Argentina and the coming collapse of its soils

Fertilizer companies souldn't take South America as a whole: every country has its own way when it comes to feed its crop.

Let's have a look at those four grain producers:

 Why Argentina's consumption never took off?

Argentina is blessed with phosphorus and potassium rich soils. As president Kirchner said in 2008, soybean "grows like weed" . Indeed, with only 50 Kg/ha, wet Pampa farmers usually get a more than decent yield with soybean (average of 3 tonnes/Ha).

But how long is this supposed to last? Argentine farmers have been far too careless with their soils over the last decade. The nutrient balance speaks for itself:

Yields are condemned to collapse if Argentine grain producer don't startt to fertilize seriously. They  have to switch from that short term, profit oriented vision to a sustainable, technified agriculture.

Rio Colorado Potash, mining operation in Argentina

This is a Rio Tinto's corporate video made in 2007 that describes operations on the Rio Colorado potash project.
Vale bought it from the Anglo-Australian company last January. Estimated resources amount to 410 Mt.
Rio Colorado comprehends the development of a mine with an initial nominal capacity of 2.4 Mtpy of potash and potential to be expanded up to 4.35 Mtpy
Project development will include the construction of a 400km railroad, a port terminal in Bahia Blanca and a thermoelectrial plant on the extraction site.
Vale is expected to invest around US$ 4 billions in that project.
All the production is expected to be exported to Brazil as Argentina almost doesn't consume potash.

Brazil plans fertilizers autonomy

I came across this article from Industrial Mineral:

Edison Lobao, Brazil's Minister of mines & energy, revealed to IM that he wants the country to become fertilizer self-sufficient by 2013. "We are big consumers of fertilizers and import 60% of our domestic demand. This is very uncomfortable for our country," he explained, underlying that as "one of the biggest food producers in the world" the country cannot afford "such a vulnerability".
Therefore, lobao, who has "great expectations" for B'razil's potash and phosphate resources, is carrying out a policy to get autonomy in fertilizers production in Brazil in the next four years.

At present, Brazil is the world sixth largest phosphate rock producer with 6.2 m tonnes, behind China (29%), the USA (18,5%) and Morocco (16,7%).

But Brazil hopes its phosphate production by using its still unexploited resources. For that to happen, the Ministry started a three-year campaign to estimate its phosphate resources in August 2008 which shuld end in August 2010.
According to Lobao, the country also plans to use the resources of Brazilian companies exploiting phosphate in South America such as mining giant Vale SA, which has phosphate project in Peru.

"We are doing a domestic effort but Brazilian companies are also doing their part abroad in order to guarantee the supply of fertilizer in our agriculture sector," Lobao said.

Brazilian officials have been considering fertilizer as a strategic resource for a while now. Minister of agriculture Reinhold Stephanes and Minister of strategis affairs Roberto Mangabeira Unger have been pushing for a national fertilizer strategy in order to break what they call an "unbearable dependence".
Brazilian agriculture heavily relies on chemical fertilizers to maintain its productivity. It consumed 22 m tonnes in 2008 and demand is projected to increase drastically over the next decade. Fertilizer authonomy is not going to be met anytime soon. But as Lobao mentionned in that interview, Brazilian giant Vale will contribute to secure fertilizer supply. Bayóvar project in Peru is already on track and Rio Colorado potash deposit is currently under development. Vale also has the intention to develop a potash deposit in Canada (bought form Rio Tinto) and eyes phosphate deposits in Tunisia and anywhereelse in Africa.
Fertintel will keep you informed of any further development on Vale's intentions to become a global fertilizer player.