Latin America Focus

August 2014

CONTENTS

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Advertiser Index
AgroChemEx / CCPIA 

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Beijing PLM Biosciences Co., Ltd

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Bharat Group

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CAC Show / CCPIT

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Chemtec

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Corechem

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Croda
Dr. Knoell Consult Gmbh

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Inside back cover

GREIF

P4

Hebei Veyong Bio-Chemical Co., Ltd.

P2

Market Insight
5

Brief Overview of Latin America Agriculture in 2013

Latin America: Granary of the World, a Land of Opportunity

10

Multinationals Being Major Players in Latin American Market

Johnson Matthey Catalysis & Chiral Technologies

13

Agricultural Growth in Latin America: The Need for Innovative Agrochemical Products

17

Latin America the Main Driving Engine to Global GM Crops

21

The Brazilian Crop Protection Market is Ripe for Growth

Indofil Industries Limited

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Jiangsu Fengshan Group Co., Ltd.

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Jiangsu Weunite Fine Chemical Co., Ltd.

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Facing Content

Kline Group

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Marketsandmarkets

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Ningbo Generic Chemical Co., Ltd.

P27

23

Paraguayan Agrochemical Market Sales Boosted in 2013

P9

25

The Most Destructive Pests & Diseases Faced by Latin American Farmers

ODS Servios em Agronegcio

Rudong Zhongyi Chemical Co., Ltd.

P20

Interviews

Shandong Kangqiao Bio-Technology Co., Ltd. P33

Shandong Weifang Rainbow Chemical Co., Ltd. P27

28

Its all about stewardship - Interview with Csar Lamonega

Shanghai Profirst Co., Ltd.

P42

30

CAC Exhibitions - Grow Together with the Chinese Pesticide Industry

Siyang Rodenticide Factory

P42

32

More Companies Registered Bio-pesticides in 2013

Solvay

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Stockton Group

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Tide Group

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Yancheng Limin Chemical Co.,Ltd

Back Cover

Zhejiang Wynca Chemical Group Co., Ltd.

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Zhejiang Zhongshan Chemical Industry Group  P12

Viewpoints
34

Brazilian Pesticide Market More Barriers for Access

37

How to Cope with Volatile Economies in Latin America?

39

Why Can We Get Competitive in the Paraguayan Agrochemical Market?

Disclaimer: If some advertisements and product profiles in this issue contain references to active ingredients still under patent protection in certain countries, such content
are deemed inapplicable to those countries.

Market Insight

Brief Overview of Latin America

Agriculture in 2013
Argentina: The largest crop producers

The total estimated arable land for

Author: Miguel Elizalde Dithurbide

Miguel Elizalde Dithurbide is a chemical
engineer, with 16 years experience at
Agrochemical & Seeds International
Company, at the Manufacturing
Technology Area. Since 2009, he worked
as an independent agrochemical project`s
consultant with focus on industrial
improving operating practices through
Six Sigma & LEAN Programs. He is also
a freelance journalist of international
magazines and a consultant for market
research firms.

South American countries and Mexico is

states are located at the Center-East

about 136 million ha, where approximately

& Center-North where there is a warm

43.6% belongs to Brazil, 23.8% to

middle latitude climate with more than

Argentina and 17.9% to Mexico, it means

occasional frost, rare snow and no distinct

more than 85% of arable land between

dry season. The NW states are smaller

these 3 countries. Paraguay, in spite

crop producers and are steppe or arid,

of having only 3.1%, is the 3rd largest

with annual moisture losses that generally

soybean production from region.

exceeds average annual precipitation.

The climate boundaries* for the largest

Southern states are steppe (arid) or desert

Latin America (L.A) crops countries, could

areas, not useful for large crop productions

be outlined as follows:

other than small fruit crops (e.g Rio Negro

Brazil: Most of territory has a tropical

valley and Andes mountainside valleys).

Mexico: The Northern area is mostly

climate (little or no significant frost) with

rains year round at the states of North

steppe, arid or desert with annual moisture

and little or no rains during 2-3 months

losses that generally exceeds average

for the states of Center (where is located

annual precipitation except a narrow

one of the largest crops producer state:

strip of North East which is subtropical

Mato Grosso). Also the North climate

wet (e.g Matamoros state). The south

represents to the coastline of the Center

half mainly has a tropical climate (little or

region. In the South, there is a warm mid-

no significant frost) with little or no rains

latitude climate with occasional frost and

during 2-3 month.

