Brazil agrochemical sales fell 21.56% in 2015

The National Union of the Crop Protection Products Industries (Sindiveg) announced the sales of US$ 9.6 billion on crop protection products in Brazil last year. The annual balance of the sector indicates a reduction of 21.56% of revenue comparing to 2014, which was under the estimates projected by the entity in December.

Among the motives presented by Sindiveg to explain the fall are the devaluation of Real, smuggling – that already reaches expressive levels – and the difficulty to obtain credit for farmers that affects the purchase flux and increases the industry stocks and distribution channels.

"The credit issue and the default in the field worries significantly the sector. Due to this condition, the industry ends up financing almost 70% of the sales to farmers,” comments Silvia Fagnani, executive vice-president of Sindiveg.

The most commercializing class continues to be insecticides with US$ 3.1 billion sold in 2015, followed by herbicides (US$ 3.086 billion) and fungicides with US$ 2.907 billion. Other classes summed US$ 548,000 in the year that passed.

The sales by state continue to be led by Mato Grosso, followed by São Paulo, Paraná and Rio Grande do Sul. São Paulo had its share increased due to the recovery of sugarcane, coffee and citrus.

Imports

The total import volume of crop protection products in 2015 presented a fall of 6.1% comparing to the previous year, reaching 392,526 tons. The industry that works with 80% of imported inputs had difficulties to re-pass the cost increases to price and lost revenue.

The currency devaluation that occurred in the year, around 50%, has brought a strong impact on the profitability of the companies, which failed to pass this devaluation to the field,” comments Silvia Fagnani.