Agchem sector to grow 15% in Argentina in 2016

Date:01-29-2016

The measures of the new Argentine government favoring the farm business will stimulate a growth of about 15% for the agrochemical sector in the country. The end of the export taxes and the release of a floating currency policy have determined a new environment of optimism for agricultural production, and one of the most benefited sectors is the industry of crop protection, which expects to have a revenue of US$ 2.7 billion.

According to what the recognized sources in the market have told Clarín newspaper, in 2015 the sector of crop protection will close the year with a revenue of US$ 2.45 billion. The result would mean a fall of 10% comparing to 2014 – yet a reflection of the last year of the Kirchner administration, when farmers did not invest due to loss of profitability and the high burdens of the time.

Other factors pointed out for this low figure in 2015 was the fall of grain prices, the higher domestic costs and currency pressure. To complete this recessive scenario, the year presented a strong inflation of the international price of glyphosate, which is the best seller active ingredient in the agricultural sector.

Horacio Busanello, CEO of the Los Grobo group and former president of the Chamber of Agricultural Health and Fertilizers, estimates that the sector will reach a revenue of US$ 4 billion. “We got here with everything against us. Now it is the time to come back to the growth path,” projects Busanello.

The companies with greater share in the Argentinean market are BASF, Bayer, Syngenta, DuPont, Monsanto, Dow, Atanor, FMC, UPL, Nufarm, Agrofina and ACA (Association of Argentine Cooperatives).