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Truckers’ strike affects Brazilian fertilizer demand

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World Fertilizer,

According to Reuters, Brazilian fertilizer demand will be affected this year by a truckers’ strike that crippled the country’s logistics. The strike will also negatively impact the growth in soy acreage in the next season.

Reuters reports that the strike caused disruptions and increased transportation costs after the Brazilian government agreed to set minimum freight prices in a deal to bring an end to the strike. Demand for fertilizer will consequently fall this year for the first time since 2015.

According to Reuters, the strike commenced in May this year, after trucks blocked highways for an 11-day period, stopping supplies ranging from consumer products to animal feed. Logistics in the country took a number of weeks to resume as normal, and Reuters reports that numerous contracts to deliver grains and fertilizer were held up over uncertainty about how the government would set minimum freight prices.

Reuters reports that Brazilian farmers are likely to purchase 3.7% less fertilizer in 2018 compared to last year. This works out as approximately 33.17 million t. Anda, a fertilizer trade group, reportedly stated that deliveries decreased by 2.3% to 12.83 million t in the first six months of the year, impacted by the trucker protests.

Reuters also claims that uncertainty will remain over freight prices until ANTT (transport regulator) updates a table setting minimum prices following the recent Congressional approval of government-set prices.

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