Tough time for agrochemicals in all Latin American countries

Date:06-16-2016

Agronomist Martín Martínez Baldovinos, a market expert from the insecticides company San Cristóbal, headquartered in Chinandege (Nicaragua), sustains that “producing without agrochemicals would be a disaster” and considers that this industry grows just in proportion to increase hectares of crops.

But the business of those products suffer with ups and downs in all countries because the revenue depends on the success of the farmers in the harvest. In general, the agrochemicals are sold through credit and the failure or success affects the dealerships that sell agrochemicals, indicates the president of the Association of Suppliers of Agricultural Inputs and Products (Apia) in Bolivia, Juan Manuel Rojo. “In this sense, we are having a tough time,” said Rojo.

The issue was discussed in a round table with the participation of Rodolfo Jáuregui, marketing manager of Interagro S.A., Marco Antonio Villarroel, owner of Petrodrill, Alfredo Vives la Pont from Plusagro, and Ramiro Fernández Galarza of Ciagro, in a meeting in Bolivia.

Opportunity

The experts have coincided that the sector lives a delicate moment, once the agricultural sector depends a lot on credit and, as a consequence of crop losses for climate change, the lower commodity prices and yet smuggle in the case of Bolivia, most farmers are in arrears. The sales of the harvest are not enough to cover the loans obtained from commercial agencies.

But Jáuregui, Villarroel, Vives and Fernández, do not see an adversity in this situation, but consider a big opportunity for the input dealerships to be more efficient to seek mechanisms to help producer to obtain more yields. “It is the occasion to reactivate the sales of agrochemicals. We should bring more technology to allow better yields in a manner that producers have the option to conciliate debt with banks, but with the dealerships,” cited Rodolfo Jáuregui.

According to Apia, which represents more than 80 companies in the country, the market of pesticides and fertilizers moves annually around US$ 300 million. The vast majority are financed by the importing companies, the ag industry and a very low percentage by the banks. “That’s why we are carrying the greatest burden of debt until it can be arranged. The small and medium producers don’t have the means to pay the pending bill and need inputs, if we don’t support them, they will not be able to pay us. Therefore, the challenge is to be efficient and face this situation, we hope that will pass soon,” manifested Alfredo Vives.