Agrochemicals ensure good harvest in Brazil

Sindag’s vice president, AmaurySarroti, and Andef’s CEO, Eduardo Daher, consider that the year of 2012 was a good year for producers to invest in plant protection products (Sindag is the National Union of Pesticide Industry and Andef is the Association of Plant Protection). The authorities stated that the use of these products was very important for grain crop’s record that is being harvested this year, which is estimated at 185 million tons by Conab.

According to the executives, attractive international prices for products such as beans, corn and soy, and the market’s good liquidity motivated farmers to pursue productivity gains through technology to control pests, diseases and weeds.

Andef and Sindag reported that this scenario boosted sales by 14% of plant protection products’ sales in the full year of 2012. The segment generated US$ 9.710 billion in the period, compared to US$ 8.488 billion in 2011.

However, the leaders emphasized that the behavior of the exchange rate - set at around R$ 2.00 during several months during 2012 - produced significant effect on the variation of net income compared to last year. "In 2011 the dollar was at a much lower level, between R$ 1.60 and R$ 1.70," said Ivan AmancioSampaio, information manager and coordinator of Sindag statistics entity.

According to authorities, the productive chain of cane sugar made a significant contribution to the income of this segment. The spokesmen indicate that in 2012/13 crop, that ended last December, there was a significant increase in the plants investment for raw material quality for manufacturing sugar and ethanol and cogeneration. "The sugarcane industry began a cycle of recovery for both milling and reinforced cultural practices", said AmaurySartori.

Eduardo Daher added that the drought in the United States also influenced sales of pesticides in 2012. "Previous harvests good prices capitalized Brazilian corn and soybean producers, this way they have gained extra motivation to invest in the productivity of their crops with the beginning of the American drought" emphasized the executive.

Entities also revealed that the most representative indicators of pesticide sales recorded in 2012 are concentrated in the cultures with the greatest potential for growth in Gross Value of Production (GVP) - as measured by the Department of Agriculture (MAPA) that defines the total price of the 20 major crops of the country.

According to MAPA the total GVP for the 2012/13 crop, considering the sum of all the cultures that make up the survey, is R$ 277.2 billion, an increase of 13% over 2011/12.

The study divided by cultures shows the main one is again soybean, with the record projection of R$ 83.5 billion, 27% higher than last year. Sugar cane and corn appear in sequence, with GVP estimated at US$ 48.1 billion and US$ 39.9 billion - an increase of 10.4% and 19% respectively.

Soy absorbed the biggest pesticides commercialization volume in 2012, with 47.2% of the total, followed by cane sugar (12.6%), corn (9.4%), cotton (9.3%), coffee (3.5%), beans (2.8%), citrus (2.3%) and other crops (12.9%).

In total pesticides sales in 2012, insecticides percentage increased from 35% to 38% from 2011 to 2012, reaching US$ 3.625 billion. The herbicide market was US$ 3.135 billion, 32% bigger than the year before, and fungicides reached US$ 2.449 billion, 25% increase. Acaricides and other products totaled 5% growth and added up to US$ 101 million and US$ 398 million, respectively.

Sindag projects a growth of approximately 4% in pesticides market this year. The spokesman reported that even in 2013 the industry will invest in a marketing strategy focused on its institutional role within science and food production, as well as dissemination of existing programs that contribute to sustainability in Brazilian agriculture.