In an interview with CNN this Saturday (16), the president of Abag (Brazilian Agribusiness Association), Caio Carvalho, said that the greatest fear of Brazilian agribusiness and the whole world regarding the war in Ukraine concerns the risks of the lack of fertilizers.
“The lack of fertilizers absolutely means a reduction in productivity, which will mean a reduction in production and, therefore, in supply. That means higher prices and higher inflation. The whole frame is obviously pretty bad looking through that prism,” she said.
According to Carvalho, the duration of the conflict in Eastern Europe and the scope of sanctions against Russia are variables that will have an impact on agribusiness, some immediately and others unpredictably.
However, the president of Abag considered that “in the short term, the issue of fertilizers and the increase in the cost for our farmer is huge, everyone is very concerned”.
Despite the Brazilian agribusiness having registered the record value in exports in March of this year, Carvalho evaluates that “the margin of last year in relation to this year should not change, even with the increase in prices. That’s because the costs have gone up a lot, so there’s no big advantage in that”.
The president of Abag stated that Brazil was preparing itself with fertilizer stocks and still has a considerable reserve of products, but that in the second half of the year “we will start to see this account with fertilizer problems, mainly for our agro”.
When commenting on the increase in Brazilian agribusiness exports, Carvalho cited soybean oil as an example, which, due to the fact that Ukraine is an important sunflower producing country and having stopped exporting its product, Brazil put significant volumes on the market. International.
“This weighed extremely positively on our trade balance”, he pointed out.
According to the president of Abag, the increase in commodity prices also contributed to the agro record. “The spectacular weight of price increases abroad will have an impact on all countries, whether exporters or importers,” he said.
Source: CNN Brasil
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