Market Trends of brazil specialty fertilizer Industry
The increased global demand for food and animal feed has led to the expansion of field crop acreage
- Brazil has become self-sufficient in crop production. From being the major importer of food grains, the country emerged as a large exporter of important crops like soybean, rice, maize/corn, and cotton. Agriculture in Brazil has high potential in the cultivation of diversified crops due to increasing arable land and area under cultivation of field crops. The area under the cultivation of field crops in Brazil increased from 61.0 million hectares in 2017 to 70.2 million hectares in 2022 with an increase of 15.9%.
- Soybean dominates Brazil's agricultural landscape, accounting for 57.51% of the cultivated area, followed by corn at 26.5%. In 2022, Brazil's soybean production hit 153 million tonnes, boasting a yield of 3.533 tonnes per hectare. Brazil is poised to retain its position as the world's leading soybean producer, trailed by the United States and Argentina. Key agricultural regions in Brazil include Mato Grosso, Parana, Rio Grande Do Sul, Sao Paulo, and Goias.
- Brazil experiences two cropping seasons: September to March and February to July. The first season, spanning September to March, yields higher than the second. During the 2021-2022 crop year, wheat production in Brazil reached 2.89 metric tons per hectare, a slight uptick from the previous year's 2.8 tons per hectare. The growing demand, both domestically and internationally, for field crops has spurred a significant expansion in cultivation areas. This expansion is anticipated to have a direct and positive impact on the Brazilian fertilizer market during 2023-2030.
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Rapeseed being the most nitrogen-consuming crop in Brazil
- In Brazil, primary nutrients dominate the fertilizer consumption landscape, with an average application rate of 175.6 kg/ha in 2022. These nutrients are crucial for crop growth and yield, and their scarcity can impede plant development. Among primary nutrients, nitrogen is the most applied in the country, and the application rate of nitrogen on average is 194.8 kg/ha. Canola/rapeseed is the most nitrogen-consuming crop, with an application rate of 396 kg/ha, followed by cotton, corn, and sorghum, amounting to 274 kg/ha, 271kg/ha, and 264 kg/ha, respectively. The large requirement of nitrogen is because of its role in plant protein formation. It contains amino acids and nucleotides, which are the base for plant growth and development, and is the second most sought-after primary nutrient, with an average application rate of 182.8 kg/ha in 2022. Its importance stems from its ability to bolster crop resilience against pests and diseases, facilitate nutrient and water transport, and ensure overall plant survival. Canola, cotton, sorghum, and soybean are notable potassium consumers, with rates of 283.8 kg/ha, 260.4 kg/ha, 219.2 kg/ha, and 192 kg/ha, respectively.
- Phosphorous, ranking third in primary nutrient consumption, saw an average application rate of 149.1 kg/ha in field crops in 2022. Canola/rapeseed leads the pack here as well, with an application rate of 197.39 kg/ha, followed by corn, soybean, and cotton at 192 kg/ha, 180.9 kg/ha, and 172.1 kg/ha, respectively. Primary nutrients, including phosphorous, contribute to robust root systems and energy transfer in plants.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The high post-harvest losses associated with fruits and vegetables has a impact over area under cultivation
- The average application rate of micronutrients for vegetable crops in Brazil was 4.4 kg/ha in 2022
- Sulfur deficiencies are more prominent in sandy soils, increasing the sulfur requirement per hectare of agricultural land
- Drip irrigation and sprinklers can be used only on land spanning up to 50 ha
- Brazilian farmers are increasingly using micronutrients, as they extensively produce high nutrient-consuming crops like soybean
- Vegetables have less potassium content compared to fruits requiring higher per-hectare application
- Though magnesium deficiencies in vegetable crops may not affect the quality of the fruit, it may stress the crop, leading to low yields
