Brazilian pesticide market reaches US$20 billion in 2022-23 cycle

The market for crop protection products moved around US$20 billion in Brazil during the 2022/23 agricultural season, according to Kynetec Consulting.

This was due to the strong appreciation of the Brazilian Real against the US Dollar while there was a drop in prices of agricultural commodities.

According to the study, this result represented a growth of 43% compared to the 2021/22 cycle, when it reached some US$14 billion.

According to the consultancy specializing in market research, the surge in pesticide sales this season accompanied a rise in planted area in Brazil, which reached 90 million hectares during the period.

In addition, a decisive contribution to this result was the increasing prices of herbicides, insecticides and fungicides.

André Dias, executive director of Kynetec for Latin America, said that potential treated area (PAT) did not change significantly during the period.

″For example, it grew in the Brazilian states of Mato Grosso and Rondônia, but it dropped a little in São Paulo. However, the area treated by state was practically uniform, despite the rise in the industry's revenues,″ Dias said.

For this reason, price was the factor that had the most influence on the sector's performance, he added.

For the 2023/24 harvest, Dias believes that there will likely be a drop in market value, due to defensive prices.

″However, this still needs to be confirmed,″ he noted.

According to specialists in the agricultural market, inventories are high, which could lead to reduced pesticide prices.

In addition, some Brazilian producers are still waiting to purchase their inputs for the 2023/24 cycle.

(Editing by Leonardo Gottems, reporter for AgroPages)