Brazil Sindiveg: Associates invested R$700 million in 2020

According to a census carried out by the entity for the second consecutive year, 26 agricultural solutions companies associated with the Brazilian National Union of Plant Protection Products Industry (Sindiveg) invested R$700 million in 2020 to benefit the food production chain, despite being an atypical year due to the Covid-19 pandemic. 

“The associated industries play a key role in offering inputs used in the production of food for Brazil’s society, not only offering sustainable production solutions but also generating jobs and income in Brazil,” said Júlio Borges, President of Sindiveg.

Of the total investments made by associated companies, even in a year of deep crisis, R$437 million was invested in fixed assets, marketing and research and development, a growth of 23% compared to the previous year. Investments in industrial units also increased 134%, reaching R$264 million.

"These investments highlight the commitment of the pesticide industry to expanding its portfolio of solutions, enabling farmers to protect their plantations against pests, diseases and weeds. The challenges are increasingly intense, requiring modern technologies to combat them, especially in a country with a tropical climate, such as Brazil. If, on the one hand, climatic conditions allow farmers to plant up to three crops a year, on the other hand, this also results in a perfect environment, both hot and humid, for the enemies of productivity,” Borges added.

Another relevant data from the census concerns the payment of federal, state and municipal taxes, in addition to regulatory fees. The companies associated with Sindiveg injected R$676 million into the economy, an increase of 27% compared to 2019, when the total was R$533 million.

“Even during a year as difficult as 2020, the pesticide industry invested heavily, expanded its portfolio of essential solutions for the agricultural cycle and, in particular, increased the number of direct jobs by 4%, reaching almost 5,000 employees. In addition, the sector maintained 15,000 indirect jobs,” Borges further added.

The companies associated with Sindiveg, which are an essential part of the food production chain, also helped rural producers. Recent research conducted by the entity showed that in 2020, the 26 industries spent approximately R$21 billion on agricultural pesticides. In addition, 49% of industry sales were made within a period of more than 240 days for receipt.

The market for applied crop protection products decreased by 10.4% in dollars in 2020, reaching revenues of US$12.1 billion. In 2019, this figure reached US$13.5 billion. The contraction of the market is mainly due to the exchange rate loss, which was 18.5% for the sector and was not fully passed on to the rural producer, a process that should occur in 2021.

The area treated with pesticides grew by 6.9%, reaching 1.6 billion hectares. The calculation of treated area considers the volume of products and input applications, as well as cultivated area, to measure the volumes actually used of pesticides, which are essential for the good productivity of Brazilian agriculture.