Seizing Growth Opportunities in Brazil: Tecnomyl Improves South America's Agrochemical Position With Asian Supply Chain Strategy

Amid the global trend toward sustainable agriculture, Paraguayan agrochemical leader Tecnomyl has achieved remarkable growth. From the strategic acquisition by Sarabia Group in 2000 to the establishment of Tecnomyl Biotech—Paraguay's largest biofertilizer plant—in 2024, the company has consistently driven innovation. Through its multidisciplinary R&D team, Tecnomyl develops efficient and eco-friendly agricultural solutions that meet farmers' needs, while promoting environmental stewardship.

With very significant growth in the Brazilian market, Tecnomyl now faces unprecedented delivery challenges, including an annual volume exceeding 100 million liters for just Brazil. As Vitor Wey, Supply Chain Head for Tecnomyl notes, this marks a pivotal moment in Tecnomyl's history. By strengthening strategic alliances with partners in China and India, the company is building a more resilient global supply chain to support rapid expansion across South America.

In this in-depth interview, AgroPages speaks with Tecnomyl's CEO Marcos Sarabia, Sales Director Roberto Valadão, and Financial and Administrative Director Rogério Alencar. They share their own insights into Tecnomyl's innovative vision and growth strategy, demonstrating how the company maintains its leadership in the competitive agrochemical sector through technological integration and localized practices—offering a "Tecnomyl Model" for sustainable agriculture.

Roberto Valadão(left), Sales Director of Tecnomyl; Marcos Sarabia (center), CEO of Tecnomyl; Rogério Alencar(right), Financial and Administrative Director of Tecnomyl

Since its establishment, Tecnomyl has become a leader in Paraguay's agrochemical industry. Could you share the key stages of the company's development, especially those milestone events that have driven its leapfrog growth? What do you think is Tecnomyl's core competitive edge? 

Tecnomyl has experienced important milestones in its history. One of the most important and growth-boosting milestones was the acquisition of the company by the Sarabia Group in 2000, which brought new investments and strategic direction, enabling a considerable increase in the capacity for formulations and the development of new products.

Tecnomyl's main competitive advantage lies in its comprehensive portfolio and high investment in innovation. We are continually searching for new blends and formulations that differentiate us in the market. In addition, our extensive access to farmers of various scales, especially in Paraguay and rapidly expanding in Brazil, strengthens our position and boosts our growth.

Paraguay's agriculture is dominated by crops, such as soybeans and corn. How does Tecnomyl develop its products and services to meet the needs of local farmers?

At Tecnomyl, we are constantly attentive to the needs of farmers, searching the world over for innovations that can make the daily lives of those who work in the fields easier. Our development process begins with a multidisciplinary team made up of agronomists and chemists, who are dedicated to creating and improving products. They conduct field tests with different combinations of active ingredients to maximize the effectiveness of each molecule and develop new formulations.

Our commitment is to always focus on the efficiency, economic viability and practicality of our products, ensuring that farmers have at their disposal solutions that not only meet their needs, but also contribute to sustainable and productive agriculture and complement their day-to-day operations.

In the field of crop protection, what are the main challenges currently faced by Paraguay's agriculture? In terms of chemical pesticides, what is Tecnomyl's product development strategy? What innovative products and solutions have been launched recently? What are the highlights of these products, in terms of technological innovation and application effects?

Paraguayan agriculture faces increasingly complex challenges in the field of crop protection, but is always on the path to higher production ceilings. Considering this scenario, Tecnomyl develops solutions that combine efficacy, safety and rational use of pesticides, with a focus on integrated management and preservation of soil health and agricultural ecosystems.

In response to these challenges, Tecnomyl has adopted a development strategy based upon innovation, selectivity and efficiency of molecules. We continually invest in modern formulations, with technologies that enhance performance, such as controlled-release formulations, synergistic blends of active ingredients, and advanced additives that optimize adhesion, penetration and resistance to washing, ensuring greater efficacy even in adverse conditions.

Among the most recent launches, we highlight products developed with state-of-the-art chemical engineering that comprise multi-active fungicides with a broad spectrum of action and high efficacy, post-emergence herbicides with prolonged residual activity and contact and ingestion insecticides with a dual mode of action. These products offer greater control, operational efficiency and savings to the producer, while reflecting Tecnomyl's commitment to sustainability, integrating synergistically with the use of bioinputs, consolidating the company's role as a promoter of modern, technologically advanced and environmentally responsible agriculture.

In the field of bioproducts, we have seen that Tecnomyl has built the largest and most modern biofertilizer plant in Paraguay. Could you provide a detailed introduction to its production capacity and the technical advantages of its flagship products?

