Soybean field in the State of Mato Grosso, Brazil

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Monsanto imports raw materials for Glyphosate From China
11 May 10

 

Monsanto began to put into practice something that until now was only a threat. A ship landed today at the port of Santos with 300 tons of the raw material used in the production of Glyphosate, which is primary ingredient used in Roundup herbicide. The shipment was imported by its Brazilian subsidiary.

The volume represents 4% of the production at the Monsanto plant in Camaçari (BA) which remained in limbo due to the changes made by the Board of Foreign Trade (CAMEX), Ministry of Development, the anti-dumping tariffs imposed on Chinese Glyphosate. The product will leave Santo for Sao Jose dos Campos (SP), where 600,000 liters of herbicide will be produced.

"We had hoped that the process of antidumping tariff would have been resolved before our need to import it; however, as it wasn't we've had to adjust. It is a small volume, but will serve to see how the industrial processes will go forward," said Ricardo Madureira, Director General of Corp Protection at Monsanto South America

With the move may start a process of replacing at least part of the production of raw materials the company's centralized Camaçari. The Brazilian branch of Monsanto still has not defined the strategy will continue to import phosphonomethyl iminodiacetic acid (PIA) - the raw material for Glyphosphate - to make the wording in Sao Jose dos Campos, or even suspend the production of raw material in Bahia. "There is a 'deadline' for that decision. We are waiting for a solution to this issue at the next meeting of Camex," said Madureira.

Although the future of production in Camaçari is undefined, it has not been ruled out the possibility of Monsanto itself importing raw material from China, which could cause the closing of the Bahia plant - the only one producing the raw material in the country.

The first application for review of the antidumping tariff was filed with the Ministry of Industry and Foreign Trade in October last year. A new request was made in March this year, but so far the government has postponed taking a final decision. What is being discussed by the government is to replace the existing rate of 2.1% import duty on Chinese Glyphosate for a minimum price US$ 3.60 per kilo.


 

Valor Econômico
Autor: Alexandre Inacio, de São Paulo


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