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Agrochemicals sector sees sales drop in 2016 in Brazil
Apr. 13, 2017
Report
In 2016, the pesticides sector reported a reduction of 1 percent in sales to US$9.56 billion, from $9.6 billion in 2015.
The retraction is more significant when compared with 2014, registering an accumulated fall of 22 percent.
As in the two previous years, “The factors that have contributed to this result were: real devaluation, illegal products that have already reach expressive levels , fall in prices, plague incidence level in crops, new technologies and climate that impact agricultural areas all over the country,” said Silvia Fagnani, executive-director of Sindiveg.
“The forecast for 2017 is cautious with a tendency for fall due to illegal products, stocks and credit risks in the industry,” she added.
Sales by Product Category
Due to the agricultural complexity of a tropical climate that favors diseases, such as Asian Rust, which is more aggressive, fungicides were the most sold class of products in the country in 2016, cornering nearly 33 percent of the market. Herbicides represented 32.5 percent of sales and within this category, the select herbicides had a narrow increment due to the hard control weeds mainly in the soybean crops.
Insecticides, which so far was the most commercialized class, reflected a fall of almost 12 percent from the year of 2015, touching a little more of 29 percent of the total sales. Despite growing demand for the use of these products for seed treatment and due to the incidence of plagues in the field, this sector of the market suffered an impact from the illegal commercialization of products.
Sales by State and Crop
The main states with greater commercialization continue to be Mato Grosso, followed by São Paulo, Paraná and Rio Grande do Sul. Basically all with the same share percentages from 2015 and 2016. Among the major crops of investment by the farmer are soybeans, corn, sugarcane and cotton.
Imports
Imports in the sector reached 414,975 tons last year, indicating a growth of 5.72 percent in comparison with last year. Imports accounted for 85 percent of the total agrochemical market in 2016. Fungicides presented a higher increase in the percentage of imports with a 59.72 percent spike, touching 94,126 tons.
The fact is that Soybean Rust, as well as the climate, due to rains, favored the appearance of fungal diseases in crops, especially in the regions of Center-West and Matopiba (Maranhão, Tocantins, Piauí and Bahia).
The class of herbicides grew 3.76 percent from 2015, and had the highest imports at 242,775 tons. In 2015, insecticides also presented a larger percentage fall (22.87 percent) in the volume imported in 2016, falling from 91,157 tons in 2015 to 70,309 tons.
Technical and Formulated Products
In terms of the volume of imports for technical and formulated products, the percentage was almost equal to 2015. Technical products corresponded to 56.5 percent and the formulated ones registered 43.5 percent.
Countries
In 2016, China remained at the leadership with 32.75 percent of the total imported goods, followed by the United States at 17.51 percent. India was responsible for 11.95 percent, followed by Argentina (4.99 percent), United Kingdom (4.27 percent), Israel (4.20 percent) and Germany (3.60 percent).
Source: AgroNews
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