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Yara in Brazil: Strategic Growth
Yara in Brazil
Summary

Brazil has become Yara’s single most important market. Already established as the market leader, Yara sees further growth opportunities in Brazil – where agricultural farmland is expected to expand, and yields to increase.

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Yara in Brazil: Strategic growth

Oslo, March 24, 2014

Yara has been present in the Brazilian market for five decades. At the turn of the century Brazil emerged as Yara’s largest single market. At the same time, Brazil surfaced as a global agricultural powerhouse, destined for further growth.

Yara executes a business strategy of sustainable, profitable growth, consistently increasing its global sales of crop nutrition and environmental solutions. In both segments – Programas nutricionais and Soluções industriais – Brazil is a major, and growing market.

“In Brazil, agriculture still has a lot of room to grow.”

Renato Burgel, Brazilian farmer

Strategic position

“Yara’s market leader position in Brazil is the result of a strategic determination to establish a strong footprint in one of the world’s most expansive agricultural markets,” explains Egil Hogna, Head of the company’s Downstream segment, responsible for global marketing and sales of mineral fertilizers.

Yara’s growth in Brazil is not least the result of several key acquisitions over the past decade, lastly that of Bunge’s fertilizer business, which was finalized in 2013, adding further capacity and strengthening the sales and distribution network.

“Today,” Egil Hogna continues, “Brazil accounts for more than a quarter of our mineral fertilizer sales. Particularly, we have taken a lead position in the valuable nitrogen fertilizer segment, providing high-quality products tailored to specific crops and soil conditions.” With anticipated continued growth in Brazilian agriculture, Hogna sees demand for Yara’s solutions increasing in the years to come. “We see considerable opportunities for further growth in Brazil – and we remain determined to develop this vital market.”

Advanced agriculture

Brazil’s agricultural sector is sophisticated, increasingly built on investments in research and development, with policies supporting the development of large as well as smaller farming units adopting modern agricultural technologies, improving productivity, increasing yields.

Of Brazil’s more than five million farms about 300,000 are classified as large-scale units. One of these is the São Pedro farm of Renato Burgel, in Chapadão do Sul, in the state of Mato Grosso do Sul.

In a regular season Burgel farms about 12,000 hectares of soybeans – yielding about 70,000 tons. The entire area has a second harvest, planted with cotton or maize, adding greatly to the farm’s productivity and resource efficiency. In order to increase productivity, Burgel explains that he “depends on using only top quality, state of the art products – from seeds to pesticides and mineral fertilizers”.

“Yara,” Burgel adds “is a high-technology fertilizers provider, working with products of quality that are perfectly suited to our model of production.” And the Brazilian farmer’s model is entirely congruent with that of Yara: Apply knowledge, employ modern farming technologies to improve productivity, increase yields and secure profitability.

“And Brazil,” Renato Burgel concludes, “still has a lot of room to grow – both in terms of land area expansion and productivity improvements.”

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