Norwegian fertiliser company Yara has bought the Brazilian fertiliser business of New York-based commodities trading giant Bunge. The move into Brazil by Yara gives the fertiliser behemoth wider access to the fertiliser market in Brazil, the world's fourth largest consumer of fertilisers.  

Yara is the world's biggest maker of nitrogen-based fertilisers. The company has set itself ambitious growth targets, aiming to increase its production by over 7 million tonnes, an expansion of around 40 percent. The Bunge deal will add an estimated 350,000 tonnes to Yara's output.

The company will buy Bunge's brands, warehouses and blending facilities and will embark on a supply deal with Bunge, which will retain some control, including supplying farmers and keeping its Santos terminal. The deal is valued at $750 million (£470m). Industry spokespeople have said that, as Brazil is currently reliant on imports of fertiliser, there is significant scope for growth in production in the country.

In the UK, some farming groups accused Yara of monopolistic practices after its partial takeover of Kemira Growhow, which they claim is exacerbating increases in the price of fertilisers in the EU. In February, NFU Scotland Vice-president Allan Bowie accused Yara of sacrificing long-term relationships with farmer clients, and focusing instead on short-term advantages in the marketplace.

Although the fertiliser industry reprasentatives said the UK market is only a small part of the global market and that prices are dictated by changes in the US and elsewhere, in late 2011, NFUS called on the European Commission to investigate the fertiliser market and ensure it was operating fairly; the union said the global fertiliser market is dominated a worryingly small number of players and suffers from a lack of transparency.

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