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Researches on market supply and demand of chlorpyrifos in five major Latin American countriesqrcode

Mar. 24, 2020

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Mar. 24, 2020

Researches on market supply and demand of chlorpyrifos in five major Latin American countries

Since AgroPages reporting on the termination by Corteva Agriscience (formerly Dow AgroScience) of production of chlorpyrifos by the end of 2020, there have been strong responses from readers around the world. Because chlorpyrifos produced by Corteva Agriscience’s North American plant is mainly supplying to Latin American market, some readers made a special request asking us to conduct a research into Corteva Agriscience’s conventional chlorpyrifos market in the five major Latin American countries, which are respectively Mexico (5,100 ton sales from Corteva Agriscience), Colombia (1,300 ton), Brazil (400 ton), Argentina (250 ton) and Peru (150 ton sales). Our readers wish to understand the situation of supply and demand of chlorpyrifos in the regions beyond Corteva Agriscience, as well as the future prospect of the product in the eyes of clients of different countries. 
In the following, we will briefly present the survey information and some conclusions from our research. If you want to investigate the global supply of target pesticide products, market distribution, customer information, please contact us at agropages@vip.163.com.
- In 2019, ten clients in Mexico imported from China and India 1,596 tons of chlorpyrifos, including 1,017 tons from 12 suppliers in China and 579 tons from 6 suppliers in India. The supply of chlorpyrifos to Mexico beyond Corteva Agriscience is dominated by China and India.
- In 2019, Colombia imported 860 tons of chlorpyrifos from 12 suppliers in China, there are not yet Indian supplies to Colombia.
- In 2019, 16 suppliers in China exported 3,500 tons of chlorpyrifos technical to 5 Brazilian companies, whilst one supplier in India exported 1,100 tons of chlorpyrifos formulations to 7 local Brazilian companies. Additionally, 265 tons of chlorpyrifos formulations were supplied from Portugal. 
- In 2019, China exported 815 tons of chlorpyrifos technical to Argentina, India supplied 560 tons, whilst 130 tons of formulations were supplied from Uruguay, 60 tons from Mexico and 40 tons from Israel. The chlorpyrifos technical used in Uruguay, Mexico and Israel are basically purchased from China. 
- In 2019, China exported 430 tons of chlorpyrifos technical and 530 tons of chlorpyrifos technical to Peru, accounting for 85% of the total import volume of chlorpyrifos in Peru. Another 40 tons of chlorpyrifos products came from India and 70 tons from Colombia. The products were consumed by 32 local companies in Peru. 
Through a systematic study, we have classified clients’ feedback as follows:
EU: since chlorpyrifos is banned already in EU, European companies do not care much now about this business.
US local dealers: a complete ban of the product in US is just a matter of time.
International buyers: it is generally believed that it is a pity to give up the product which accounts for no small amount of the current businesses, being worried about the future of the product.
Indian companies: Gharda is the most optimistic one, being confident that they can seize the opportunity left by Corteva Agriscience to capture a larger share.  
Some representational results of researches are as follows: 

US top dealer A: we are an agency dealer of the product of Corteva Agriscience. If the Democratic Party takes power, the deadline of prohibition will be 2021; if Trump is elected again, the prohibition may be postponed for another year. Anyways, the prohibition in the US is just a matter of time.
US formulation company B: we import chlorpyrifos technical from India, there should be still market opportunities for this product. Of course, the market means the Latin American market, for which some companies may produce customized formulations for sale there.
A large European buyer: we mainly purchase chlorpyrifos technical from China and India, being formulated for sale in Brazil. With the ban of chlorpyrifos in Brazil for application to citrus, the sale of this product will drop significantly. 
A Brazil subsidiary of a large buyer: we mainly import chlorpyrifos technical from India, we haven't found a substitution yet for chlorpyrifos. However, our company will not make any further investment on R & D of chlorpyrifos.  
Several local companies in Mexico: mainly purchasing from China and India. The future of chlorpyrifos is not clear, just wait and see.
Peru's local companies: mainly importing chlorpyrifos technical from China and India. I think chlorpyrifos will still continue to grow in the market of Peru, but the export sales should decline. 
A field trial institution in Brazil: Although we are not an importer, we believe that chlorpyrifos will still have a longer life in Brazil, based on our long-term field trial and customer communication experiences. China and India can fill up the gap left by Dow AgroScience.
An Indian formulation company: we mainly purchase chlorpyrifos technical and make formulations ourselves; we are of the opinion that chlorpyrifos is not promising. It may not be too long before it is completely banned, which will have an impact on most of the countries and regions.
The Indian chlorpyrifos technical company Gharda: we are confident that we can make up for the gap of supply of Corteva Agriscience. At present, our supply accounts for 20% of the global demand for chlorpyrifos. We believe that the exit of Corteva will give us more opportunities. 
European companies A (Bulgaria) and B (Poland): chlorpyrifos has been banned in the EU, which however does not cause much impact on local businesses. 

Yutian Lu
Source: AgroNews

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