MercoPress. South Atlantic News Agency

Mid year Brazilian demand for fertilizer increases 20%

Fertilizer sales in Brazil soared 11% in July compared to a year ago according to the country's National Fertilizer Association, Anda, in spite of a doubling of prices. July sales totaled 2.45 million tons and in July 2007, 2.2 million tons.

In the first seven months of this year Brazilian farmers purchased 13.9 million tons of fertilizer which represents a 20% increase over the same period in 2007, but in the rest of the year sales are expected to diminish since much fertilizer was ordered in advance to take advantage of increasing prices. "Sales will grow at decreasing rates , which means we'll end the year with sales in the range of 26 million tons that anyhow will represent 5.7% increase over last year", said Eduardo Daher, Anda CEO. Brazil is the world's main producer of coffee, sugar cane and second in soy behind United States and has become a leading consumer of fertilizers. There are growing concerns that high fertilizer prices could impair agriculture and farmers profitability. Brazil is a leading producer and exporter of coffee, soybeans, sugar cane, beef, wheat, rice, corn, chickens, citrus, and tobacco.