Midagri: How much do farmers spend on buying fertilizer?

One million 047 thousand 186 small and medium agricultural producers use chemical fertilizers, 46.7% of the total, according to the Ministry of Agrarian Development and Irrigation (Midagri).

According to a study by the Department of Economic Research Midagrithese farmers spend an average of S/961 nationally.

Coastal regions spend the most on fertilizer, while mountainous regions spend the least.

“Between August 2021 and May 2022, which corresponds to the latest agricultural campaign In 2021/2022, the price index rose by 77.7%,” the Midagri report says.

In addition, it is reported that Peruvian agriculture is heavily dependent on imported inorganic fertilizers and that 89.5% of the fertilizers consumed in the country are of foreign origin.

The main providers identified by Midagri are: Russia, China and USAbut due to the international situation in 2022, it is indicated that there has been a replacement with new suppliers such as Indonesia, Bolivia and Algeria.

As for the global panorama, Midagri points out that the price rise and destabilization of the fertilizer market were triggered by the increase in the cost of international shipping, the suspension of fertilizer exports from China, and commercial sanctions against Russia after the invasion of Ukraine. .

Only the event of a war between Russia and Ukraine contributed to the rise international prices these resources, but also oil, natural gas, and other commodities “widely in demand for food production.”

“It is important to emphasize that the growth of world prices is transmitted to the domestic market. In the case of fertilizers, the rise in their prices increases the risk of falling yields and has a direct impact on the prices of the main crops that are part of the family basket,” they note.

Finally, Midagry concludes that there is no worldwide shortage, but it is predicted that Prices remain high, above pre-pandemic levels, until at least 2023.