The agrochemical market in Brazil was valued at US $13.5 billion in 2019. By 2020, the worth for crop safety merchandise dropped to US $12.1 billion, a lower of 10.4%. For the yr 2021, the National Union of Vegetal Defense Products Industry (SINDIVEG), calculated agrochemicals can have a turnover within the nation of round US $13.3 billion, a 9.9% enhance over 2020.
This represents roughly 536,000 tons of agrochemical merchandise to be utilized in Brazilian fields, in keeping with the Brazilian Association of the Chemical Industry (ABIQUIM). In 2021, 499 registrations had been obtained, the very best variety of merchandise registered by the Ministry of Agriculture, Livestock and Supply (MAPA) in Brazil in recent times.
Among the brand new registrations, six had been new technical merchandise based mostly on the next lively substances registered within the yr 2021.
Seven of the brand new registered merchandise had a formulation based mostly on a brand new lively ingredient. The following are the brand new formulated merchandise registered additionally within the yr 2021.
The registrations of 499 crop safety merchandise permitted by MAPA in 2021, turned a turning level within the historic sequence of approvals with 16 registrations between technical product, 77 organic, 243 formulated chemical compounds, of which 470 (94%) are post-patent. Approvals have been rising since 2016, when there was a chance to register just for 277 merchandise (MAPA). In the MAPA chart, it exhibits data obtained since 2015.
According to SINDIVEG, the agrochemicals utilized in Brazil are divided into 4 classes in keeping with how they’re used. Herbicides have the most important share of the market, adopted by pesticides, fungicides, and different merchandise.
The highest proportion of agricultural pesticides utilized in Brazil, about 81%, is used for soybean, corn, sugar cane, and cotton crops, in keeping with SINDIVEG.
This progress in merchandise used as agricultural pesticides goes along with the spectacular progress of the planted areas within the nation. According to Companhia Nacional de Abastecimento / National Supply Company (CONAB), in 2020-21, somewhat greater than 69 million hectares had been planted, progress of 4.6% within the planted space from the prior yr. For the 2021-22 season, the forecast made by CONAB in December 2021 is 72 million hectares, which signifies a progress of 4.3% in complete planted space; confirmed within the analysis achieved by CONAB in April 2022 with a price of 72.7 million hectares, rising 4.4% over final yr.
These will increase in 2021-22 occurred primarily in soybeans going from 39.2 million hectares to 40.7 million hectares, and corn with a progress of 6.5%, going from 19.9 million hectares to 21.1 million hectares. These two crops account for 62 million hectares, which represents 85% of the planted space.
With reference to the estimated manufacturing of grains in Brazil, the guess is even increased. It is predicted that for the 2021-22 season that grain manufacturing will likely be roughly 269.3 million tons, up 5.4% over final season, which was 255.5 million tons. Most of the amount is concentrated in soy and corn manufacturing, which characterize 88.4% of the full manufacturing in Brazil.
With respect to agrochemical merchandise and in keeping with ABIQUIM, the way forward for the nationwide chemical business passes by way of regulatory stability, industrial protection, authorized safety, infrastructure, and aggressive entry to uncooked supplies and provides.
ABIQUIM indicated that Brazil imported US $6.4 billion in chemical merchandise in November 2021. The unprecedented worth represents will increase of 4.3% in comparison with October (a month-to-month report, till then) and an enormous 65% enhance in comparison with November 2020.
In regards to the imports of practically 6.2 million tons (will increase of 0.7% in comparison with October and 17.1% in comparison with the identical month final yr), it’s also a report, and confirms the stabilization development of international purchases to an alarming new stage of merchandise that might be manufactured within the nation, if aggressive situations had been extra favorable.
The worth of Brazilian pesticide imports from January to August 2021 was decrease by 22.3% in comparison with the identical interval in 2020.
ABIQUIM famous that by way of November, imported chemical merchandise totaled US $55 billion, a rise of 45.6% in comparison with the identical interval final yr.
For Ciro Marino, General Director of ABIQUIM, the outcomes of the commerce stability of chemical merchandise are on the identical time discouraging, since they present the excessive stage of exterior dependence on vital merchandise for the sustainable improvement of the nationwide financial exercise (industrial makes use of) and for the nation itself, resembling fertilizers and pesticides.
One level that considerably impacts the event of Brazilian agriculture, because it did in 2021, is the scarcity of inputs within the nation. It is vital to notice that the soybean planting in Brazil started in mid-October of 2021, growing slowly attributable to drought. During this time the necessity for inputs is sort of excessive, as crops clearly require a vital time for his or her software.
Data from the Foreign Trade Secretariat (SECEX) of the Brazilian Ministry of Economy reveal that the phytosanitary merchandise formulated are primarily from the United States, China, and India. By quantity, China accounted for 32% of the full in 2020, forward of the United States and India with 11% every.
According to the Brazilian Association of Post-Patent Defensives (AENDA), in a research by IBAMA and Phillips McDougall Consulting, the lively substances most utilized in Brazil of their order of significance by enterprise class:
- Herbicides: glyphosate, 2,4-D, atrazine, paraquat, diuron, s-metolachlor, mesotrione, acetochlor, dicamba, and sulfentrazone
- Fungicides: mancozeb, copper-based compounds, sulfur, pyraclostrobin, azoxystrobin, prothioconazole, fluxapiroxade, tebuconazole, and epoxiconazole
- Insecticides: acefate, imidacloprid, and bifenthrin
In phrases of provide of uncooked supplies and formulated merchandise, China is a key provider of uncooked supplies for formulating agrochemicals in Brazil, along with formulated merchandise imported from there.
