Chapter 3

Fertilizers used and their supply

The economic sector related to fertilizers in Argentina is currently valued at 500 million dollars and the use of fertilizers in agriculture results in an increase of more than five times this figure. More than one million tonnes of fertilizer products are imported and the country produces a similar quantity of nitrogen fertilizers, with exports to the Mercado Común del Sur (MERCOSUR) and other countries. With the beginning of crop intensification and the consequent deterioration of the soils, response to fertilizers becomes apparent (Table 5).

Production and trade

Before 1991 a national industry supplied the market, protected by import duties of the order of 60 to 65 percent.

The growth following liberalization attracted numerous competitors. Then the market consolidated and today some eight or nine enterprises cover about 90 percent of the volume. In the last years (1998 - 2002) fertilizer consumption has not grown very much (Table 6).

The first prilled urea plant was constructed in Camana in 1970; it produced urea and ammonia. This plant initially produced 100 000 tonnes per year of urea, of which 25 000 tonnes were destined for the resin industry. It also supplied ammonia to the refrigeration industry. Until 2000 it also sold 6 000 to 8 000 tonnes of ammonia for direct application. In 1998 the plant was expanded, which increased its capacity to 180 000 tonnes per year.

TABLE 5
Development of the fertilizer sector since 1960

Source: Melgar and Camozzi, 2001.

TABLE 6
Fertilizer production and trade ('000 tonnes product)

In 2001 a granulated urea plant at Bahia Blanca, Buenos Aires was commissioned with a capacity of 1.1 million tonnes per year.

Complex fertilizers were produced in the 1980s but eventually the company was unable to compete with commodity fertilizers and blends.

Some other fertilizers produced are:

• UAN, NP suspensions and NS solutions, ammonium sulphate, granulated agricultural lime. The plant producing this lime was, in view of the lack of a market for this product and the need for sulphur in Pampa’s agriculture, transformed to produce granular gypsum.

Some eighteen phosphate rock deposits have been identified in Argentina but in general they are of low grade and located far from the main consumption areas. Hence all phosphate fertilizers are imported.

At present there is no national production of potash but there is an important potash deposit in the south of the province of Mendoza and the north of Neuquén province, covering an area of 4 000 km². It is the largest deposit in Latin America and one of the largest in the world. The reserves are estimated at 2 000 million tonnes. The northern sector contains the best quality ores. The mineral is extracted by solution mining.

Products

The main nitrogen fertilizer is urea. Granulated urea is in demand particularly for use in mixtures. Other products are UAN and ammonium nitrate.

Diammonium and monoammonium phosphate account for 60 to 70 percent of phosphate use. Triple superphosphate is applied mostly on pastures. Recently single superphosphate has been imported from Brazil and Uruguay; the product has gained in importance since it contains the principal nutrients required for soybeans.

Potash is applied to only a limited extent in Argentina. Many soils, such as those of the Pampa, have a relatively high potash content. Potassium chloride is applied, mostly in physical mixtures (blends), on rice and fruit crops. Potassium nitrate is used particularly in horticulture, either direct, in mixtures or in fertigation. Potassium sulphate is used on tobacco. Recent trials have indicated that the application of potash could be beneficial on wheat.

Until recently the main sulphur-containing product was nationally produced ammonium sulphate. It has been used traditionally in the Cuyo zone. However, with the demonstration of the advantages of sulphur for Pampa’s crops, especially for soybeans, the importation of ammonium sulphate and single superphosphate has increased substantially since 1999. These products are used for direct application or in mixtures. Magnesium sulphate and granulated elemental sulphur are also used in mixtures.

In addition to the fertilizer commodities such as urea and the ammonium phosphates and, to a lesser extent ammonium nitrate, ammonium sulphate and superphosphate, there is a specialty fertilizer market for use on higher value crops.

In general the demand for the commodity fertilizers, urea and diammonium phosphate, at present rates of use, is rather price inelastic whereas the demand for specialty products, including for example calcium nitrate, is much more sensitive to changes in price.

Forms of fertilizers

Bulk

The development of the use of bulk fertilizers is a recent phenomenon in Pampa’s agriculture, offering the economy of dispensing with bags and a gain in operating time (Figure 5). The use of liquid fertilizers has progressed at the same time, for the same reasons.

There are considerable differences between provinces. For example, the possibility of storing and handling bulk fertilizer is much higher in the Buenos Aires region than in the Santa Fe and Entre Rios provinces.

Mixtures

In 2001, the Servicio Nacional de Sanidad y Calidad Agroalimentaria (SENESA) listed 48 registered mixing plants, all but one in the Pampa region, although sometimes serving other regions. Twenty-two retailers offered application services and 40 percent had application equipment. Between 10 and 30 percent offered soil analysis services.

Liquid fertilizers

The development of liquid fertilizers requires investment in the transport logistics and in appropriate agricultural equipment. The main product is UAN. NS solutions and NP suspensions have been available since 1999 but to date their use has been very limited.