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Expenditure on fertilization of cane in Tucumán for the 2024 harvest, influence of the price of urea and sugar on the profitability of the practice

EEAOC report on the analysis of the price of urea, the price of sugar and the input-output relationship for sugarcane producers at the time of fertilization.

March 26th

By: Virginia Paredes, Daniela Perez, Graciela Rodriguez, Luis Alonso and Eduardo Raul Romero

Summary: In this article we will They analyze the price of urea, the price of sugar and the input-output relationship, which are the elements that influence the sugarcane producer’s decision-making when fertilizing. The expenditure incurred to fertilize the short sugarcane in the 2023/2024 campaign (harvest 2024) in Tucumán was also calculated.

During the period 2015-2023, the average price of urea was 581 USD/t, that of sugar 479 USD/t without VAT, and to acquire 100 kg of urea, on average, 2.69 bags of sugar were needed (input-output ratio).

Regarding the determination of fertilization costs for 2023/2024, six possible alternatives were taken into account, which combined different nitrogen sources, fertilizer doses and fertilization machinery. The expenditure for the selected alternatives varied between $53,720/ha, equivalent to 2.4 bags of sugar/ha, and $100,140/ha or 4.4 bags of sugar/ha. In all cases, for the 2024 harvest, the productive benefit of the practice amply covered the cost of its implementation.

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