September 17, 2025
Brazil’s nitrogen fertilizer producers are warning that high natural gas prices are putting domestic production at risk. Industry groups report that gas now makes up nearly 80% of the cost of producing urea and ammonium nitrate. Without relief, local manufacturers may increasingly turn to imports, leaving Brazil more exposed to global market volatility. (Source: S&P Global)
Producers are urging the government to consider tax breaks, subsidies, or tariff reforms to offset these costs. They also point to the need for longer-term investment in energy infrastructure and green ammonia projects as structural solutions.
What this means
• Farmers: Local fertilizer prices could stay high unless policy support comes through.
• Turf & Greenkeepers: Nitrogen-heavy blends may remain volatile, affecting budgets and product planning.
• Industry: Pressure may accelerate deals around energy pricing, or drive new investment into green ammonia.
Outlook: Brazil’s upcoming budget cycle will be key. Any relief could lower nitrogen fertilizer costs locally, while inaction risks further reliance on imports and margin pressure for domestic producers.
