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Brazil Potash’s Autazes Project is Ready to Stabilize Market From Belarus’ Potash Supply Crunch

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The potash supply crunch is starting to cause some major problems. Belarus, which is responsible for a large portion of the world’s potash exports, has been unable to ship any potash through its trade-isolated Russia. This is creating a serious supply deficit that is likely to cause severe shortages in the near future.

Countries that consume potash such as Brazil, China, and India are already feeling the effects of the shortage. Potash prices have been rising steadily, and prices are expected to level off sometime in 2023. The potash supply crunch is starting to cause some major problems for farmers around the world who rely on potash to grow their crops.

New projects are necessary to fill those gaps, and help countries like Brazil reduce their dependence on imports. Because Brazil has limited potash production and high demand, it is currently a net importer of the product. If Brazilian demand continues to grow as expected, this project could make a significant impact on domestic demand. As the world’s largest net exporter of agricultural products and food, Brazil relies heavily on imported potash to meet those numbers. However, that could be changed if there was more domestic production of potash, which would in turn lower agricultural input costs significantly.

The Autazes Potash Project is a sustainability engineering investment that produces Potassium Chloride, an important fertilizer for Brazilian agribusiness, in the municipality of Autazes. As a result of this project, Brazil Potash will reduce its dependency on imports from countries such as Canada, Russia, Belarus, Germany and Israel. Currently, Brazil is the world’s second-largest consumer of potassium but only produces less than 5% of what it needs domestically.

At the beginning of 2022, analysts thought that Belarus would be able to ship some potash through Russia. However, Russia’s ports have become increasingly difficult to access thanks to economic sanctions, and Belarusian potash is not arriving on the market at all.

Underground operations and other mines in Belarus have stopped production altogether for the time being, slowing the time to deliver to market and creating more problems for coming quarters. The time it takes to bring a new potash project online is considerable, so the market may not see any relief until 2024.

This severe potash supply crunch has been described as a “perfect storm” by some analysts. While prices have spiked this year, they may stabilize further as demand is also slowing. Demand in Southeast Asia continues to slow, while demand in China is tapering off as the country’s economic growth slows. India, another major potash consumer, has also been hit by an economic slowdown.

Complete demand destruction is unlikely, especially for countries like Brazil that require potash for their agricultural sector. Domestic projects are a possibility, but they will not be able to meet demand in the short term. The potash supply crunch is likely to cause severe shortages in the near future with the Autazes project being a major solution to a severe problem.

President of Brazil Potash Adriano Espeschit recently presented the Autazes project to Canadian companies and representatives of the Canadian government on Monday, September 12. The president of Brazil Potash said: “The event was organized by the government of Canada, which brought Canadian companies interested in new projects here in Brazil. Then, several companies presented their projects. And Potássio do Brasil made a point of being present presenting the Autazes Potash Project.”

At the event, representatives from various organizations were in attendance, including the federal government of Canada, the Mining Suppliers and Trade Association, the Province of Québec, and the Chamber of Commerce Brazil/Canada. In addition, several Canadian companies sent their own representatives to participate.

Amazonas state is expected to become one of Brazil’s leading potash producers after the project, which is currently in the environmental licensing stage, has predicted a useful life of more than 23 years. When it reaches 2.4 million tons per year, this input will cater to roughly 20% of Brazilian demand.

 

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Bimbo Canada closing Quebec City bakery, affecting 141 workers

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MONTREAL – Bakery company Bimbo Canada says it’s closing its bakery in Quebec City by the end of the year, affecting about 141 workers.

The company says operations will wind down gradually over the next few months as it moves production to its other bakeries.

Bimbo Canada produces and distributes brands including Dempster’s, Villaggio and Stonemill.

It’s a subsidiary of Mexico-based Grupo Bimbo.

The company says it’s focused on optimizing its manufacturing footprint.

It says it will provide severance, personal counselling and outplacement services to affected employees.

This report by The Canadian Press was first published Sept. 19, 2024.

The Canadian Press. All rights reserved.



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NDP to join Bloc in defeating Conservatives’ non-confidence motion

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OTTAWA – The New Democrats confirmed Thursday they won’t help Pierre Poilievre’s Conservatives topple the government next week, and intend to join the Bloc Québécois in blocking the Tories’ non-confidence motion.

The planned votes from the Bloc and the New Democrats eliminate the possibility of a snap election, buying the Liberals more time to govern after a raucous start to the fall sitting of Parliament.

Poilievre issued a challenge to NDP Leader Jagmeet Singh earlier this week when he announced he will put forward a motion that simply states that the House has no confidence in the government or the prime minister.

If it were to pass, it would likely mean Canadians would be heading to the polls, but Singh said Thursday he’s not going to let Poilievre tell him what to do.

Voting against the Conservative motion doesn’t mean the NDP support the Liberals, said Singh, who pulled out of his political pact with Prime Minister Justin Trudeau a few weeks ago.

“I stand by my words, Trudeau has let you down,” Singh said in the foyer outside of the House of Commons Thursday.

“Trudeau has let you down and does not deserve another chance.”

