Peru丨CCL: local fertilizer distributors could cover more than 50% of the urea demand

In Peru there are more than 20 fertilizer and agrochemical distribution companies that could cover more than 50% of the local demand for nitrogenous urea for agricultural use, according to the Lima Chamber of Commerce (CCL).

In this sense, Rubén Carrasco, president of the Crop Protection Union (Protec) of the CCL, indicated that there is a significant volume of fertilizers in the country that can favor the 2022-2023 agricultural campaign.

“These regional distribution chains are found in 200 points nationwide and most are strategically located in areas where rice, potatoes and other crops are carried out,” he remarked.

The representative of the business association also stressed that a comprehensive plan is needed with the participation of local distributors and importers. However, the Ministry of Agrarian Development and Irrigation (Midagri) has not wanted to dialogue with these companies.

The government should encourage associativity

Likewise, Rubén Carrasco pointed out that another solution for the supply of urea is for the Government to promote associativity, since in some areas of the country farmers are already buying this fertilizer directly.

This is the case of the Consortium of Agricultural Producers of the Arequipa Region, an organization that acquired 10,000 tons of urea from the United Arab Emirates due to the lack of government support.

“Associativity is the key to the growth and development of small farmers, because by being part of an articulated organization, important advantages are obtained such as cost reduction, access to financing and increased production, making them more competitive in various markets,” commented.

The drop in the price of urea is insufficient

Along the same lines, the president of Protec maintained that, despite the reduction in the price of urea in recent weeks, farmers cannot acquire it because they do not have liquidity or government support.

The price of this fell from S/ 240 to S/ 165 on the stock market; Similarly, the international value per tonnage went from US$1,000 to US$700.

“This is an effect of the regulation of the world market, but said value per ton is still high, considering that before the pandemic it was US$340,” he said.