Brazil fertilizer deliveries seen dropping 5%-7%, Anda says

Content of the article

SAO PAULO – Fertilizer deliveries to Brazilian farmers could fall by 5% to 7% this year, an executive at Brazilian trade group Anda said on Wednesday, citing analyst figures and industry estimates.

Anda, which represents global suppliers such as Nutrien and Mosaic, said farmers have delayed purchases or decided not to buy fertilizer this season amid rising prices caused by Russia’s invasion of Ukraine.

Content of the article

After the start of the conflict, Brazil rushed to secure supplies, as it depends on imports for 85% of its domestic use, putting pressure on ports and other logistics capacity.

Advertisement 2

Content of the article

“We brought more fertilizer than the farmer needed at that time,” said Ricardo Tortorella, Anda’s executive director, referring to the first half of 2022. “These ports are closed, they are all full to this day.”

Tortorella said possible unforeseen weather problems, uncertainty about Chinese demand for crops and the war in Ukraine

it had also explained the lower demand for fertilizers. Logistics bottlenecks at ports had not affected deliveries to farmers, he said.

“The atypical stance of the producer is natural,” he said. “The farmer has to calculate the risks and do a lot of math.”

Volatile fertilizer prices have fallen somewhat, which could boost fertilizer demand in the near term, Tortorella and an analyst said.

Advertisement 3

Content of the article

While fears of a global fertilizer shortage boosted imports in Brazil, it also changed the outlook for domestic production, which is set to grow for the first time in 15 years, according to Tortorella.

Anda’s latest data on July fertilizer deliveries, released this week, had pointed to the possibility of a drop in deliveries this year.

Deliveries in July fell almost 30%, with January-July deliveries down almost 9% to 21.7 million tonnes.

Still, a drop in deliveries will not compromise expectations of a bumper grain harvest, Tortorella said. (Reporting by Ana Mano; Editing by Richard Pullin)



Postmedia is committed to maintaining a lively but civil discussion forum and encouraging all readers to share their views on our articles. Comments may take up to an hour to be moderated before appearing on the site. Please keep your comments relevant and respectful. We’ve enabled email notifications: You’ll now receive an email if you get a reply to your comment, there’s an update to a comment thread you’re following, or if a user you’re following comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *