Market Trends of south america specialty fertilizer Industry
The Brazilian government's initiatives to achieve self-sufficiency in crop production
- The cultivation area for field crops in South America witnessed a 12.8% increase, rising from 111.6 million ha in 2017 to 126.1 million ha in 2022. This surge in cultivation area is projected to drive up the demand for fertilizers in the region. Field crops dominated the landscape, occupying a significant 96.8% share. In 2022, Brazil held the lion's share of the market at 56.9%, with Argentina trailing at 29.3%. Brazil, renowned as the global leader in soy production and exports, saw its soy output reach nearly 135 million tonnes in 2021. Out of this, a substantial 105.5 million tonnes of soy products were exported, with 82% in raw soybean form, 16% as soybean cake, and 2% as soybean oil.
- Soybean cultivation reigns supreme in South America, with Brazil and Argentina leading the pack, accounting for 64.4% and 26.1% of the cultivated area, respectively. However, the region is grappling with an extended drought, resulting in alarmingly low water levels in major rivers. This has severe repercussions, hampering both harvests and the transportation of crucial summer crops, especially soybeans. Consequently, the prevailing conditions are amplifying the demand for increased fertilizer application in South America.
- The Mercosur region has witnessed a surge in soybean cultivation, driven by robust global demand and the crop's attractive profitability in recent years. The surge in commodity prices, including soy, has incentivized producers to expand their operations, investing in new lands and equipment to enhance scale and efficiency. As a result, the field crop cultivation area in the region is poised to expand in tandem with the growing domestic and international markets.
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The average rate of primary nutrient application for field crops in the South American region is about 172.73 kg/hectare
- South America is a major producer of field crops such as soybeans, corn, wheat, and maize. Over the last two decades, the production of these crops has experienced a significant rise due to an increase in cultivated land and efforts to achieve higher yields. As growers in countries like Brazil continue to expand their cultivated areas, it is expected that crop production will further increase, which, in turn, may lead to a rise in fertilizer consumption.
- Nutrients play a crucial role in plant health, growth, and crop production output. Primary nutrients, in particular, are essential for field crops as they provide the basic building blocks for plant development. These nutrients include nitrogen, phosphorus, and potassium, and a deficiency in any of them can have a significant impact on crop yield and quality. The average rate of primary nutrient application for field crops in South America was about 172.7 kg/hectare in 2022. Among all the primary nutrients, nitrogen had the highest application rate of 193.8 kg/hectare, followed by potassium with 181.9 kg/hectare, while phosphorous had an application rate of 142.4 kg/hectare.
- Among all the field crops, wheat, rice, and corn/maize are predicted to have the highest average nutrient application rate. Specifically, wheat is projected to have an average nutrient application rate of 231 kg/ha, while rice and corn/maize are estimated to have average rates of 156 kg/ha and 149 kg/ha, respectively. In South America, the demand for field crops has been on the rise due to the growing population, leading to an increase in the area harvested under major food crops. As a result, the use of primary nutrients in field crops is expected to increase significantly in the coming years.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The shift to field crop cultivation, coupled with free trade agreements, has reduced horticultural crop cultivation in the region
- Calcium, magnesium, and sulfur are important in forming certain amino acids and proteins
- Brazil majorly dominates irrigation agriculture in the region
- In South America, cauliflower has the highest potassium requirement, with an average application rate of 592.6 kg per hectare
- Sulfur deficiencies are common in sandy soils with low organic matter content in Brazil's Cerrado (tropical savanna) region
