Market News & Headlines >> Brazil Fertilizer Demand Expected to Stay Sluggish
A recovery in fertilizer sales in Brazil is not on the near-term horizon after tighter credit conditions triggered a contraction in 2015 for the sector, an executive with Norwegian fertilizer producer Yara International told Reuters News Service on Friday.
"We are working with a conservative outlook," Lair Hanzen, Yara's vice president, told Reuters in an interview. "We are bracing for a market like we saw in 2015." Hanzen avoided giving an exact projection of sales but dismissed the notion of a strong recovery through the year.
The delivery of fertilizers to Brazilian farms fell 6.2% in 2015 to 30.2 million metric tons from 32.2 million the year before, according to data from the National Fertilizer Distributors Association (ANDA).
A difficult credit situation for producers is one of the factors standing in the way of a rebound in fertilizer sales.
The executive said he remains positive on the Brazilian fertilizer market in the medium term, as the reserves of nutrients in the soil will only last one season, which will pressure farmers to return to the market.