“Reliance on agrochemicals leading Brazilians to seek alternatives in bioinputs”

A series of external and internal factors created the issue of a shortage of agrochemical inputs, combined with the strong devaluation of the Brazilian Real against the US Dollar. The problem hit Brazilian farmers hard during the 2021/2022 crop, with the prices of some formulations increasing by more than 100%, and the outlook is for continued highs for the 2022/2023 soybean and 2023 corn crops.

In this scenario, rural producers are rapidly switching to special organic fertilizer alternatives that do not rely on raw materials from China, India, and other areas with supply problems. In this interview, Edsmar Resende, Director of New Business at Agrivalle, will explain the alternative use of bioinputs.

Edsmar Resende, Director of New Business at Agrivalle

1. With the rising prices of of conventional inputs, what alternatives are there for producers?

Agrivalle has been working on the development of new products and has an R&D team that can respond quickly to market demands. This has been a differentiator for the company. However, the mismatch between supply and demand for inputs at a global level, whether due to logistical disruption or high demand, is generating uncertainty for all producers.

Searching for high-performance local or regional alternatives with proven results has become normal. This has started the race among Agrivalle’s partners, who demand fast and effective alternatives for use in the field. This requires a level of customization.

The situation also encourages farmers to be open to testing new production designs and inputs in smaller areas, which is opening up space for what we could call alternative technologies in plant nutrition (a. Biostimulants; b. Algae; c. Amino Acids; d. Remineralizers; e. Use of nanotechnology and more efficient formulation technologies; f. New application technologies for bioinputs).

2. Have you observed a migration to or greater demand for bio-inputs as a result?

Agrivalle witnessed a relevant increase in the demand and acquisition of bio-inputs directly from producers concerned with the macro scenario, or companies in the sector that sought our assistance in the B2B line, to meet additional emerging demands.

The most sought-after products are those that can fully replace or complement traditional chemical pesticides and fertilizers. This is because several Agrivalle products can be a safe, high-performance alternatives, with no risk of shortages and prompt response to crises. In addition, they still deliver the performance expected from traditional products and increase productivity. A clear example of this trend is Agrivalle’s recent release of Twixx-a.

Twixx-a is a multi-site biofungicide that, in addition to being able to fully replace protectors, such as Mancozeb and Chloratolonil, generates more advantages, which are: a. 3.2 bags per hectare of soybeans on average; b. 4.4 bags per hectare of corn on average; c. 1.5 arroba per hectare of cotton on average.

These advantages are all due to its phytotonic effect that stimulates greater plant productivity, which translates into additional bags per hectare. An additional medium and long-term effect, which is still being quantified, is due to its target-selective effect. How will a more balanced biome effect realize itself over time? Will we have fewer diseases and pests? How much does this represent financially during the harvest? Is a healthy and stable soil worth more in terms of trade and buy and sell?

Demand for biostimulants and foliar fertilizers based on micronutrients, such as zinc, manganese, boron, is also significantly increasing. Even Boron is designed for a potential structural shortage of the product. Faced with this scenario, we anticipate having enough raw materials and  a robust structure to meet rising demand for the 2022/2023 crop. This scenario should continue for at least the next year.

3. How can biological inputs complement and enrich plant nutrition?

Biological inputs can encourage plants to be more efficient in taking advantage of inputs made available to them, or even transform elements present in nature.

We can also replace raw materials used in certain products with others that are more sustainable or have a more favorable carbon footprint. We believe that from now on, producers should analyze the addition potential of an input portfolio, which are: a. The carbon footprint of the property; b. Soil health; c. Emissions avoided; and d. Productivity will be key.

This scenario is almost a “Total Life Cycle Cost Analysis” of an input in the farmer's production system. In terms of supplies, this indicator is called TCO or “Total Cost of Ownership.” We will analyze the entire life cycle, from inputs, both positive and negative. Bio-inputs in the end will have a positive balance.

4. Is there an economic and productive advantage by using bio-inputs?

Starting with the belief that bio-inputs are “Life that generates Life,” Agrivalle's slogan, we are using natural solutions for their use in the field with intelligence and in the most effective way. This will allow those concerned to benefit for the entire production chain, including: a. Consumers, through less chemical pesticide use and a lower carbon footprint; b. The environment, through the rational use of inputs and fewer potential negative effects; and c. Farmers, though the lower risk of contamination and greater profitability.

Agrivalle products, such as Profix, Twixx-a and Auin, can fully replace chemical pesticides or used interchangeably. In general, these products have mechanisms to increase productivity that, in addition to controlling pests and specific diseases and reducing losses, will generate additional productivity.

The category of bionematicides, such as Profix, is growing consistently and rapidly, occupying more and more market share previously filled by chemical pesticides. The advantages that lead to this scenario are: a. Bionematicides act on nematodes throughout all their life stages (egg, juvenile and adult) and the chemical does not act on eggs; b. Biologicals used during a soy cycle requires one application versus up to three for chemicals; c. Bionematicides are more efficient in controlling population; d. Farmers can reduce field inputs with machinery to make applications and cost with bionematicides, and proven results have been attained by producers.

5. How big is this market in Brazil, and what is the potential?

In 2020, the bioinput market (Special Fertilizers + Biological Control) reached the value of BRL 14.9 billion, according to data from Abisolo and Croplife.

This market is experiencing strong growth, above double digits, with the biological control market alone growing by 37% in 2020. The adoption curve was already accelerating, especially in terms of soybeans, with adoption exceeding 20%, but with relevant propagation in several other crops, such as sugar cane, corn, cotton, coffee and HF.

Post COP26 commitments made by the Brazilian government in Glasgow and programs, such as the ABC+ Plan (low carbon agriculture with a target of 1.1 billion tons of carbon reduction), promise to further accelerate market growth. Preliminary analyzes carried out by the Agrivalle team indicate a potential for growth in bio-inputs of four times the market within eight years, but only through the official commitments agreed at COP26.

(Editing by Leonardo Gottems, reporter for AgroPages)