Canadians will have to make that choice at the ballot box, Singh said, but he will make a decision about whether to help trigger that election on a vote-by-vote basis in the House.

The Conservatives mocked the NDP during Question Period for saying they had “ripped up” the deal to support the Liberals, despite plans to vote to keep them in power.

Poilievre accused Singh of pretending to pull out of the deal to sway voters in a federal byelection in Winnipeg, where the NDP was defending its long-held seat against the Conservatives.

“Once the votes were counted, he betrayed them again. He’s a fake, a phoney and fraud. How can anyone ever believe what the sellout NDP leader says in the future?” Poilievre said during Question Period Thursday afternoon.

At some point after those comments, Singh stepped out from behind his desk in the House and a two-minute shouting match ensued between the two leaders and their MPs before the Speaker intervened.

Outside the House, Poilievre said he plans to put forward another non-confidence motion at the next opportunity.

“We want a carbon-tax election as soon as possible, so that we can axe Trudeau’s tax before he quadruples it to 61 cents a litre,” he said.

Liberal House leader Karina Gould says there is much work the government still needs to do, and that Singh has realized the consequences of potentially bringing down the government. She refused to take questions about whether her government will negotiate with opposition parties to ensure their support in future confidence motions.

Bloc Québécois Leader Yves-François Blanchet hasn’t ruled out voting no-confidence in the government the next time a motion is tabled.

“I never support Liberals. Help me God, I go against the Conservatives on a vote that is only about Pierre Poilievre and his huge ambition for himself,” Blanchet said Thursday.

“I support the interests of Quebecers, if those interests are also good for Canadians.”

A Bloc bill to increase pension cheques for seniors aged 65 to 74 is now at “the very centre of the survival of this government,” he said.

The Bloc needs a recommendation from a government minister to OK the cost and get the bill through the House.

The Bloc also wants to see more protections for supply management in the food sector in Canada and Quebec.

If the Liberals can’t deliver on those two things, they will fall, Blanchet said.

“This is what we call power,” he said.

Treasury Board President Anita Anand wouldn’t say whether the government would be willing to swallow the financial implications of the Bloc’s demands.

“We are focused at Treasury Board on ensuring prudent fiscal management,” she said Thursday.

“And at this time, our immediate focus is implementing the measures in budget 2024 that were announced earlier this year.”

This report by The Canadian Press was first published Sept. 19, 2024.



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Anita Anand sworn in as transport minister after Pablo Rodriguez resigns

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OTTAWA – Treasury Board President Anita Anand has been sworn in as federal transport minister at a ceremony at Rideau Hall, taking over a portfolio left vacant after Pablo Rodriguez resigned from cabinet and the Liberal caucus on Thursday.

Anand thanked Rodriguez for his contributions to the government and the country, saying she’s grateful for his guidance and friendship.

She sidestepped a question about the message it sends to have him leave the federal Liberal fold.

“That is a decision that he made independently, and I wish him well,” she said.

Prime Minister Justin Trudeau was not present for the swearing-in ceremony, nor were any other members of the Liberal government.

The shakeup in cabinet comes just days after the Liberals lost a key seat in a Montreal byelection to the Bloc Québécois and amid renewed calls for Prime Minister Justin Trudeau to step down and make way for a new leader.

Anand said she is not actively seeking leadership of the party, saying she is focused on her roles as minister and as MP.

“My view is that we are a team, and we are a team that has to keep delivering for our country,” she said.

The minority Liberal government is in a more challenging position in the House of Commons after the NDP ended a supply-and-confidence deal that provided parliamentary stability for more than two years.

Non-confidence votes are guaranteed to come from the Opposition Conservatives, who are eager to bring the government down.

On Thursday morning, Rodriguez made a symbolic walk over the Alexandra Bridge from Parliament Hill to Gatineau, Que., where he formally announced his plans to run for the Quebec Liberal party leadership.

He said he will now sit as an Independent member of Parliament, which will allow him to focus on his own priorities.

“I was defending the priorities of the government, and I did it in a very loyal way,” he said.

“It’s normal and it’s what I had to do. But now it’s more about my vision, the vision of the team that I’m building.”

Rodriguez said he will stay on as an MP until the Quebec Liberal leadership campaign officially launches in January.

He said that will “avoid a costly byelection a few weeks, or months, before a general election.”

The next federal election must be held by October 2025.

Conservative Leader Pierre Poilievre said he will try to topple the government sooner than that, beginning with a non-confidence motion that is set to be debated Sept. 24 and voted on Sept. 25.

Poilievre has called on the NDP and the Bloc Québécois to support him, but both Jagmeet Singh and Yves-François Blanchet have said they will not support the Conservatives.

Rodriguez said he doesn’t want a federal election right away and will vote against the non-confidence motion.

As for how he would vote on other matters before the House of Commons, “it would depend on the votes.”

Public Services and Procurement Minister Jean-Yves Duclos will become the government’s new Quebec lieutenant, a non-cabinet role Rodriguez held since 2019.

This report by The Canadian Press was first published Sept. 19, 2024.

— With files from Nojoud Al Mallees and Dylan Robertson

The Canadian Press. All rights reserved.



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