Fertilizer imports cost grow 178% in 2022, says CNA

Data from the Confederation of Agriculture and Livestock of Brazil (CNA) show that the cost of fertilizer imports grew 178% from January to May 2022, compared to the first five months of 2021. However, according to the entity, the imported volume rose only 16% in this period.

According to the CNA, the data point to a significant increase in the price of these products, which are the main inputs used in agricultural activities.

Also, according to the confederation, the increase in spending will cause producers to lose revenue margins, as Brazil imports about 80% of all fertilizer consumed, generating a value increase for the 2022/2023 harvests.

According to the CNA’s Market Intelligence Nucleus coordinator, Natália Fernandes, soybean, and corn crops, for example, should suffer significant impacts.

“We estimate a cost increase close to 40% for soybeans and 51% for the summer crop in the effective operating cost, which is the producer’s disbursement cost. So it’s quite expressive when you compare the harvest from one year to the next. The fertilizer cost alone is very much more expensive. Thus soybean costs exceed 80%, corn costs 93%,” says the coordinator.

Natália Fernandes also highlights that fertilizers represent 30% to 40% of the farmers’ operating expenses. She concludes by pointing out that the use of inputs is key to the activity.

The professor and economist at Ibmec, Gilberto Braga, explains that the increase in the price of fertilizers stems from the conflict between Russia and Ukraine, from where Brazil imports a large part of these supplies.

“This price increase tends to be passed on to the final consumer, especially when it is known that there is no prospect of an end to the conflict in Eastern Europe. It is important to say that each type of crop has a different fertilizer need, but no type of food would go unaffected.”

Food items are among the products that have driven the country’s inflation up. The group reached a high of 0.75 percent in the May edition of Brazil’s Broad Consumer Price Index (IPCA). However, from January to May this year, prices increased by 6.86%.

Source: CNN

To read the full original article, please go to: https://www.cnnbrasil.com.br/business/valor-de-importacoes-de-fertilizantes-registra-alta-de-178-em-2022-aponta-cna/

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