Higher fertiliser costs and weak prices squeeze Brazilian fruit growers

Brazilian banana, orange and mango growers faced tighter margins in May as fertiliser prices increased while farmgate fruit prices remained below their usual levels for the period, according to an analysis by the Brazilian Confederation of Agriculture and Livestock (CNA).

Fertilisers account for between 25% and 47% of direct operating costs in the production systems monitored by CNA’s Campo Futuro project. The pressure is particularly strong for farms that rely heavily on nitrogen fertilisation.

International import prices reached US$572 per tonne for urea in May 2026, 55% higher than a year earlier. MAP fertiliser rose 24% year on year to US$797 per tonne, while potassium chloride increased by almost 23% to US$362 per tonne. The stronger Brazilian real partly limited the impact on domestic costs.

At the same time, prices received by producers weakened across the three fruit categories studied.

Nanica banana recorded the most difficult conditions, with prices falling sharply between March and May during the seasonal supply peak. In some regions, including Bom Jesus da Lapa in Bahia, prices reached their lowest level for May in the monitored series. Prata anã bananas performed better and remained closer to their historical price range.

Orange prices declined as harvesting began in São Paulo and the Triângulo Mineiro region. CNA noted that orange prices are usually at their lowest between May and August, before beginning to recover from September.

Mango prices also fell compared with May 2025, although the previous year’s level had been exceptionally high. The fruit retained the strongest relative position among the three crops because of its higher unit price.

CNA calculated that growers needed to sell around 3.66kg of nanica bananas to buy 1kg of urea. This was equivalent to approximately 166 boxes of 22kg to purchase one tonne of the fertiliser.

For prata anã bananas, the ratio was considerably lower at 0.96kg of fruit per kilogram of urea. Orange growers needed around 3.3kg of fruit, while the ratio for Tommy mangoes reached 1.36kg, up from 0.50kg in May 2025.

Estimated gross margins for nanica banana production were negative in almost all monitored regions, meaning that the prices received did not cover direct production expenses. Prata bananas and mangoes from the São Francisco Valley maintained positive margins.

CNA warned that prolonged pressure could lead growers to postpone orchard renewal, reduce crop care and cut investment, weakening future production capacity.

The organisation expects banana and mango prices to recover seasonally between August and October. Orange prices could improve from September, while the direction of fertiliser costs will depend partly on developments in international supply.

source and photo: cnabrasil.org.br