Brazilian produced KCl will travel drastically shorter distances than the current conventional sources to get to its end users, which presents advantages for blenders and farmers alike. Prices are set two months prior to arrival at a facility when blenders import potash. At present, the product travels extremely far distances and the possibility of port delays threatens to further lengthen the process. Often long haul transport from the ports to the blending facilities causes granules to crumble into fine powder making some of the imported potash unsuitable for application. Locally produced potash should result in reduced lag times between purchase and sale, as well as less unsellable waste product for fertilizer blenders. In addition to lengthy inventory wait times, blenders pay additional shipping costs when purchasing the product from an international supplier. An example of shipping costs for a blender purchasing product from a Canadian producer are shown below:
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1 Government of Canada, Ministry of Transportation
2 Santos Port = $43; Paranaguá Port = $26
3 AFRMM = Additional Freight for Renewal of the Merchant Navy : an extra tax imposed by the Brazilian government payable upon inbound freights
4 CRU