According to a report carried by Bloomberg, Brazil’s and the world’s biggest iron ore exporter, Vale SA, has focused a significant amount of its investments in fertilizers to meet rising Brazilian demand. Bloomberg cited a company official, reporting that Vale’s move aims at increased fertilizer production, to meet the rising demand for the product in Latin America’s biggest economy.

The plans will see Vale establish at least two new projects in Brazil by 2015, part of a $12 billion expansion into the fertilizer industry. In an interview with Edison Souki, Vale’s global fertilizer sales manager, the Bloomberg report noted that Vale keeps a close eye on market tendencies, and the growing purchasing power of the middle class means more food demand even as there’s less arable land per capita.

According to Vale, it will be focusing all its reserves on Brazil. In an earlier Bloomberg report, as well an interview with Brazilian Mining Secretary Claudio Scliar, Scliar had reiterated that Brazil aims to reach self-sufficiency in nitrogen-based fertilizers by 2013 and lower imports of crop additives made of phosphates to 20 per cent from 50 per cent in six years. Vale is the sole company producing potash in Brazil, supplying 9 per cent of domestic consumption. Brazil is the world’s biggest sugar-cane and coffee grower.

Last year, Vale spent around $3.8 billion in purchase of fertilizer assets from Bunge Ltd. According to Bloomberg, the firm aims to sell shares in this unit as soon as the second quarter after making cost savings. However, Vale denied speculations earlier that it is in talks or negotiating to buy an additional fertilizer producer and said it’s focused on organic growth, after speculation it may be interested in Mosaic Co.

Bloomberg stated that analysts believe Vale is keen on tripling its fertilizer output to 25 million metric tons by 2017 as a rising population’s food needs increase demand by 3.8 per cent a year in Brazil and 3 per cent worldwide. During the presentation of its annual investment program, the Brazilian miner said it plans to invest $2.5 billion in the fertilizers business during 2011. Almost half of that investment will go to its Rio Colorado potash project in Argentina, it said.

Vale’s $2 billion Carnalita potash deposit is slated to start production in 2015 and the Salitre phosphate project will come online in 2014.