 55% so far this year, the root of the Iran war and the consequent closure of the Strait of Ormuz. However, how can this shortage affect the next Brazilian harvest? A paper published by Bank of America (BofA) argues that, assuming that farmers in the northern hemisphere have…
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