Brazilian growers worry soaring prices of fertilizers after the Russian’s invasion of Ukraine on Thursday (24). Despite the fear, the technical advisor of the National Confederation of Agriculture and Livestock of Brazil (CNA), Lucas Martins, believes that there may not be any increase in prices. “It is still too early to talk about a crisis in the fertilizer market, we need to wait for the unfolding of this conflict. Fertilizer production is heavily dependent on natural gas and this commodity has been experiencing price volatility for a long time,” he points out. Martins said that most of the 2nd crop crops already have products ready to be applied, and producers may purchase fertilizers from the 2022/23 crop. However, Martins confirms that the percentage of advance purchases has been decreasing every season. “Many producers expect market failure, such as restrictions with the pandemic and the rise in the dollar. There was a downward trend in the price of fertilizers, but in the face of the conflict between Russia and Ukraine, the situation could be reversed. Therefore, producers must understand how they are going to make purchases for the next crops”, he said.
Source: Canal Rural (*Translated by Ia Niani)