According to data released by Fertilizers Europe, which represents the majority of fertilizer producers on the European continent, about 70% of the production capacity of the insum has been suspended due to the increase in natural gas. The adjustments especially impact the nitrogen fertilizer industries, since natural gas is used by the sector as raw material and energy source. The price drop is a reflection of the sanctions imposed on Russia in light of the conflicts with Ukraine – about 40% of Europe's demand was supplied by the Russians.

Fernando Tallarico, CEO of Aguia Fertilizantes, said the crisis is beyond the European continent and could pose a global food risk. With less fertilizer supply, prices tend to rise, which directly impacts the value and availability of food. "If there are no investments in fertilizer production, we only have two alternatives. Either the producer accepts the market price and adjusts the value of food or decreases the use of the insum, which directly reflects on productivity. Europe is now more able to face this adjustment, but what about the least developed countries? The impact can be brutal," tallarico ponders

National production is the best alternative

From January to May this year, Brazil imported more than 14 million tons of intermediate fertilizers, while national production was only 3.2 million tons – representing less than 20% of the country's demand, according to data released by the National Association for the Dissemination of Fertilizers (ANDA) in August this year.

"It is urgent and necessary to look even more carefully at the national fertilizer production sector. It takes policies and investments to develop and expand this market. We have fertile soil and conditions more than conducive to this. We cannot be one of the largest agricultural producers in the world and the largest importer of fertilizers. These are issues that are interconnected and the development of Brazilian agribusiness depends directly on investments in national fertilizers", defends the executive of Aguia.

Source: Agrolink