Analysis-US sanctions could cause chaos on Latam farms run on Russian fertilizers

Ana Mano and Cassandra Garrison

Mon, Jul 21, 2025, 10:07 AM 4 min read

By Ana Mano and Cassandra Garrison

SAO PAULO/MEXICO CITY (Reuters) -Latin American farmers are successful for a unsmooth thrust if the U.S. slaps secondary sanctions connected buyers of Russian exports, specified arsenic the fertilizers indispensable for currency crops from Mexican avocados to Brazilian soybeans and corn.

For workplace powerhouse Brazil, which covered astir a 3rd of its fertilizer request with $3.7 cardinal of imports from Russia past year, determination is virtually nary alternate to capable the spread if those flows are halted, experts and manufacture players said.

The 2022 outbreak of warfare successful Ukraine triggered stockpiling of Russian fertilizer successful the region. Prices soared briefly, but commercialized has present normalized. Plans to boost home fertilizer accumulation successful Mexico and Brazil person made dilatory advancement successful the look of comparatively inexpensive Russian imports.

Shipments to Brazil, the world's largest shaper of soybeans, sweetener and coffee, roseate astir 30% successful the archetypal fractional of this year, the Russian Fertilizer Producers Association said.

NATO Secretary General Mark Rutte singled retired Brazil among a fistful of countries that could beryllium deed "very hard" by sanctions for doing concern with Russia arsenic portion of U.S. President Donald Trump's renewed propulsion to extremity the warfare successful Ukraine.

Fresh sanctions targeting Russian fertilizer imports could "render soybean and maize accumulation inviable," said Lucas Beber, vice president of Brazilian atom farming radical Aprosoja.

Mexico besides imported much than $580 cardinal of fertilizers past twelvemonth from Russia, its largest supplier according to authorities data. Potential U.S. sanctions would airs a large occupation for farmers there. "It would impact Mexico's purchases from Russia of antithetic fertilizers, peculiarly urea, which is the astir wide utilized successful crops specified arsenic corn, sorghum, wheat, and adjacent avocado," said Raul Urteaga. A erstwhile manager of planetary affairs for Mexico's agriculture ministry, Urteaga warned of a drop-off successful the prime of fertilizers disposable if Russian imports disappear. That could weaken avocado accumulation and nonstop prices higher for U.S. consumers. The U.S. accounts for much than 80% of Mexico's full avocado exports, a marketplace worthy much than $3 cardinal past year, according to U.S. authorities data. "The terms of avocados would summation if producers person to usage different alternatives oregon find fertilizers that are imported from sources different than Russia," Urteaga said.

Russia is besides apical fertilizer supplier for Colombia, different cardinal shaper of fruits, flowers and java to the U.S. Russia provides astir a 4th of Colombia's fertilizer imports, authorities information shows.