Argentina’s Fertilizer consumption Rebounds in 2024, Driven by Wheat and Corn

BUENOS AIRES (AP) — argentina experienced a resurgence in ‍fertilizer consumption in 2024, with a‍ 7% ⁤year-over-year increase,⁢ reaching 4.9 million tons, according to estimates by Fertilize Civil Association.⁣ This rebound reverses a three-year decline,positioning 2024 as the third-highest consumption year on record for the ⁣nation,according to the Az Group.

Factors Driving the Increase

Improved soil moisture⁣ at the start of the⁢ 2024/25 growing season played a crucial⁢ role in this recovery. Adequate moisture levels ‍encouraged farmers to expand the planted area for wheat and increase fertilizer request⁣ rates.

The Rosario Board of⁢ Trade (BCR) estimates that 6.3 million ⁣hectares were planted with wheat in the last growing⁣ cycle. This represents a 6.8% increase ⁤compared to the 2023/24 campaign and a 6.6% increase compared to ‍the average of‍ the last decade. While the total area planted with ⁤corn decreased from 7.9 million to 6.6 million⁢ hectares, a larger proportion of early plantings required more advanced technology and fertilization.

Import Reliance and Key Suppliers

Imports covered over 65% of Argentina’s fertilizer consumption last year, totaling approximately 3.2 million tons. Morocco was the primary supplier, followed by china and the United States.

The Az Group projects a positive outlook for 2025,anticipating that local fertilizer consumption will surpass ⁢2024 levels,driven by intentions to expand cereal‍ planting. phosphate imports have already‍ reached historic highs in ⁤2025, while urea imports are at⁣ their third-highest level.

Grain Purchasing Power and Input Costs

The purchasing power of grains for acquiring inputs varies. Sunflower crops currently hold the most favorable position. A⁤ projected 400,000-ton increase in the⁢ sunflower harvest is expected, potentially reaching 4.7 million tons. Despite some challenges,favorable local ‍market prices support positive purchasing relationships,particularly for certain service categories,according to the Az Group.

Price relationships have weakened in⁢ some areas, with services, infrastructure, and diesel fuel showing the most negative price relationships. Corn, however, demonstrates good purchasing power for agrochemicals and fertilizers.

Challenges for cornstarch Producers

Cornstarch producers face challenges due to the notable impact of freight costs on overall campaign expenses. The Az Group noted that services, infrastructure and diesel continue ‍to exhibit the⁣ most⁣ unfavorable price relationships.