AgroPages-Adoption of Biological Methods in Latin America for Crop Protection-Agricultural news

Adoption of Biological Methods in Latin America for Crop Protection

Usted puede encontrar la versión en español de este artículo aquí. 'Adopción de Métodos de Control Biológicos para Protección de Cultivos en Latino América'

Contributed by Markets&Markets

Population outburst and diversified demand for agricultural products (food, feed, fuel, and fiber) are critical components that have majorly challenged the global food security status. The decrease in availability of per capita arable land and crop losses due to frequent weather aberrations have augmented the pressure on farmers to increase productivity. As per the Food & Agriculture Organization, the global grain output must rise by half and meat production must double to meet the projected demand in 2050. The global agricultural environment is threatened by the presence of various types of pests as they damage the quality and quantity of the agricultural produce; therefore, it is essential to protect these crops to increase productivity.

According to the Food and Agriculture Organization (FAO), in 2015 the agricultural sector contributed 6.1% of total world's economic production in which countries such as China, India, U.S., and Brazil are the key contributors to the global agricultural output. Among these, Brazil implemented forwardlooking policies to improve its domestic agricultural productivity growth.

Agricultural Sector in Brazil

Brazil is one of the major producers of soybean, corn, and sugarcane crops, which accounted for a share of 74% in the total area under agricultural crop production. Brazil is the largest consumer of crop protection chemicals and consumed nearly USD 9.6 billion valued crop protection chemicals (in 2015) to accumulate the expected level of agricultural production. Increased use of chemical pesticides and fertilizers have affected microorganisms present in the Brazilian soil and weakening & diminishing their ability to work efficiently in to achieve the expected level of results/ returns on investments. Therefore, recently, a majority of stakeholders of the agrochemicals industry have made significant changes in their product portfolio with more biological products.

Figure 1 Brazil key crop share in total harvested area

Source: Related Research Publications and MarketsandMarkets Analysis

Importance of Biocontrol or Biological Products

Biocontrol agents (biological agents) are naturally occurring substances that control pest infestation during the preharvest and post-harvest stages. They are specific microorganisms and natural extract-based products that aid in control of pests. These agents are useful in small quantities and often decompose quickly, resulting in lower exposure to pests and mostly avoid pollution problems caused by conventional pesticides. Growing awareness about the adverse impact of chemicals for pest control is driving the demand for biocontrol products. The increasing resistance of pests against chemical pesticides is also increasing the preference for biocontrol measures.

The major types of biocontrol products are bioinsecticides, biofungicides, bioherbicides, and bionematicides. They help farmers to improve plant/crop productivity, maintaining plant health, and eradicating pest infestation. Biocontrol agents are living organisms; their success is affected by temperature, pH, UV rays, moisture, and soil conditions, which act as disadvantages for biocontrol products.

Developing economies such as countries from Latin America serves as growth opportunities for the biocontrol products market. Latin American countries are involved in the export of fruits & vegetables to various European countries and prominently corn to China. They are making efforts to comply with the standard food norms as per regions. Strict regulations against the usage of chemical pesticides and residue level in food are increasing the usage of biocontrol products by Latin American farmers. Countries such as Argentina and Mexico are at the forefront in introducing regulations aimed at reducing the usage of chemicals during agricultural processes. Global biological companies are also focusing towards the Latin American region and are increasing the availability of their products in this region through various channels.

Brazil and Argentina have emerged as the new agricultural powerhouses with an increase in organic farmland. Brazil, which is already one of the world’s most strong agricultural markets, is expected to grow at a rate well above the regional average, which itself is growing faster than the global growth average. Recently, developing countries such as Colombia, Argentina, and Chile posted an aboveaverage growth in their agricultural output. It has triggered the growth of biocontrol and other agricultural inputs in Latin America.

Brazil: Largest Biocontrol Market in Latin America

Figure 2 Latin America: biocontrol market 2015

Source: Related Research Publications and MarketsandMarkets Analysis

The Latin American biocontrol market was valued at USD 423.7 million in 2015 and is projected to reach USD 1,050.7 million by 2021, at a CAGR of 16.5 % from 2016 to 2021. The bioinsecticides segment dominated the Latin America biocontrol market with a market share of 53% in 2015. The market for this segment was valued at USD 226.0 million in 2015, and is projected to grow at a CAGR of 15.8% from 2016 to 2021. The biocontrol market is rapidly growing in Latin America due to the increasing awareness of IPM practices, which use biocontrol along with conventional pesticides to control pests. Brazil, Mexico, and Argentina are the growing markets for biocontrol application and have emerged as the target markets for suppliers of biocontrol products.

Source: Related Research Publications and MarketsandMarkets Analysis

Global agrochemical giants, such as Syngenta AG (Switzerland), Bayer CropScience (Germany), BASF (Germany), Certis USA L.L.C (U.S.), Valent BioSciences Corporation (U.S.), and Sumitomo Chemical (Japan) have a significant presence in the region. These companies have developed competencies in each segment of the biocontrol market, and their product portfolios have extensive penetration across major countries in the region. Similarly, the Latin American biocontrol market is fragmented with a large number of small players such as Vector Control (Brazil), Promip (Brazil), Advan, LLC (Mexico), Bait Tecnologia Ltda. (Brazil), Bio insumos Nativa SpA (Chile), Anasac (Chile), and Cheme (Chile) who have been able to capture sizeable share in recent years.

Key industry players are investing extensively in carrying out technological developments in the field of biocontrol products. Continuous investments for geographic expansions, agreements, and acquisitions have further expanded the scope of the industry. Companies are investing increasingly in the research & development activities according to the changing needs of consumers. Moreover, the manufacturing cost of biocontrol products is lesser than chemical products. Thus, there is a growing demand for biocontrol products in the Latin American region, owing to increased agricultural activities as well as organic farming in the region.

It is observed that the bio-based crop protection industry is witnessing problems due to the low adoption rate of biocontrol measures in underdeveloped regions. Farmers are accustomed to conventional farming products and are less adaptive toward innovations. Market players are focusing on increasing the availability of their products and are collaborating with organizations to raise awareness among farmers about the benefits of biocontrol products. According to the FAO, in 2011, Latin America consumed more than 800 KT of pesticides that included insecticides, fungicides, herbicides, and rodenticides. This overuse of pesticides creates a negative impact on the environment, which in turn affects people. Therefore, biopesticides or biocontrol products are safer alternatives to chemical pesticides in Latin America.

Growing Markets of Brazil and Argentina

In 2015, developing countries such as Colombia, Argentina, and Chile posted an above-average growth in their agricultural output. It has triggered the growth of biocontrol and other agricultural inputs in Latin America.

Brazil, Mexico, and Argentina are the growing markets for biocontrol application. These are the target markets for suppliers of biocontrol products. The increase in government support in these regions towards developing the agriculture industry is also acting as a favorable factor for the Latin American biocontrol market. Government initiatives toward improving educational facilities, infrastructural developments, and technological improvements are attracting foreign investments, which is increasing the economic stability of the region. The growth in farmers’ income due to the growing exports is making the new agricultural technologies and latest biocontrol products affordable. This will further strengthen the biocontrol market demand in the region.

Download AgroPages' latest magazine - 2017 Latin America Focus