A year of recovery in the demand and investments in the fertilizer area
Valor Econômico
When it meets today in São Paulo for its traditional year-end celebration dinner, the Brazilian industry of fertilizer will have a combination of the parties held in 2008 and 2009 on the menu: reasons to celebrate the year that has passed and a positive outlook for the year to come. After the difficulties resulting from the worsening of the global financial crisis in September 2008, the segment still had to flow, in 2010, part of the stocks accumulated since then, but it resumed increasing the investments in production and distribution and counted with the recovery of the demand and prices to close the year with sales 16% higher than in the previous year.
The estimate of the Brazilian National Fertilizer Association (Anda) points out the net earnings of the industry should reach US$ 11.2 billion in 2010, compared to US$ 9.7 billion in 2009. Since it cannot make forecasts because its members have shares traded on the stock market, Anda takes into account, in order to make its calculations, the projection of RC Consultores, a consulting firm, that signals the deliveries of fertilizers to the resellers spread around the country will amount 24 million tons this year, compared to the 22.4 million in 2009. Another survey of Anda that shows the effects of the crisis are passing involves the investments. According to David Roquete Filho, Executive Director of the Association, they identified at least US$ 646 million in investments that were effectively carried out by companies of the segment in the maintenance and expansion of the supply in 2010, 27% more than last year.
The Anda does not detail the investments, at the request of its members, but sources of the area highlight that more than 80% of the investments identified were made by Vale and Petrobras, especially the former. While the oil company produces raw material from nitrogen, such as ammonia and urea, the mining company has invested in nutrients from potassium and phosphate - that complete the triad of raw materials vital for the production of fertilizers. As reported by Valor, Heringer is another manufacturer that made investments. In 2010 the company concluded a package of investments of R$ 128 million (US$ 75.3 million) and it expects to end the year with a positive net result, despite of the loss of R$ 51.7 million (US$ 30.4 million) from January to September.