Brazil’s consumption trend for fertilizers this year is expected to repeat last year’s pace, with producers anticipating purchases. The National Supply Company (Conab) released a bulletin estimating that a significant portion of rural producer’s needs have already been negotiated. Producers have gained economic benefits due to the rise in grain prices, the exchange ratio, and earlier sales. Brazil imported a percentage 50.5% higher in January and February 2021 when compared to the same period last year, reaching a total of 5.7 million tons. The state of Mato Grosso was responsible for the largest share, representing approximately 25% of the national total. Brazil’s Center-West region has been following the same trend of the other regions. The government has shown concern with national dependence on the international fertilizer market by creating the National Fertilizer Plan. However, possible future changes on taxes on Consumption of Goods and Services (ICMS) for fertilizers should increase prices and make it difficult to encourage domestic production.
Sources: Agrolink / Global Fert (*Translated by Ia Niani)