Brazil’s Fertilizer Demand Growth Continues to Rise




The agricultural activity in Brazil has been rising in the past few years, which has been a catalyst for fertilizer demand growth in the country. Brazil depends on imports to fulfill its potash and nitrogen fertilizer needs. It partially depends on imports for its phosphate fertilizer needs.

Article continues below advertisement

Demand growth

For the third straight year, the demand or consumption for all three NPK (nitrogen, phosphate, and potash) nutrients is expected to grow YoY (year-over-year) in 2017. According to PotashCorp (POT), expanded acreage has driven the increase in fertilizer usage. Since 2010, the country has seen 50% growth in potash usage. Brazil is expected to have a higher-than-global average potash consumption rate, according to PotashCorp.

Consumption growth has also been observed for phosphate fertilizers. Brazil’s partially self-sufficient in phosphate fertilizers. Nitrogen fertilizer consumption has also grown YoY. The momentum is expected to continue for all three fertilizers in 2017 YoY.

So far this year, Brazil has recorded strong year-to-date growth in urea and phosphate fertilizers like DAP and MAP. The potash fertilizer growth has been around the mid-single digits.

Strong crop growth

Brazil is expected to have record soybean production in the current season, according to PotashCorp. There are similar expectations for the corn crop as well.

With Brazil emerging as a strong agricultural market, there’s hope for companies (MOO) like PotashCorp (POT), Mosaic (MOS), Agrium (AGU), and Israel Chemicals (ICL) amid the weakness in fertilizer prices.


More From Market Realist