Argentina's fertilizer market is poised for continued growth in 2025, driven by increased planting intentions and macroeconomic improvements. However, challenges such as soil nutrient deficiencies and reliance on imports persist.
The elimination of import tariffs on key fertilizers is expected to enhance competitiveness and supply diversity. Continued investment in domestic production and infrastructure, along with favorable weather conditions, will be crucial in meeting the projected demand and achieving sustainable growth in the sector.
Argentina's fertilizer consumption is projected to increase by 11% in 2025, reaching 5.2 million M/T, driven by favorable planting intentions for wheat, barley, and corn, as well as macroeconomic improvements.
This growth continues the positive trend from 2024, where fertilizer usage increased by 7% to 4.9 million M/T. However, consumption remains below the 2021 record of 5.6 million M/T
Supply and Demand Fundamentals
Crop Dynamics Wheat and barley are key contributors to the forecasted growth, with an expected addition of 400,000 to 500,000 hectares of planted area in the current campaign. Up to 70% of fertilizers used in Argentina are applied to corn and wheat crops.
Soil Nutrient Deficiency A diagnosis by Fertilizar reveals that 60% to 65% of fields in the central Pampa region suffer from medium to severe phosphorus deficiency, necessitating higher doses of phosphorus or its incorporation.
Production and Import Landscape
Domestic Production Only one-third of fertilizers used in Argentina are produced locally. Profertil, located in Bahía Blanca and jointly owned by Nutrien and YPF, is the largest urea producer, with an annual capacity of 1.32 million M/T
Imports Nearly half of Argentina's urea market needs are fulfilled through imports. In 2024, granular urea imports increased by nearly 31% to 1.1 million mt, with Nigeria and Algeria accounting for 27% and 25%, respectively. Urea from Egypt significantly decreased its market share in 2024, representing almost 7% of deliveries from 44% in 2023.
Tariff Adjustments In early May 2024, Argentina eliminated import tariffs of 5.4% on urea and 3.6% on UAN, making nitrogen-based fertilizers from other origins more competitive.
Market Trends and Pricing
Urea Prices As of May 29, 2025, Grainfuel Nexus® assessed urea prices at $380-$406 Per M/T CFR Brazil. In the domestic Argentine market, granular urea prices were firming, following the international market trend, with prices referenced at $450 Per M/T CFR equivalent.
Phosphate Fertilizers: Prices for phosphate fertilizers like MAP and DAP remained stable during the the first half of 2025, despite no new business being registered in Argentina. However, there were beginning enquiries for pasture fertilization, indicating a potential gradual change in demand.
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