Market Trends of asia pacific crop protection chemicals Industry
Increasing pest proliferation is leading to higher application of pesticides
- The average consumption of crop protection chemicals in Asia-Pacific was 2.9 kg per hectare of agricultural land in 2022. Fungicides were the highest used among all chemical pesticides, with average consumption amounting to 10.6 kg per hectare. This indicates the significant threat posed on agricultural production by fungal pathogens, resulting in a higher need for fungicides. Fungus-causing rice blast in paddy has developed resistance to MBI-D fungicides, leading to a higher need for fungicidal applications.
- Fungicides are followed by herbicides, with a per hectare application rate of 10.4 kg per hectare in 2022. The increase in herbicide usage per hectare can be attributed to various factors, including an aging farming population, labor shortages, and the expansion of agricultural land. These factors have prompted a transition from manual weeding practices to the utilization of herbicides for effective weed management in significant crops like rice and soybeans. Weeds are also becoming very tough to manage as they are developing resistance to existing herbicides, leading to higher dosages of application.
- Insecticides are the third most applied among pesticides in Asia-Pacific countries, with a per hectare application rate of 8 kg in the year 2022. Global warming and climate change are posing various challenges to agricultural production, even by increasing the pest population through various mechanisms. For instance, the brown planthopper (Nilaparvata lugens), a major pest of rice, has been observed to increase in population and expand its distribution in response to rising temperatures in parts of Asia. Similarly, the usage of nematicides and molluscicides has been increasing amid growing awareness among farmers of their benefits, along with the increasing need.
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Limited availability and demand for cypermethrin have increased the price of active ingredients in the Asia-Pacific market
- Cypermethrin is the dominant insecticide used in the region, being a synthetic pyrethroid effective against a wide range of insect pests such as Lepidoptera, Coleoptera, Diptera, and Hemiptera. Countries like India, China, and Vietnam primarily rely on cypermethrin for pest control in various crops. Notably, China and Vietnam are the major importers of cypermethrin. As of 2022, the price of the active ingredient had risen to USD 21,037.7 per metric ton, reflecting a notable increase of 21.1% since 2017. This surge in price can be attributed to the growing demand for cypermethrin in crops like sugarcane, cotton, fruits, and vegetables.
- Atrazine holds a prominent position as a widely utilized herbicide in the region, classified as a chlorinated herbicide of the triazine class. It serves as both a pre- and post-emergence herbicide, effectively controlling annual broadleaf weeds and grasses in crops like soybeans, maize, sugarcane, and turf grasses. The active ingredient's price has experienced consistent year-on-year growth due to its extensive application across various crops. As of the latest recording in 2022, the price stood at USD 13,817.2 per metric ton, marking a significant increase of 29.8% since 2017.
- Mancozeb is a contact fungicide known for its versatile application modes, effectively targeting a wide array of fungal diseases in cereal crops, fruits, vegetables, and pulses. The price of the active ingredient currently stands at USD 7,776.9 per metric ton, making it one of the principal fungicide active ingredients extensively utilized in the Asia-Pacific countries.
- The prices of active ingredients are experiencing annual increases due to the rise in raw material costs, import tariffs, and escalating logistics expenses.
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