This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 1/9/2020

Fertilizers
Overview  

 

2016

2017

2018

Total Market Size

n/a

n/a

n/a

Total Local Production

n/a

n/a

n/a

Total Exports

14

7.5

21

Total Imports

193

196

238

Imports from the U.S.

9.3

15.5

5

 Source:  Transaction database – USD million

HTSUS:  3808-3907-3824-3101

Uruguay is essentially an agricultural country, and the use of fertilizers is very important for both pastures and crop productivity to increase soil fertility.  Within the chemical sector, fertilizers play a significant role in Uruguay’s imports; the country imports almost 80 percent of its fertilizer consumption.

During 2018, fertilizer imports increased 21.4 percent over the previous year. However, imports from the United States fell (32 percent) compared to 2017. In 2018, the main suppliers of raw materials for fertilizers (HS codes 3102/3105/3103/3104) were Egypt (17 percent market share), Russia (16 percent), China (14 percent), Canada (8 percent), Mexico (7 percent), and Qatar (6 percent). Other countries supply the remaining 32 percent market share.

The most important products imported were:
· Fertilizers, mineral or chemical nitrogenated (urea)
· Di-ammonium hydrogen orthophosphate
· Ammonium di-hydrogen orthoposphate
· Potassium chloride
· Mineral or chemical fertilizers containing nitrogen and phosphorus

The poor growth and quality of natural pastures and deficiencies in phosphorus and nitrogen in the great majority of soils have led to the introduction of nitrogen and phosphorus to the ecosystem through the application of inorganic fertilizers. The use of fertilizers has increased in pasturelands and agricultural crops since the elimination of the 22 percent value added tax, aided by zero import tariffs. The cost in Uruguay to fertilize adequately a hectare of land can vary from US $60 to $150, depending on the kind of crop being cultivated.

In Uruguay, the amount of fertilized land varies according to the world price of both crops and livestock products. When beef or grain prices decline, farmers use less fertilizers.

Leading Sub-Sectors  
Despite the ups and downs on the importation of fertilizers, agriculture in Uruguay continues to be the key driver of the economy. Generally, the trend of reduced fertilizer imports indicates the agriculture sector is expecting difficulties, depending on global demand for such products.  The decision to use fertilizers is made before the price of the agricultural product is known.  Most, if not all, decisions regarding fertilizers are based on price forecasts for individual products.  Occasionally the price of product is not known until one year after the fertilizer is purchased. 

Opportunities  
The best prospects are for U.S. exports of diammonium hydrogen orthophosphate, which is used in grasslands in an average of 150 to 200 kilograms per hectare. Ammonium sulfate and urea are also in great demand. U.S. manufactures of urea, ammonium sulfate, diammonium hydrogen orthophosphate and many other related products will have good sales opportunities in the Uruguayan market. However, they will have to compete with very competitive prices from Egypt, China, and Russia, as well as some other Asian countries.

Web Resources  
Embassy Contact: Office.Montevideo@trade.gov http://export.gov/uruguay
Ministry of Agriculture http://www.mgap.gub.uy

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.