I thought we may have seen some developments on resolving the...

I thought we may have seen some developments on resolving the issues around the TEPP considering the TEPP has been recognised as Strategic by Brazilian Federal Government.

You would think that this is more likely given the steep prices rises of potash and fertilizers in general and that Rio Grande do Sul state, being one of the three largest agribusiness producers in Brazil imports 100% of its phosphate from overseas.

Further complicating things is recent sanctions against Russia. Brazil imports 85% of its of its fertilizer consumption, with Russia as its main supplier.

For nitrogen and potash, the dependence on imports exceeds 90%.

On Friday, Brazil launched a national plan aiming to reduce imports to 45% of fertilizer use by 2050. The plan, which has been designed for over a year, includes measures to encourage local production such as increasing the offer of credit lines, changes to tax polices and logistic improvements. But those are all long-term measures that will bring little relief to the fertilizer shortage caused by the war.

Tereza Cristina, Brazil's agriculture minister traveled to Canada Saturday in an attempt to ensure potash supplies, she also recently visited Iran. On Thursday, she met ambassadors from Arab nations that could increase fertilizer supplies to Brazil.

An obvious solution would be to promptly work towards getting the TEPP up and running.

Its lead time is short and its output can be readily scaled.

Did I mention it is located right in the area it is needed.