Drop in fertilizer prices could reduce food costs for consumers

After reaching historic peaks in the rise in fertilizer prices since 2008, the sector celebrates the reduction of up to 70% in the value of the input, equalizing demand for 2023 with prospects of surpassing the production record of 46,4 million tons, recorded in 2021.

Given the optimistic perspective presented by the National Fertilizer Diffusion Association (ANDA) in a meeting at the Ministry of Agriculture and Livestock, minister Carlos Fávaro highlights that the biggest beneficiary could be the end consumer with cheaper food on supermarket shelves.

Last year, there was volatility in the sector due to Russia's war in Ukraine. “This increased the price of fertilizer and, consequently, the cost of food production, making food more expensive. Now the price has already dropped between 60% and 70% this year, which means that the housewife will be able to find the cheapest food on the supermarket shelf”, explained the minister.

According to the president of ANDA, Eduardo Monteiro, fertilizers have reduced, on average, 70% for nitrogen and 60% for phosphorus and chloride since the price peak. “This is very important for food production, generating deflation and we are already seeing a significant recovery, with the prospect of breaking the 2021 record”, he added.

In addition to the impact on the final price of food for Brazilian consumers, fertilizers are a key element in the intensification of sustainable production.

“If we want, through sustainability - which is our watchword - to intensify Brazilian production with the conversion of pastures, without deforestation, this will only happen if we have fertilizers available”, highlighted Fávaro.

In a meeting with the vice-president and minister of Development, Industry, Commerce and Services, Geraldo Alckmin, it was decided that Mapa will take over the secretariat of the National Council of Fertilizers and Plant Nutrition (Confert), responsible for coordinating and monitoring the National Plan of Fertilizers (PNF). Thus, the meeting with ANDA continued with the structuring of planning so that Brazil is less dependent on imported inputs and offers security to producers.

“We discovered very large weaknesses in the globalized system and this makes us reflect on how Brazil can face the deficiency in the supply of fertilizers and maintain a leading role in food production”, commented the Minister of Agriculture and Livestock.