War will drive Brazil to “export” food inflation until 2023

Brazil will “export” food inflation at least until 2023, says analyst Elizabeth Johnson from consultancy TS Lombard. She stresses that soybeans, sugar, coffee, beef, pork, and chicken are the main goods in Brazil’s export portfolio.

“Augmented production costs are a significant consequence of the Russian invasion of Ukraine,” she says. “The rise in fertilizer costs is perhaps the consequence that affects food prices the most. Russia, it is worth saying, is one of the largest global suppliers of nitrogen, potash, and phosphate fertilizers.”

Still, despite rising nutrient prices, there is a prospect of strong international demand for fertilizers.

“Brazil’s soybean harvest in 2021/22 is on course to be the most expensive in history,” she adds, adding that the following season will be much worse. For the analyst, costs should double in some areas.

Source: Valor Econômico

To read the full original article, please go to:

https://valor.globo.com/agronegocios/noticia/2022/04/28/guerra-fara-brasil-exportar-inflacao-de-alimentos-ate-2023.ghtml

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