Recent selections by the Chinese authorities on the atmosphere have the potential to carry very optimistic outcomes to world weather conditions.
However, they generate sturdy short-term uncertainties concerning the supply time and prices of merchandise.
The scarcity of agricultural chemical compounds attributable to present conditions and excessive costs could have an effect on the 2022 rising season, as a result of the coal scarcity and energy cuts in China have additionally affected the availability chain for agrochemicals and fertilizers.
China’s vitality coverage will have an effect on the availability and worth of agrochemical intermediaries and lively substances, because the affect on factories in Yunnan and Jiangsu provinces, the place yellow phosphorus manufacturing serves as a feedstock for glyphosate, acetate, and malathion.
The state of affairs impacts to a higher extent the value of glyphosate, its intermediaries and uncooked materials resembling glycine, since its extraction requires loads of vitality. There has already been a rise within the worth of glyphosate. (The worth of technical materials in Brazil doubled as of September 2021).
On the opposite hand, American farmers are already getting ready for much less herbicide availability in 2022.
Glyphosate and glufosinate are the 2 essential lively substances that will probably be briefly provide for the upcoming rising season. And as indicated, China can also be a necessary supply of uncooked supplies and intermediaries for the formulation of agricultural pesticides. The enhance within the costs of precursors has a cascading impact on different manufacturing nations, and the affect will likely be felt by practically all Latin America, which is a internet importer of pesticides.
According to IBAMA, 72% of the lively substances in agricultural pesticides marketed in Brazil are imported, both formulated or within the type of technical merchandise to be formulated within the nation.
Another level that have to be thought of are the impacts of the shortage of containers that haven’t but been normalized.
An vital factor that requires all of the consideration that impacts the commercialization of agrochemicals in Brazil is the specter of the unlawful market of agricultural pesticides. The Institute for Border Economic and Social Development (IDESF) carried out the research, “The Illegal Market of Agricultural Defenses in Brazil,” the place it’s indicated that the illegalities of the market are characterised by theft, counterfeiting, smuggling, and deviation of the aim of use. The most smuggled merchandise in Brazil are emamectin benzoate, thiamethoxam, and paraquat, along with many others.
However, it seems that extra pesticides are being smuggled from neighboring Paraguay, the place laws on these merchandise are rather more relaxed.
In the report by IDESF, it’s estimated that 25% of the pesticides bought in Brazil are of unlawful origin and 30% of the seeds have an unknown origin.
According to the National Association of Agricultural and Veterinary Supplies Distributors (ANDAV), distribution points attain the sphere with information, applied sciences, and innovation, roughly 50% of all inputs that arrive at this time within the Brazilian area undergo a distributor, and ANDAV has grouped greater than 2,000 distributors nationwide for greater than 30 years.
How does the warfare between Russia and Ukraine have an effect on agricultural companies in Brazil?
The affect on agricultural enterprise in Brazil is vital, because it imports about 85% of its fertilizer wants with Russia as the principle provider of fertilizers to Brazil.
One of the principle inputs for agricultural manufacturing are the fertilizers that Brazil imports from totally different nations globally, and 80% of the movement of fertilizers comes from ten nations, amongst that are the Russian Federation, Morocco, Canada, the United States, China, Belarus, Qatar, Israel, Algeria, and Saudi Arabia.
The movement of fertilizers to Brazil signifies that it has a 13% share within the world fertilizer commerce of a complete of US $64.8 billion and that the Russian Federation is the principle provider of potassium fertilizers, nitrogenous fertilizers, and combined fertilizers for an approximate worth of US $1.7 billion that correspond to twenty% of the fertilizers that Brazil buys through the yr 2020, Brazil imported fertilizers from greater than 60 totally different nations with a price of US $8.5 billion (in keeping with resourcetrade.com). The export of fertilizers to Brazil is led by the Russian Federation, from which 20% is imported in keeping with the portals of The Observatory of Economic Complexity (OEC) and Chatham House, The Royal Institute of International Affairs; adopted by Morocco with 11%, Canada with 9.7% and the United States with 8%. Being 10 nations that export 80% of the fertilizers to Brazil.
These are the fertilizers imported to Brazil: 32.3% combined, 31.8% potassium, 31.7% nitrogen, 3.9% phosphate, and 0.2% natural.
On the opposite hand, Brazil exports 0.73% to Russia of its complete export quantity, which corresponds to US $1.6 billion, represented primarily within the following merchandise: soybeans, walnuts, espresso, sugar, and tobacco amongst others that characterize nearly 50% of exports to Russia.
According to the Brazilian Agency of the Brazilian Communication Company, to handle this case of importing fertilizers, Brazil launched the “National Fertilizer Plan” because the nation depends upon imported nitrogen, phosphorus, and potassium. According to the Minister of Agriculture, Livestock and Supply, meals safety is a matter of nationwide safety, and fertilizers play an vital function in avoiding a meals disaster.
Javier Chavarro is an skilled Agribusiness skilled with broad involvement in Latin American agricultural enterprise and deep information of selling, prime administration, monetary administration, and agronomy. He has a background in advertising and industrial improvement, specializing in the farming enterprises in Latin America working immediately with nations and areas resembling Colombia, Ecuador, Peru, Chile, Mexico, Central America, Argentina and Brazil. He has labored for multinational firms together with Bayer and Nufarm with roles in enterprise technique improvement and implementation in Latin America. See all creator tales right here.
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