Commodity Shuttle: Spending on fertilizer imports rises 147% in the year, and wheat sales grow 315%

The agribusiness trade balance has two highlights this year. One of them is record wheat exports, which totaled 2.36 million tons in the first four months, a volume 315% higher than from January to April last year.

Traditionally an importer of wheat to supply domestic demand, Brazil managed to attract the attention of African and Middle Eastern countries to the Brazilian cereal. Rio Grande do Sul stands out in terms of exports.

Another important item is fertilizer imports. Despite the unfavorable scenario for international negotiations with these inputs, Brazil ends the first four months with imports of 11.2 million tons, 6.5% more than in the same previous period.

The problem for producers is the new international prices. The volume imported had little variation in the period, but the expenses soared.

From January to April, the country spent US$ 6.5 billion (R$ 32.5 billion) for the purchase of fertilizers, a financial volume 147% higher than in 2021.

The foreign commodity market stands out this year due to high prices. The volume exported from Brazil did not change significantly, but the financial result was great.

Soybean exports increased by just 3% this year, totaling 32.6 million tons, but revenues reached US$ 17.6 billion (R$ 88.1 billion), 38% more than in the first four months of 2021.

Another example is that of coffee, whose revenues total US$ 3 billion (R$ 15 billion), with an increase of 59% in relation to the same previous period, although the volume exported has fallen.

International prices also determine meat performance. The total volume of fresh, chilled or frozen protein exported rose 11% in the first four months of this year, totaling 2.35 million tons. Financial income, however, rose to US$ 6.5 billion (R$ 32.5 billion), an increase of 71%.

In the meat sector, only swine does not maintain the same performance as in 2021. China has recomposed its herd, after the elimination of 40% of the herd, due to the occurrence of swine fever in the country, and is importing less.

The exported volume of fresh, chilled or frozen pork fell to 295 thousand tons in the four-month period, 5% less than exports from January to April 2021. Revenues fell to US$ 644 million (R$ 3.2 billion) , with a drop of 17%.

Sugar also does not repeat the good performance of last year. The external volume sold dropped to 5.83 million tons, with a reduction of 24%, while revenues decreased by 7%.

The increase in planted area in recent years makes the country increase purchases of pesticides. In the first four months of this year, Brazil imported 161 thousand tons of agrochemicals —insecticides, fungicides and herbicides—, at a cost of US$ 1.43 billion (R$ 7.2 billion).

​Purchases of these inputs increased 55% in the period, and spending, 78%, according to data from Secex (Secretariat of Foreign Trade).