After a year of price fluctuations for input materials for the agricultural industry, 2023 is considered to be a year of price stabilization for fertilizers and pesticides.
According to an executive from Nutrien, Canada's leading fertilizer producer, after a year of price fluctuations for input materials for the agricultural industry, 2023 is considered to be a year of price stabilization for fertilizers and pesticides.
Nutrien CEO for Latin America, Andre Dias said the conflict in Ukraine has raised concerns in the sector and initially raised fertilizer prices this year.
"The conflict in Ukraine has raised expectations of a shortage of agricultural products," he said. After May 2022, two months after the outbreak of the conflict, the prices of these products began to fall.
Mr. Dias said that Brazil, which imports about 85% of its fertilizer supply, faces challenges in the price of inputs for the agricultural sector in 2022. He predicts that 2023 will be a "quiet" year with less volatility than 2022.
Mr. Dias reaffirmed Nutrien's growth plans in Brazil through planned acquisitions and expansion of operations, based on the consolidation opportunities and growth conditions of the South American country's agriculture.
Over the past three years, Nutrien has acquired eight Brazilian companies, seven of which are retailers of agricultural supplies. In 2022, Nutrien invested $500 million in Brazil, including business acquisitions.
Nutrien's sales in Brazil have grown 20-fold during this period and are expected to reach nearly 8 billion reais ($1.5 billion) by the end of 2022.