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Brazil crop protection generates US$ 12.2 bn revenue in 2014
Apr. 22, 2015
However Andef is not optimistic about year 2015 and believes that a higher dollar against Real would harm the growing trend of the sector in Brazil. That is because production costs for farmers have inflated, especially the costs for fertilizers and pesticides - which are main imported.
"We will not repeat these figures because the dollar has appreciated against the Real. We can keep flat and get close to the figures of last year. 2015 is a year of caution," highlights Eduardo Daher, president of Andef. Besides the financial aspect, he also cites the climate issue as negative factor: "In drier weather, there is less occurrences of fungus and less demand for chemicals to combat".
On the other hand, Daher reminds that fertilizers stocks and agrochemicals in Brazil remain low, this could lead producers to buy. "I believe that the only product which the value can increase less is nitrogen fertilizer. This movement is explained by the fall of oil in the international markets," he emphasized.
The price of commodities in the global market is also cited as negative influence for the agrochemical sector. "The commodity value determines how producers will care their crops. If the price falls, he will invest less, that is the case of orange and surgarne, and they end up buying cheaper products. But if the prices go up, there is a higher investment on crop, bringing a productivity increase like occurred with soybeans," Daher summarized.
Source: AgroNews
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