Economy

War in Ukraine: association calculates that Brazil has fertilizers for three months

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Anda (National Association for the Diffusion of Fertilizers) announced this Thursday (3) that the fertilizer sector expects to have stocks of the input for the next three months.

The entity represents a segment directly affected by the war in Ukraine: Russia is one of the main international suppliers of the product and origin of most of the imports used by national agribusiness. With the outbreak of conflict, the tendency is for the supply of products to decrease in the global market — with consequences for the price.

“The National Association for the Diffusion of Fertilizers regrets the conflict between Russia and Ukraine and reinforces that it is premature to assess in depth the possible impacts on Brazilian agribusiness,” Anda said in a statement.

“The entity clarifies that Brazil currently has a stock of fertilizers for the next three months, according to data from market agents”.

Anda also stated that the current stock of fertilizers “is above the average of previous years”. According to the association, Brazil currently imports around nine million tons of fertilizer inputs from Eastern Europe annually, around 25% of total purchases abroad.

Anda also declared that it is attentive to the supply of potassium chloride, since two million tons of this input “were already committed to the previous sanctions” to Belarus.

“And the attention is justified, given that 3 million tons of potassium chloride originate in Russia,” he said.

In the same statement, Anda said that nitrogen fertilizers, especially ammonium nitrate, also require attention. This product is imported in significant volume from Russia.

Phosphate fertilizers are less dependent on Eastern Europe, “which mitigates the impacts of supply for the current harvest”.

The entity also expressed concern about the issue of maritime logistics.

As part of the sanctions against Russia, different shipping companies announced that they would no longer ship Russian goods.

“In this sense, the market is looking for solutions for scenarios like the ones we are facing”, declared Anda.

“Anda reaffirms its belief in Brazilian diplomacy and follows its commitment to seek to meet national demand, as it has done so far, and continues to promote dialogues on the geopolitical scenario with its associates, the agricultural sector, industry, civil society and the government”, he concluded. the entity.

On Wednesday (2), the Minister of Agriculture, Tereza Cristina, said that the government’s expectation is that the price of food will rise, in another consequence of the war in Ukraine.

“That’s all [essa alta dos alimentos] It depends. If the war ends today or tomorrow, it’s an impact [aumento de preço menor]. If it continues for longer, it’s another,” said the minister.

According to her, the government’s strategy to avoid high readjustments will be the diversification of fertilizer suppliers.

“It all depends on the weather [de duração da guerra]. We have to reduce these impacts, find alternatives to have the supply. The price [quem faz] it’s the market. Wheat has skyrocketed because Ukraine is a big producer. Today the world is globalized. The price [dos alimentos] we think there will be a rise. Soybeans went up, then went down a little later. The corn rose and then fell. This is a commodity. We have to monitor and reduce the impacts,” she added.

The minister was recently in Iran to deal with the sale of urea. She also travels to Canada in about ten days to negotiate contracts for the export of fertilizers based on potash, Brazil’s main deficiency to guarantee the harvest that starts in October.

For the off-season, as the planting of corn in the middle of the year is known, the minister said that producers have fertilizers in stock.

agribusinessAgriculturefertilizerRussiasheetTeresa CristinaUkraineWar in Ukraine

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