Phosphate fertilizer shortages raise costs for Brazilian farmers ahead of the new season

Brazil’s phosphate fertilizer market is coming under increasing pressure, pushing up production costs for farmers ahead of the new season. Higher raw material prices, tighter supply and logistical risks are prompting buyers to secure inventories earlier.

Fertilizer deliveries to Brazil’s domestic market fell by 5.4% y/y in the first half of 2026 to 19.02 mln tons, compared with 20.11 mln tons a year earlier. Phosphate fertilizers are causing the greatest concern, as farmers have fewer options to quickly replace disrupted supply sources.

Additional pressure is coming from higher sulfur prices, as sulfur is a key input in the production of phosphoric acid and fertilizers such as MAP, SSP and TSP. Rising raw material costs have already led to the idling of some production capacity in Minas Gerais and Goiás.

The situation is being complicated by reduced external supply options, including restrictions on exports of certain phosphate fertilizers from China. Brazilian companies are responding by seeking alternative suppliers, including purified MAP from Morocco, while giving preference to fertilizers that have already cleared customs and are available domestically.

With risks of shortages and further price increases, buyers are increasingly bringing purchases forward. In key farming regions such as Mato Grosso, more expensive phosphate fertilizers are already raising production costs and could increase the cost of growing soybeans and corn in the new season.

Tags: Brazil, new season, fertilizers, phosphate fertilizer