Agriculture in Colombia has been facing different challenges since last year due to different situations, such as the effects of weather on crops, and even more so due to the increase in fertilizer prices. The latter is a fact that also generates uncertainty for world agriculture.
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That’s how I constitute it ECLACthe Food and Agriculture Organization of the United Nations (FAO) and the World Food Program, in a report where the impacts on agriculture due to insufficient fertilizer production in the world are estimated.
According to the document, the effect of the war between Russia and Ukraine has warned the price of fertilizers, given that in 2021 the Russian Federation was the world’s largest exporter of these nitrogenous inputs. It was also the second supplier of potassium and the third exporter of phosphate fertilizers. It is noteworthy that these inputs have been excluded from the sanctions imposed on this nation by the international community, but «logistical and financial restrictions operate as barriers to trade in these inputs,» the report indicates.
For organizations, fertilizers are becoming less affordable for agricultural producers, given that their prices in 2021 rose considerably. In addition, after the start of the war, in April 2022, the fertilizers reached their highest levels in several years.
The document reaffirms the argument that these inputs, together with energy, are the main item of expense for farmers in many chains.
The most affected region
According to the report, the countries of Latin America and the Caribbean import about 85% of the fertilizers they use, for which they affirm that no other region in the world «depends so much» on imports of the input.
Similarly, it is stated that the ability to fertilizer production synthetics has not woken up in recent years, which implies an increase in demand and translates especially into greater dependence on imports. On the other hand, the report highlights that international insurance production and trade are “dominated” by few countries and companies.
“Five countries produce 62% and export 55% of the fertilizers consumed in the world, while five companies (Nutrien, Yara, Mosaic, EuroChem and Israel Chemicals) concentrate 45% of the fertilizer market, estimated at US$160,000 million. in 2021”, he assures.
Faced with the export of fertilizers from Russia, it is assured that Brazil is the main market for exports of the input, not only in the region, but also worldwide. For their part, Argentina, Nicaragua, Uruguay and Colombia import between 10% and 20% of the Russian nation’s fertilizers.
Additionally, Brazil, Guatemala, Mexico, Costa Rica and Panama import between 20% and 30%; Suriname and Ecuador between 30% and 40%, and Peru and Honduras more than 40%.
Likewise, it is estimated that, as in the case of food, regional imports of fertilizers are affected by the rise in prices, but also by restrictions on exports.
On average, 36% of the nitrogen fertilizers, 20% of the potassium and 19% of the phosphates that the region imports have been affected by trade restrictions imposed in the context of the war. These values exceed 30% of imports in many countries”, they say.
Colombian context
And although Colombia does not separate itself from the fertilizer problem presented at the regional and global level, for Andrés Valencia Pinzón, former Minister of Agriculture (2018-2020), the panorama in Colombia means that producers are rationalizing the use of fertilizers due to the cost , and there is a probability that productivity will decrease. The former official adds that this situation is compounded by the winter wave, where there are no incentives to fertilize.
“It is important that the government and the poultry and swine farming associations work on the use of sanitized chicken manures, chicken manures and swine manures as substitute products for traditional fertilizers. There is abundant production of these and it could be an opportunity to improve the soils”, says Valencia.
Additionally, Jorge Bedoya, president of the Colombian Association of Farmers (SAC), assures that fertilizers can weigh between 30% and 40% of the cost of producing agricultural products depending on the product.
«It is important to take into account that Colombia uses 2 million tons of fertilizers, most of which are imported and the situation arose from the evolution in dollars, but also from the exchange rate,» concludes the president.
What are you working on?
Jorge Bedoya, president of the Colombian Association of Farmers (SAC), stated that the Government has currently been proposed to make available to the public in real time the tool that comes from the previous mandate, which is the Observatory of Supervised Freedom.
This figure was created in order to monitor the behavior of the prices of agricultural inputs in the country. However, a few years ago it stopped its operation.
According to the Ministry of Agriculture and Rural Development, this tool was in force until June 30 of last year (2022).
But as a measure to address the complex situation of fertilizers that has been evident in the country, a new project to rehabilitate it was presented to the National Commission for Inputs. The portfolio assures that this has already been approved and that it is currently in the Presidency pending approval.
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