Mosaic to suspend more operations in Brazil

U.S.-based Mosaic, one of the world’s largest fertilizer companies, will implement another round of operational cutbacks in Brazil amid a shortage of sulfur, a key input for phosphate fertilizer production. In a notice to suppliers seen by Valor, the company described the measures as “temporary adjustments to its operating plan.” Farm lending falls as more turn to bonds Orange juice export revenue plunges “The current environment has made production challenging under existing supply and pricing conditions, requiring temporary adjustments to Mosaic’s operating plan,” the company said, citing “an unprecedented and challenging scenario.” According to the notice, Mosaic’s procurement team outlined the following measures: extending temporary shutdowns at its Catalão (Goiás) and Tapira (Minas Gerais) facilities; placing part of its Uberaba complex into temporary hibernation beginning in September; evaluating the need to temporarily halt fertilizer production at its Fospar unit in Paraná because of depleted sulfuric acid inventories; temporarily suspending operations at its fertilizer blending plants in Candeias (Bahia) and Catalão; and reducing production at blending facilities in Palmeirante (Tocantins) and Sorriso (Mato Grosso). Mosaic attributed the situation to “external factors beyond the company’s control,” including geopolitical instability, disruptions to maritime shipping routes, and pressure on global supply chains, all of which have further constrained sulfur availability. The company also said the decision could result in revisions or adjustments to existing supplier contracts. In a statement to Valor, Mosaic confirmed the measures and said they do not represent a change in its long-term strategy. The duration of the restrictions will depend on factors including the stabilization of sulfur prices and the reopening of international shipping routes. In April, the company had already announced the suspension of phosphate rock mining operations in Araxá and Patrocínio, both in Minas Gerais, as well as the decommissioning of its Araxá mining and chemical complex, which produces single superphosphate fertilizer. As Valor reported on June 26, sulfur prices at Brazilian ports have climbed above $1,200 per tonne, up 140% from levels recorded before the conflict in the Middle East began. Meanwhile, Brazil imported 630,000 tonnes of sulfur between January and May, down 45.7% from the same period last year, according to consultancy StoneX. “Amid the global shortage of sulfur, manufacturers have reduced operating rates, limiting international supplies of phosphate fertilizers,” Tomás Pernías, a market intelligence analyst at StoneX, said in a weekly market commentary released on Monday.