Spark research shows that coffee nutrition generated US$ 966 million in the 2020/21 harvest

Study carried out for the first time in Brazil becomes part of the annual survey BIP – Business Intelligence Panel, from the consultancy specialized in agribusiness

18.10.2021 | 20:59 (UTC -3)
Fernanda Campos

Spark Intelligence Strategic consultancy concluded Brazil's first 'Panel' survey on the fertilizer market for coffee plant nutrition. The research, based on 1,2 interviews, carried out in the main grain-producing states, showed that the movement of fertilizers for the crop reached US$966 million in the 2020-21 harvest.

According to Spark, this study is now part of the annual BIP Café (Business Intelligence Panel) survey, delivered annually by the consultancy. According to the company's project coordinator, Davi Caxias, the Café Nutrition Panel covered the segments of soil improvers and conditioners, NPK fertilizer, soil and fertigation and foliar applications – macronutrients, micronutrients and biostimulants.

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According to Spark, NPK fertilizer products currently account for the largest share of the market, with a 92% share or sales of US$888 million. Foliar fertilizers are equivalent to 6% of the total (US$57 million). Soil improvers and conditioners correspond to the remaining 2% (US$ 21 million).

Davi Caxias adds that, in volume, coffee growers demanded 4,3 million tons of fertilizers, of which 2,9 million tons were in the NPK segment; 1,3 million tons of soil improvers and conditioners and 12,5 thousand tons of foliar fertilizers.

100% adherence 

“The adoption of treatments reached 100% of producers. This is equivalent to saying that at least one nutritional management operation was carried out by producers. The coffee farmer's average investment, indicated in the research, was US$473 per hectare”, highlights Davi Caxias.

Another relevant fact, says the executive, is that the producer's level of investment is uneven in relation to the type of coffee grown. While in Arabica the average investment reaches US$496 per hectare, in Robusta the same indicator is US$383/ha. “BIP Spark also shows a significant difference in terms of average investment, by region, in coffee nutrition. In Cerrado Mineiro, for example, numbers confirm that the producer invests on average 26% more than in Zona da Mata”, compares Davi Caxias.

Categories and brands - Regarding the adoption rate of nutrition products, by category, adds the executive, NPK fertilizers lead the coffee grower's preference, with 99%. Next, foliar fertilizers (66%), correctives and soil conditioners appear, totaling 39%.

“We detected enormous potential for increased investment in the nutritional management of coffee, especially in the foliar fertilizers segment”, says Davi Caxias. BIP Spark also pointed out that the producers interviewed mentioned more than 170 companies and 1.000 commercial products. “Such data indicates a highly competitive and fierce market scenario”, he states.

According to the executive, the research also investigated indicators of coffee grower adherence to specific products and companies operating in the sector, in addition to producers' knowledge of manufacturers and commercial brands of fertilizers.

For Spark, the level of coffee grower's lack of knowledge regarding commercial brands and manufacturers is considered high, given the economic relevance of the fertilizer sector. “There are, therefore, opportunities for companies to expand investments, aiming to retain customers and gain more access to the market”, concludes Davi Caxias. According to Spark, BIP Café toured the states of Minas Gerais, Espírito Santo, São Paulo, Bahia, Rondônia and Paraná.

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