With fertilizers in excess, Brazil repasses fertilizers to the USA

The large supply of fertilizers in Brazil has caused new imports of this input, which is essential for agribusiness, not to be unloaded in the country.

The Swiss company Ameropa, for example, diverted a cargo previously destined for Brazilian producers to the United States.

With almost 18,000 tons of phosphate-based fertilizers, the ship carrying Ameropa’s cargo arrived at the Port of Paranaguá, in Paraná state, on September 13.

According to Bloomberg, the company requested authorization to send the cargo to New Orleans, USA, nine days later.

At the beginning of the year, amid the Russian military operation in Ukraine, there were fears of a supply crisis of this input.

Overcoming this scenario involved extensive work by Brazilian diplomats and the Ministry of Agriculture.

RECORD SUPPLY OF FERTILIZERS TO BRAZIL

Brazil depends on fertilizer imports to supply the demand of local farmers.

Thus, the Bolsonaro government sought to expand supply and avoid sanctions that would impede global fertilizer trade.

The Russians are among the world’s largest producers of this chain.

As a result, fertilizer imports to Brazil from January to September 2022 were the highest in history for the period.

According to federal government data, landings of these inputs totaled 30.5 million tons between these months.

HIGH PRICES

The prices charged, however, are higher. In September 2022, each ton landed for almost US$620.

This value is about 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 Cavalcante, an analyst at Bloomberg’s Green Markets.

She explains that applying the phosphate-based input can be delayed without compromising productivity since the soil can retain this nutrient for a year.

THE BIGGEST HARVEST IN HISTORY

Amidst the maintenance of the fertilizer supply chain, Brazil is celebrating another record grain harvest in 2022.

According to estimates by the National Supply Company, this year’s harvest totals 270 million tons. For 2023, the forecast is almost 315 million tons.

With information from Revista Oeste

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error