Imports of fertilizers into Brazil broke a record in 2019, according to data from the Secretariat of Foreign Trade (Secex). In this scenario, purchases reached a record 31 million tons last year, an increase of 5% compared to the previous year, with costs totaling US$ 9 billion, 3% more.
“The smaller percentage increase in Brazilian spending on foreign purchases, in relation to volume, is due to the drop in fertilizer prices on the international market”, stated the National Agricultural Society (SNA).
According to Carlos Eduardo Florence, executive director of the Association of Fertilizer Mixers of Brazil (Ama), phosphates ended 2019 with a reduction of 30% compared to the values from a year ago. In the same period, nitrogen fell by 20% and potassium fell from 10% to 15% and, even with the rise in the dollar, prices became more favorable on the domestic market.
Even though the distribution data is still unavailable, it is already possible to know that they are better than 2018, as the soybean area grew, the corn harvest was quite robust and the demand for fertilizer increased. This demand is also greater because the agricultural sector has spent the last ten years without major upheavals, with the exception of the occurrence of droughts in some specific regions.
According to the SNA, the dollar interferes with fertilizer prices, but, at the same time, increases producers' income from commodity exports. In this case, 2020 should be no different from 2019, as there are no longer any signs of abnormalities in the agribusiness sector.
Source: agrolink
