South America Calling

Brazilian fertilizer deliveries slumped in the first four months of the year, reflecting lower investment in soybean, corn and sugarcane crops.

Total deliveries of NPK (nitrogen, phosphorus and potassium) nutrients totaled 2.9 million metric tons (mmt) between January and April, down 11.8% on the year before period.

Deliveries were largest in Mato Grosso, at 1.23 mmt; followed by Parana, at 1.0 mmt; and Sao Paulo, at 0.9 mmt.

The figures reinforce forecasts that Brazilian farmers will invest much less in grain soil fertility due to tight margins.

While second-crop corn area ended up growing marginally this season, the investment in the crop has diminished. Farmers are not excited about the prospects for the 2015-16 soybean crop, and area could fall marginally.

Similarly, investments in farm vehicles have also dropped. Sales have fallen 22.9% to 16,000 in the first four months of 2015, according to the Brazilian Automakers Association (Anfavea). Tractor sales are down 18% in the period.

(KM)

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