Market Trends of brazil fertilizers Industry
The increased global demand for food and animal feed have led to the expansion of field crop acreage
- Over the years, Brazil has transitioned from being a major food grain importer to a significant exporter of key crops like soybean, rice, maize/corn, and cotton. With a growing arable land and an expanding area dedicated to field crops, Brazil's agricultural sector is poised for further diversification. The country witnessed a notable uptick in the area under field crop cultivation, rising from 61.0 million hectares in 2017 to 70.2 million hectares in 2022, marking a 15.9% increase.
- Soybean, a crucial commercial and oilseed crop, dominates Brazil's agricultural landscape, accounting for a substantial 57.51% of the cultivated area, followed by corn at 26.5%. In 2022, Brazil's soybean production hit a record 153 million tonnes, boasting a yield of 3.533 tonnes per hectare. Notably, Brazil is set to retain its position as the world's largest soybean producer, with the United States and Argentina trailing behind. Key agricultural regions in Brazil include Mato Grosso, Parana, Rio Grande Do Sul, Sao Paulo, and Goias.
- Brazil's cropping calendar encompasses two seasons, i.e., September to March and February to July. The first season, spanning September to March, typically yields higher than the second. In the 2021/2022 crop year, Brazil's wheat yield stood at 2.89 metric tons per hectare, marking a slight increase from the previous year's 2.8 tons per hectare. The surging demand for field crops, both domestically and internationally, has spurred a significant expansion in Brazil's cultivation areas. This expansion is expected to have a direct and positive impact on the country's fertilizer market in the coming years.
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Rapeseed is the most nitrogen-consuming crop grown in Brazil
- In 2022, Brazil witnessed an average application rate of 175.6 kg/ha for primary nutrients, which are the most widely used fertilizers. These nutrients are crucial for crop growth and yield, and their deficiency can impede plant development. Out of the primary nutrients, nitrogen takes the lead in Brazil, with an average application rate of 194.8 kg/ha. Canola/rapeseed tops the list as the most nitrogen-demanding crop, with an application rate of 396 kg/ha. Following closely are cotton, corn, and sorghum, requiring 274 kg/ha, 271 kg/ha, and 264 kg/ha of nitrogen, respectively. Nitrogen's significance lies in its role in protein formation, as well as its presence in plant amino acids and nucleotides, which are pivotal for growth and development.
- Potassium, the second most consumed primary nutrient, saw an average application rate of 182.8 kg/ha in 2022. Its importance lies in enhancing crop resistance against pests and diseases, aiding nutrient and water transportation, and ensuring overall plant survival. Notably, canola, cotton, sorghum, and soybean stand out as high potassium-demanding crops, with application rates of 283.8 kg/ha, 260.4 kg/ha, 219.2 kg/ha, and 192 kg/ha, respectively.
- Phosphorous fertilizer ranks third in consumption, with an average application rate of 149.1 kg/ha for field crops in 2022. Canola/rapeseed leads the pack in phosphorous consumption at 197.39 kg/ha, trailed by corn/maize, soybean, and cotton at 192 kg/ha, 180.9 kg/ha, and 172.1 kg/ha, respectively. Primary nutrients, including phosphorous, aid in root system development and energy transfer within plants.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The high post-harvest losses associated with fruits and vegetables has impacted the cultivation of fruits and vegetables
- The average application rate of micronutrients for vegetable crops in Brazil was 4.4 kg/ha in 2022
- Sulfur deficiency is most prominent in sandy soils, increasing the sulfur requirement per hectare of agricultural land
- Drip irrigation and sprinklers can be used only on land areas spanning up to 50 ha
- The extensive cultivation high nutrient-consuming crops, like soybean, leads to soil nutrient depletion
- Vegetables are high potash consuming crops that require higher per-hectare application than fruits
- Though magnesium deficiency in vegetable crops may lead to low yields.
