Brazil fertilizer prices decrease in 1st half of 2023
Brazil is one of the main food producers in the world and one of the main importers of fertilizers. However, since the beginning of 2022, rural producers have been concerned about rising prices for products such as potassium, sulfate and urea — important fertilizers for crops.
Russia invaded Ukraine in 2022, which led to a spike in the price of fertilizers. The region is an important supplier of the product and it was expected that prices would remain high for 2023. Producers anticipated the maintenance of high prices, but the spike slowed down in 2023.
Between June and May 2023, urea recorded a 1% drop in price in the state of São Paulo. The commodity was traded at R$2,710/ton in the state. In Rio Grande do Sul and the Federal District, the declines were even more significant, 8.80% and 9.52 — respectively.
The only state that registered a fertilizer increase between these months was Goiás, which experienced a significant growth of 32%. In May, a ton of urea was sold at R$2,800. In June, this value is R$3,700 for Goiás.
Price drops happen for ammonium sulfate. Between June and May of this year, Mato Grosso recorded a 2.21% drop in fertilizer, which is sold at R$1,833/ton in the state. Other states registered stability in the price of ammonium sulfate, such as Mato Grosso do Sul, which sells the fertilizer at a higher price, at R$3,200/ton.
Session held in the Senate discusses the need to increase fertilizer production in the country In a session held on Thursday (06), parliamentarians discussed difficulties in the fertilizer sector and the need to increase production in the country. According to the senators, Brazil has the potential to become one of the world’s largest fertilizer producers. However, this reality is far from what currently occurs. The country produces only 20% of what it needs.
Brazil is the third largest importer and exporter of food and the 4th largest consumer of fertilizers, behind China, India and the United States. It is important to point out that only 20% of what we use in fertilizers is produced, depending largely on fertilizers coming from Russia.
That some ways are possible to stop being so dependent on imported fertilizer. One of these ways is to look for new markets like Morocco, Jordan, or even Syria. Thus, the country is not at the mercy of a market crisis as experienced in the previous year.
