Brasiliensis #1

Potassium Chloride Market

Introduction

Potassium Chloride is an important input for the agricultural production. In 2023 alone, Brazil imported more than US$ 5 billion of this material. This Brasiliensis newsletter aims to analyze the import profile of this product in terms of origin of imports and destination of these imports in the country.

Origin of imports

Potassium Chloride is imported in Brazil from several sources, such as Canada, Russia, and many other countries. The following figure (interactive version available here) describes the main partners of Brazil in 2023.

Besides Canada and Russia, Israel and Belarus are relevant partners to Brazil as sources of potassium chloride. Given that both Russia and Israel are at different wars, this overreliance of Brazil in these two partners is a constant source of friction for the availability of this input in the Brazilian agriculture production.

Destination of imports

Where does the Brazilian potassium chloride go? The Center-West states seem the main destination of this product (interactive version available here), as it can be seen from the following figure.

Conclusion

Brazilian production pulls potassium chloride from different sources and this input goes into different Brazilian states, increasing the productivity of several crops in these states. The overreliance of Brazil on partners that are at war, however, adds up some uncertainty in the Brazilian production. This uncertainty also present unique opportunities in terms of exporters of this product to Brazil.

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