Global crop protection market forecasted 6% decline in 2009

According to our preliminary estimate, the global crop protection market is estimated to have declined by 6.4% to reach a total value of $37,880 m. during 2009. When currency movements and inflation have been removed from the results, including an allowance for decreases in agrochemical prices, real growth in the market is estimated at -0.4%.

Following are total sales of conventional agrochemicals. First number in hundreds of $ millions and the second number is percentage real change:
 

* Lower prices of glyphosate and insecticides, with no shortage in product supply from China in 2009;

* Lower crop commodity prices in comparison with the high levels attained in 2008, although prices have been generally above 2006 and 2007 levels;

* Less intensity of product usage in Europe due to lower cereal prices;

* Although volume use of agrochemicals was lower, in many cases this was counteracted by higher prices;

* Reportedly high levels of agrochemical inventory in distribution pipelines in both North and Latin America;

* Credit issues, with availability and interest rates varying widely between countries;

* Slump in oil prices at the start of the year, pulling down crop prices which were also held back by less financial investment in crop commodities;

* Low oil prices also affected the profitability of ethanol production.