Anderson Nacaxe, CEO of Agrotoken, found that the fertilizer business is facing its toughest time in ten years. Low corn and soybean prices and rising exchange rates in emerging markets like Brazil have raised operational expenses, squeezed margins, and exposed structural problems in major industry players. The drop in agricultural commodity prices has reduced rural farmers’ investment potential, which affects the industry’s big players’ revenues. “High exchange rates are a major issue in developing nations like Brazil. The impact is harsh for businesses that rely on dollarized inputs, such as natural gas, or operate in more unstable local currencies” he says.
Sources: Global Fert/AgroLink (*Translated by Ia Niani)