Mosaic opens new Tocantins distribution hub

Mosaic opens new Tocantins distribution hub

The Mosaic Company began operating its new blending, storage and distribution plant in Palmeirante, Tocantins, Brazil, in July.

The company held an inauguration ceremony with invited state and local officials on 16th July, hosted by Jenny Wang, its Executive Vice President, Commercial

The Palmeirante blending plant has the capacity to process one million tonnes of fertilizer annually – including approximately 500,000 tonnes this year – and expands Mosaic’s distribution presence in the fast-growing agricultural northern region of Brazil.

It will be key contributor to Mosaic’s ambitious fertilizer expansion plans in Brazil. The company is aiming to increases domestic distribution sales from less than eight million tonnes in 2024 to 13-14 million tonnes by the end of the decade.

The $84 million investment in Palmeirante was completed on time and within budget. The plant is expected to earn a margin of $30-$40 per tonne of fertilizer and generate an internal rate of return (IRR) above 20%.

“The inauguration of our new plant in Palmeirante represents meaningful progress for Mosaic,” said Jenny Wang, Executive Vice President, Commercial. “Brazil is an agricultural powerhouse, and Mosaic has been a leader in the market for many years. We are providing farmers in the MATOPIBA region with more efficient access to the fertilizers they need and expanding Mosaic’s presence in a key growing region.”

The Palmeirante complex includes warehouse capacity, automated blending and bagging systems, and a direct rail connection to the port of Itaqui. It is expected to reduce logistics costs and provide state-of-the-art quality control.