Purchases of fertilizers by Brazilian farmers are delayed
Brazil
Ministry of Agriculture approved 23 pesticide registrations of equivalent technical products. (MAPA)
Purchases of fertilizers by Brazilian farmers are delayed by 10% to 15% below the average of the past five years. “With an interesting exchange ratio, we should see the purchases by farmers within the average or above it, but that’s not what we see today”, said Jeferson Souza, analyst at Agrinvest Commodities. There is a risk of delay in fertilizer deliveries in Brazil. (Agrinvest Commodities)
Despite the decrease in prices, fertilizer exchange ratio remains high. According to researcher Mauro Osaki, from the Center for Advanced Studies on Applied Economics, in the case of soybean, the exchange ratio exceeds the historical average of the past five years. “There was a drop of about 40% in potassium chloride in the first four months of this year, compared to the same period in 2022, and 34% in monoammonium phosphate… fungicides and insecticides, on the other hand, are more expensive, in an average of 2% to 6%,” said Osaki. In the first four months of 2022, farmers needed 35.87 bags of soybean to obtain a tonne of potassium chloride. In 2023, 26.91 bags were needed. (Cepea)
Morro Verde plans to become the first carbon neutral fertilizer company in Brazil by 2025. According to Morro Verde, the company records a carbon footprint that is 90% lower compared to others in the sector. (Morro Verde)
Viter, business unit of agricultural inputs from Votorantim Cimentos, announced an expansion of its commercial partnership with Morro Verde fertilizer company, aiming to increase the production of agricultural limestone with high magnesium content in the State of Minas Gerais. Partnership provides for the acquisition of equipment, improvements and expansion of storage and loading structures. “We are achieving two years of partnership with Morro Verde and we were able to confirm that farmers in the region need a product with high levels of magnesium…”, said Viter’s general manager, Marcelo Giuliano de Sousa. (Viter; Morro Verde)
Acquisition of all shares of Feltrin Sementes by Syngenta was approved by the Administrative Council for Economic Defense. (Feltrin Seeds; Cade; Syngenta)
Resumption of construction of the fertilizer factory in Três Lagoas, State of Mato Grosso do Sul, was postponed again. It was expected that by April a solution for the Nitrogen Fertilizer Unit III would be announced by Petrobras, but the work remains without a forecast for resumption. Minister of Planning and Budget, Simone Tebet, said that answers about the completion of UFN3 will be announced only in the second half of 2023, and that Petrobras will need a change in its national plan so as not to hand over the factory to the private sector. “I was the one who interrupted the last tender, because the notice did not state that the factory had to end up as a fertilizer factory. They [the Russian company Acron] could dismantle it and send all the equipment to Russia,” said Tebet. (Petrobras; Ministry of Planning and Budget)
Federal Highway Police in Xanxerê, State of Santa Catarina, seized 248 drums of 20 liters of pesticides from Argentina, under the brands Paraquat Sigma and Campoquat 1. In the city of Franca, State of São Paulo, the Military Police seized US$ 60.25 thousand in stolen machinery and pesticides. (PRF; Military Police)
Fospar announces expansion of the operational draft measures at the Port of Paranaguá, State of Paraná. The Port is the main entry for fertilizers in Brazil. With this investment, it becomes capable of receiving ships with up to 77,000 tonnes of capacity. (Fospar; Ports of Paraná)
Bayer Crop Science’s first physical store in the world was opened in Rio Verde, State of Goiás. Company informs that this is an experimental project, still subject to evaluations. Bayer Brasil commercial leader, Marcio Santos, said that there is a need for closer contact with the farmers. (Bayer CropScience)
Increased revenue of special fertilizers. In 2022, the value reached US$ 4.47 billion, an increase of 33.2% compared to 2021. Increases were in all product categories: special mineral fertilizers (37%), organic fertilizers (25.5%), organominerals (22.7% ), conditioners (16.2%) and substrates (7.2%). Sales value was distributed between input resales (51.5%), cooperatives (10.1%) and farmers (38.5%). Biggest consuming States are: Minas Gerais (20.22%), São Paulo (16.4%), Mato Grosso (13.46%), Goiás (10.86%) and Paraná (9.39%). The sector invested US$ 92.41 million in research, development and innovation, in 2022. (Abisolo)
STG Logistic, a Russian company in the fertilizer sector, plans to invest in the State of Tocantins. The representatives from the company and company and the Tocantins State government held a meeting to present the plans and commercial activities. Meeting was held between the executives of the multinational and the secretary of the Industry, Commerce and Services Secretariat, Carlos Humberto Lima, and the president of the Tocantins State Mining Agency, Mauro Mota. STG Logistic mines phosphate in Syria. (STG Logistic; Sics; Ameto)
Latin America
Ministry of Agriculture announces the creation of Argentina‘s Agriculture Bioinputs Program, that will include US$ 214,817 in investments to reduce imports of agrochemicals. (Ministry of Agriculture; Senasa)
Sayde Espinoza, operations supervisor of the Topolobambo Port System, in Mexico, reported that in 2022, 480,843 tonnes of urea and 465,464 tonnes of other fertilizers were unloaded at the Port. In January of 2023, ocean freight on the China trade route was US$ 1,276/container. Freight value has dropped by 81.3% since August of 2022. (Asipona; Eternity Group Mexico)
Central Bank of Argentina announced measures to mitigate effects of drought and increase fertilizers imports. A pre-financing system was approved, that should allow financing of approximately US$ 3 billion. “The system allows companies that act both as importers and exporters to finance the purchase of inputs with their own suppliers or with international credit lines, from foreign or local banks”, according to the Central Bank. (BCRA)
During the 1Q 2023, the prices of fertilizers in Colombia dropped by 4.8%. “International urea prices have been falling, because of the slowdown of the economy, expectations of lower economic activity and, in some cases, recession. This has increased local costs,” said Juan Camilo, an analyst at Corficolombiana. (Corficolombiana)
New liquid fertilizer factory from Bunge Argentina S.A. starts operations in the Port of Bahía Blanca, in Argentina. Construction was concluded at the end of March 2023. (Bunge Argentina S.A)
Nequén S.A, that operates in Puerto Quequén, in Argentina, denounced the blockade carried out by the Union of Commerce Workers, that happened in the logistics area of the Port. It prevented fertilizer unloading operations from the ship Montevidéu I. (Nequén S.A)
Group of environmentalists in El Salvador calls for a ban on glyphosate in the country during protests against Monsanto. Protesters demand a reform of the country’s pesticide and fertilizer legislation. (Campaña Azúcar Amarga)
READ MORE: