Market Trends of south america crop protection chemicals Industry
Frequent climate changes like drought and heat waves and intensive agriculture practices raised the overall pesticide consumption per hectare
- Between 2017 and 2022, there has been a remarkable surge in pesticide consumption per hectare across South America, witnessing a growth of 5,277 grams per hectare. This significant increase highlights the region's escalating reliance on pesticides in agricultural practices, spurred by a combination of influential factors. These include the adverse effects of climate change, such as frequent droughts and heat waves, as well as the adoption of intensive farming techniques like no-tillage and monoculture practices.
- Consequently, the proliferation of weeds, pests, and diseases has become more frequent, necessitating the intensified utilization of pesticide products and their application rates to protect valuable crops. Countries like Brazil, Argentina, and Paraguay faced challenges from climate conditions with respect to agriculture yields.
- In the region, herbicides have become the predominant pesticides utilized per hectare, experiencing a substantial growth of 3,702 grams per hectare in 2022 compared to 2017. This remarkable increase can be mainly attributed to the rising prevalence of weed infestations in agricultural fields. Farmers in countries like Brazil and Argentina have increasingly adopted herbicide-resistant varieties for major crops such as soybeans, maize, and wheat. However, this widespread adoption has also led to a rise in weed species developing resistance to herbicides. In Argentina, more than 30 weed species have shown resistance to various herbicides, while in Brazil, the number has risen to 51. This could lead to higher utilization of herbicides per hectare. Thus, factors like climate change and other intensive agricultural practices increased the fungicides and insecticides consumption per hectare
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Heavy pesticide usage and imports from European countries majorly fluctuate the active ingredient prices
- South America stands out as a prominent user of pesticides, primarily driven by intensive agricultural practices like monoculture, no-tillage, and the goal to increase food production. However, the region heavily relies on pesticide imports from European countries, as many products that are banned from use are permitted to export.
- In 2019, pesticide prices witnessed substantial growth attributed to the increased drought conditions, leading to higher pesticide usage, a surge in demand for pesticides, and the unavailability of certain pesticides. All these factors contributed to the rise in pesticide prices, which recorded growth of up to 5-10% from the prices in 2017.
- In 2022, cypermethrin took the lead as the extensively utilized insecticide, with the price of the active ingredient standing at USD 21,087.6 per metric ton. Its widespread adoption in the agricultural industry is due to its effectiveness in controlling a range of insects, including spotted ball worms, pink ball worms, early spot borers, and hairy caterpillars.
- In 2022, atrazine experienced a notable price hike, reaching USD 13,810.3 per metric ton. It finds application in both pre and post-emergence control of broadleaf and grassy weeds, with its highest usage in field corn, sweet corn, sorghum, and sugarcane crops. The use of atrazine is restricted in EU countries, but it is approved for exportation. As a result, South American countries serve as major importers of atrazine from EU countries.
- The price of mancozeb was approximately USD 7,810.9 per metric ton in 2022. This contact fungicide offers protection to a diverse array of crops, such as fruits, vegetables, and field crops, as well as turf management. Its versatility and effectiveness have earned it a valuable reputation among farmers.
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