Brazil increases application of agrochemicals in the second quarter of 2021

By Leonardo Gottems, reporter for AgroPages

The area in Brazil treated with pesticides grew 12.3% in the second quarter of this year as compared to the same period in 2020, mainly due to the growing challenge with fungus, insects and weeds in various crops.
 
Between April and June, 175.2 million hectares were treated.

The treated area represents the multiplication of cultivated area by volume of products and number of applications carried out and represents the methodology that best reflects the effective use of pesticides by farmers. The statistical data is part of an exclusive survey commissioned by the Sindiveg (National Union of Vegetal Defense Products Industry) to Spark Smarter Decisions.

“In the 2nd quarter of 2020, 156 million hectares were treated. This means, from April to June this year, there was an increase of 19.1 million hectares. This phenomenon has been occurring consecutively since 2017 when 104 million hectares were treated in the second quarter. These statistics reveal the constant and growing concern of rural producers with the phytosanitary challenges that harm crops and which, if not tackled, could cause large production losses, causing food insecurity in the country,” says President of Sindiveg, Júlio Borges Garcia.

In terms of volume, pesticides applied in the 2nd quarter reached 113,300 tons, against 101,900 tons in the same period last year – an increase of 11.1%. Among the main product segments, there was a 25% growth in the use of fungicides (from 17,400 to 21,900 tons), There was a 10% increase in the use of herbicides (from 38,000 to 41,700 tons) and 8% in the use of insecticides (from 33,000 to 35,600 tons). The data was commissioned by Sindiveg to Spark and helped to understand the problems faced by farmers in all Brazilian regions.

“The second quarter is marked by the autumn weather and the beginning of winter, with dry and milder weather from the Midwest to the South, but still warm in the Northeast. Lack of rain is a constant challenge for crops. In this scenario, the use of pesticides is essential to avoid losses in a production cycle highly impacted by the climate. After all, if the climate is unpredictable, the use of modern crop protection and pest control technologies is essential for Brazil to fulfill its role as a major food producer, strengthening not only the trade balance, but the generation of income and jobs in the countryside,” Garcia said.

The market value of applied products dropped 2.8% in the second quarter, falling from US$1.419 billion to $1.380 billion. Of the total, 38% refers to insecticides, 28% to herbicides, 24% to fungicides, 3% to seed treatment and 7% to other products. The negative variation results from the devaluation of the real against the dollar, aggravated by the economic crisis generated by the health crisis. This scenario justifies the sector's 13.6% growth in the Brazilian currency – the market value rose from R$6.432 billion to R$7.309 billion as against the value from April to June 2020.

"Only in the 2nd quarter of this year, was the exchange loss 14.5%, with the average dollar at R$5.02 in June 2021. In addition, the industry continues to face a strong increase in the prices of raw materials and packaging, as well as an increase in logistical cost – both national and international. Sea freight continues to rise and manufacturers are already missing certain raw materials with the scenario set to worsen. The pesticide industry fulfills its role, working to avoid the shortage of active ingredients and, thus, offering solutions to the problems that affect the productivity and profitability of the field,” the Sindiveg president reported.

Regarding the main crops, corn increased its share in the total area treated from 15% to 28%, while cotton went from 37% to 28% and beans from 9% to 8% reducing their share. Sugar cane went from 11% to 10%. Still considering applications in the second quarter, horticultural and pasture represented 3% of the treated area each, citrus and soy 2% and coffee 1%. “The 49.5 million hectares of corn treated with inputs, highlighted in the quarter, had as their main targets sucking insects and caterpillars, as well as fungi,” Garcia highlighted.

First Semester

From January to June, the area treated with pesticides increased by 9.4%, from 684.3 million hectares to 748.6 million hectares, with an emphasis on insecticides (32% of the total). In volume, there was an increase of 7.6%, from 439,074 tons to 472,436 tons, with 39% related to herbicides. The market value, in dollars, decreased by 7.9%, from $5.763 billion to $5.308 billion – soy represented 31% and insecticides 37%. In Brazilian currency, there was an increase of 13% (from R$25.188 billion to R$28.462 billion) in the 1st half of 2021.