Pesticide market expected to grow by 5% in 2024, projects Sindiveg

The Brazilian National Union of Plant Protection Products Industry (Sindiveg) has projected that the national pesticide market could grow by up to 5% this year. According to João Lammel, Vice President of Institutional Relations for the entity, the industry can recover from the low revenue in the first months of 2024.

A survey conducted by Kynetec Brazil at Sindiveg's request indicated that pesticide sales declined by 12% in the first quarter of 2024 compared to the same period in 2023. The drop in revenue occurred despite an 8.7% increase in the treated area across agricultural crops and an 8.2% increase in the volume applied. In 2022, the decline in revenue for the Brazilian pesticide industry was even more significant, at approximately 15%.

To confirm this recovery, Lammel pointed out that the trend is for the treated area and volumes to continue increasing. Even though commodity prices are not very attractive now, Sindiveg predicts an increase in the soybean and corn areas for the summer crop of the following year. Lammel explained that many pesticide purchases for the next season will be made this year.

Additionally, he did not believe that pesticide prices would fall any further. "We believe there is even room for price recovery for some higher-volume products," Lammel stated. He explained that the 2023-2024 crop consumed a large part of the industry's stock, so the planning for the 2024-2025 season should result in new purchases for the sector.

According to the Kynetec survey, the market value of pesticides increased by 1.9%, rising from US$20.3 billion in 2022 to $20.7 billion last year. However, the increase occurred due to higher values in the first half of 2023 before a widespread drop in pesticide prices began in the second half of last year.

(Editing by Leonardo Gottems, reporter for AgroPages)