Mercosur and Chile examine regional fertilizer market in Uruguay

Mercosur and Chile are considering a regional fertilizer market that could reduce the region’s dependence on imports. The proposal emerged at a meeting in Montevideo on Tuesday, held under the Regional Gas Integration Project.

The meeting, titled “Mercosur+Chile Gas Integration. Alternative Vectors for Regional Gas Integration: Fertilizers,” brought together representatives from the Latin American Integration Association, the Latin American Energy Organization, the Inter-American Institute for Cooperation on Agriculture and CAF, the Development Bank of Latin America and the Caribbean.

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The challenge ahead is to ask what economic activity we can generate from that energy, what industry we can develop, what value we can add and what opportunities we can create for our countries.

The discussion focused on the region’s heavy fertilizer consumption, driven by its agricultural profile. Argentina, Brazil and Bolivia produce fertilizers, but an Olacde study described their output as “insufficient, concentrated and underused.” The study also found “ample room for new regional production capacity,” with Brazil offering the largest market opportunity. It said regional integration could expand the supply of urea, a nitrogen-rich fertilizer.

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Of reaching the last kilometer of those who do not receive energy and still live in a situation of waiting or desperation.

Uruguay’s national energy director, Arianna Spinelli, said cooperation offered the best path for all countries. “The challenge ahead is to ask what economic activity we can generate from that energy, what industry we can develop, what value we can add and what opportunities we can create for our countries,” she said.

Aladi Secretary-General Sergio Abreu said many people were waiting for energy integration. He said the gas integration project could show that the region was capable “of reaching the last kilometer of those who do not receive energy and still live in a situation of waiting or desperation.” CAF executive Mercedes Pedreira said energy had long provided a natural space for integration, citing interconnected electricity systems, cross-border gas pipelines and cooperation mechanisms as sources of economic benefits and stronger energy security.

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Energy has been a natural space for integration.