The Evolution of Fertilizers in LATAM

Fertilizers have been pivotal in shaping agriculture for thousands of years, enhancing soil fertility and increasing crop yields. From ancient organic materials to today’s advanced water-soluble fertilizers, the evolution of fertilizers reflects the agricultural sector's ongoing drive for efficiency and sustainability. In Latin America (LATAM), where agriculture represents up to 10% of the region’s GDP, modern fertilizers are crucial to staying competitive in global markets.

Historical Practices: The Transition from Organic to Synthetic Fertilizers

• Ancient Organic Fertilizers: Early farmers in LATAM, including the Incas and Mayans, relied on organic materials such as guano (bird droppings), manure, and ashes. These methods allowed small-scale farms to maintain soil health. In the Andes, the use of guano was so prevalent that Peru exported large quantities to Europe during the 19th century, generating significant revenue.
• Bone Meal (Mid-19th Century): By the 19th century, the introduction of bone meal as a phosphorus-rich fertilizer boosted crop yields, addressing the growing problem of soil nutrient depletion. The use of bone meal increased in regions with poor phosphorus soils, notably across Europe and the Americas. This material provided a precursor to more advanced fertilizers.
• Superphosphate (1842): John Bennet Lawes' development of superphosphate, a water-soluble phosphorus fertilizer, revolutionized agriculture globally. By the late 1800s, superphosphate production had scaled to millions of tons annually, greatly impacting crop output in regions like Brazil and Argentina.
• Nitrogen Fertilizers (Early 20th Century): The development of the Haber-Bosch process in 1909, which allowed for the production of ammonia from atmospheric nitrogen, was a turning point in agriculture. By the mid-20th century, nitrogen-based fertilizers were responsible for supporting roughly 50% of global food production, enabling crops like corn, wheat, and rice to flourish in regions like LATAM.

The Green Revolution and the Rise of Chemical Fertilizers

During the Green Revolution of the 1960s and 1970s, Latin American countries significantly increased their food production. The use of chemical fertilizers, coupled with high-yield crop varieties, dramatically transformed agricultural output. For instance, in Mexico, wheat production tripled between 1950 and 1970, largely due to the use of nitrogen fertilizers. Brazil also became a leading producer of crops such as soybeans and maize, benefiting from heavy fertilizer use.

• Fertilizer Consumption in LATAM: In 2022, Latin America consumed over 27 million metric tons of fertilizers annually, with nitrogen, phosphate, and potassium making up the bulk. Brazil alone accounted for approximately 60% of the region’s fertilizer consumption.
• Potash Fertilizers: As one of the largest consumers of potassium fertilizers globally, LATAM imports much of its potash from regions like Canada and Russia. Potassium fertilizers are crucial for crops like sugarcane, maize, and coffee, which dominate LATAM's agricultural output.

However, the environmental downsides of these fertilizers, including soil degradation and water contamination, prompted the need for more sustainable practices. Today, LATAM is increasingly focused on sustainable alternatives like water-soluble fertilizers.

Modern Innovations: Water-Soluble Fertilizers and Precision Farming

Modern agriculture in LATAM has embraced innovations like water-soluble fertilizers, which offer higher nutrient efficiency and lower environmental impact.

• Water-Soluble Fertilizers: Currently, water-soluble fertilizers represent around 5-10% of the overall fertilizer market in LATAM, but their adoption is growing rapidly due to their advantages in high-value crops. These fertilizers are dissolved in irrigation systems, delivering nutrients directly to plant roots, improving nutrient uptake, and reducing fertilizer loss.
• Crop-Specific Formulations: Many modern water-soluble fertilizers are customized to suit specific crops and stages of growth. For example, nitrogen-heavy formulas are used during the vegetative phase, while phosphorus-rich blends support flowering and fruiting. In LATAM, water-soluble fertilizers are most commonly used in horticulture and export crops.

Water-Soluble Fertilizers in LATAM Today

Across LATAM, water-soluble fertilizers are increasingly used in high-value and export crops, where precision farming is critical for maintaining yield and quality.

• Brazil: As the largest agricultural producer in LATAM, Brazil consumed over 15 million metric tons of fertilizers in 2022, of which a growing share is water-soluble fertilizers. These fertilizers are crucial for crops like coffee and citrus, where precision nutrient management is necessary to meet export standards.
• Peru: Water-soluble fertilizers are essential for the high-value export crops that thrive in Peru’s arid coastal regions. Peru exported nearly $2.7 billion worth of avocados, grapes, and asparagus in 2021, much of which depended on the use of advanced irrigation systems and water-soluble fertilizers to conserve water and boost yields.
• Mexico: Mexico is a key player in horticulture, producing nearly 1.2 million tons of tomatoes annually. The country’s extensive use of water-soluble fertilizers in drip irrigation systems has enabled it to maintain a strong export market, especially for high-value crops like berries, peppers, and tomatoes. This precision farming method ensures nutrient delivery with minimal waste, boosting both productivity and sustainability.
• Chile: In 2021, Chile exported approximately $5 billion worth of fresh fruit, including grapes, apples, and berries. The use of water-soluble fertilizers has been integral to maintaining quality in regions with limited water resources. For crops like grapes, which are heavily reliant on consistent nutrient uptake, water-soluble fertilizers are key to sustaining production levels and meeting international demand.

The Way Forward

As water-soluble fertilizers continue to gain ground, the LATAM fertilizer market is set to see further growth in their usage, especially as farmers move toward more sustainable and precise farming practices. New innovations, such as slow-release water-soluble fertilizers, are expected to further enhance efficiency by reducing application frequency and minimizing nutrient loss. The continued growth of water-soluble fertilizers in LATAM will likely focus on export-driven crops, as these fertilizers help improve both yield and quality. With LATAM accounting for more than 14% of global agricultural exports, maintaining efficient and sustainable fertilizer practices will be key to staying competitive in global markets. Moreover, integrating water-soluble fertilizers with organic farming practices offers a path to combining sustainability with high productivity. The future of fertilizers in LATAM is undoubtedly centered on innovation, with water-soluble fertilizers playing a critical role in shaping the region's agricultural future.