After a year of farm input price volatility, 2023 looks set to be a “normal” year for fertilizer and pesticide costs, an official at top Canadian fertilizer maker Nutrien told Reuters on Monday.
Andre Dias, Utrien’s chief executive for Latin America, said the war in Ukraine raised concerns in the sector and raised fertilizer prices initially this year.
“The war in Ukraine raised all sorts of expectations around a shortage of products. After May, prices started falling,” he said, adding that the value of inputs was halved.
Brazil, which imports around 85% of its fertilizer supply, faced product pricing challenges in 2022, Dias said.
He added that 2023 will be a more normal year with less volatility than 2022, with a “quieter” market despite expected Russian fertilizer surcharges, Dias said.
Dias reiterated the company’s plans to grow in Brazil through acquisitions and organic expansion, given the country’s farming and consolidation opportunities.
In the last three years, Nutrien has acquired eight companies in the country, seven of which are farm supplies retailers. In 2022, Nutrien invested $500 million in Brazil, including acquisitions.
Revenues in Brazil have increased 20-fold over this period and should reach nearly 8 billion reais ($1.50 billion) by the end of 2022.
Nutrien, which sells inputs under its own and third-party brands, also aims to provide services to farmers, including financing and agronomic advice.
Unlike its North American operation, where Nutrien is also known for its potassium fertilizer mines, the company in Brazil has four mixers for imported fertilizer raw materials and is in the process of investing in two more, Dias noted.
The executive added that, barring acquisitions, the company expects organic growth of 70% year over year through the end of 2022.
Reuters
