Agrochemical Update Brazil & Latin America - 05/03/2023

fertilizer sales
Published on: May 3, 2023

Fertilizer imports value dropped by 24% in the 1Q of 2023


Brazil

Federal Highway Police and Civil Police seized almost a tonne of prohibited pesticides in Sarandi, State of Rio Grande do Sul. Among seized products, 37 gallons of 20 L of paraquat, banned in Brazil since 2020. Seizure of illegal pesticides increased 10 times from 2021 to 2022 on federal highways in the State of Rio Grande do Sul. (PRF; Civil Police)

“We are going to invest US$ 1.6 billion per year in agriculture”, said Ana Cláudia Cerasoli, president of Corteva. In this way, the company will increase by US$ 400 million the resources to innovation, research and development. (Corteva Agriscience)

Adubos Real announced the acquisition of Adubos Vanguard assets. Negotiation depends on approval by the Administrative Council for Economic Defense, and involves assets for the production and distribution of NPK fertilizers and for the distribution of basic fertilizers. The value of the transaction was not disclosed. (Adubos Real; Adubos Vanguard)

Embrapa warns about the risk of wheat blast in 2023, a disease caused by the fungus Pyricularia oryzae. According to researcher João Leodato Nunes Maciel, among the types of the disease, the leaf blast is easier to control through the application of fungicides, and mixtures containing triazole and strobilurin have shown good performance for control. The second type of the disease, that affects the wheat’s ear, can be well controlled with the use of mancozeb. (Embrapa)

Fertilizer imports value dropped by 24% in the 1Q of 2023, compared to the same period in 2022, reaching US$ 3.3 billion. According to Vixtra, specialized in foreign trade, prices were responsible for the decrease, with a reduction of 18% per tonne. Russia led shipments to Brazil, with 29.3%, followed by Canada (12.7%), Morocco (8.1%), China (7.4%) and the USA (6.1%), which together represent almost 63% of the imported value. “The drop in prices can be perceived as an opportunity for Brazilian farmers, who can take advantage of the moment to acquire inputs at lower prices and increase their competitiveness in the international market”, said Leonardo Baltieri, co-CEO of Vixtra. (Vixtra)

In compliance with court decision, Anvisa approves the toxicological evaluation of glyphosate (Tecnomyl); and diquat (Alamos). (Anvisa)

Atlas Agro’s fertilizer factory, that will be built in Uberaba, State of Minas Gerais, should have works started in 2024, with completion scheduled for 2027. US$ 850 million will be invested. According to the company, the facility’s power generation will be based on renewable sources, such as solar and wind power, to produce green hydrogen, green ammonia and nitrogenous fertilizers with zero carbon emissions. Factory will have the capacity to produce 500 thousand tonnes/year. (Atlas Agro)

According to Ricardo Tortorella, executive director of the National Association for the Promotion of Fertilizers, Brazil is the only country with the capacity to double fertilizer production over the next five years. “The fertilizer issue did not start with the pandemic, nor with the war in Ukraine. We see national production being stagnant over the past 30 years, while imports rose by more than 600%, because of lack of planning, coordination and because of mistaken policies that favored imports, when we have full capacity in Brazil to manufacture fertilizers,” said Tortorella. (ANDA)

Federal Regional Court of the 4th Region maintained the decision to prohibit pesticide aerial spraying on farms near to three settlements of the Landless Workers Movement – MST in the State of Rio Grande do Sul. (Federal Regional Court of the 4th Region)

Bill No. 555, authored by congressman Felipe Mota, proposes to authorize the aerial spraying of pesticides by means of drones in the State of Ceará. Proposal contradicts the State Law Zé Maria do Tomé, a pioneer law in Brazil, that since 2019 prohibits the application of pesticides by aircraft in the State’s territory. (Legislative Assembly of the State of Ceará)

According Blink Projetos Estratégicos, a consulting company, the biological pesticide sector reached US$ 850 million during the 2021/22 season, if commercial products and on-farm production are considered. Growth of 30.6% is estimated for the 2022/23 season. Soybean, sugar cane and corn represent 75% of the Brazilian market. According to Noemi Cozentino, a biologist at Biocross Brasil, biological pesticides “can be used in any type of crop that has the approved biological target. There are no restrictions”. (Biocross Brasil; Blink Projetos Estratégicos)

May and June will be decisive for farmers to guarantee purchases of fertilizers for the next summer crop, cultivated after September. Increased demand expected in the coming months should affect prices, but specialists do not believe in large price fluctuations. “The global fertilizer market is entering a new price and supply equilibrium point, with new suppliers joining the game,” said Paulo Craveiro, Datagro’s coordinator. (Datagro)

ICL América do Sul will invest US$ 19.82 million to double fertilizer production in Jacareí, State of São Paulo in 2023. (ICL América do Sul)

30 tonnes of fraudulently acquired fertilizers in Araraquara, State of São Paulo, was recovered in Uberlândia, State of Minas Gerais, by the Civil Police. Cargo, valued at US$ 45.98 thousand, was recovered at an agricultural retail store. Owner of the store, fined for knowingly buying illegal products, said that he purchased the fertilizers for US$ 27.35 thousand. (Civil Police)



Latin America

Consumption of fertilizers in Argentina during the 2021/22 season reached a record of 4.5 million tonnes, the highest volume among the last six seasons analyzed by the Buenos Aires Grain Exchange. (BCBA)

If US$ 15 billion were invested in the sector, Argentina could supply 20% of the nitrogen fertilizers consumed by Brazil, said Gabriel Delgado, director in Brazil of the Inter-American Institute for Cooperation on Agriculture. (IICA)

At least 168,000 tonnes of fertilizers are expected to be provided free of charge in Sinaloa, Mexico, during the current season. These inputs are intended for farmers who have up to 5 cultivated hectares. (Sub-department of Agriculture and Livestock of Sinaloa)

“We are an export hub and Colombia is a key to UPL’s expansion,” said UPL’s global CEO, Jai Shroff, when discussing the company’s plans for Colombia. “We have a large presence in Colombia. We have two factories, one in Barranquilla and the other located in Madrid. We are reviewing with the team to be able to expand the presence we have because we also impact other regions. We are an export center for business in Brazil, in America Central, in Mexico. Colombia is the key to expansion in the Andean region,” said Shroff. (UPL)



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