MBAC Fertilizer Corp. was formed for the purpose of building a business in the agriculture
sector, with the vision to become a significant integrated producer of potash and
phosphate fertilizers in the Brazilian market.
MBAC has an experienced team with over 125 years of experience combined in the business
of fertilizer operations, management, marketing and finance within Brazil. Brazil
imports over 90% of its potash and greater than 40% of its phosphates fertilizer
requirements. The growth of the Brazilian economy, with the agriculture industry
accounting for approximately 25% of the GDP and future potential of fertilizer business,
makes the Brazilian fertilizer market an attractive opportunity.
The need to boost agricultural production worldwide is stimulating fertilizer consumption
in Asia and the Americas and leading global demand to new levels. On a global basis,
fertilizer demand has been increasing at a rate of approximately 5% annually and
for the medium term world fertilizer demand is expected to grow steadily (International
Fertilizer Industry Association – Medium Term Outlook for Global Fertilizer Demand,
Supply and Trade 2007 – 2011). Brazil represents a unique opportunity in that it
imports approximately 70% of its total fertilizer needs. Brazil is also one of the
few countries in the world that still has a significant amount of unused arable
land, which will drive growth in the agricultural sector. The positive market conditions
for fertilizer in Brazil, combined with the location of its phosphate operations
in the high growth region of Brazilian agriculture, provides comfort that MBAC can
achieve its long term goals of creating a viable integrated fertilizer company.