Input prices to become ″more normal″ in 2023, says Nutrien president for Latin America

President of Nutrien for Latin America, André Dias, has projected that the prices of fertilizers and agrochemicals would be ″more normal″ in the next twelve months compared to the high volatility registered in 2022.

He pointed to the war in Ukraine as the main factor generating fears regarding the supply of inputs, leading to a spike in inflation that hit Brazil hard – which was not self-sufficient in producing these items.

As supplies from Eastern Europe and Russia remained constant, prices fell again – in some cases by up to 50%.

According to Dias, dispelling fears of an abrupt cut in the supply of fertilizers and agrochemicals, the expectation was that 2023 ″would be a more normal year, with no reason for us to have as much volatility as we had this year.″

The executive, who already held leadership positions at Nidera Sementes and Monsanto, among others, highlighted the glyphosate herbicide case, which registered a sharp drop after a surge in prices due to the decrease in Chinese production.

Dias revealed that Nutrien maintains investment plans in Brazil through acquisitions and organic expansions.

Last year, Nutrien invested US$500 million in Brazil, including funds spent on acquisitions.

In the last three years alone, the company acquired eight companies in Brazil, seven of which are retailers of agricultural inputs, while revenues increased 20 times in the period, and should end 2022 close to BRL8 billion.

He believed that Brazilian agriculture would grow in 2023 and demand a lot of inputs.

″We are the main consolidators of this market; Brazil has a long way of consolidating this market,″ he observed.

The executive pointed out that the South American giant's market was different from the United States, Canada, and Australia, which already had a consolidated input sales sector with few companies holding larger slices.

(Editing by Leonardo Gottems, reporter for AgroPages)