Mercosur and Chile Study a Regional Fertiliser Market
Mercosur · AGRICULTURE
Key Facts
- —Event Representatives of Mercosur and Chile discussed the regional fertiliser market in Montevideo on 1 September 2026.
- —Imports South America imports about 20 million tonnes of nitrogen fertilisers a year, on the study’s figures.
- —Cost Those imports are worth more than US$5 billion a year.
- —Producers Argentina, Brazil and Bolivia are the region’s only producers, and the study calls their output insufficient and underused.
- —Status Phase VI study results were presented, with no decision, declaration or working group agreed.
South America imports about 20 million tonnes of nitrogen fertilisers a year. That is worth more than US$5 billion, according to the study presented at the event.
Mercosur and Chile are studying a regional fertiliser market to cut their heavy dependence on imports. The discussion took place at an event in Montevideo on 1 September 2026, focused on nitrogen fertilisers and natural gas integration.
Why a Regional Fertiliser Market Matters
The regional fertiliser market is a key topic because most nitrogen fertilisers are imported. South America buys about 20 million tonnes of them abroad each year, on the study’s figures.
That import bill runs to more than US$5 billion a year. Reducing that dependence is a central goal of the initiative.
The Montevideo Meeting
Representatives gathered at the Casa de la Integración, the ALADI headquarters in Montevideo. The event was convened by OLACDE, the Latin American and Caribbean Energy Organisation, with the development bank CAF.
Two other regional bodies co-hosted it. They are ALADI, the Latin American Integration Association, and IICA, the inter-American agriculture institute.
OLACDE was known as OLADE until it was renamed in December 2025.
It forms Phase VI of the Regional Gas Integration Project for Mercosur and Chile. The session was titled Integración Gasífera Mercosur+Chile, focusing on alternative pathways for regional gas integration through fertilisers.
Focus on Nitrogen and Urea
The regional fertiliser market discussion centres on nitrogen fertilisers, especially urea. Urea is the most traded nitrogen fertiliser and is vital for soy and maize crops.
Only Argentina, Brazil and Bolivia produce fertilisers in the region.
The study calls their output insufficient, concentrated and underused, so imports fill the gap.
It found ample room for new regional production capacity.
Brazil as the Largest Opportunity
Brazil is identified as the largest market opportunity within the regional fertiliser market. The study did not publish a country breakdown of import volumes or costs.
It concluded that regional integration opens an opportunity to expand urea supply. Reliance on distant suppliers remains a concern for food security.
The Role of Natural Gas
Nitrogen fertiliser is made from natural gas, which is why a gas integration project ends up discussing fertilisers. Cheap gas near the field is the main input cost.
Therefore, expanding regional fertiliser production requires mobilising investment in natural gas production, transport infrastructure and fertiliser plants.
Goals of the Initiative
The aim is to expand regional fertiliser production and reduce import dependence. This should also raise agricultural productivity across the region.
In addition, the initiative seeks to mobilise investment in natural gas infrastructure and fertiliser plants. Such investment could help close the gap between local production and consumption.
Regional Context
Latin America and the Caribbean import about 78% of the fertilisers they use. That makes the region the most import-dependent in the world, according to ECLAC.
Mercosur’s full members are Argentina, Brazil, Paraguay, Uruguay and Bolivia, which joined in July 2024; Venezuela has been suspended since 2016. Chile takes part as an associated state, making this a wide-reaching effort.
Potential Benefits for Agriculture
A stronger regional fertiliser market could lower costs for farmers. Since urea is what most of the region’s soy and maize crops depend on, stable supply is crucial.
As a result, reducing import dependence could boost food security and agricultural productivity. This is a long-term goal that requires significant investment.
Next Steps and Challenges
While no formal policy was announced, the discussion signals growing interest in regional cooperation. Still, challenges remain, such as financing large-scale projects.
Overall, the regional fertiliser market study is an important first step. It brings together key players to explore how natural gas can fuel fertiliser production.
Frequently Asked Questions
What is the regional fertiliser market?
The regional fertiliser market refers to the production, trade, and consumption of fertilisers within Mercosur and Chile. South America imports about 20 million tonnes of nitrogen fertilisers a year, worth more than US$5 billion.
Why is urea so important in this context?
Urea is the most traded nitrogen fertiliser and is essential for soy and maize crops. Only Argentina, Brazil and Bolivia produce fertilisers in the region.
The study calls their output insufficient, concentrated and underused, so large imports fill the gap.
Which countries are involved in this initiative?
Mercosur’s full members are Argentina, Brazil, Paraguay, Uruguay and Bolivia, which joined in July 2024; Venezuela has been suspended since 2016. Chile participates as an associated state, making the effort span a large part of South America.
What are the main goals of the regional fertiliser market study?
The goals are to expand regional fertiliser production, reduce import dependence, and raise agricultural productivity. This involves investing in natural gas production and fertiliser plants.
Connected Coverage
Sources: EFE; OLACDE; CAF; ALADI; IICA; ECLAC.
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