According to the consultancy, fertilizer consumption in Brazil is expected to fall 7.2% in 2022 from a record high of 42.6 million tonnes in 2021 due to lower demand from producers and high input prices, estimated consultancy StoneX on October 5.
Analyst Luigi Bezzon stated in a presentation that the most significant cuts in fertilizer deliveries to producers will occur in states located in Brazil’s south (-11%) and Centre-West (-8%), regions that produce primarily soybeans and corn, crops that are less dependent on the use of fertilizers than coffee and sugarcane.
Thus, the consumption of fertilizers in Brazil’s southeast region – whose planted areas are mainly occupied by sugarcane and coffee – should fall by a lesser extent this year (-6%) compared to the other regions, according to StoneX.
The analyst recalled that lower demand for fertilizers was recorded not only in Brazil but also in other countries due to high prices steming from the effects of the Ukrainian war, which should be reflected in quotations.
In 2023, on the other hand, demand is expected to recover, which should compensate for the lower investment this year, said the analyst.
In the areas where grains are grown, the soil had enough nutrient reserves for 2022, which should become scarcer next year.
Source: Money Times
