Chinese authorities introduced additional inspection and licensing controls for fertilizer exports since mid-October, slowing shipments to the global market. In Brazil, importers and distributors are adapting purchasing strategies to ensure supply continuity. The move aims to prioritize domestic demand in China and manage local prices.
China, a leading global supplier of urea and phosphates—key inputs for soy, corn, and coffee crops—has not announced a formal export ban. However, the heightened scrutiny in clearance processes leads to delays in approvals, vessel rescheduling, and extended talks on pricing and delivery timelines.
Brazil, which imports over 80% of its fertilizers, faces direct impacts on harvests and farming expenses from any disruption in Chinese flows. "For Brazil, which imports more than 80% of the fertilizers it consumes, any change in the outflow from the Chinese market affects the crop and cost formation in the field," states Rodrigo Camargo, Director of New Business at Terra Nova Trading, a major importer in the country.
He adds: "The increase in requirements alters the time between contracting and shipping. To ensure delivery regularity, it is necessary to diversify origins and structure currency hedging right at contract closure".
Terra Nova Trading, focused on urea and sulfur, has modified its procedures to sustain supply rates to cooperatives, distributors, and industries. The firm handles third-party imports, integrating port logistics, customs clearance, tax planning, and financial oversight to mitigate risks during volatile periods.
Brazilian traders, cooperatives, and distributors have responded by strengthening medium-term contracts, securing supply predictability amid the fluctuations.