Interviews with Yara and with FMC
Ivan Fortunato, Latam Commercial Director and Head of Business Excellence
YARA INTERNATIONAL
Could you highlight Yara’s most recent progress in sustainability in Brazil?
In Brazil, we have partnered with Japanese Ajinomoto to supply 600 t of renewable ammonia produced using biomethane, which will be used in their factory in Limeira, São Paulo. Beyond biomethane, we are investing in energy efficiency and nitrous oxide abatement in Cubatão, expecting to cut emissions by up to 60% by 2030. We have already reduced our carbon footprint by almost half across our nitrate-based fertilizer portfolio, with global operations cutting emissions by nearly 45% between 2005 and 2019.
We have embarked on this journey to decarbonize the food chain by diversifying our energy matrix, and biomethane is leading the way. For instance, we signed a contract with Raizen, a Brazilian company active in sectors like sugar and ethanol production, renewable energy, and fuel distribution. Through this partnership, we will acquire 20,000 m3 of biomethane daily for our plant in Cubatão, enabling us to kickstart renewable ammonia production by Q4 2024. It is also worth noting that this renewable ammonia can serve as a low-carbon fuel for the maritime transport industry. Yara has a dedicated division, Yara Clean Ammonia, which is actively contributing to the development of shipping fuel, power production and ammonia as a carrier of hydrogen supporting this transition.
What is the Brazilian government doing to improve the country’s chemical industry?
The federal government’s Nova Indústria Brasil Program aims to revitalize the chemical industry over the next decade through public policies, including subsidies, low-interest loans, and increased federal investment. Backed by BNDES, the industry is set to receive R$300 billion in resources by 2026, positioning Brazil as a key player in the global market.
Brazil is rich in renewable resources and already has a relatively green chemical industry. With the proper regulations and a well-structured gas market, these strengths can be exploited to advance the country’s industrial landscape.
Renato Guimarães, Vice President and President
FMC LATIN AMERICA
What makes Latin America and Brazil such a crucial market for FMC’s global operations?
FMC is one of the top five crop protection-focused companies with over 130 years of history, specializing in chemical, biological, and precision agriculture solutions. Our portfolio of solutions focuses on insecticides, fungicides, herbicides, and, pioneering in Brazil, biological products. I would define our identity as research-driven, as we reinvest 6% of our revenue back into R&D across nine research and development centers worldwide, including one in Paulínia, Brazil. Additionally, we have a division called FMC Venture, which is always seeking new partnerships. For example, Novozymes works on biological solutions based on enzymes to control insects and fungi. We have other partnerships that are exploring peptides and RNA-based solutions.
Latin America is the region that contributes more to FMC’s revenue, accounting for one-third of our business. Brazil is the powerhouse within this region, representing 75% of Latin America’s market.
What factors contribute to the faster growth of biological products?
The biological products market represents 15% to 20% of the total crop protection sector. Still, they are experiencing much faster growth than their chemical counterparts for several reasons, especially in Brazil, which has seen an annual increase of over 20%. Firstly, the industry’s maturity has led to improved products: While there were concerns about the efficacy of biological products in the past, the market is now better established, and the products have become more reliable. Now, rather than viewing biologicals as replacements for chemicals, they are increasingly seen as complementary technologies, an approach that helps farmers manage pest and disease resistance more effectively and extends the longevity of chemical products.
The other main factor is that achieving economies of scale in biological products reduces costs, making them more financially viable for producers.