Brazilian farmers do not have access to 50% of registered agrochemicals

Approximately 50% of all agrochemicals registered in Brazil are not made available to farmers. This information is drawn from the data published by the Brazilian Health Surveillance Agency (Anvisa).
 
In addition, 24% of the agrochemical companies installed in Brazil did not produce or commercialize any product during the last harvest. “In addition to indicating a market reserve strategy, such practice represents a great loss to farmers, who are deprived of having access to registered products”, Anvisa director Agenor Álvares states.
 
Another point highlighted in the study is that 53% of agrochemical companies installed in Brazil do not have plants. “Those are companies acting as registration offices, being accountable for increasing the bureaucratic rubbish, not adding a single benefit to society”, the Agency director affirms.
 
According to the Agrochemical Industry Observatory coordinator Victor Pelaez, the registration of an agrochemical adds an intangible value to the companies’ patrimony. "Registration is the smallest barrier for the products to be marketed, once this market’s structure does not change”, Pelaez considered.
 
Profile
 
In the latest harvest, during the second semester of 2010 and the first of 2011, the domestic market of agrochemical sales moved 936 thousand tons of products. Production generated 833 thousand tons of agrochemicals, and there were 246 thousand tons of products imported.
 
Data also indicated that 90% of the domestic agrochemical production accounted for formulated products, that is, agrochemicals ready to be used in agriculture. The other 10% corresponded to technical products, which are the ingredients used in agrochemical formulation. “This means that most agrochemical industries installed in Brazil only pack raw materials from other countries”, Anvisa director explained.
 
According to the research, there is a concentration of certain categories of products in the agrochemical market. Herbicides, for example, accounted for 45% of all agrochemicals marketed. Fungicides accounted for 14% of the domestic market, insecticides for 12%, and the other agrochemical categories, 29%.
 
When compared to sales per active ingredients, glyphosate is top ranking, accounting for 29% of the Brazilian agrochemical market. Mineral oil represents 7%. Atrazine and 2,4D account for 5% each.
 
The study divulged by Anvisa analyzed the movement of 96 agrochemical companies installed in Brazil, which account for almost 100% of the domestic market altogether. There are currently 130 agrochemical companies in the country.
 
Concentration
 
In Brazil, the ten greatest agrochemical companies accounted for 75% of the sales market, during the last harvest. Regarding production, this index drops to 65%. “This market is extremely polarized, and the competitors can hardly find some space”, Álvares commented.
 
Another trend pointed out in the research is that the Brazilian agrochemical market has a singular structure, where the ten greatest industries do not compete against each other. “Even when patents expire, except some rare cases, the companies focus on the production of agrochemicals with active ingredients not marketed by the other companies, which incurs in a kind of monopoly of the products”, Anvisa director says.
 
According to the research by Anvisa, this market polarization trend also occurs at global level. The 13 greatest agrochemical companies control 83% of the sector’s world market.
 
In accordance with the Agrochemical Industry Observatory coordinator, this market is similar to an oligopoly with a high concentration level. “The oligopoly strategy itself establishes cooperation among the companies already in the market, as well as barriers to the ones outside it”, Pelaez concluded.
 
World market
 
While the agrochemical world market has grown 93% in the last ten years, the Brazilian market has grown 190% in the same period. In 2008, Brazil overcame the United States and became the greatest agrochemical world market.
 
In 2010, the Brazilian market moved approximately US$7.3 billion, and accounted for 19% of the agrochemical world market. The US accounted for 17% of the world market.