Speaker Q&A - Mauricio Medici

Mauricio Medici
Licensing Manager/Area Sales Manager

In the build-up to the conference, Mauricio Medici answers question about the challenges, opportunities and predictions on how the Latin American fertilizer market will change over the next five years.

What opportunities do you see for the Latin American fertilizer market in 2021?

I foresee an increasing Urea demand in Latam, which will continue to rely on imports for 2021 and the years to come, since Brazil has no Urea production yet- the lease of Camarai and Sergipe will take some time to enter into operation, together with the delay in the sell of Fafen III, Brazil will remain net importer, also Mexico will continue with no Urea production, there are no news from Pemex to restart Pajaritos site.

Profetil in Argentina has announced a large Urea project to double its capacity but it will take some 3 years to have the product on the marker. Another question is when YPFB will resume production in Bolivia. 

What are the key challenges affecting your business?

The licensing business is basically impacted by the international price of Urea on one side, which have been flat over the last 5 years, and the availability and cost of the raw material NG on the other side. Argentina has one of the largest NG reserves in the world and the price is falling improving the environment for new plant, Mexico has also good conditions with its improved NG distribution system which allows the country to benefit on the availability and cost of the USA shale gas.

How do you see your business changing over the next five years?

I think that the fertilizer demand will continue to grow in Latam, and it’s quite likely that some Fertilizer projects  in the region will materialize, on the other hand the “Green trend” is expanding globally so fast that we can anticipate some green energy projects as well popping up in Latam, not only associated with the production of H2 and NH3 as a green fuel but also to use NH3 down streams to produce AN, CAN and UAN.