Interview – Bioinput Market Advances and Evolves in Brazil

André Dias, Executive Director of Kynetec for Latin America, recently stated that the Brazilian biologicals market will undergo a "violent consolidation and cleanup." In this special interview with AgroPages, he discusses the current bioinput market landscape, trends, and future projections for this segment.

André Dias, Executive Director of Kynetec for Latin America

How do you assess the current bioinput market landscape in Brazil?

We may see an intensification of sector consolidation and the emergence of new generations of these types of crop protection products. The number of biologicals has nearly tripled over 10 growing seasons in Brazil. Consequently, biologicals' share of total crop protection products reached 20% in the last season, almost double the 11% share in 2014-2015. This market now covers 6% of the country's treated agricultural area.

Why do you say the biological market will undergo a "violent consolidation and cleanup"?

Biologicals have existed for a long time but recently experienced growth and prominence because the industry has been developing these products better with more technology and marketing. This first generation of biologicals should grow, and there will be a process of acquisition and incorporation by major sector companies. In contrast, others will disappear, given Brazil's scenario of credit restrictions and high interest rates.

What factors should influence this market's development in the medium and long term?

Credit access, faster registration of new products, clarifying common doubts such as product efficacy and mode of action, compatibility with other solutions, and better application programs. Given increasing familiarity with these tools, expanded adoption and frequency of use, plus investment in developing new solutions: new formulations, agent consortiums, and new generation biological products. These are key issues for this segment's continuous advancement.

What advances and new technologies do you project for biological products?

The next generations of biologicals will be genetically modified, and those born in startups and universities, along with bioherbicides and plant extracts, should appear in coming years. The market for these is already growing.

Why has the market share of major companies decreased despite sector heating?

This is due to new companies emerging in the sector, generic product advancement, and faster new product registration, which leveraged the post-patent product class with competition.

The share of the five largest sector companies in the total treated area is 52.2%, but it approached 60% in the late last decade. Participation by other companies rose from just over 40% to 47.8% in the 2023-2024 season.

Is this a trend, or should we expect major players to return?

Today, the post-patent market, which is surrounded by competition, has grown significantly, changing the scenario. However, two factors could also change company participation by size: first, the restricted credit environment hampers small companies' growth; second, the launch of patented, more efficient products is done by large companies as it requires significant investments.

How do you analyze the new Brazilian legal framework for bioinputs approval? Is regulation a market stimulus factor, or could it present barriers?

Bill 658 regulates and encourages bioinput production, treatment, and classification while ensuring greater predictability and legal security for sector investments. The new law will help small and large farmers while boosting sustainable production.

(Editing by Leonardo Gottems, reporter for AgroPages)