Sindiveg projects an 11,8% drop in the market value of pesticides applied in 2020

The agricultural pesticides market is expected to see a reduction of 11,8% in the dollar value of products applied in 2020, with revenue of US$11,994 billion – in 2019, revenue reached US$13,603 billion. The projection is from the National Union of the Plant Defense Products Industry (Sindiveg), based on a survey commissioned from a specialized consultancy.

"From January to September, the exchange rate loss was 15% for the sector", informs the president of Sindiveg, Julio Borges Garcia. "The intense devaluation of the real against the dollar this year has been an important challenge for the agricultural pesticides industry, which has the majority of its costs in importing inputs and raw materials. Due to the large exchange rate variation, it was not possible to the full pass-through of the increase in costs", says the director.

"On the other hand, the area treated is larger in 2020 mainly due to two factors, one of which is the expansion of the planting area in several crops – 3,4% in soybeans, 4% in corn and 3% in cotton. Another fundamental reason is linked to increased pressure from phytosanitary challenges in crops, especially insects (such as stink bugs and leafhoppers), fungi (which cause diseases such as Asian rust and ramularia) and resistant weeds (with special emphasis on pigweed and fleabane)", highlights Julio Garcia.

As a result, the area treated with agricultural pesticides should grow by around 6,5% by the end of 2020, estimates Sindiveg. Projections indicate a jump from 1,562 billion to 1,664 billion hectares treated. This result is obtained by multiplying the treated area in hectares by the volume of products used and also by the total number of applications carried out.

Agricultural pests and diseases represent a growing challenge for farmers. If not well managed, they can cause a reduction of up to 100 million tons in agricultural production. "Our climate and temperature, which greatly benefit the production of up to three crops during the year, making Brazil one of the largest food producers in the world, are also ideal for the spread of these enemies of productivity, which are increasingly resistant and challenging”, highlights the president of Sindiveg. “Integrated management, correct soil preparation, crop rotation, good seed selection, nutrition and the use of biological and chemical products in a scientific and correct manner are the pillars that guarantee the protection of crops and the consequent expansion of food production”, he concludes.