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Brazilian and North American fertilizer demand to rally

Posted by AGORACOM-JC at 12:56 PM on Monday, July 20th, 2015


  • Global fertilizer demand set to recover in the second half of 2015
  • PotashCorp reported that it expects the recent rise of global planted acreages to slow
  • Brazilian fertilizer purchases “are expected to accelerate in the third quarter and could lead to a more condensed delivery period”

Global fertilizer demand is set to recover in the second half of 2015, as farmer demand from North America and Brazil recovers, Canadian producer PotashCorp has said.

PotashCorp also reported that it expects the recent rise of global planted acreages to slow, as agricultural commodity markets cool.

North American potash demand is expected to rise as farmers address a mounting deficit in application.

Brazilian potash demand is expected to accelerate ahead of the country’s main planting season, helped by a recent improvement in crop prices, and a recently announced farm credit programme.

Improved demand

“Following a slower start in Brazil, we anticipate potash imports will accelerate during the third quarter,” PotashCorp said.

Brazilian fertilizer purchases “are expected to accelerate in the third quarter and could lead to a more condensed delivery period,” PotashCorp Said.

“Potash demand in Brazil slowed in first-half 2015 as farmers were concerned about weaker crop prices, the lower purchasing power of the Real and delayed credit availability from the government,” the report said.

The same dynamics will be seen in urea, with imports improving in the third quarter of 2015, in line with the same time last year, when imports reached a record 4m tonnes over the year. Brazilian phosphate imports are also seen rising next quarter.

Tentative buyers

North American demand is also expected to rise against the first half of the year, leaving full year sales down from the record 63m tonnes achieved in 2014 but remaining “at historically strong levels”.

“In North America, demand was lower in the first half of 2015 but is expected to be similar to historical levels in the second half”, the report said.

“Buyers were tentative in the first half as the spring application window was shortened and farmers weighed the impact of lower crop prices,” the report said, also noting record offshore imports pressuring North American producer sales.

“We expect healthy demand in the second half as crop prices have improved and farmers look to replenish soil nutrients after recent large harvests,” said PotashCorp.

Mounting deficit

The increased North American demand is driven by a mounting potash deficit.

PotashCorp notes that application rates have held steady in North America over the past 30 years, while yields per acre have increased significantly thanks to the use of higher-yield cultivars.

As a result of this, PotashCorp estimates that since 2010, the depletion of potash in US farmland soil has exceeded application by more than 7m short tons per year.

“Closing this gap would require farmers to nearly double application rates compared to current levels,” PotashCorp said.

The group notes application deficits across US growing regions, with the largest in the Central Plains.

“Relatively large potash application deficits were found in most major crop producing regions of the US,” the report said.

Farmland growth to ease

PotashCorp also noted that expects the rate of increase in global planted acreages to slow.

By breaking new ground, and by double and triple cropping existing ground, PotashCorp reports that farmers have added over 160 million planted acres to agricultural production in the past ten years, “an area similar to that of the US corn and soybean crop”.

“In response to rising global demand and higher crop prices, farmers have increased planted acreage over the past decade,” PotashCorp said.

As global commodity prices slow, PotashCorp expects that the rate of increase in planted area could slow, and “some marginal acreage could be removed from production”.

Chinese demand

In China, PotashCorp expects “strong farmer affordability and agronomic need will continue to have a positive impact on potash demand in 2015”.

Supply contracts to China have already been negotiated by the North American potash cartel Canpotex, of with PotashCorp is a member.

Canpotex has also signed supply deals to Indian groups, where PotashCorp expects “continued growth in 2015”.

PotashCorp estimates Indian imports at 5m tonnes over the whole 2015.

Kharif planting

The group reports that India’s monsoon “got off to a strong start in June, which supported Kharif crop planting and fertilizer demand”.

Kharif crops, usually grains and pulses, are planted with the start of the monsoon rains.

PotashCorp expects Indian urea imports to slow from the recent rapid pace, but leaving 2015 purchases well above last year.

India is expected to import over 5m tonnes of diammonium phosphate in 2015, compared to 3.6m in 2014.


DuSolo Reaches Full Production Capacity at Bomfim Processing Plant

Posted by AGORACOM-JC at 8:33 AM on Wednesday, June 17th, 2015

  • Reached its full production capacity of 20,000 tonnes per month at its Bomfim Processing Plant where the Company manufactures its Direct Application Natural Fertilizer product
  • During the current planting season, DuSolo intends to produce at least 100,000 tonnes of DANF product, the maximum amount currently allowed by the mining permits the Company has in place
  • Earlier this year, DuSolo submitted an application to double its allowable mining capacity to 200,000 tonnes per year.

VANCOUVER, BRITISH COLUMBIA–(June 17, 2015) – DuSolo Fertilizers Inc., (TSX VENTURE:DSF)(OTC PINK:ELGSF)(FRANKFURT:E6R) (“DuSolo” or “the Company”) has reached its full production capacity of 20,000 tonnes per month at its Bomfim Processing Plant (the “Plant”) where the Company manufactures its Direct Application Natural Fertilizer (“DANF”) product. During the current planting season, DuSolo intends to produce at least 100,000 tonnes of DANF product, the maximum amount currently allowed by the mining permits the Company has in place. Earlier this year, DuSolo submitted an application to double its allowable mining capacity to 200,000 tonnes per year.

This year’s planting season began in late May, and is expected to go to late fall.

“This will be the first full planting season in which DuSolo will be producing fertilizers. At our current production rate, we are able to deliver on all sales contracts currently in place,” said Eran Friedlander, President and CEO of DuSolo. “With the anticipated increased capacity, the Company will be in a position to enter into additional sales contracts this year, thereby addressing the growing demand for DANF in the region.”


