Market Trends of brazil crop protection chemicals Industry
Growing herbicide-resistant cultivars and weeds boosting herbicides’ consumption per hectare
- Brazil has witnessed a substantial surge in the consumption of pesticides per hectare, reaching an impressive increase of 1,700 g per hectare between 2017 and 2022. This remarkable growth can be predominantly linked to the profound impact of climate changes, characterized by heightened occurrences of droughts, heatwaves, and other favorable conditions that promote the proliferation of fungal diseases, weeds, and insect pests. As a consequence, farmers are facing major yield losses in their crops.
- In response to these climate challenges and driven by the pressing need to boost crop production, farmers are increasingly turning to the adoption of pesticides as a primary measure. While alternative methods of pest and disease control exist, they often entail higher production costs, making pesticides a more practical and cost-effective solution for many farmers. Moreover, the severity of crop infestations plays a pivotal role in influencing pesticide usage and application rates. As infestations escalate, farmers are compelled to intensify the application of pesticides to effectively mitigate losses and secure higher yields. As a result, the consumption of crop protection chemicals continues to climb steadily, shaping the agricultural landscape in Brazil.
- Among all, herbicide consumption per hectare grew significantly during the historical period, representing a growth of 2,177 g per hectare in 2022 compared to 2017, which is majorly attributed to the increase in weed infestations. On average, every year, weeds cause 14% crop loss, resulting in increased herbicide-resistant cultivars and weed resistance to herbicides. As of 2020, 51 weed species were reported as being resistant to herbicides, which further increased herbicide usage and per hectare consumption.
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Increasing demand and import tariffs are majorly altering the prices of active ingredients in the country
- Brazil's agricultural sector heavily relies on agrochemical products to safeguard crops and enhance production. However, the country is significantly dependent on the import of these products, with the EU being a primary supplier. As a result of this reliance on imports, the prices of pesticides in Brazil are greatly influenced by currency exchange rates, import tariffs, and duties, which can cause fluctuations and volatility in the market.
- Cypermethrin stands out among all active ingredients, commanding a price of USD 21,129 per metric ton. This higher cost is mainly due to the limited production of cypermethrin within the country. Additionally, Brazil ranks among the top 3 importers of cypermethrin globally, with the European Union being a major exporter to Brazil under the EU-Mercosur deal. These factors contribute to the premium price of cypermethrin in the market.
- In 2018, the price of Atrazine saw a significant surge, reaching USD 15.019 thousand per metric ton. This represented a substantial increase of 9.4% compared to 2017. The sudden upswing in Atrazine's cost is primarily linked to the escalating demand for the product, which is mainly imported from EU countries. The situation is noteworthy as Atrazine is banned in the European Union for domestic use but permitted solely for export purposes, causing a supply-demand imbalance and driving the price higher. It was among the top 3 highest-selling active ingredients in Brazil in 2018.
- Glyphosate, malathion, and mancozeb are the primary pesticides extensively utilized, and their active ingredient prices are witnessing yearly increases. These price hikes can be attributed to the growing demand for these products and the escalating costs of raw materials used in their production.
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