RIO DE JANEIRO, BRAZIL – The war in Ukraine has boosted the price of different raw materials but has also generated uncertainty about the supply of crucial inputs for agriculture, including fertilizers. Given the difficulties, the Uruguayan government appealed to the Brazilian authorities to agree to the joint import of these products, understanding that Brazil’s larger scale will facilitate access to the local market.
The Uruguayan Minister of Livestock, Agriculture, and Fisheries, Fernando Mattos, told Bloomberg Línea that they have already started negotiations to enable Uruguayan producers to access the supply with the intermediation of the northern country. The operation would involve fetching the products to Brazil, although the private companies will also have to agree on the price.
“In the case of Brazil, we are specifically talking about doing some joint operation because we have a problem of scale in addition to the difficulties that everyone has in obtaining the product. Faced with a world demand where everyone is looking for alternative suppliers, we will not be attractive to anyone if we go with Uruguay’s volume. But Brazil has shown willingness to collaborate in these logistics,” said Mattos.
“Suddenly, we will have to go to Brazil to get the fertilizer, which is not so expensive, but we ensure the supply, which is the first thing. Afterward, we will see the price, which is a private matter, and we will see if the business is good for them or not, but having the product is the first step,” he added.
The Uruguayan government is closely following the rise in international raw material prices and is studying “mechanisms” to mitigate the impact of this increase on end consumers. The most worrying prices are flour and vegetable oils, which may affect bread products.
In recent weeks in Uruguay, there have also been increases in the price of meat. Since January, the increase was 25%.
With information from Bloomberg Línea