South America Calling

Brazilian fertilizer imports jumped 10.6% in 2013 in response to surging domestic demand and a decline in local production, according to the Brazilian Fertilizer Distributers Association (ANDA).

Imports reached a record 21.6 million metric tons (mmt), driven principally by demand for use on soybeans and second-crop corn.

Imports accounted for 70% of Brazilian fertilizer demand and considerably outpaced growth in domestic production.

Despite a government-led drive to reduce Brazil's dependence on imports, domestic output of nitrogen, potassium and phosphates has only grown incrementally over the last few years. In 2013, production actually fell 4% to 9.3 mmt due principally to lower phosphate and potash output.

Overall fertilizer demand rose 5.2% to 31.1 mmt in 2014.

According to the fertilizer blending industry, one of the major headaches for the industry is the unloading of fertilizers at port is very slow because Paranagua is stretched beyond capacity.

With prices for grains less attractive, fertilizer import demand in 2014 will likely remain at around the same level as last year, according to GO Associados, a local consultancy.

(AG)

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