Soybean harvest, Mato Grosso State, Brazil
According to Abisolo (Brazilian Association of Vegetable Nutrition Technology), specialty fertilizers had revenues of R$ 7.6 billion in the 2018-19 crop, an increase of 19.3 percent compared to the previous cycle. In the 2019-20 season, the entity's expectation is that there will be new growth, between 20-22 percent, to over R$ 9 billion. It proves that these products have gained prominence in Brazilian crops, either as a complement or the main solution for soil nutrition. Specialty fertilizers have different formulations, developed especially to achieve the specific needs of a crop. This characteristic makes the performance of these fertilizers even better when compared to conventional ones, since they have exactly the macro and micronutrients that plants demands. In the market, it is possible to find them in special versions for each crop, or in formulas that bring specific nutrients and are suitable for different crops, as with boron, among other elements. The use of this type of solution has been increasingly common in Brazil, both in foliar and conventional fertilization, promoting rapid absorption that, consequently, nourishes the soil and plants with agility. That is, with specialty fertilizers, the right nutrients are offered in the right dose for each crop, correcting deficiencies or even strengthening the crop in an agile and efficient way. Foliar fertilizers represented 71 percent of total specialty fertilizers revenue, and the largest expansion (23 percent) has been registered in the organominerals segment, but it represents less, only 12 percent of total revenue. This type of technology combines mineral nutrients and organic compounds. The idea of using organic matter is to enhance the efficiency of minerals, improve the use of these nutrients by the soil and, consequently, the yield of the plant in the field. “Organomineral is a technology that is consolidating itself and the trend is to continue growing more than the others,” says Clorialdo Roberto Levrero, president of Abisolo.
Soy is the locomotive Growth in the use of specialty fertilizers is driven mainly by the soybean crop – the most relevant in Brazilian agriculture. According to consultancy Spark Strategic Intelligence, which researches the market through its Market Nutrition Soybean Panel, this market has become extremely attractive to agribusiness companies – and this has attracted global players in the sector. According to the consultancy, in recent years there has been significant gains in Brazil regarding the development of technologies for nutrition, leaf and soil segments. Ana Carolina Tisselli, agronomist and relationship manager at Spark, says the foliar fertilizer market is “highly pulverized” in the country. In the records of the Ministry of Agriculture, Livestock and Supply (MAPA), for example, there are more than 250 registered segment companies. Market sources report there are also a large number of manufacturers working in the informal sector. This scenario, according to Spark, contributes to the low knowledge of the producer in relation to brands and products of the genre. “The soybean farmer receives guidance from private consultants and agronomists from the industry or from resellers to make their decisions,” explains Tisselli. She adds there are large investments by fertilizer companies with a view to launching new technologies, strengthening brands, expanding the offer of services and providing technical assistance to producers. "We will know if the producer perceives, recognizes or values these efforts.” Tisselli also observes that as in other agribusiness sectors, such as pesticides and seeds, the fertilizer segment has recently registered several movements of mergers and acquisitions of companies. Market views Eduardo Monteiro, distribution director at Mosaic Fertilizantes, points out the total fertilizer market in Brazil (not only specific differentiated products) should close between 36 and 36.5 million tons in 2019, a growth between two and three percent due to main agricultural commodities soybean and corn. Mosaic Fertilizantes is one of the largest companies
in the production and commercialization of phosphate and potassium combined in the world and has a solid presence in Brazil. “There is a strong tendency for companies to look for new solutions so that the producer can increase productivity through premium products that bring benefits to the producer,” says Monteiro. “It is estimated that about 13 percent of the total Brazilian market is for special products. Whoever goes to this line of special products is unlikely to return to the conventional ones because, in addition to productivity, these products add in quality, gains in operational efficiency in the properties and, in some cases, gains in quality in the harvested product, being these motivators for purchasing the product.” For Thiago Pozzobon, fertilizer manager at Vigna Brasil, despite being a recent market, it has been gaining space year after year, and the current estimate is that it represents around US$1.5 billion. He explains there are several reasons for this expansion, but two are the main ones. The
first is the significant increase in the rate of adoption of these products in crops of great economic importance. The second is the constant investment of companies in research and development, and the consequent demonstration of effectiveness in the use of new technologies. Finally, he highlights the constant increase in the area of irrigation and fertigation in which there is a greater demand for water-soluble fertilizers, with a visible increase in productivity in crops when handled with fertilizers of greater agronomic efficiency. Pozzobon points out the Brazilian consumer currently has a general technical profile, which is why they have been demanding products with proven efficiency. “This implies the selection of companies that have a commercial structure, product and market development teams for the offer, sale and constant monitoring of results and thus guarantee sales growth,” he says. Vigna has a slightly different profile than other companies, acting more as a regulatory and strategic consultancy. “We offer full support to any and all companies (national or multinational) that wish to operate commercially in Brazil and other Latin American countries, through support in the regulation of the activities of manufacturing, importing and distributing their inputs.” Maurício Sonda Tonello, from Agrichem's regional market development area, has a similar view. According to Tonello, the market is in full expansion because the industries are investing a lot in technology and are bringing a lot of innovation – which in the coming years will sustain this growth in the long run. Tonello explains that specialized nutrition has a characteristic of greater refinement in its composition. “They are usually products that have a composition that acts on the plant's physiology and not only on nutritional processes; this is the main factor,” he notes. “Both biostimulants and resistance inducers, with molecules that provide the transport within the plant. All new technologies are being included in this segment today; there is a lot of new things to come on the market and a lot is being developed in research centres that will be great levers for companies.”
