Agriculture is an important part of the Brazilian economy, directly accounting for 25% of GDP and 35% of employment. Brazil is a world-leading producer of sugar cane, corn, soybeans, coffee, oranges, eucalyptus and cotton. Agricultural products are grown for fuel, pulp & paper and textiles, in addition to being a food source supporting a number of industries.

However, Brazil imported 90% of the 6MMt of potash it used in 2008. Long shipping distances and expensive rates force Brazilian farmers to pay much more than the already high market prices for potash. This situation negatively impacts Brazil’s agricultural industry and the economy.

The current situation with imports creates an environment where the agriculture industry is open to alternative viable products. Amazon has an opportunity to advance the project with governmental and corporate support.

Why hasn’t this been done before?

Potash prices have increased 10 fold since ThermoPotash was first tested in the 1980’s, potentially making verdete feasible. Similar to the Canadian oilsands, the presence of Verdete and its potential has been known since the 1960’s. Amazon hopes to take advantage of the new price environment and develop a locally produced source of potash to replace expensive imports.

Images: Potash Market Price and Demand Growth