Brazilian Farmers Face Higher Production Costs Due to Phosphate Fertilizer Shortages

Brazil's phosphate fertilizer market is under pressure due to higher raw material prices, tighter supply, and logistical risks. As a result, farmers are facing increased production costs ahead of the new season. According to UkrAgroConsult, fertilizer deliveries to Brazil's domestic market fell by 5.4% year-over-year in the first half of 2026 to 19.02 million tons.

The decline is attributed to phosphate fertilizers, which have few replacement options for farmers. Additionally, higher sulfur prices are contributing to the problem, as sulfur is a key input in phosphoric acid and fertilizer production. Some production capacity has been idled in Minas Gerais and Goiás due to rising raw material costs.

Brazilian companies are seeking alternative suppliers, including purified MAP from Morocco. However, buyers are increasingly bringing purchases forward due to risks of shortages and further price increases. In key farming regions such as Mato Grosso, more expensive phosphate fertilizers are already raising production costs for soybeans and corn in the new season.