Main largest crops planted in L.A region

rare snow and no distinct dry season. Two

are summarized at the below table:

others largest crops states (Paran & Ro

Grande do Sul) are located at the South.

Crop / Season
Soybean

Corn

Wheat

Others

Brazil

Argentina

Paraguay

MTns

MHa.

MTns

MHa.

MTns

MHa.

13-14

86.6

30.0

54.0

20.3

8.1

3.2

12-13

81.5

27.7

49.3

20.0

7.95

3.03

13-14

75.2

15.3

32.1

5.9

2.83

12-13

81.5

15.8

32.1

6.1

13-14

6.9

2.55

9.2

3.65

0.96

12-13

5.5

2.2

8.2

3.16

13-14

12.6

2.43

4.7

1.26

12-13

11.8

2.4

5.2

1.7

Mexico

NOTES

MTns

MHa.

0.64

24.0*

7.9

4.17

0.86

22.1

7.4

1.39

0.63

3.5*

0.65

0.59

3.3

0.59

6.97

Brazil: Rice
Arg.: Barley
1.94 Mex.: Sorghum

Sources: Ministries / Secretaries of Agriculture, Livestock & Fishing

Note: Production volumes & Planted Area for 13 14 season are still under review.

Note *: Specific weather events, such as El Nino and/or La Nina can modify the above
boundaries to held a sustained or repetitive situation along the time.

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August 2014

Latin America Focus

Market Insight
Climatic highlights CY (calendar year)

to increase by 25% compared to previous

than the outlined above for soybean.

2013: In South America the summer crop

season with 15% increase in acreage also

Wheat production in 2013-14 is expected

production rose significantly across the

raising the yield almost by 10%.

to increase by 12% compared to previous

most of countries, giving the improved

Soybean production in 2013-14 is

season with similar acreage increase,

delivering quite similar yields.

weather after abatement of La Nia and

rising by almost 10% versus previous

the transition to neutral/low effect ENSO

year, in spite of similar planted area; being

(El Nio/Southern Oscillation) conditions.

the main cause the severe flooding from

Paraguay were similar to those in

several key areas of Pampa Humeda

southern Brazil, with nearly good weather

seems to rise above 5% versus 2012-

(crops most fertile area at Center

for soybean development, however the

13 season, mainly boosted by 10%

East of country) at the end of soybean

soybean production was slightly higher

higher planted area. However with yields

cycle on previous 2012-13 season.

than previous year having a planted area

slightly lower, corn volumes in 2013-14

As a consequence the yield this year

almost 7% higher than previous season.

season are estimated to be about 8%

is expected to increase by 8% versus

Corn had a significant reduction of

lower than 2012-13 season, mainly due

previous season.

production, partially due to lower acreage

Soybean production in 2013-14 season

to a combined effect of having 3% lower

Corn volumes in 2013-14 are estimated

Conditions for summer crops in

but having a shortage of rains during the

planted area and a shortage of rains

to be similar to previous season, although

flowering step that reduced the yields by

during critical growing steps from plants.

the planted area was about 3.3% lower.

10% comparing to previous season.

Wheat production in 2013-14 is expected

Main cause is the same weather effect

6 Latin America Focus

August 2014

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Market Insight

Latin America: Granary of the World,

a Land of Opportunity
Latin America stands out globally with production potential in agriculture. It is a
consolidated fact that the territory holds great worldwide importance as a food provider to
the world. The expansion of the agricultural frontiers was mainly generated by rising global
demand for food and biofuels, due to population growth and changing eating habits. This
enabled many large-scale investments in agriculture as well as in technology that has
boosted productivity.
Nowadays, the main countries that stand out with large expanse of arable land are
Brazil, Argentina, Paraguay, and Colombia. In these countries, especially Brazil and
Paraguay, there are large agricultural areas to expand food production. Only Brazil has a
total area of 835 million hectares, of which only 34% is used for agricultural and livestock
Author: Ricardo Stasinski
Ricardo Stasinski is a founding partner
of the company ODS Servios em
Agronegcio. He acts as broker and
trader in agricultural commodities
futures markets. Ricardo is an
agribusiness analyst, with regard to
national and international markets for
agricultural commodities.

