New data released from ANDA, the Brazilian national fertilizer association, show that 2012 potash consumption in the country increased 9.3 percent from 2011 to a record 8.1 million tonnes of KCI. Although the increase is in contrast to global consumption, which decreased slightly in 2012, Brazil’s demand is showing strength.
Potash consumption in Brazil is increasing faster than other potash-consuming countries. 2012 was the second consecutive year for Brazil to be the largest importer of potash globally—it imported 93 percent of the potash consumed in 2012.
“Brazil has posted a 10-year compound annualized growth rate (CAGR) for potash consumption of 4.7 percent vs. 2.3 percent for the world overall,” according to Verde Potash Plc. “Brazil's domestic production of potash has declined in recent years and is forecast to decline again in 2013. The country is currently served by only one domestic mine, which is scheduled to run out of ore in 2016.
As a result, increasing domestic potash production is a priority for Brazil. Verde has the Cerrado Verge project scheduled to address the increasing domestic demand.
Verde President and CEO, Cristiano Veloso, said, "Verde is focused on advancing the engineering, permitting and financing of the Cerrado Verde project. Our strong cash position ($21.2 million as at Sept. 30, 2012) and first rate technical team provide us with all of the resources necessary to publish our bankable feasibility study and drive the project toward construction."