Adama to increase market share in Brazil to ‘two digits’

Date:07-31-2023

Israeli agrochemical company ADAMA revealed to AgroPages that it wants to have a ″double-digit share″ of the Brazilian pesticide market.

On a recent visit to Brazil, the new CEO of ADAMA, Steve Hawkins, stated that the company is ″optimistic about the prospects in the country.″

Steve Hawkins (left)

″I always had a positive impression of Brazilian agriculture, but I was impressed with the progress I saw compared to the last time I was here, seven years ago,″ he declared.

ADAMA's chief executive believes 2023 should be a year of volatility in the global market, but he is optimistic.

″The breadth of the portfolio allows us to have more tools to meet different agronomic needs,″ he mentioned.

Brazil is Adama's main operation in Latin America, a region that accounted for 29% of the company's global sales last year when they totaled US$5.6 billion.

The country is among the company's top five markets, along with China, India, Australia, and the United States.

In December, the company inaugurated a new unit with an investment of BRL300 million, intending to place at least five new fungicides on the market in the coming years.

″We invest a lot in Brazil, mainly in production. And we put more people in the field to closely monitor the farmers,″ said Romeu Stanguerlin, CEO of ADAMA Brasil.

According to Hawking, the pesticide market is experiencing problems in international logistics that have affected the industry, and the supply and demand situation remains unstable, with the war between Russia and Ukraine still ongoing.

″It is a year of great volatility, and prices are likely to increase. We need to find a balance in supply while seeing a high level of demand from farmers. There is a risk of a different imbalance between supply and demand, which means that the correct product may not be available at the right time and place,″ he said.

In 2022, herbicides accounted for 45% of the company's global revenue, followed by insecticides (27%) and fungicides (19%).

According to Hawking, Adama is developing a strategy in biological products, a segment that has been growing.

″It is a very fragmented area. So, we want a position based on the farmer's needs. It is market by market, but we want a well-judged approach because we believe we are still strong in synthetics,″ he added.

BRAZIL TOUR

In Brazil, where he had already been a few times, Hawkins stayed for six days and, now as CEO, met with some customers and partners.

He was also with ADAMA's executive team in the Brazilian state of Paraná, where the company's headquarters are located, discussing the challenges of the Brazilian market.

The CEO also visited trials conducted at the ADAMA experimental research station, also in Paraná.

″ADAMA launched a new global strategy 18 months ago, and I saw its first pillar come to life here, that of being inspired by farmers and being close to the channels. We listen to farmers and our partners. And I liked what I saw as far as relationships go. We are a technology provider, and if we provide the right technology, it makes people want to work with that demand. That is what I saw,″ Hawkins said.

According to the CEO, the Brazilian model, which he considers unique, involves the manufacture of active principles, formulation, commercial organization, research, and product development, and a complete business to deliver the best solutions to farmers and partners.

″We have invested a lot in Brazil in recent years, mainly in production. We synthesized some products and invested in new formulations. We created a hub of formulations and put more people in the field, which is what we like to do,″ Stanguerlin added.

(Editing by Leonardo Gottems, reporter for AgroPages)

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