Fertilizer crisis may influence 2023 crop prices

According to the economist and professor at ESPM Porto Alegre, Rodrigo Feix, the fertilizer crisis generated by the reduction in production in China and the consequent rise in the prices of these products should be felt in future crops. “The risk of a shortage of inputs is higher for the 2023 harvest if exporting countries do not regularize supply and Brazil is unable to develop other suppliers or establish preferential agreements. In practice, this uncertainty tends to keep inflating prices in the medium term,” says Feix.

For the next grain crop, to be harvested in 2022, and which is being planted at the moment, the adjustments are reflected in fertilizer prices and in the reduction of profit margins for Brazilian farmers. “Warnings about the problem were given in the first quarter, but many producers focus on operational efficiency and have precarious economic-financial planning,” says Feix.

Source: Notícias Agrícolas

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