Mosaic inaugurates fertilizer blending unit in Northern Brazil, expects to boost sales

US fertilizer producer The Mosaic Company inaugurated on July 16a new 1 million mt/year capacity blending facility in Tocantins state, North of Brazil, to serve the fastest-growing nutrients market, aiming to boost sales in a market that is considered strategic for the company.

"It is a significant moment for our organization, not only here in Brazil but globally, as Palmeirante will be a milestone in an expansion within Mosaic's strategic planning to increase our presence in strategic markets," Eduardo Monteiro, country manager of Mosaic Fertilizantes in Brazil, told Platts in an interview.

Headquartered in Tampa, Mosaic is a leading phosphate fertilizer producer worldwide, marketing concentrated phosphate and potash crop nutrients. In Brazil, it holds a strong position as a fertilizer producer and importer.

"Brazil is one of the largest agricultural markets in the world and the fourth-largest consumer market for fertilizers, particularly with a high dependence on imports," Monteiro said.

In Brazil, Mosaic produces, on average, 4.6 million mt of fertilizers through its mines and industrial complexes, according to the company.

Production at the new facility will increase gradually.

"We expect to produce 500,000 tons this year, close to 700,000 or 750,000 next year, and only by 2028 do we expect to reach full capacity of 1 million tones," Monteiro said. "Palmeirante is important to meet our growth demand within our strategic plan."

The additional mixing capacity of Palmeirante is expected to support robust projected growth for this year in Brazil. Sales are projected to grow by 15%, up to 10-10.8 million mt, according to Mosaic's results report on May 6.

So far, more than 50% of additional volumes expected from the blending facility in 2025 are committed to clients, according to the company.

The positive outlook is based on firm prices of phosphate fertilizers, which Monteiro anticipates will remain consistent, as mentioned in an interview fragment with Platts published on June 30.

Key location

The inaugurated unit located in Palmeirante demanded Real 400 million (around $77 million at the moment of the announcement) since the beginning of construction in January 2024.

The new facility location aims to enlarge its presence at the heart of the fastest-growing regional market for fertilizers in Brazil. This is the so-called Matopiba region, which encompasses parts of the states of Maranhão, Tocantins, Piauí, and Bahia. It represents one of the last major frontiers for agricultural expansion in the country, with a variety of crops, particularly soybeans, corn, and cotton.

However, the facility will also serve other markets, such as the Araguaia Valley in Mato Grosso, northern Goiás, according to Monteiro.

The region "is the fastest-growing market in Brazil: while the market in the country grows at a historical average of 2 to 3%, this regional market grows at 4%, potentially reaching up to 5% per year as the new agricultural frontier region with expansion capacity," Monteiro said.

Mosaic is present in about a dozen of Brazil's 27 states and has already established a presence in the Northern region through a leased operation in São Luís, Maranhão, which will continue.

"However, we will now have a much more significant presence there, in the heart of where things happen, working in an integrated manner from a logistical standpoint," Monteiro added.

Additionally, the new plant aims to expand Mosaic's portfolio in the area, as "there is currently no access to this complete portfolio due to capacity limitations," Monteiro said.

Logistics is expected to improve efficiency in serving the region. The new unit was built within the area of the Integrated Terminal of Palmeirante, managed by VLI Multimodal in partnership with the Itaqui Port Operating Company, Mosaic said. The railway connecting these points is anticipated to eliminate the need for over 20,000 trucks, Monteiro added.

However, he noted that avoiding bottlenecks continues to be challenging, saying, "The challenges we face are the same as those Brazil faces, given that our activities have seasonal characteristics."

Capital reallocation, new biofertilizer business

As part of its capital reallocation and financial strategy, Mosaic is currently exploring alternatives for its Taquari unit in Mato Grosso do Sul, Brazil.

Additionally, it began a dual-track process in the first quarter of 2025 to either sell its Patrocínio mine and the mining and processing facilities in Araxá or attract investments for niobium processing at the Araxá plant, according to the company's Q1 results release.

Simultaneously, Mosaic plans to develop biofertilizers in Brazil under the Mosaic Biosciences unit, created in 2023.

"We have products in our pipeline ready to be introduced here with advanced technologies," Monteiro said.

However, the company awaits a new regulatory framework to be established by Brazilian authorities, following last year's approval by the National Congress.