Brazil’s oversupply of fertilizers has led to new imports Basic input for that Agricultural business Not landed in the country. For example, the Swiss company Ameropa diverted cargo to the United States that had previously been destined for Brazilian manufacturers.
With approximately 18,000 tons of phosphate-based fertilizers, the vessel carrying Ameropa arrived at Paranagua Port in Paraná on September 13. As stated therein BloombergNine days later, the company requested authorization to ship the cargo to New Orleans, USA.
Earlier in the year, amid the Russian invasion of Ukraine, there were fears of a supply crisis for this input. Overcoming this situation involved extensive work by Brazilian diplomacy and the Ministry of Agriculture.
Fertilizer delivery to Brazil
Brazil depends on fertilizer imports to meet the demand of local farmers. Therefore, the Bolsonaro government sought to expand supply and prevent the use of barriers to global trade in fertilizers. Russians are among the world’s largest producers of this chain.
As a result, imports of fertilizers to Brazil from January to September 2022 were the largest in history during that period. In total, Landings of these inputs totaled 30.5 million tonnes between these monthsAccording to central government data.
increase in price
However, the price charged is high. By September 2022, each tonne landed at nearly US$ 620. This figure is 20% higher than the US$ 420 charged in the same month last year.
“With prices at record levels, farmers have decided to reduce orders to protect margins,” said Marina Cavalconte, analyst at Bloomberg’s Green Markets. “The use of phosphate-based input can delay productivity without compromising it, as the soil can retain this nutrient for a year.”
The largest crop in history
Brazil celebrates another record grain harvest in 2022, amid maintenance of fertilizer supply chain. This year’s harvest totals 270 million tonnes, according to estimates by the National Distribution Agency. By 2023, the forecast is nearly 315 million tons.
Also read: “Agriculture, Market and Supermarket”Article by Evaristo de Miranda, former President of Mbrapa Territorial, for Revista Osté Magazine 133
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