Arab Potash Co. (APC) wants to increase its potash exports to Brazil and plans to open a representative office in the South American country by the end of this year, according to a report this week by the Brazil-Arab News Agency (ANBA), the news website of the São Paulo-based Arab Brazilian Chamber of Commerce said.
APC President and CEO Maen Nsour met with the Brazilian Minister of Agriculture, Livestock, and Food Supply Marco Montes in the Jordanian capital of Amman this past weekend. The meeting was part of a Brazilian agribusiness delegation to Jordan to address the supply of fertilizers to Brazil. The delegation was also visiting Egypt and Morocco this week.
APC started exporting to the Brazilian market in 2019, with a volume of 42,000 mt of red granular potash, according to the report, citing Nsour. The company had begun red granular potash production that year, with the objective of opening new markets and to diversify its customer base (GM Aug. 9, 2019).
According to the report, this export volume increased to 154,000 mt in 2020, with 138,000 mt shipped in 2021.
Some 91,000 mt were shipped in the first quarter of 2022, and the Jordanian company is targeting to ship 300,000 mt to Brazil by the end of this year, according to Nsour.
He said APC’s production of red granular potash increased to 381,000 mt last year, from 69,000 mt in 2019, and its goal is to reach 1.2 million mt of granular red potash production by 2023.
The company is targeting sales of 500,000 mt to Brazil in two years, and wants to reach sales of 1.2 million mt by 2026, according to the report, citing Nsour.
The Brazilian minister clarified that the Brazilian government does not buy potash directly, but is an instrument for cooperatives and companies to negotiate with sellers.
APC is also reported to be interested in potentially establishing production facilities in Brazil.
Jordan Phosphate Mines Co. (JPMC) also is interested in establishing a joint venture plant to produce fertilizer to supply the Brazilian market, according to a separate ANBA report.
JPMC Chairman Mohammad Thneibat and the Brazilian minister met in Amman on May 8. JPMC already exports phosphate rock to Brazil in small quantities, but said it has the potential to sell much more to the South American country.
According to the report, Thneibat said the Jordanian company is ready to invest “a reasonable stake” in a fertilizer plant with Brazilian investors. The plant could be located either in Jordan or Brazil, he said, and would serve the Brazilian market.