Leading the charge: Crop protection in Argentina, Mexico, Brazil

Latin America is emerging as a global leader in the use of biological crop protection. Farmers are increasingly adding biological crop protection products to their toolbox, alongside traditional crop protection, for optimum efficacy. Drivers for this change not only include a focus on sustainability, but also the challenge key crops, such as soybean, and corn face from pests, weather and resistance.

André Dias, Executive Director LATAM at Kynetec, explains ″Kynetec is closely involved with networks of farmers in Brazil, Argentina and Mexico, where agriculture is economically important. Overall, we are seeing increasing use of biologicals and that is demonstrated through both market value growth, and product area treated (PAT).″

But how are different LATAM countries challenged, and how are farmers - and governments – influencing crop protection product selection? We ask Kynetec’s Laura, Fidel, and André to summarise what’s happening in Argentina, Mexico and Brazil.

Laura Loizeau Senior Director, Kynetec	Fidel Sánchez Key Account Manager, Kynetec	André Dias Executive Director LATAM, Kynetec

Argentina: Corn is challenged but farmers adapt and overcome

Laura Loizeau, Senior Director at Kynetec, shares insight on conventional crop protection in Argentina.

Are any significant regulatory changes impacting crop protection?

″Active ingredients and phytosanitary products have been scrutinised, and in 2023, the National Agri-Food Health and Quality Service has prohibited certain chemical active ingredients (SENASA) like formulations for the agricultural use of Fipronil and by the importation, processing and fractionation, marketing and use of Chlorpyrifos ethyl and Chlorpyrifos methyl. While no additional changes are expected in 2024, the government has reduced import tax on key herbicides glyphosate, 2,4-D, and atrazine, from 35% to 12.6%, while fertilizers now have zero import taxes.″

How are challenges to key crops such as soy, corn and wheat reflecting in crop protection and seed variety sales?

″Due to the impact of Spiroplasma in corn, the lower but enormous variability of input prices, the uncertainty of fiscal and economic measures to be taken by the new government and waiting for a 'La Niña event' year, farmers are only buying what they need. This has generated a contraction and delay in the agri-inputs market that affects the projections of companies and distribution channels for this 2024/25 agricultural campaign.

These factors have led the agroindustry market to intense speculation and delays in their sales, compared to previous years. 

While waiting for the end of the corn harvest to make the final adjustments and understand what the final impact of the leafhopper has been on the 2023/24 corn season, the estimated data continues to be maintained: a corn harvest of 47.5 Mt, 22% less than expected to be produced at the beginning of the cycle.

Fortunately, this year’s winter did not favor the leafhopper, as in 2023. The first results from the Monitoring Trap Network show that the polar wave in June and July devastated populations of this pest and destroyed volunteer corn. 

A year ago, more than 40% of the corn remained to be harvested, that figure today sits at less than 25%. The cold and dry conditions, combined with the strategy of bringing forward the harvest to avoid greater losses in areas affected by the leafhopper, has significantly accelerated harvesting.

Wheat and sorghum continue to be the great options in crop rotation plans to maintain grass areas instead of corn. 

The area planted with wheat continues to expand - an estimated 6.7 million hectares are planted versus 5.5 million hectares the previous year. And as always, in South America, soybean is the crop to be chosen if business and weather conditions allow.″

How do pricing strategies affect sales of crop protection in key crops?

″In Argentina, crop protection prices have plummeted compared to previous seasons, leading to a buildup of high inventory within distribution channels. Despite this surplus, sales remain stagnant as farmers hesitate to make decisions regarding their cropping plans. Farmers are keen to follow through with existing plans but are holding off to assess the impact of a bacterial infection on various corn hybrids, meticulously calculating gross margins for each crop to inform their choices. 

Adding to the uncertainty, there's a looming possibility of a La Niña event, which could bring another period of low rainfall, potentially affecting summer crops.

Given these circumstances, crop protection demand is nearly at a standstill. Farmers are only making essential purchases, primarily for weed control on chemical fallows and seed treatment for wheat, encouraged by favourable soil moisture levels. As corn harvesting continues, they're reluctant to commit to further investments. Some experts anticipate a surge in insecticide use for corn seed treatment, aiming to protect the plants until the V2 stage from the corn leafhopper. 

Additionally, there's a growing recommendation for the application of fertilizers and bio-stimulants on corn, especially in well-nourished and healthy plots, where the impact of Spiroplasma kunkelii infection has been relatively minor.″

Mexico: Avocado and berry crops are no 1 when it comes to biologicals

Fidel Sánchez, Key Account Manager at Kynetec answers questions around biological crop protection in Mexico.

Are Mexican farmers embracing biological products? 

