Development of Mexico’s crop protection market

Mexico is the leading crop protection market in Central America, along with Guatemala and Nicaragua. Showing a growth of between 2015 and 2020, the country’s agrochemical market reached a value of US$890 million, according to market intelligence agency AgbioInvestor.

Despite the effects of drought over many years, especially in 2016, as well as issues related to credit availability, the market has remained resilient. Mexico has stayed relatively economically stable compared to many neighboring Central American countries, benefiting from its trade relations, particularly with the United States. Due to its topographical conditions, Mexico has improved its cereal harvest yields in recent years, especially for small farmers in the central and southern regions of the country.

Some key players in increasing Mexican productivity are its research organizations, most notably the International Center for Corn and Wheat Improvement (CIMMYT). Corn is the most important crop in Mexico, but the country has blocked the cultivation of genetically-modified varieties to maintain its genetic base.

Insecticides are the most significant sector in the corn crop protection market, with the main products being chlorpyrifos and fipronil, followed by lambda-cyhalothrin and thiamethoxam.

Although producers in Mexico have adopted Integrated Pest Management (IPM) programs for many crops, this form of insect management is not common in corn crops, with Spodoptera frugiperda being the most significant pest.

″The crop protection market in the country is dominated by major multinationals,″ said AgbioInvestor. UPL is the leader in the local market, holding a 12% market share, followed by Syngenta with 11%, Bayer with 9%, FMC with 8% and Corteva with 7%. Next are BASF and Agricultura Nacional with 6% of market share each, followed by Adama and Sifatec with 4% each, and Sumitomo/Valent with 3%.

Among the largest importers of agrochemicals to Mexico, excluding the US, Rainbow Chemical leads with 11.8%. In second place is UPL with 8.4%, followed by Ninghua with 4.4%, Tagros with 4.1%, Fuhua with 3.9%, Red Sun with 3.7%, and China Jiangsu International Chemical with 3.4%. With less than 3% market share are Runke, Rotam, Haili, Jingbo, Wynca, Pilarquim, Xinhe, Changsu, Yongnong, Guangxin, Hemani Industries Limited and Excel Crop Care.

Future perspectives

″The agricultural sector in Mexico, in recent years, has advanced at a faster pace than the country in general, with agricultural GDP growth now exceeding total GDP. The country has focused, in recent years, on creating and maintaining its position as a key exporter of agricultural products, particularly fruits and vegetables, which has resulted in a shift in focus in terms of crop protection away from cereal crops and towards the high-value F&V sector,″ AgbioInvestor said.

Mexico's economy is among the largest in the Latin American region, behind only Brazil, and more than 90% of global trade is conducted through free trade agreements.

Although maize is the most significant crop grown in the country in terms of area, it is mainly grown as a subsistence crop for domestic consumption. GM technology has not been introduced, with authorities reluctant to alter the genetic base of national corn. Due to the cultural significance of the crop in the country, it is unlikely that genetically-modified maize varieties will be introduced soon.

″As a result, the sales prospects for corn herbicides are relatively dynamic compared to other South American countries, where GM technology has been readily adopted,″ AgbioInvestor noted.

One of the big factors to watch in the coming years is the removal of glyphosate from the market, which is expected to result in the wider use of selective herbicides, potentially increasing the overall value of the country’s herbicide market.

″The high number of biological crop protection products being introduced is also expected to drive growth, with this sector poised for rapid expansion, above the growth rates expected for conventional crop protection products,″ AgbioInvestor said in conclusion.

(Editing by Leonardo Gottems, reporter for AgroPages)

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