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The risk of a shortage of dicalcium phosphate, an essential raw material for the manufacture of mineral supplements used in cattle feed, has led the Mato Grosso Federation of Agriculture and Livestock (Famato) to contact state and federal authorities seeking emergency solutions. The concern is that the scarcity of this input will compromise the supply of mineral salt and further increase the costs of livestock production.<\/span><\/p>\n The warning comes at a delicate time for the sector. In addition to the pressure caused by rising production costs, ranchers are facing tighter margins and falling prices paid by the meatpacking industry. Mato Grosso, which has the largest cattle herd in Brazil, is among the states that could be most affected if the problem worsens.<\/span><\/p>\n Despite the concern, Famato emphasizes that there is no shortage of supplies at this time. The alert is preventive in nature and seeks to avoid the situation evolving into an actual lack of products in the coming months, compromising the performance of rural properties and the competitiveness of the livestock chain.<\/span><\/p>\n \u00a0External dependence is a concern for the productive sector.<\/span><\/p>\n According to a survey conducted by the organization among animal nutrition companies, mineral supplement manufacturers, and rural producers, the market is already experiencing difficulties in accessing dicalcium phosphate. This situation is attributed to a combination of factors, including limitations in domestic production, dependence on imports, external supply restrictions, and impacts caused by international conflicts on logistics and production chains.<\/span><\/p>\n According to Famato's livestock analyst, Marcos Carvalho, Brazil has never been self-sufficient in the production of phosphate fertilizers and dicalcium phosphate. Therefore, domestic supply depends on imported raw materials and the stability of the international market.<\/span><\/p>\n \u201cWith the decrease in sulfur imports, Brazilian companies supplying dicalcium phosphate have considerably reduced deliveries to animal nutrition companies,\u201d explains Carvalho. Sulfur is a fundamental component for the chemical reaction carried out with phosphate rock, a process that gives rise to both phosphate fertilizers and dicalcium phosphate used in animal supplementation.<\/span><\/p>\n Contracts were reduced and prices skyrocketed.<\/span><\/p>\n Concerns increased after reports from companies in the animal nutrition sector that had supply contracts partially canceled. According to Marcos Carvalho, volumes planned for supply between May and July were not delivered on a large scale.<\/span><\/p>\n "Companies supplying dicalcium phosphate have practically cancelled around 901 1\/4 ton of contracts, delivering just over 101 1\/4 to some industries," he states.<\/span><\/p>\n The analyst also highlights the ingredient's importance in the formulation of mineral supplements. In a 30-kilogram bag of mineral salt, with a concentration of between 80 and 90 grams of phosphorus, approximately half of the composition corresponds to dicalcium phosphate. This means that any interruption in supply has the potential to directly affect the product's manufacture.<\/span><\/p>\n In addition to supply difficulties, prices have also risen sharply. According to Famato, a major company in the sector even temporarily suspended the sale of certain lines of mineral supplements and later resumed sales at prices significantly higher than those previously charged.<\/span><\/p>\n Impacts can reach the field.<\/span><\/p>\n Mineral deficiency is one of the main factors that compromise herd performance. The absence of adequate supplementation can affect weight gain, fertility, immunity, milk production, and reproductive efficiency, reducing farm productivity.<\/span><\/p>\n According to the president of Famato, Vilmondes Tomain, the situation demands immediate attention from the authorities and the productive sector.<\/span><\/p>\n \u201cWe are facing an important warning for livestock farming and agriculture. Mineral salt is essential for the productive, reproductive and sanitary performance of the herd, just as phosphate inputs are strategic for agricultural production,\u201d he says.<\/span><\/p>\n According to Tomain, the impact of scarcity goes beyond the farm gates. "When these products become expensive or, worse, start to run out, the impact directly affects the rural producer, who is already facing increased costs and reduced profit margins, and can even reach supermarket shelves," he emphasizes.<\/span><\/p>\n The concern also extends to agriculture. According to the organization, the scarcity of phosphate raw materials highlights a structural vulnerability in Brazilian agribusiness, since these inputs are fundamental for both animal nutrition and agricultural production.