How can Latin America reposition itself as a global leader in the agro-export market?

In the last 20 years, Latin America’s role in providing food for the world has been crucial. Trade in agricultural commodities, particularly from Mercosur, has grown steadily. According to the latest future outlook from FAO (Food and Agriculture Organization of the United Nations), the Latin America and Caribbean region is the world’s leading net food exporter. Our region has surpassed North America in recent years, exporting over US$80 billion/y. By the end of this decade, it’s expected to be exporting around US$100 billion/y.

What regulatory measures or incentives do you consider necessary to boost agro-exports from Argentina?

The competitiveness of the agro-industry should be a state policy, as the sector currently represents two-thirds of legitimate foreign currency generation through exports. In this framework, we hope that the implementation of the RIGI, along with efforts to achieve macroeconomic stability in the country, will attract new investments, not only in the agricultural sector but also in the country’s energy development. How does Profertil view Argentina’s role as an agro-industrial power in the coming years?

Argentina’s role in the global agro-industry is historically significant. Regarding fertilizers, in recent years, the country has consumed approximately 4 to 5 million t/y (peaking in 2021 with 5.5 million t/y), with more than half being nitrogen-based, with urea as the main fertilizer used (wheat and corn consume 80% of the nitrogen). Of this consumption, approximately half is produced at Profertil, the only granulated urea plant in the country. Therefore, the urea that Argentina needs, beyond what Profertil produces, must be imported. For these reasons, we are working on a project to double the urea production capacity at our plant in Ingeniero White, Bahía Blanca. The +UREA expansion project would increase production by over 1.5 million t/y, resulting in a total production of around 2.8 million t/y.

The drivers of this expansion project are threefold: the need of the local and regional market, with Brazil being one of the world’s leading urea importers (competing with India); the availability of raw material, specifically natural gas from Vaca Muerta; and lastly that it is a “Brownfield” project, meaning we can leverage many synergies from the existing plant. Few countries in the world have the availability of raw materials to produce granulated urea and additionally a large market where it is consumed, and Argentina is one of them. The better the country’s availability of locally produced urea, the more strategic and competitive advantage it will have for the development of its agriculture. What are some of the innovations Profertil is adopting to improve the efficiency and sustainability of its products?

Last year we signed an agreement with YPF Luz for 100% of the electricity consumed by our plant to come from renewable sources (wind), which gives us zero scope two emissions. Additionally, we have developed, together with BASF, eNe Total Plus, which is a urea coated with an inhibitor that significantly reduces nitrogen volatilization into the atmosphere. Studies indicate this product can reduce greenhouse gas emissions by between 10% and 20%.

In 2015 we launched the Capacity Expansion and Energy Savings project. This allowed the plant to increase production capacity (by approximately 11%) while reducing our unit consumption of gas and water. Lastly is the ongoing advice we provide to distributors and producers through training, workshops, technical bulletins, and visits. We have a training program to promote Responsible Nutrient Management (4R) and raise awareness about all aspects related to soil resource conservation. What do you consider to be the keys to success in the agricultural sector looking to the future?

The challenge is to feed nearly 10 billion people in just 25 years (2 billion more people than today). We must be able to produce more food in the same space while ensuring that piece of land can continue producing forever. Argentina’s abundance of resources, both in energy and in its soils, will allow it to be a food source for the world.

This is achieved through innovation and technology, with highly trained people who are above all committed, and with a constant attitude of environmental care. In this role, Profertil is key because it transforms energy into food.