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Brazilian agrochemicals market could earn US$13.7 billion in 2019qrcode

Mar. 16, 2020

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Mar. 16, 2020
By Leonardo Gottems, Reporter for AgroPages

The pesticide market is expected to register revenues of US$13.7 billion in 2019. The result represents a growth of 5.8% (in dollars of applied product) compared to the $12.9 billion handled in the year 2018, according to a survey by consultants, Spark Intelligence Strategy, commissioned by the National Union of the Industry of Products for Plant Defense (Sindiveg).

Despite this growth, it is possible to see that the average cost per product applied will decrease 2%, from $9.09 to $8.90 while comparing 2019 with 2018. In relation to the area treated, the annual study BIP (Business Intelligence Panel) is projected to increase by 8%, totaling 1.6 billion hectares.

This is due to the 2% growth in cultivated areas and the use of technologies to control the main pests in the field, pointed out Spark. Despite this increase, the average volume of products formulated per application will decrease from 0.64 kg/ha to 0.63 kg/ha, according to the PAT index (commercial product per treated area).

"The largest planted area and the relentless pursuit of food production without increasing land use, associated with the natural requirements of the tropical climate, increasing severity of pests and exchange rate factors, are the main drivers of the agrochemicals market in Brazil," said Julio Borges Garcia, president of the National Union of Plant Protection Products Industry (Sindiveg).

According to the director, the use of pesticides is important in the chain that combats pests to put healthy and abundant food on the table of millions of Brazilians and in more than 150 countries. He said, “Brazil is producing more and more. In addition, exports of agricultural products exceeded $70 billion last year.”

Fungicides tend to reach 31% of the movement. Insecticides should represent 29% of sales, followed by herbicides, with 27%, and inputs for seed treatment, among other products, with 12% of the total. All product classes have been suffering from resistance, a major challenge for the sector, which required the combination of products with different modes of action to control pests.

Soy appears in the survey with a 49% share ($6.7 billion), a growth in dollars of just over 1% compared to the previous cycle ($6.41 billion). Corn, with a 12% share, sugarcane (11%) and cotton (8%), combined, should reach $4.3 billion, with no record of relevant changes compared to 2018.

“Brazil uses fewer pesticides per hectare than countries with a temperate climate and only one crop per year. Brazilian agriculture is modern and sustainable, further requiring the combination of chemical and biological products. With new technologies being registered, new solutions are made available to producers to combat the various pests in different cultures, and the biggest beneficiaries are the farmer and the Brazilian population,” said Garcia.

Source: AgroNews

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