AgroPages-Agrochemicals costlier in Brazil than China or India-Agricultural news

Flavio Hirata
MBA, agronomist, partner to AllierBrasil

“Agrochemical products sold in Brazil by one or even three distributors generally have prices that are a lot higher than in China or India. There are cases where the price difference could be eight times more. Cheaper inputs is not a subsidy, it is competitiveness,” said Flavio Hirata from the Consultancy, AllierBrasil.

The consultancy conducts a price research into pesticides in China periodically and it is easy to conclude that prices in Brazil can be cheaper if there are more options. “More supply of products brings more competitiveness to the farmer, who disputes the commodities offered in the international market. It is not enough to have only technology, good soil, favorable climate conditions, and scale. It is fundamental to have available inputs and comparable prices with those practiced abroad,” Hirata stated.

In order to achieve this goal, AllierBrasil stages events, such as the 10th BrasilAgrochemShow, which has the goal to develop partnerships between foreign and local companies in the sector of pesticides. It also eases the approach of the potential supplier to the customer of products and services and takes knowledge to the market, perspectives, and registration of products through lectures.

“The potential commercial partnerships and registration can result in a larger supply of products with the same quality as the ones available in the market. It should be taken into account, nevertheless, that in order to bring a pesticide to Brazil, its registration is necessary and that can take between five to 10 years, reminded Hirata.

The expert also pointed out several perspectives for the future of the sector. “There is a large demand for pesticide companies to form a joint venture or acquisition. This includes companies that have product and reseller registrations. In the sector of biological products, there is a world race to identify more efficient organisms than the chemical products.”

He highlighted another important trend is innovation. “The market is very open to innovations. This, however, does not happen overnight. It demands a lot of research, profound knowledge of the market and a wide vision of the future. The future market leaders are already betting on this race,” Hirata concluded.