The Company has re-commenced at surface mining operations at the Santiago target and is currently excavating around 1,000 tonnes per day.

DANF production restarted in late May, at which time DuSolo began ramping up its operations. The Plant is now running 5.5 days a week with two shifts working a total of 20 hours per day. Approximately 900 tonnes of DANF is now being produced daily, totaling 20,000 tonnes per month.

DuSolo also recently completed the construction of an on site laboratory in order to test and ensure the quality of its 12%, 15% and 18% P2O5 DANF products.


In anticipation of receiving permits to increase its production rate, DuSolo is installing upgrades at the Plant. The longer than expected rainy season and infrastructure-related issues prevented the Company from carrying out its initial plan to have the additional production capacity in place by the original date of March 2015.

DuSolo has now begun installing the three hammer mills, additional conveyor belts and electrical infrastructure upgrades necessary to increase its annual production capacity to 160,000 tonnes per year. Total capital expenditure is expected to be C$315,000 and will take approximately 2 months to complete.


DANF is an environmentally friendly, natural fertilizer derived from phosphate-rich rock types. It can be used on its own or in combination with other phosphate-based fertilizers in order to increase crop yields. Farmers in Brazil’s Cerrado region prefer using DANF on their crops, however local supply is limited and the alternative, imported phosrock, is highly-priced due to transportation and other importation costs. By being the only DANF producer within a 500 km radius of its production facility, DuSolo is able to meet the needs of farmers in the area by providing a premium product at competitive prices.

DuSolo produces DANF during Brazil’s planting season, which typically goes from April to October. During the rainy season, November to March, the Company intends to carry out care and maintenance at the Plant in advance of the next planting season.


DuSolo Fertilizers Inc. (TSX VENTURE:DSF)(OTC PINK:ELGSF)(FRANKFURT:E6R) is a producer and distributor of phosphate based fertilizers within the Cerrado region of Brazil, one of the fasting growing agricultural producing regions globally. As part of a nationwide effort, incentivized by the government, DuSolo’s goal is to increase the supply of domestically produced fertilizers and help the region achieve agricultural self-sufficiency.

On behalf of the Board of Directors DuSolo Fertilizers Inc.

Eran Friedlander, President and CEO

Forward-looking statements

Certain information contained in this press release constitutes “forward-looking information”, within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur”, “be achieved” or “has the potential to”. Forward-looking statements contained in this press release may include statements regarding the future operating or financial performance of DuSolo which involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR at The forward-looking statements included in this press release are made as of the date of this press release and DuSolo disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.


The Company is not basing its decision to begin production of DANF on a feasibility study of mineral reserves demonstrating economic and technical viability. Without a technical report demonstrating economic and technical viability, there is increased uncertainty as to whether DuSolo will be able to economically produce DANF products and as to whether DuSolo will be confronted with any unforeseen technical impediments. Similarly, the Company has not completed a preliminary economic assessment before making production and project expansion decisions.

Neither the TSX Venture Exchange Inc. nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this press release.

DuSolo Fertilizers Inc.
Eran Friedlander
President and CEO
[email protected]

AGORACOM Welcomes DuSolo Fertilizers (TSX-V:DSF) Capitalizing on Brazil’s Growing Demand for Fertilizer

Posted by AGORACOM-JC at 5:25 PM on Wednesday, June 10th, 2015


  • Entered into a two-year, 60,000 tonne sales contract (30,000 tonnes per year) for its 15% P2O5 Direct Application Natural Fertilizer product with a local Brazilian fertilizer distributor
  • Over the term of the Contract, the Buyer has agreed to pay BRL230 per tonne for total proceeds of BRL13,800,000 or approximately C$5,500,000

  • Assets host at surface, high-grade phosphate mineralization, which allows for a simple mining and processing method
  • Direct Application Natural Fertilizer (DANF) product is in high demand in the region
  • No additional transportation or logistics costs are added to our DANF product prices


  • World’s largest exporter of sugar, coffee and orange juice and the second largest in soybean exports
  • Domestic fertilizer supply does not meet current demands
  • Brazil currently imports more than 50% of phosphate fertilizers from it uses overseas
  • Significant transportation and logistic-related costs are added to imported fertilizers


  • Entering into additional DANF product sales contracts

  • Doubling capacity at  processing facility to 160,000 tonnes per year
  • Updating the National Instrument 43-101 Resource Estimate to include results from the 2015 drill campaign – Recent drill results confirm presence of additional high-grade phosphate mineralization beyond areas identified in initial resource estimate
  • Third Party Economic Evaluation of Operations Planned for 2015
  • Cash flow from operations


  • The growing global population is creating an ever-increasing demand for food

  • Agricultural production requires the use of fertilizers from three essential minerals Nitrogen (N), Phosphorus (P) and Potassium (K) or (“NPK”)
  • Demand for phosphate-based fertilizers is rising, while existing global phosphate reserves are declining
  • It’s estimated that “peak phosphorus” production will occur by 2030
  • Brazil’s has a substantial shortage of domestically produced phosphate fertilizers; as a result the government considers it to be a strategic commodity


  • The Cerrado region is home to the largest arable land mass in the world – Majority of future increases in global food production is expected to come from this region

  • The tropical rains in the Cerrado wash away nutrients, leaving the soil poor for farming and needing to be fertilized frequently
  • Cerrado is land locked, therefore making fertilizer imports very expensive
  • Within a 500 km radius of DuSolo’s processing facility:
    • 1.2 million tonnes of phosrock is being consumed every year
    • 585 farms and agricultural centres exist
    • DANF consumption is growing at a compound annual growth rate f 6%
    • No domestic production