Demand for fertilizers surprises and continues strong
Valor Econômico - 07/25/2008
The demand of the Brazilian agriculture for fertilizers continues contradicting the expectations of specialists and grows considerably, in spite of the great increase of prices in the international market and, consequently, also in the country, which depends on importations. According to the statement released by the National Association for Fertilizers Diffusion (Anda), the deliveries from mixers (companies that sell the final product) to resellers have amounted to 2.402 million tons in June, 31.3% more than last year's same month. After the significant turnover verified in May, the industry believed there would be a cooling down on the rhythm of increase last month, and that the increase in relation to June, 2007, would be below 20%. The early purchases made aiming at the planting of the next harvest of summer grains - in part leveraged by the fear of new increases in prices and a possible shortage in the offer of the input -, however, frustrated the projections and even accelarated growth. Despite the behavior of the demand, the national production reached 772.9 thousand tons in June, 3.5% less than last year's same month. Importations, on the other hand, went 7.2% up in the comparison and reached 1.748 million tons. In the first half of the year, according to the statement released by Anda, the deliveries from the mixers to resellers increased 22.2%, to 11.477 million tons, the national production went 5.2% up, to 4.720 million, and there was 12.3% more in importations (8.568 million tons). The entity also believes the fall in the rhythm of growth is imminent, and because of that it still foresees for 2008 an accumulated demand increase of 6% over the record of 24.6 million tons from 2007. For many analysts that is a conservative forecast.