Iran’s Deputy Agriculture Minister Mohammad Qorbani said on Tuesday that Iran has agreed to barter its urea fertilizer with animal feed from Brazil.
Some 300 to 400 thousand tons of Iranian urea fertilizer will be bartered for Brazilian animal feed in the first phase and then the figure will grow to 2 million tons within the next two years, the official said.
He said that Brazil needs some 8 to 9 million tons of urea fertilizer per annum, 2 million tons of which can be supplied by Iran through a barter trade mechanism.
Iranian tariffs on Brazilian exports commodities are as low as 4% while the Latin American country takes a 120% tariff from Iranian exports goods, Qorbani said, expressing hope that a recent agreement between the two countries would balance bilateral trade.
He also noted that Brazil has welcomed imports of apple, dried fruits and nuts, medical herbs, and saffron from Iran which can help boost trade between the two countries.
Iran exports some $100 million of goods to Brazil while its imports from the country stands at some 500 to 800 million dollars, he stated, noting that the agreement between the two countries is expected to further balance bilateral trade.
In a visit to Tehran on mid-February, Minister of Agriculture, Livestock and Supply of Brazil Tereza Cristina Corrêa da Costa Dias met with her Iranian counterpart Javad Sadatinejad where they signed an agreement on bartering Iranian fertilizer for Brazilian animal feed.