Commodity Shuttle: Concentration of Brazilian imports in a few countries goes beyond fertilizers

Commodity Shuttle: Concentration of Brazilian imports in a few countries goes beyond fertilizers

Brazil’s dependence on a few countries when it comes to buying agricultural inputs and food goes beyond fertilizers.

Russia’s war with Ukraine has made this danger evident. Russia and Belarus, which is also under international sanctions, are responsible for 28% of Brazilian fertilizer imports.

The situation is not very different in products that the Ministry of Agriculture calls pesticides. An interruption in supplies from China and India would cut Brazil’s need for imports in this sector by 55%.

This is already happening, albeit on a smaller scale, in this pandemic period. China and India reduced the production of agrochemicals, prices rose and the supply of these products was reduced in the Brazilian market.

In the sector of insecticides, the Brazilian dependence on Argentine and Indian products reaches 50%, in volume. In dollars, the leadership belongs to the North Americans, who are responsible for a third of Brazilian spending on these purchases.

In herbicides, China and the United States are responsible for 83% of the products that arrive in Brazil. France and the United Kingdom lead in the supply of fungicides, when the bill comes down to spending. In terms of volume, India and Colombia are responsible for 63% of the products that enter the country.

Among imported foods, wheat is most dependent on a single country. Argentines supplied 87% of what Brazilians imported last year, according to Secex (Secretariat of Foreign Trade).

This Brazilian dependence on Argentine wheat is advantageous due to its proximity to markets and lower prices.

A serious weather problem during the wheat harvest in South America, however, would affect 98% of Brazilian imports, as Paraguay and Uruguay hold another 11% of the Brazilian market.

Brazil normally imports 50% of the wheat it consumes. Last year, 5.43 million tons came from Argentines.

Argentina and Uruguay are also important for Brazil in terms of dairy imports. Together, they are responsible for 89% of Brazilian purchases in this sector.

fertilizers The government’s program to increase fertilizer production is for the long term. It will not resolve the deficiency right away.

fertilizers two The statement is by Roberto Rodrigues, made at a meeting of the ABMRA (Brazilian Association of Rural Marketing and Agribusiness). He expects an evolution of domestic supply gradually.

fertilizers 3 For Conab (National Supply Company) it would be interesting to assess how much fertilizer is accumulated in the soil of Brazilian producers. The evaluation would be important for periods like this, according to Sergio De Zen, director of the entity.

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