Brazil’s fertilizer industry is set for growth with a record harvest expected in 2024, according to Eduardo Monteiro. Fertilizer deliveries may reach 46 million tonnes, alongside a projected 325.7 million tonnes of grain harvest, indicating a 9.4% rise. Stable raw material prices and a favorable exchange ratio further support market demands.
The anticipation of a record harvest is projected to significantly enhance Brazil’s fertilizer market this year. According to Eduardo Monteiro, the head of Mosaic’s operations in Brazil and Paraguay, although sales for the current crop cycle have concluded, the forthcoming historical harvest is expected to increase the demand for essential nutrients for the next planting season. Monteiro stated, “A record harvest means plants will extract more nutrients from the soil. Farmers will need to replenish those nutrients.”
In 2024, Brazil’s fertilizer deliveries were recorded at 45.6 million tonnes, marking the second-highest total historically. Mr. Monteiro estimates that deliveries could increase to 46 million tonnes, potentially establishing a new record. The National Supply Company (CONAB) forecasts a grain harvest of 325.7 million tonnes during the 2024/25 cycle, indicating a 9.4% rise compared to the prior season. Brazil’s largest harvest to date was 322.8 million tonnes in 2022/23.
Another contributing factor to the rise in fertilizer sales is the improved exchange ratio between grains and agricultural inputs observed since the onset of the season. On the Chicago Board of Trade, soybean prices have decreased by 3.1% over the past month but are still 0.5% higher than six months ago, while corn prices have fallen by 2.8% in the same timeframe but increased by over 13% in the past six months. Mr. Monteiro noted that soybean and corn farmers constitute 60% of Brazil’s fertilizer demand, affirming, “The trend suggests that farmers who grow soybeans in the summer and corn in the second crop will see solid profitability.”
Simultaneously, prices for essential raw materials in the fertilizer sector have either remained stable or declined since last year, a trend observed by Mr. Monteiro. This stability contributes positively to the operational margins within the industry.
In summary, Brazil’s fertilizer industry is poised for growth driven by a record expected harvest in 2024. The anticipated increase in nutrient demand, alongside favorable exchange ratios and stable raw material prices, positions the sector for robust performance. As the market evolves, it remains imperative for stakeholders to adapt to these dynamics to maximize profitability and ensure sustainability in food production.
Original Source: valorinternational.globo.com
