Evolution of the Colombian Fertilizer Market

AgriBrasilis – How concerning is Colombia’s dependence on imported fertilizers?

César Martínez – Colombia’s dependence, just like that of most Latin American countries, presents a challenge. In the Colombian case, more than 90% of its soil fertilizers are imported. This is due to the scarce presence of fertilizer material mines, the low production of urea and inorganic phosphorus, and the limited exploitation of potassium in the region.
Currently, urea production in Latin America is limited to Trinidad and Tobago, Argentina, Bolivia, Venezuela, and Brazil; Chile produces potassium; and Peru has an interesting source of mineral phosphorus in Bayóvar.
Depending on imports always carries significant risks for timely and efficient supply, since socio-economic, logistical, seasonal, climatic, and financial factors can affect availability or prices.

AgriBrasilis – What are the main factors that have impacted the market?

César Martínez – The soil fertilizer market has been impacted by armed conflicts in producing countries, the climate, exchange rate fluctuations, global logistical disruptions, unexpected changes in shipping routes, the cost of gas (a key input), the seasonality of consumption in agricultural powers, water availability for crops, and access to technology by farmers, among other factors.

AgriBrasilis – What are the conclusions of the report you prepared on the main companies in the Colombian market?

César Martínez – Colombia maintains an annual fertilizer consumption close to two million tons. The market has evolved from a duopoly to open competition, with more than 10 representative companies from various capital origins. There is a particular preference for granular complex NPK fertilizers, and the use of physical blends is growing. In terms of revenue, Yara remains the leader, followed by Precisagro and Nitrofert. The entry and sustained growth of new companies like Nitrofert, EvoAgro, and Disan are evident.

“Colombia is making progress in the use of biofertilizers, in line with the growing environmental awareness in Latin America…”

AgriBrasilis – How have sustainability practices evolved in the sector?

César Martínez – Sustainability and good environmental practices have become key corporate issues in fertilizer companies in Colombia and Latin America. The decarbonization of production processes, the use of renewable energies, and the circular economy are now concrete business projects.

In Colombia, Yara and Monómeros are advancing with decarbonization projects and implementing technologies to reduce emissions and use recycled materials in their packaging.
The industry seeks decarbonization through the use of green or low-emission hydrogen, produced with renewable energy sources such as wind, hydro, or solar, or biomass to generate green ammonia and, consequently, green fertilizers.

Monómeros, with the support of GIZ, signed an agreement to produce green nitric acid with nitrous oxide abatement technologies, which will reduce its total emissions by 50%.

For its part, Yara Colombia implemented a decarbonization project with a greenhouse gas abatement plant that will eliminate 500,000 tons of carbon dioxide equivalent per year.

Additionally, Celsia and Hevolucion are exploring opportunities in green hydrogen, including its use to produce green fertilizers.
The fertilizer and soil correctors industry is adopting a circular economy model to maximize the value of resources, minimize waste, and reincorporate by-products, both agricultural (e.g., bagasse, rice husk), livestock (e.g., manure, feathers, bone meal), and industrial (e.g., steel slags and residues from other industries).

AgriBrasilis – How has the adoption of biofertilizers progressed in the country?

César Martínez – Colombia is making progress in the use of biofertilizers, in line with the growing environmental awareness in Latin America. It is essential to make the most of beneficial microorganisms and use quality products that are effective, always applying them in a technical and safe manner.

In Colombia, the microorganisms that receive the most attention are phosphorus solubilizers and mobilizers, nitrogen fixers, and siderophore synthesizers. The main goal of these microorganisms is to dissolve minerals such as apatite (phosphate rock), magnesium silicate, agricultural lime, and dolomite, as well as micronutrients in the soil, improving the effectiveness of inputs for soil nutrition and enhancement.

AgriBrasilis – How could the conflict between Iran and Israel affect the sector?

César Martínez – Any disruption in the global fertilizer production chain would affect its supply, both in price and availability. The Middle East is a key region in fertilizer production and is directly linked to gas, a main input. Therefore, faced with the possibility of shortages with sustained demand, the market reacts immediately to the law of supply and demand, impacting the supply and cost of these essential inputs.