Brazilian fertilizer stocks end 2024 at 8.32 million tons

Fertilizer stocks held by industries operating in Brazil totaled 8.32 million tons as of December 31, 2024, according to a report by ANDA (National Association for Fertilizer Diffusion) obtained exclusively by AgroPages.

There was a discrepancy/adjustment of around 3.90 million tons in the final 2024 balance, taking into account initial stock, domestic production, imports, exports, addition of micronutrients/additives, deliveries to the market, and final volumes.

These fertilizers were delivered to the regular mineral fertilizer market, used in applications such as liquid or organomineral fertilizers, other industrial uses, or are in unreported stocks.

Domestic Production

Brazilian fertilizer overview 2024

From January to December 2024, fertilizer production reached 7.21 million tons, according to ANDA. This represents a 3.8% increase compared to the 6.95 million tons manufactured in the same period of 2023.

The production of intermediate fertilizers in Brazil ended in December 2024 at 605,000 tons. According to ANDA, this result represented a 7.5% growth.

Imports

Imports of intermediate fertilizers, between January and December 2024, totaled 41.34 million tons. In December 2024 alone, the quantity was 3.44 million tons.

This data revealed in the ANDA report shows that Brazil annually purchased more than five times its stock size in the international market. This indicates that the South American country, one of the world's largest agricultural producers, remains heavily dependent on fertilizer imports.

Ports

The port of Paranaguá, the main entry point for fertilizers in Brazil, received 10.34 million tons, a 9.2% increase compared to 2023, when 9.47 million tons were unloaded. The terminal alone accounted for about 25% of the total imported by all ports, according to data from the Fertilizer and Soil Correctives Industry Union in the State of São Paulo and the Brazilian Ministry of Development, Industry, Commerce, and Services.

Fertilizer Deliveries

Fertilizer deliveries to the Brazilian market between January and December 2024 registered 45.61 million tons, a 0.5% decrease compared to the 45.82 million tons in the same period of 2023. The information was consolidated by ANDA, which points to a smaller harvest as a determining factor for this configuration in the agricultural sector.

In December 2024, there was a 0.1% increase compared to the same month in 2023. A difference of 200,000 tons was recorded, keeping the period in the range of 3.60 million tons.

State-wise fertilizer deliveries 2024

Leading in deliveries to the market, the Brazilian state of Mato Grosso continued to concentrate the largest volume in 2024 (21.4%), with 9.77 million tons.  Following were Rio Grande do Sul (5.12 million), Paraná (5.11 million), São Paulo (4.87 million), Minas Gerais (4.57 million), Goiás (4.30 million), and Bahia (3.03 million).

"ANDA, which is always modernizing and keeping up with the market, which changes as it absorbs technology and innovation, works rigorously to identify changes and anticipate perceptions in its statistics. The entity monitors and remains attentive to these transformations," concludes the representative entity of the Brazilian fertilizer sector.

Exchange Rate and Cost

The volatility of the US dollar has been one of the main factors impacting the fertilizer sector. As Brazil imports more than 80% of the fertilizers it consumes, exchange rate fluctuations directly affect the final cost of inputs for rural producers.

According to Luciano Plens, commercial director of FertMinas, the increase in the dollar makes not only the acquisition of fertilizers more expensive, but also maritime freight and the inputs needed for domestic production. "This creates a ripple effect in the production chain, putting pressure on agricultural costs and, consequently, food prices," says the executive.

Brazil's high dependence on imported fertilizers is one of the major challenges for the country's food security, points out FertMinas. According to the analysis, factors such as global crises, geopolitical conflicts, and trade sanctions can directly impact the availability of these inputs in the Brazilian national market.

One of the solutions pointed out is the need for investments in domestic production and in technologies that make fertilizer use more efficient. According to João Jaudete, general manager of FertMinas, new coating technologies and special formulations help optimize nutrient absorption, reducing the need for excessive fertilizer application.

(Editing by Leonardo Gottems, reporter for AgroPages)