″Bioinsecticides and biofungicides are in prevalent use in avocado and berries. Of the 3,893 farmers of various crops we’ve surveyed, a considerable 1,321 have used biological products in conjunction with conventional crop protection products. That is roughly 34% of farmers we surveyed, but within avocado and berries that number goes up to 88% and 91%, respectively. Biologicals are used on most of the cultivated area in berries and avocado, far more than any other crop, totalling ~ 235,000 Ha. In comparison, just 9% of cultivated corn area is treated with biologicals.

The market value of biologicals in avocado and berries is around US$49m, representing approximately 50% of total measured value of biological products. 

While PGRs and biostimulants are seen in use in avocado and berries in Mexico, the majority of on-farm use judging by the number of farmers that are using them sits in the biocontrol product categories (bioinsecticides and biofungicides).″

Does this produce remain in Mexico for consumers?  

″Avocado and berries are almost entirely exported to the US, with some single-digit percentages destined for Canada, and other countries in all regions. Berry export tonnage has grown over the 3 past years, while avocado is growing back from a volume drop in 2021 to 1.4 million tonnes.″

How are regulations affecting crop protection in Mexico? 

″Glyphosate has been further regulated, with imports even frozen for a period of time. An outright ban, initially set for April 1, 2024, has been deferred to allow the industry time to develop alternative options for non-selective weed control for farmers.

Meanwhile, crop protection brands continue to launch products in Mexico. A much-awaited fungicide is due to launch in Mexico for tomato, potato, cucurbits as a whole, as well as corn, cotton and wheat.″

Brazil: Weather challenge doesn't halt progress 

André Dias, Executive Director LATAM at Kynetec shares his wisdom on crop protection in Brazil.  

How has Brazil's CP market /seed market performed over the past few years?

″The Brazilian crop protection market had increased a lot until harvest 2022/23. Cultivated area, technology level (such as variety selection, new formulations, increase in number of applications, updated machinery etc.) and cost of application were favorable during the last harvests. But, in season 2023/24, the negative impacts of price reduction mainly for non-selective herbicides, especially Glyphosate, has resulted in a crop protection market value decrease. 

It's important to understand that the technology level for crop protection keeps growing, especially in soybean and corn where challenges of white fly, stinkbugs and leaf hoppers remain an issue for farmers. 

The seed market keeps increasing due to the cultivated area expansion as prices for soybean, corn and cotton increase.″

Have recent weather events such as El Nino/flooding impacted agriculture and are they subsequently projected to impact crop protection and seed sales?

″El Nino impacted the country last season, its impact varying at a regional level. In the South, especially in Rio Grande do Sul, higher than average rainfall increased disease pressure in soybean. 

Meanwhile in the Cerrado region, dry conditions negatively impacted early sowing, although thankfully medium and late sowing were not impacted. Despite the dry conditions, white fly pressure increased, leading to positive growth for insecticides. 

Anomaly pressure in Mato Grosso generated positive impacts for premium and protectant fungicides.″

How are brands adapting product offerings to counter pest and disease pressure?

″The soybean market in particular is seeing new product launches, new active ingredients and ready-mix options coming to market, to support in the challenge of both pests and disease.

For example, new carboxamides are now available for the control of rust, anomalies and spots. Increasingly, we see the option of triple-active fungicides, such as carboxamide + triazole + strobilurine, or triazole + strobilurine + multisite, where resistance or specific challenges need to be met head-on.″

Are farmers embracing sustainability in Brazil, and how does that reflect in conventional and biological crop protection sales?

″Yes. Farmers are embracing sustainability for many reasons - use of forest reserve area, increasing soil quality through crop rotation and regenerative practices, integrating cropping and livestock for fertilizer benefits and integrated pest and disease management. The numbers bear this out, with the biological crop protection market growing to more than US$827M in harvest year 2022/23. 

However, Brazil is a tropical country and has a wide diversity of diseases and pests. Despite conventional crop protection use increasing, biological options are increasingly used for specific targets such as nematodes, leaf hopper and white fly.″

About Kynetec

Kynetec is a global provider of data, analytics and insights in agriculture, animal health & nutrition, empowering agribusinesses and animal health and nutrition companies to make data-driven decisions, from strategy to execution, through predictive analytics and advanced insights. Kynetec has direct access to the markets they serve - farmers, veterinarians, pet owners, and agricultural experts - with deep understanding of the complex dynamics that shape those markets. They regularly undertake data and analytics projects in all the major agricultural and animal health/ nutrition markets, spanning more than 80 countries, to provide the insights that enable their clients to build winning strategies and brands.

Further information is available at www.kynetec.com

This interview was originally published in AgroPages magazine 2024 Latin America Focus.