Fertilizers have become the technological tool to supply nutrients to crops and the productive results are not disputed. But Argentina still needs to increase its use in the fields.
According to Fertilizar Asociación Civil, projections for the fertilizer market in 2024 reflect that The volume will remain similar to that of 2022which was approximately 4.7 million tons.
However, it is important to note that this value is far from representing the optimal use of available technology. Argentina reached its maximum use of fertilizers in 2021, with a market of 5.7 million tons, which resulted in a historic campaign regarding the grain harvest of 130 million tons of grains only adding the main crops (Source: SAGPyA)
Fertilizer use is determined by the planting area of each crop, the adoption (percentage of the planted area that receives some fertilizer) and the average doses applied, Cereals, such as wheat and corn, are the crops that require the largest amounts of fertilizer..
Roberto Rotondaro, president of Fertilizar AC.
“For the 2024 campaign, a reduction in the corn area is expected, especially in regions such as northern Córdoba, NOA and NEA. However, an increase is estimated in the proportion of early corn, which has higher fertilizer requirements than late-sown corn, mainly nitrogen,” he commented. Roberto Rotondaropresident of the Fertilizar Civil Association.
The agricultural producer is aware that his activity takes place in the open air and is prepared to face the uncertainties arising from this situation. However, It is difficult to make production decisions that involve consideration of biological timesespecially when they are also conditioned by economic and tax uncertainties. The adequacy of the tax context has been under discussion since the beginning of the 2024 campaign, when the decision was made to plant wheat, and it continues until the planting of corn. This situation slows down decision-making on technological management, which is directly associated with the success of corn cultivation.
At the moment, Fertilization technology alone accounts for around 20% of corn production and 10% of soybean production in Argentina.The latest approaches to the subject indicate yield gaps of 35% for soybean crops, and up to 47% for corn crops, gaps that are closely related to poor nutrition.
.Along this line, Gustavo Ferramondohead of markets at Fertilizar AC, states that “if this technology were used appropriately and applied at the right time and, especially, with doses adjusted to the current crop requirements, more than 11 million additional tons could be harvested between these two summer crops.
Maria Fernanda Gonzalez Sanjuan, Executive Director of Fertilizar.
For experts, lThe adaptation of the tax context would undoubtedly stimulate the use of all available technologies for production. It is important that applications are made at the right time and in the right quantities for the 2024 coarse grain campaign that begins in the coming days.
“The current situation is forcing producers to adopt more conservative and defensive management, not only because of the tax pressure, but also because there are regions in the central part of the country that have had average to poor harvest levels for the last three campaigns,” Rotondaro added.
Better use of fertilization technology has a significant impact on several aspects. First, they argued, contributes to the replenishment of nutrients in the soilwhich has been deficient for decades, representing a historical debt of Argentina with its soil.
Besides, This tool improves environmental sustainability by increasing the carbon captured by the system. It also translates into an increase in the volume of grain harvested, which in turn increases the collection of taxes associated with the harvest. This increase comes not only from the greater volume of grain, but also from greater activity in logistics and transport, a reduction in the idle capacity of the infrastructure and an increase in the employed workforce, among other accrued benefits.
“Together, these factors lead to a virtuous circle of growth, with the potential to benefit the country as a whole,” he stressed. María Fernanda Gónzalez Sanjuan, Executive Manager of Fertilizar AC.
According to CIAFA, the Argentine Chamber of Fertilizers and Agrochemicals Industry, expectations remain regarding the modification of the country tax, which will drop from 17.5% to 7.5%. These 10 percentage points of modification will be transferred to the price as importing companies nationalize with the new rate and will depend on the proportion of the imported component.
Gustavo Ferramondo, Head of Markets at Fertilizar AC
According to Fertilizar’s representatives, This situation is delaying decision-making by producers and distributors.which caused importers to delay purchases and this could cause a delay in logistics, delaying restocking.
Agronomic Intelligence, the key to success
Unlike the last campaignsaccess to credit this year has limitations and quotas. Applying good management practices and Agronomic Intelligence is key to the success of producers and will be decisive in maximizing economic results and soil sustainability in the short and long term.
Fine crops are essential for this campaign since the entire first stage of the crop had good water availability, so it is important to prioritize their management of late refertilization or tillering so as not to relegate quality again.
In Argentina, cereals, mainly wheat and corn, are the crops that use the largest volume of fertilizer. However, the evidence from all statistical models and validated by all field networks is overwhelming: sThese are the crops that still have the greatest yield gap, which is explained by poor nutrient management.According to studies presented by Dr. José Andrade (FAUBA and CONICET), the yield achieved in these crops represents only 53% of what could be achieved.
For both nitrogen, phosphorus and micronutrients, it is important to include the soil analysis tool to make decisions based on information. A smart nutrition strategy will be to apply different management methods for each environment, understanding the state of the soil in each of our plots. The efficient use of inputs and proven technologies can achieve a very significant response, given that fertilizer doses in Argentina generate very significant responses to yield.
The timely purchase of fertilizers is very relevant, considering this high response of the crops, but it also minimizes the risk of making late decisions that can impact prices and international availability. Due to the market dynamics of countries with high demand for fertilizers such as Brazil, the United States, or some countries in Asia and other issues; such as war conflicts, countries with protectionist self-consumption policies, which limit the world supply. It is important to consider timely planning and execution as key to the success of the campaign. Those of us who are immersed in food production know that the key is to do the best possible agronomy and bet on that. Without a doubt, tax policies must accompany and be in the analysis of decisions. Without a doubt, this year it will be AI “Agronomic Intelligence” that will guarantee us the best result.
