Brazil Sees Surge in Ag Input Imports Albeit at Lower Prices

Soybeans and corn, two cornerstones of Brazilian agriculture, have experienced significant price declines this year compared to the previous one.

According to data from the Center for Advanced Studies in Applied Economics (Cepea), a bushel of soybeans, currently priced at R$125, is fetching 18% less than it did a year ago. Corn prices have taken an even steeper dive, plummeting by 26% over the same period.

This drop in income for farmers would have dealt a heavier blow if production costs hadn’t also seen substantial decreases.

In the first quarter of this year, Brazil imported 7.2 million tons of fertilizers, a volume nearly identical to last year’s January to March figures, but at significantly lower costs.

Secex, the Foreign Trade Secretariat, reports that to purchase this year’s volume, the country spent $2.1 billion, marking a 35% reduction from the same period in 2023. Back in 2022, amidst Russia’s invasion of Ukraine, the situation was even more dire, with spending reaching $4.4 billion in the first quarter alone.

Brazil’s fertilizer imports | Jan 2022 – Jan 2024 | WTMT

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Brazil remains highly reliant on the global fertilizer market, primarily sourcing from countries like Russia, Canada, and China.

This dependency extends to pesticides as well. After a slowdown in purchases last year, Brazil kicked off 2024 with a rapid pace of imports.

According to Secex, pesticide purchases from January to March totaled 127,000 tons, a staggering 106% increase from the same period in 2023. Despite this surge in volume, expenses rose by only 8.6%.

Similarly, external pesticide prices have also fallen, offsetting some of the commodity price losses.

The spike in pesticide imports this year can be attributed in part to stock replenishment. In 2023, industries had imported 12% less than in 2022.

The largest expenses come from herbicides, totaling $310 million in the first quarter. Following closely are insecticides and fungicides, with expenditures of $235 million and $154 million, respectively.

Source: Folha de S. Paulo

Click here to read the original news piece: https://www1.folha.uol.com.br/colunas/vaivem/2024/04/importacoes-de-insumos-crescem-no-trimestre-mas-a-preco-menor.shtml

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