June 9, 2014

 

Brazil's fertiliser imports reach record highs amid falling costs
 

 

With lower import prices and strong currency gains, Brazil's fertiliser imports are reaching record levels ahead of the soy planting season, reported Bloomberg.

 

Preliminary monthly data from the Secretariat of Foreign Trade shows that Brazil received about 8.8 million tonnes of the nitrogen-, phosphorous- and potassium-based fertiliser in the first five months of 2014, up 10% on-year.

 

The fall in international prices coupled with the increase in supply from the US, Morocco, China and Russia is helping with the fertiliser shipments to Brazil, which imports about two-thirds of its fertilisers, said Lair Hanzen, head of the Brazilian unit of Yara International.

 

Better news for the country's farmers is that imports fell 16% in value to US$2.9 billion, thanks to a 23% slip in prices, which fell to US$324 per tonne on average. Meanwhile, the Brazilian currency, real, gained 4.4% this year after tumbling 13% against the US dollar last year. 

 

The soy industry, which accounts for about a third of fertilisers used in Brazil, is leading the sales growth.