Brazil deliveries of fertilizer decrease by 1.8% in first half of 2024

The National Association for Fertilizer Distribution (ANDA) reports that fertilizer deliveries to the Brazilian market totaled 18.28 million tonnes from January to June 2024. This figure represents a 1.8% drop compared to the 18.61 million tonnes recorded during the same period last year. Despite challenging logistics caused by geopolitical crises and the slower-than-usual pace of deliveries due to delayed purchasing by farmers, imports have continued to flow, ensuring a steady supply for the agricultural sector.

In June 2024 alone, deliveries amounted to 4.04 million tonnes, marking a 1.8% decrease from the same month in 2023, when 4.11 million tonnes were delivered.

Mato Grosso, the leading state in fertilizer deliveries, accounted for the largest volume in the first six months of this year, with 4.05 million tonnes (22.2% of the total). Other top states included Paraná (2.29 million tonnes), São Paulo (2.11 million tonnes), Goiás (1.74 million tonnes), Minas Gerais (1.56 million tonnes), Rio Grande do Sul (1.49 million tonnes), and Bahia (1.36 million tonnes).

Domestic Production

Domestic production of intermediate fertilizers reached 582,000 tonnes in June 2024, showing a 26.8% increase compared to the same month in 2023. However, in the first half of 2024, total production amounted to 3.06 million tonnes, representing a 4% decrease compared to the 3.19 million tonnes produced during the same period in 2023.

During the opening ceremony of the Brazilian Fertilizer Congress (CBFer) on August 27, Agriculture and Livestock Minister Carlos Fávaro emphasized that fertilizers are now classified as a “national security product,” reinforcing the government’s goals to increase domestic production of the farming input. He highlighted efforts to boost internal manufacturing and reduce Brazil’s reliance on imports, which currently stands at around 85%. One initiative that could encourage domestic production is the Ministry of Agriculture and Livestock’s plan to streamline environmental licensing for biofertilizers, simplifying and reducing bureaucracy in the process.

Alexandre Mendonça de Barros, a partner at MB Agro Consulting and a speaker at CBFer, stressed the importance of fertilizers for Brazilian agriculture. He presented positive forecasts for the sector, predicting that Brazil’s current grain harvest could reach 169 million tonnes, which may help drive down prices.

Imports

Fertilizer imports in June 2024 totaled 3.64 million tonnes, reflecting significant growth of 16.7%. However, for the first half of 2024, total imports reached 16.74 million tonnes, a 2.7% decrease compared to the 17.21 million tonnes imported during the same period in 2023.

The chart below used information derived from DataLiner, Datamar’s pioneer maritime data provider, to demonstrate Brazil’s fertilizer imports between January 2021 and July 2024.

Fertilizer Imports | Jan 2021 – Jul 2024 | WTMT

Source: DataLiner (click here to request a demo)

At the Port of Paranaguá, Brazil’s main entry point for fertilizers, 4.43 million tonnes were unloaded between January and June, a 2% decrease compared to the 4.34 million tonnes handled in 2023. The terminal accounted for 26.5% of the total volume processed at all Brazilian ports, according to data from Siacesp/MDIC.

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