Uruguay , Paraguay , Argentina , Peru , Brazil and Bolivia
Press Release

Five countries in the region intend to purchase 1.4 million tons of Bolivian urea

Bnamericas Published: Wednesday, May 19, 2021
Five countries in the region intend to purchase 1.4 million tons of Bolivian urea

This YPFB release was published using machine translation.

La Paz May 19 (AN-YPFB). - Companies from Brazil, Argentina, Paraguay, Peru and Uruguay are interested in buying up to 1.4 million tons of urea, once the Ammonia and Urea Plant (PAU) is back in operation. They are not the only ones, there are also companies from other continents, which are evaluating acquiring this fertilizer.

“Our annual production capacity at 100% is 650 thousand tons and of that quantity, the demand of the domestic market is between 20 thousand and 25 thousand tons. The remainder is left for export and represents almost half of the purchase intention that we have so far, "said Luciano Montellano, Vice President of Operations of Bolivian Fiscal Oil Fields (YPFB).

Montellano debunked the discourse that this fertilizer has no international market. “You hear people and the media say that urea has no market, but that is the most false because this fertilizer is highly required anywhere in the world. Its consumption and demand is growing due to the food crisis that the planet has. It is necessary to produce more and better food (…). So, the demand for urea is not a problem and it is worse in South America, since we have Brazil, which is one of the largest buyers in the world ”.

Given this, once the PAU operates again, it will be evaluated with whom to make the sales of the product, which is appreciated for its high quality in international markets. Urea is the fertilizer whose high nitrogen content allows plants to grow, helping their nutrition and crop yield. Worldwide, it is used in the production of rice, corn, wheat, sugar cane, sorghum, potatoes, pastures, fruit trees, vegetables and others.

The YPFB Vice President of Operations stated that the start-up and reactivation of the PAU is being managed under a project management methodology and a maintenance plan, both corrective and preventive, which is in execution. “We have had, days ago, a very encouraging and positive progress on the main teams. The production and commercialization of urea will benefit economic reactivation and job creation. In addition, it constitutes another source of income for the country ”.

Considering the growing international demand and the intensive development of the national agribusiness, an annual income of US $ 120 to 140 million is estimated. “With the optimized cost structure, an operating profit of 30% to 35% is estimated. Stability in operations is closely linked to massive logistics. The export flow will play a preponderant role in the recovery of the business ”, added Montellano.

Internally, the PAU generates around 300 direct sources of employment and approximately 70 indirect ones. "The greatest impact occurs in external indirect labor sources since transport, stevedoring, wholesale traders, retailers, intermediaries, farmers, livestock, small and large-scale agroindustrial activities are promoted with an initial estimate of between 2,500 and 3,500 indirect jobs . Figures that will multiply as agriculture develops ”, indicated the YPFB executive.

The PAU stopped operating in 2020 due to mismanagement and damage to equipment with state-of-the-art technology by the unconstitutional government administration of Jeanine Áñez.

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