Brazilian agrochemicals sales reach $8.5 billion in 2011

The Brazilian agrochemical industry ended the year with record sales of $8.5 billion in 2011, up 16.3% compared with 2010, according to the data from the Brazilian agrochemical industry association, the Andef and the Union of Agrochemical Industries (Sindag). Total trade value was $14.1 billion, with an increase of 11%.

The flagship crops of the industry-soybean, corn, cotton and sugar cane- still have good performances. Sales of pesticides for used on these crops accounted for some 80% of total sales in 2011.

Except for cotton, which is in decline in prices, the others did not have major changes. The price of soybean, which owns 44% of sales of pesticides, was high due to drought in South America and the reduction of area in the United States.

Brazil is characterized as a country between those who have one of the largest development potential in the use of pesticides. Eduardo Daher, Executive Director of Andef, says that the conditions of a tropical country force farmers to use more pesticides. Moreover, the country is two crops per year, which is not possible in cold countries.

The no-tillage and ban the burning of cane sugar also has demanded an increased use of pesticides to combat pests and insects in crops.

The use of pesticides in agriculture is undergoing a process of change. In early 2000, herbicides accounted for 50%. This season ending, the percentage dropped to 33%.

The use of fungicides, however, increased from 16% to 27% over the period, mainly due to changing conditions such as soybean rust.

After soybeans, cotton is the product that has the largest share of sales of pesticides in the domestic market, with 13% of the total. Sugar and corn are 12% and 9% respectively.

"For the outlook of 2012, it's too early for predictions, but current estimates are 3% to 5% growth.” Vice President of Sindag, José Roberto Da Ros says.

Source: Folha de S. Paulo