Casablanca – In the first four months of the year, Morocco, a significant player in the global phosphate industry, saw a notable decline in its phosphate exports to Brazil. This shift is part of a broader reconfiguration of the global phosphate market, driven by changes in supply and demand dynamics.

From January to April, Brazil imported over one million tons of phosphate products, with Russia emerging as the leading supplier, accounting for 76% of these imports. This marks a substantial increase from 52% the previous year. In contrast, Morocco’s share dropped to 15%, a significant reduction from previous levels. Specifically, in April, Brazil’s phosphate imports reached their highest monthly total for the year at 378,147 tons, with Russia providing approximately 260,000 tons and Morocco contributing 67,000 tons. This decline is part of a broader trend, with Moroccan exports to Brazil decreasing from around 500,000 tons to 158,000 tons compared to the previous year.

The reduction in Morocco’s market share in Brazil is partly due to a strategic shift by the OCP Group, Morocco’s leading phosphate producer, which has redirected shipments to India and Australia to meet stronger demand and potentially benefit from more favorable trade conditions. Additionally, China has significantly reduced its phosphate exports to Brazil, from 37,000 tons last year to less than 9,000 tons this year, prioritizing domestic needs.

Despite these changes, Morocco retains a pivotal role in the global phosphate industry, holding about 75% of the world’s phosphate reserves. However, the market is becoming increasingly competitive, with Russia and Belarus striving to expand their presence globally. The shift in Brazil’s phosphate import patterns is also influenced by rising prices in the United States, which have led to a reduction of approximately 120,000 tons in American phosphate exports. Similarly, Saudi Arabia’s exports to Brazil have nearly halved, from 109,000 tons in the first four months of 2023 to 51,500 tons this year.

The Brazilian Ministry of Agriculture and Livestock has noted that these import pattern changes reflect both supply conditions and pre-planting season demand. The total volume of Brazilian phosphate imports from January to April this year was 1,025,000 tons, slightly below the five-year average of 1.15 million tons.

Amid these shifting dynamics, Brazil and Morocco are exploring opportunities to strengthen their trade relationship. During the 16th edition of the International Agriculture Exhibition in Meknes, Brazilian officials expressed interest in expanding access to the Moroccan market for Brazilian products. Discussions included the potential removal of customs duties on certain Brazilian goods, particularly agricultural products like dairy and honey, which could further diversify the trade portfolio between the two nations.

While Moroccan phosphate exports to Brazil have significantly declined, the global market is continually evolving. Morocco is adapting its strategies to maintain its leading position in the industry, and ongoing negotiations signal a commitment to finding new pathways for economic collaboration between Brazil and Morocco.