Two of the main suppliers of urea to the national agribusiness sector, Oman and Qatar, are located in the conflict region, with the former accounting for 16% of the international supply of the product and the latter for 13%, according to data from the CNA (Brazilian Confederation of Agriculture). Iran, on the other hand, exports little urea to Brazil. However, Oman and Qatar were the second and fourth largest suppliers of the product to Brazil in 2025, respectively, according to the survey released by the confederation. The main supplier was Nigeria, the third was Russia, and the fifth was Algeria.<\/p>\n
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Photos: Claudio Neves<\/p>\n<\/div>\n
Urea is used as fertilizer in Brazilian crops and is affected by the natural gas market, its input, whose prices, like those of oil, have skyrocketed with the war in the Middle East. Qatar, whose only maritime outlet is the Gulf Sea, where the Strait of Hormuz is located, is a major gas producer. "We have been mapping the price of urea in Brazil and it has already increased by 33% since the beginning of the conflict," CNA's technical director, Bruno Lucchi, told ANBA.<\/p>\n
Brazil, however, still has some breathing room before feeling the effects of the urea price, since it is mainly used in corn fertilization. "The crop is being planted now and fertilization has begun, so what needed to be used in this crop has already been purchased," explains Lucchi. Urea for the next corn crop can be purchased throughout this semester. "So, let's say we still have a few weeks where producers could wait a little longer to assess which way the market is going," says Lucchi.<\/p>\n
The impact of the diesel price, however, is already being felt in rural properties that depend on fuel supply at gas stations. The reflection of the international increase in the price of oil has not yet reached Brazil, but there are stations charging more. \u201cWe have received information that some regions have already seen increases in the range of R$ 1 to R$ 1.50 at the station,\u201d says Lucchi about the price per liter. Due to the increase resulting from the external scenario, the CNA requested, on Friday (6), from the Ministry of Mines and Energy of Brazil, the urgent increase in the mandatory blend of biodiesel to diesel oil in the country, from the current 15% to 17%.<\/p>\n
\u201cThe producer needs diesel at this time when the cultural practices for what was planted in the second crop are being applied. The producer is harvesting soybeans in much of Brazil right now, or planting corn, or carrying out cultural practices. Machinery activity in the field is intense at this time,\u201d explains Lucchi. Waiting to harvest or plant means an impact on production and productivity. The technical director also points out that a large part of the field logistics is done by truck. Just like tractors and harvesters, in Brazil trucks mainly use diesel as fuel.<\/p>\n
Brazilian agriculture has direct trade with Iran, but the main product exported to the Persian country is corn, with the largest volume shipped from August to January. Soybeans and sugar, the second and third largest export products to Iran, may be redirected to other markets, according to Lucchi. \u201cWhat is our biggest concern regarding exports? Animal proteins, mainly chicken meat, when we analyze the entire Middle East. We send 29% of all the chicken we export to that region,\u201d says Lucchi. According to him, industries have been trying alternative routes and changing logistics to get the product to the region.<\/p>\n
Conflict raises cargo insurance premiums.<\/h4>\n
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However, maritime transport for agricultural products, like other sectors, is already being heavily impacted. \u201cFreight is much more expensive. The insurance cost, which was 0.25% (of the cargo value), is now reaching 1% of the cargo, so this is very burdensome,\u201d says Lucchi. Freight costs have increased for transport to all regions, and insurance has risen for the affected region. \u201cAnd since there are necessary route deviations and many ships are staying in some ports for longer than necessary, you also pay a fine for being docked there beyond the scheduled period,\u201d he explains.<\/p>\n
Lucchi states that the CNA is closely monitoring the developments of the conflict and notes that the analysis is very specific because everything can change in a short period of time. According to him, the impacts will depend on how long the conflict lasts. \u201cWith this logistical issue, which is significant, we will have more expensive imported products; if you have an increase in diesel, you have the entire logistics of Brazil impacted, not just agriculture. Everything that depends on transportation will be more expensive,\u201d he affirms.<\/p>\n
Arab countries in the Gulf region have been affected by the conflict, with attacks from Iran and other repercussions. Arab nations such as Iraq, Bahrain, Kuwait, and Qatar have maritime access only through the Gulf Sea, where the Strait of Hormuz is located. Saudi Arabia has important ports in the Gulf Sea, but also has maritime access through the Red Sea. The United Arab Emirates has maritime access only through the Gulf Sea, but a small part of its coastline lies before the strait. Other Arab countries in the Middle East, such as Oman and Yemen, have independent access to the sea beyond the Strait of Hormuz.<\/p>\n<\/div>\n