Agrichem itself is an example of the changes the market has been experiencing. The company started working in Brazil as an Australian multinational, so it was already operating in the world in more than 50 countries at the time. It came to Brazil close to the 2000s, went through a very strong growth process, was acquired by an investment fund, and received many investments in the industrial and field areas as well. It was recently acquired by one of the largest companies in the world, Nutrien, which is helping to access platforms and research centres worldwide, bringing a very high speed of innovation into the company. Tonello has no doubts that Brazil has been leading the market for specialty fertilizers in the world. This occurs, according to him, due to a characteristic of its territory, because it has tropical and subtropical agriculture lands. “This demands a very large amount of nutrients, because our soil is poorer and acidic, and so this characteristic generates demands that many countries do not have due to their natural condition of soil and climate. This will generate leadership in the segment.” Tonello also notes the products that will stand out the most in specialty fertilizer portfolios are those that solve specific nutrient supply problems for crops. “If there is a demand for a zinc culture, we can supply only and specific with zinc,” he says. “Our products are very concentrated, which facilitates operations on the farm, transportation, and this ends up generating a lower cost for this product at the end. Products that are able to supply the nutrient at the ideal time and for a longer period will be valued, which guarantees more adequate nutrition.” Production requires nutrition Fernando Dubou Hansel, PhD, is an agronomist from Kansas State University, and conducts research on the management of fertilizers for the productive and sustainable increase of crops. According to Hansel, it is important to note products currently on the market are not the same – the technologies inserted in fertilizers are different. “Nowadays, the most used in the world are simple superphosphates, which are already 400 years old. It is a product that today is used as a source of nutrients and thinks that this is enough.”
However, he says, there are many more needs: first, climate, since Brazil is (mostly) a tropical country, which oscillates has annual rainfall of 1200 mm on average. “All this climatic dynamic requires differentiated nutrients, because the potential for nutrient losses is very large in Brazil,” says Hansel. “Sulphur is one of those ingredients that has a high leaching potential. However, if I work with two sources of nutrients – one that has a higher level of solubility and one that is slower – I will gradually release it during the plant's growth cycle. This is an excellent strategy to improve efficiency in the use of the nutrient.” Hansel adds that when working with two sources of nutrients, there is a maximization of efficiency and minimization of losses. Hansel also highlights the gain in technology. “Today we have plant genetics with high productive potential, machines that perform the operation with precision, and it is important to emphasize that soil fertilization is the basis of all this. There is no point in having good genetics, which promises to produce a lot, to have excellent phytosanitary protection, to work with precision agriculture, if I do not have a nutritious basis for the crop to express this productive potential.” In soybeans, for example, in which Brazil has become the world's largest producer, sulphur is essential precisely for the filling of the oilseed's grain. This element, however, has a high level of leaching. “We managed to reach a certain level on this productivity ladder, in this ambition that we have to produce more, with ordinary fertilizers they can only reach a certain level,” says Hansel. ●
"This scenario will influence the increase in competitiveness among players and the reduction of margins in the commercialization of products." Ana Carolina Tisselli, agronomist and relationship manager at Spark
Eduardo Monteiro, distribution director at Mosaic Fertilizantes
"To exceed this limit, we have to start paying attention to other factors that can limit us. Only in this way can we fulfill our mission to increase world food production." Fernando Dubou Hansel, PhD, is an agronomist from Kansas State University
Thiago Pozzobon, fertilizer manager at Vigna Brasil
