Mosaic opens a new, $84 million fertilizer blending, storage, and distribution plant in Palmeirante, Brazil, significantly boosting its capacity and market presence in the fast-growing northern region.
The Mosaic Company, a global leader in crop nutrients, marked a significant milestone today with the inauguration of its state-of-the-art blending, storage, and distribution plant in Palmeirante, Tocantins, Brazil. This $84 million investment, completed on time and within budget, underscores Mosaic's commitment to expanding its market access and capitalizing on the robust growth of Brazil's agricultural sector.
The new facility, strategically located in the fast-growing northern region of Brazil, boasts an impressive annual capacity to process 1 million tonnes of fertilizer, with an anticipated 500,000 tonnes in 2025 alone. This substantial increase in blending capacity is a crucial step towards Mosaic's ambitious target of growing its distribution sales in Brazil from less than 8 million tonnes in 2024 to an impressive 13-14 million tonnes by the end of the decade.
An inauguration ceremony, hosted by Mosaic Executive Vice President, Commercial Jenny Wang, saw the presence of key state and local officials, highlighting the importance of this project for both Mosaic and the region. Wang emphasized the strategic significance of the plant, stating, "The inauguration of our new plant in Palmeirante represents meaningful progress for Mosaic. Brazil is an agricultural powerhouse, and Mosaic has been a leader in the market for many years. We are providing farmers in the MATOPIBA region with more efficient access to the fertilizers they need and expanding Mosaic's presence in a key growing region."
The MATOPIBA region, encompassing parts of Maranhão, Tocantins, Piauí, and Bahia, is a crucial agricultural frontier in Brazil, known for its rapidly expanding grain production, particularly soybeans, corn, and cotton. The new Palmeirante facility will serve as a vital hub, ensuring a more streamlined and cost-effective supply chain for farmers in this high-growth area.
Beyond its impressive capacity, the Palmeirante facility incorporates advanced features designed to optimize operations and reduce costs. These include significant warehouse capacity, automated blending and bagging systems, and a direct rail connection to the port of Itaqui. This direct rail link is expected to significantly reduce logistics costs, contributing to the facility's projected margin of $30-$40 per tonne and an anticipated internal rate of return in excess of 20%.
The investment in Palmeirante aligns with the broader positive outlook for the Brazilian fertilizer market.
This move by Mosaic not only enhances its operational capabilities but also reinforces its commitment to supporting the productivity and sustainability of Brazilian agriculture, ensuring farmers have access to the essential nutrients needed to feed a growing global population.
