April 16, 1996
Latin American Pesticide Market Growth
Latin America is becoming one of the fastest growing regions
for agrochemical sales, according to "Crop Protection in
Latin America," a January 1996 publication by Agrow Reports.
The report, which examines Latin American market data from
1992 through September 1995, explains that market
liberalization, growing international trade alliances and
relative political stability all lay the groundwork for
expansion of agrochemical sales in many countries. According
to Agrow, Latin America (which, in this report, includes
South America, Central America and Mexico) accounts for
approximately US$2.6 billion, which is 9% of annual world
agrochemical sales.
The greatest increase in sales will most likely be for
pesticides used on maize, soybeans, fruit and vegetables;
demand for pesticides in cotton and wheat production may
grow, but more slowly. The region produces approximately 60%
of the world's coffee, 40% of the world's bananas, 25% of the
world's beans, 20% of the world's cocoa, as well as
significant quantities of sugar, maize, cotton, potatoes,
rice and wheat.
According to the report, Brazil accounts for 55% of pesticide
sales in Latin America (pesticide sales were US$1.4 billion
in Brazil in 1994). From 1993 to 1994, sales of agrochemicals
increased for all leading crops, including soybean (up
30.2%), sugar cane (up 11.5%), citrus (up 17.7%), maize (up
36.3%) and coffee (up 44.8%). Sales of agrochemicals for
cotton production increased 57% between 1993 and 1994, and
cotton ranked third in insecticide purchases throughout this
period. Brazil's cotton acreage dropped over the past few
years as world cotton prices declined, but Agrow predicts
that plantings will recover to previous levels.
Herbicide sales dominate the agrochemical market in Brazil,
accounting for more than 50% of pesticide sales in 1994.
Brazilian herbicide use may continue to expand, especially as
more farms convert to minimum tillage practices, which often
rely on increased herbicide applications to control weeds.
Agrow points out that many large farms are experiencing
severe problems with soil erosion and deteriorating soil
structure, and that this situation is driving the shift to
low tillage systems. In response to greater herbicide use,
Monsanto's Brazil division is stepping up efforts to
introduce Roundup Ready soybeans, genetically engineered
soybeans that can tolerate Roundup (glyphosate), a Monsanto
product.
Argentina is also a major market for pesticides in Latin
America. According to Agrow, Argentine agrochemical
distributor sales were US$521.5 million in in 1994 -- up 50%
from 1992. The report states that 1995 data, which were
incomplete at publication, may show growth by as much as 40%
from 1994 due in part to greater herbicide use on soybeans,
cotton and maize. More than half of agrochemical inputs are
for soybeans, which comprise the greatest acreage of
Argentina's crops.
Other countries with large markets for agrochemical sales in
1994 included Mexico (US$320.9 million), Colombia (US$316.2
million), Ecuador (US$93.3 million), Peru (US$84.3 million)
and Costa Rica (US$81.0 million). Between 1993 and 1994
agrochemical sales grew in Colombia, Ecuador and Peru by
19.8%, 13.7% and 27.2% respectively. Changes in Costa Rica's
pesticide market are not presented.
Mexico's pesticide market declined 41.4% in US dollar sales
between 1993 and 1994, and is projected to decline an
additional 30-35% in 1995. According to Agrow, causes of this
decline include reduced agricultural subsidies; drought in
1994 and 1995; and market liberalization.
The report also discusses major pesticide transnational
corporations in Latin America, of which Ciba leads in sales.
Tilt (propiconazole) and other triazole fungicides give Ciba
a large segment of the banana pesticide market, although
Agrow points out that triazole treatment has become much less
effective for controlling Black Sigatoka disease on bananas,
presumably due to widespread fungicide resistance. Farmers
now make as many as 40 triazole applications per year in an
attempt to control this disease. Other top selling Ciba
pesticides in Latin America include Dual (metolachlor),
sulfonylurea herbicides, and the triazines Gesaprim
(atrazine) and Gesapax (ametryn).
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