<\/span><\/p>\n Cattle rancher faces challenging scenario.<\/span><\/p>\n The vice-president of Famato and coordinator of the entity's Beef Cattle Commission, Amarildo Merotti, believes that the situation adds to other challenges currently faced by producers.<\/span><\/p>\n "Mato Grosso has the largest cattle herd in Brazil. Any instability in the supply of mineral salt affects thousands of producers. Cattle ranchers are being pressured by high input costs, the risk of product shortages, concerns about clostridial vaccines, and falling prices paid by the industry. This combination is very worrying," he says.<\/span><\/p>\n The organization also links the issue to the recent shortage of clostridial disease vaccines, a situation that has already generated concern among producers. According to the federation, the combination of sanitary challenges and potential difficulties in supplementation increases the economic and productive risks for rural properties.<\/span><\/p>\n Another worrying factor is the increase in the costs of other important inputs for the activity. According to Marcos Carvalho, products such as urea, white salt, and sulfur have also registered significant price increases in recent months, further pressuring production costs.<\/span><\/p>\n Emergency solutions are being discussed.<\/span><\/p>\n To prevent the problem from worsening, Famato sent official letters to the Ministry of Agriculture, the CNA (National Confederation of Agriculture and Livestock), ApexBrasil (Brazilian Trade and Investment Promotion Agency), and the Government of Mato Grosso. The organization has also been holding meetings with representatives of the productive sector and authorities to seek emergency solutions.<\/span><\/p>\n Among the measures advocated are the temporary reduction or exemption of import tariffs on dicalcium phosphate and sulfur, tax reduction on white salt and urea intended for animal nutrition, streamlining customs procedures, and increasing the speed of product release at borders.<\/span><\/p>\n Closer ties with supplier countries, especially Bolivia, are also part of the organization's strategy. According to Marcos Carvalho, bilateral meetings are being organized to explore new supply alternatives and reduce risks for the production sector.<\/span><\/p>\n \u201cWe are looking for ways to ensure that the market does not run out of supplies. Ideally, the measures would benefit all of Brazil, but we are also working to find quick solutions that meet the needs of Mato Grosso,\u201d he emphasizes.<\/span><\/p>\n Lockdown can lead to dietary adjustments.<\/span><\/p>\n Even in the face of uncertainty, experts believe that confinement systems have the capacity to adapt should there be increased costs or temporary difficulties in the supply of mineral supplements.<\/span><\/p>\n Rafael Grings, a consultant at Hedge Agro Consultoria, states that many feedlot operators already work with advance planning for animal feed.<\/span><\/p>\n "Based on conversations I've had with feedlot operators in Mato Grosso and the survey I conducted with them, there is no expectation of an impact in that sense. This is because many already work in a planned manner and, when deciding to confine the animals, prefer to guarantee their feed beforehand on the farm itself," he explains.<\/span><\/p>\n According to him, ingredients such as corn, DDG, cottonseed meal, and cottonseed meal may gain a larger share in diets if the cost of mineral supplements increases significantly.<\/span><\/p>\n "This doesn't necessarily mean there will be a significant reduction in animal performance, but rather a search for alternative sources that allow for maintaining diet efficiency," he points out.<\/span><\/p>\n While seeking emergency alternatives with governments and international suppliers, Famato emphasizes that the priority is to prevent Brazilian livestock farming from facing a new episode of shortages of strategic inputs. For the organization, guaranteeing the supply of essential mineral supplements and raw materials is fundamental to preserving farm productivity, the sector's competitiveness, and the country's food security. In addition to short-term measures, the federation advocates for the effective advancement of the National Fertilizer Plan 2022-2050 as a way to reduce external dependence and strengthen the supply security of Brazilian agribusiness.<\/span><\/p>\n \u00a0<\/p>\n<\/p><\/div>\nTHE MM Cereais<\/strong> works with the best grains on the market in the Central West Region and also keeps you up to date with the latest news and analyses on agribusiness.
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