In line with its commitment to innovation in regional agribusiness, Tecnomyl opened the largest and most modern biological input factory in Paraguay in 2024: Tecnomyl Biotech. This new manufacturing unit was designed exclusively for bioinputs, with an initial capacity of 1 million liters per year and a structure prepared for expansion by 10 times its initial capacity, already counting on automated fermentation systems, rigorous quality control and operation from the beginning under ISO 9000 and 14000 certifications.

The plant produces a complete line of biopesticides, biofertilizers and biostimulants, with emphasis on formulations based on microorganisms that are highly effective in controlling pests, diseases and stimulating plant development. These tools allow producers to optimize productivity, improve their control rates and preserve the effectiveness of chemical molecules in the long term.

With this initiative, Tecnomyl raises the standard of biological production in the region and positions Paraguay as a strategic hub for providing biotechnological solutions for Latin American agriculture, reinforcing its leading role in agricultural practices that combine sustainability with cutting-edge technology.

Against the backdrop of sustainable development becoming a global trend, how is Tecnomyl using biotechnological solutions to help Paraguay's traditional agriculture transition to a more environmentally friendly model? 

Tecnomyl adopts an integrated approach, combining biotechnological innovation with the reality of traditional agriculture. The company focuses on the joint application of chemical and biological tools, promoting a more effective management model. By sharing the responsibility for pest and disease control between these two categories of products, farmers can improve their control rates and reduce selective pressure on chemical molecules, prolonging their effectiveness and minimizing environmental impacts.

In addition to nematicide, fungicide and insecticide biopesticides, Tecnomyl has invested in the development and production of biostimulants and biofertilizers, which promote plant growth and improve soil health naturally and efficiently. These inputs contribute to more balanced nutrition, greater tolerance to climate stress and increased productivity, with high independence from global supply chains.

This integrated strategy allows Tecnomyl to move towards a more resilient, profitable and environmentally responsible model, evolving from conventional agricultural practices. Thus, Tecnomyl reinforces its role as a partner in the sustainable transformation of the countryside, uniting science, technology and agronomic pragmatism in the search to further solidify global food security.

The Brazilian agrochemical market is known for its high regulatory barriers and intense local competition. How does Tecnomyl address these challenges?

Tecnomyl Brazil spent more than 10 years, before making its first sale, investing significantly in product registrations. This initial investment was crucial to overcoming regulatory barriers in the sector. Today, we continue to invest substantial resources to the development of new products. With the business now fully operational, we have been able to identify more clearly the necessary paths to navigate this challenging scenario.

While we recognize the many regulatory barriers that exist in Brazil, we have learned to deal with them by building a highly qualified and high-performance registration team.

As for local competition, our experience in Paraguay, a country where the reduction of bureaucracy has allowed several players to enter the market, has prepared us well to face the challenges in Brazil. We have observed that the movement of new entrants in Brazil is somewhat similar to what Paraguay has experienced in recent years, serving as an important school for us.

The global agrochemical supply chain is facing dual pressures from geopolitical issues and cost fluctuations. How does Tecnomyl's cooperation with Chinese and Indian companies ensure the stability of the supplies of active ingredients ? Is there a consideration for local production to help reduce risks?

We have had relationships with major Chinese and Indian suppliers for over 20 years. We didn't just start. Our office in China has been in existence for 22 years, with a team that knows the market well and knows how to identify quality suppliers that we can trust. There's no secret: it's about relationships and knowledge. Obviously, working with adjusted logistics, with more reliable deadlines and proper planning helps a lot in containing potential problems.

As a member of the Southern Common Market (Mercosur), what unique export advantages does Paraguay's agrochemical industry have?

There are several advantages. Some of them are: 

Zero Tariffs: Mercosur member countries have zero tariffs on most products traded with each other, which reduces costs and increases competitiveness.

Customs Union: Mercosur has a customs union, which means that member countries have a common trade policy toward third countries.

Access to an Expanded Market: Mercosur offers access to an expanded market of more than 260 million people, which increases business opportunities for companies.

Export Diversification: Mercosur member countries can diversify their exports and reduce their dependence on a single market.

Economies of Scale: Regional economic integration can generate economies of scale, which reduces costs and increases competitiveness.

Infrastructure Improvement: Regional economic integration can drive infrastructure improvements, which assists with trade and investment.

Technical cooperation: Mercosur can provide technical cooperation and assistance to help member countries improve their export capacity.

What is the status and potential of Paraguay's agrochemical market in South America and globally? How is Tecnomyl leveraging this advantage to expand into international markets? What is the company's global strategic layout?

The Paraguayan agrochemical market, when compared to Brazil, is not a large market. Today, our strategy in Paraguay is very focused on defending our position, where we already have approximately 28% of market share.

The greatest opportunity for growth when we talk about South America and even the world, is in Brazil. It is the largest agrochemical market in the world, and the one that is growing the most. Today, most of our growth efforts are in Brazil. Although there are many players and high competition in these markets, currently it makes no sense to consider another country or continent when there are still opportunities to be explored here.