European agrochemical sales up 7% in 2011

Date:04-18-2013

In 2011, the market for crop protection products in Europe (EU 27 and EFTA nations) increased by 7.2% to reach €7,683 million at the manufacturer level. This figure relates to the value of product actually used on farm during the agricultural year. After the elimination of currency and inflationary factors this was equivalent to a real increase of 5.3%.

 The key factors affecting market performance in 2011 were:
• improved crop prices;
• economic improvement, particularly in Central and East European markets;
• an early end to the winter, dry and late spring and an early summer start in central west Europe.

In general terms in the EU-15 the farm economy strengthened as the year progressed due to improving crop prices, however agrochemical price improvement was limited following a very competitive year in 2010. Overall, volume improvement offset a stable pricing environment such that all European country markets recorded growth in local currency terms.

Generally crop production in the EU in 2010 was depressed by adverse weather conditions, such that rising crop commodity prices resulted in increasing crop acreages in 2011 for many crops.

Change in EU planted area 2011/2010
Crop	Cereals	Maize	Rapeseed	Sunflower	Sugarbeet	Potato
Change %	0.5	7.9	-1.1	8.1	-0.3	-2.8
Source:ECPA

During 2011 there was a shift away from oilseed rape toward the cultivation of cereals, although the acreage of sunflower continued to improve.

The shift in planted areas had a direct impact on the agrochemical market, with higher levels of inputs used on cereals in comparison with oilseeds.

Following a strong start to the season due to an early end to the winter, growing conditions were relatively normal except in central west Europe, particularly France, Germany, the Netherlands and England where a dry late spring and early summer affected crop production and agrochemical demand. However, improving crop prices were conducive to the usage of crop protection products. As a result the intensity of product usage improved in 2011 in comparison with 2010.

Due to higher crop prices, improved economic conditions in central European markets and acreage changes, all major crop sectors in the EU and EFTA crop protection market registered value increases in Euro terms in 2011. Despite the shift in acreages, the greatest growth in agrochemical sales was recorded by oilseeds and sugarbeet then maize and cereals. The only sectors to record declines were the minor crop markets of rice and cotton.

Agrochemical sales in EU-27 and EFTA by crop (€ million)
Crop	Sales
Cereal	2788.9
Maize	868.2
Rape	722.2
Sunflower	161.3
Sugarbeef	245.9
Potato	414.9
Vine	783.7
Pome Fruit	384.2
Other F & V	891.2
Other crops	514.8
Total	7683
Source:ECPA

At the product level increases were recorded across all sectors except the ‘Others’ category (plant growth regulators and fumigants); the most positive being insecticides where sales were assisted by strong performances in the sunflower, vine, cereal and fruit & vegetable markets. In the fungicide sector only potatoes recorded the greatest improvement followed by pome fruit and cereals, whilst in herbicides all major crop sectors saw considerably improved turnover, especially oilseeds. In the ‘Others’ sector cereals was the only crop sector to record increased sales in 2011.

Agrochemical sales in EU-27 and EFTA by Product Sector (€ million)
Category	2011	2010	Change%
Herbicides	3390	3130	8.3
Insecticides	1073	988	8.7
Fungicides	2933	2753	6.5
Others1	287	295	-2.8
Total	7683	7166	7.2
1Plant growthregulators and fumigants Source:ECPA

Whilst all EU-15 (the original more west member states) markets registered growth in 2011, few exceeded 10% in comparison with 2010, however the most positive market in the European region was Romania, which grew by over 40% in local currency terms, followed by Russia (+32%), the Ukraine and Bulgaria (both +29%).