Vaivém: Revenues from the fertilizer sector reach US$ 35 billion this year, up 51%


The global movement of increasing fertilizer prices will raise the sector’s revenue to US$ 35 billion this year in Brazil, 51% more than in 2021.

The estimate is from MacroSector Consultores, which predicts, however, a 10% decline in domestic sales of this input.

After reaching a record 45.9 million tons delivered in 2021, the volume is expected to drop to 41.3 million this year.

Market assessments indicate the same phenomenon for the agrochemical sector. Difficulties in supply and high foreign prices will raise domestic revenue to US$ 18 billion this year, 35% more than in 2021.

Imports of fertilizers, which started accelerated in the first half and are losing steam in the second, will fall to 34.5 million tons this year, 12% less than in 2021. In terms of values, however, the expense rises to US $20.3 billion, 42% more.

Fábio Silveira, director of MacroSector, believes that this reduction in the delivery of fertilizers in the country may be an inhibitor of growth in the volume of the next harvest.

In addition to facing a higher price of inputs, the farmer will have an increase of only 3% in income this year. “The producer will have to burn fat accumulated in previous years”, he says.

“The fundamentals of high costs and lower income place the level of 312 million tons for the 2022/23 harvest as audacious”, says Silveira.

The exchange ratio between the value received for the products and the cost of inputs, although it has improved for some items, still remains unfavorable for the producer.

In October 2020, the farmer purchased a ton of fertilizer by selling 30 bags of corn; in the same month last year, this volume rose to 48; and, in 2022, it is at 60 bags.

In the case of soybeans, the ratio was less than ten bags in October 2020, but rose to 26 in 2021, the same volume as this year.

Fertilizer stocks will be higher at the end of 2022, compared to 2021. In 2023, however, things will return to normal, believes Silveira. “We shouldn’t have news as dramatic as this year, when there was a combination of a pandemic and war.”

Credit This Thursday (20) is celebrated the International Day of Credit Unions. And Brazil is doing well in this regard, according to the OCB System.

credit 2 In the last six years, credit union service points rose 47%, to 7,247 stations. In the same period, 3,173 bank branches were closed, and in 275 municipalities service is provided solely by credit unions.

credit 3 Credit union operations totaled BRL 296 billion at the end of last year, 205% more than in 2017. In this period, the number of members was 14.6 million, 52% more.

Growth A Fipe study shows that, in Brazilian cities with credit unions, GDP per capita, job creation and the number of commercial establishments grow.

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