Agrochemicals market had a drop in harvest; sugarcane borer boosts insecticide segment

Research by Spark Intelligence Strategic consultancy shows that the agrochemicals market for sugar cane registered a drop of 9% in dollars in fiscal year 2021, to US$ 1,26 billion, compared to US$ 1,38 billion in 2020. The study BIP – Business Intelligence Panel –, exclusive to the company, concluded that this result was due to the 21% devaluation of the Brazilian currency during the harvest (average dollar at the time of purchasing inputs). In real terms, sales rose 15%, from R$5,88 billion to R$6,78 billion.

According to the recently published BIP, sugar cane, with an 11% share, is today the third largest crop, by revenue, for the crop protection sector. This, according to Spark, generated US$ 11,8 billion in 2021, a decline of 10% compared to 2020 (US$ 13,04 billion).

In American currency, the Spark survey revealed that there was a reduction in dollar movements in almost all categories of sugarcane agrochemicals. Only the fungicides segment, third in economic importance, showed a positive performance: it rose 9,5% compared to 2020, from US$42 million to US$46 million.

Scenario is favorable to insecticides

In the entire research, says Leite, the highlight is the accumulated evolution of the insecticide group. Even with a 5% decline in the sugarcane planted area since 2017 (9,502 million hectares to 9,021 million hectares), the segment grew on average 3,4% per year, in dollars, ranging from US$435 million to US$557 millions. In 2021, it closed at US$497 million, 10% below 2020 (US$550 billion).

In second place among sugarcane agrochemicals, insecticides corresponded to 34% of the total movement of the crop in 2021, according to Spark. “In the evaluation of treated area, such products had an average increase in producer adherence of around 10% per year, from 2017 to 2021, rising from 14,939 million hectares to 21,517 million hectares”, emphasizes Leite.

There is an expectation that the segment will remain strong in the coming harvests. “The control of the sugarcane borer, a highly severe pest, should increase the use of insecticides, including biological products”, assesses Leite. “Bore management corresponded to 52% of the treated area and 22% of the insecticide segment in the 2021 harvest, around US$ 110 million. Also highlighted were products for nematodes, soil pests (sphenophorus, termites and migdolus) and leafhoppers”, he continues.

According to the consultancy's figures, the area treated by nematicides jumped from 1 million hectares to 1,27 million hectares. Adhesion grew from 11% to 13% of the total cultivated area. Leafhoppers required applications on 5 million hectares or 24% of the total area treated with insecticides, followed by soil pests. These represented 3,7 million hectares treated in 2020 and reached 4 million hectares in the last harvest.

Herbicides at the forefront

According to BIP Spark Cana, herbicides remain at the forefront among the products most demanded by producers to protect sugarcane crops, with 52% of total sales or US$656 million. This amount, Leite points out, includes a 10% drop compared to 2020 (US$729 million).

Also according to BIP Spark Cana, growth regulators, which share the third position with fungicides among the agrochemicals most applied to grass, with 4% of the market, generated US$51 million in 2021, compared to US$54 million in the last harvest. , minus 4%. Other products covered by the survey – adjuvants, pH reducers, inoculants, oils and others – totaled 1% or US$ 12 million.

According to Vitor Leite, BIP Spark Cana 2021 resulted from more than 500 face-to-face interviews involving producers, segmented into plants and raw material suppliers. Around 230 municipalities were covered from October to December 2021. “This collection model captures all the management undertaken by producers throughout the fiscal year”, concludes Leite.