Agrochemical market in Nicaragua faces challenges

Date:11-30-2023

The agrochemical market in Nicaragua experienced significant and steady growth until 2018 and 2019, according to market intelligence agency AgbioInvestor. Currently, one of the major issues affecting the country is social and political instability, with tax rises leading to 30% inflation in the price of agrochemicals. As a result of this tax policy, there was a significant reduction in the importation of agrochemicals in 2019.

According to AgbioInvestor, the basic manufacturing and formulation of active ingredients is limited in Nicaragua. ″However, there are many importers and distributors. Initially, local formulation focused on biological products and insecticides, predominantly pyrethroids and organophosphates. More recently, the formulation of herbicides and fungicides has increased,″ analysts said.

The most important local distribution companies include Abrasa, AgriCentre, Agroinsumos del Tropica, Agrovvet Nicarao, Agro Alfa, Ramac, Cisa Agro, Servicio Agrícola Gurdián, Insecticidas San Cristóbal, Bellrod, BioQuim, Cindeco, DuWest, Foragro, Formunica, HanseAndina, Leiman Invest and Profiysa.

Major multinational companies in the country include Bayer, BASF, FMC, Syngenta, Helm and Jebagro. Agrochemical companies in Nicaragua are represented by the Nicaraguan Association of Formulators and Distributors of Agrochemicals (ANIFODA). The market is led by products imported from China, Guatemala, the USA and Costa Rica. However, products from Guatemala and Costa Rica often use active ingredients purchased from China or India, formulated and re-exported from these countries.

Nicaragua Outlook

Agriculture continues to be a fundamental part of Nicaragua's economy, employing 30.6% of the national workforce and representing 15.8% of GDP. "The use of agrochemicals per hectare is high compared to other developing markets, although similar to other Latin American countries, such as Bolivia, Guatemala and Ecuador," said the AgbioInvestor agency. However, Nicaragua has a limited capacity for agrochemical formulation, and intellectual property legislation is overseen by the Registro de la Propiedad Intelectual (RPI).

"Patents and trademarks are granted based on first registration, and patents have a term of 20 years. Trademarks are registered for ten years but can be indefinitely renewed. Illicit trade and copied products have been a longstanding issue in Nicaragua. The country is a member of the World Intellectual Property Organization," analysts stated.

(Editing by Leonardo Gottems, reporter for AgroPages)

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