use.
For agricultural products stand in absolute numbers the grain production, such as soy,
corn, wheat, rice, cotton and coffee. But beside these, there is infinity of small crops, fruit
and vegetables that are developed in these countries. There is also great emphasis on the
herds of cattle, poultry and pigs, mainly in Brazil and Argentina.
The biggest problem for agricultures expansion in Latin America is the limitation of
infrastructure, mainly logistical barriers that reduce the efficiency of the flow ports, and also
the limited storage capacity. These factors reduce the competitiveness of export products
due to high costs compared to large producers, like the USA.
However, even with great difficulties, the region attracts large investors in agriculture,
since Latin America is one of the few territories in the world with great potential, both

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August 2014

Latin America Focus

Market Insight
territorial and cultural, for the expansion of agricultural frontiers in
front of a growing demand for food.

In Brazil, good deal of soybeans and corns production

comes from the cultivation of GM crops, result of the increased
productivity that is provided, as well as ease of cultivation.
Because of this, Brazil has the 2nd largest area of GM crops,

Scenario in Brazil

40 million hectares, and also the fastest growing in the world,

Brazil is one of the biggest food producers in the world, and

according to ISAAA (International Service for the Acquisition

stands out by the steady increase in production season after

of Agricultural Biotechnology) the country boasts 23% of the

season. This is a result of the immense land area, along with the

worldwide are, losing only to the U.S. in the cultivation of GM

natural wealth, as the fertility of its lands, and the very favorable

crops.

climate for agriculture, and in some regions, it is possible to make

Some of the facts that generate concern in the country is the

incidence of plagues and diseases, that even under control has

more than one crop per year.

increased significantly the production cost of Brazilian producers.

The main highlight is the production of grains such as

soybeans, corn, wheat, rice and coffee as well as fiber, which is

As Brazil has a high production potential, it is necessary to use

the case of cotton. Moreover, in meat production the country is an

technological packages of insecticides, pesticides and herbicides

important producer of beef, pork and poultry. Therefore, soybean

to continue emerging as a leading producer of the world.

and corn end up having the largest number of area and production.
Table 1. Harvested area by crop in 2008 to 2014 in Brazil
Culture

Scenario in Argentina
Argentina is the second largest grain producer in Latin America.

Area
2008/09

2009/10

2010/11

2011/12

2012/13

2013/14

In this country the main agricultural products are soybeans, corn,

Soybean

21.74

23.47

24.18

25.04

27.74

30.11

wheat, barley and sunflower. Argentina has one of the most fertile

Corn

14.17

12.99

13.81

15.18

15.83

15.73

Wheat

2.43

2.15

2.17

1.90

2.21

2.62

soils in the world, where it is grown about 35 million hectares.

Rice

2.91

2.76

2.82

2.43

2.40

2.40

Coffee

2.09

2.08

2.06

2.05

2.02

1.93

Cotton

0.84

0.84

1.40

1.39

0.89

1.10

Area:Million hectaresSource:CONAB

Agriculture is heavily dependent on foreign markets, because

soy (which is largest agricultural commodity produced in the
country), has 70% of its products being destined for export. For
coffee, approximately 67% of production is exported. Other crops
such as cotton and corn, 38% and 27% respectively, are intended
for export. For other cultures, the main destination is the internal
consumption of the country. The importance of agriculture in Brazil
can be confirmed by what it represents in the country's exports,
34.3% of the total.

On the other hand, even being such important grain producer,

Argentina did not expand its production areas as well as Brazil.
The grain production remained constant in recent years. This
country has its production concentrated in one region, at the mercy
of bad weather, so oscillation occurs with the stable production
area.
Table 2. Harvested area by crop in 2008 to 2014 in Argentina
Culture

Area
2008/09

2009/10

2010/11

2011/12

2012/13 2013/14

Soybean

18.04

18.34

18.90

18.67

20.04

20.27

Corn

3.50

3.67

4.56

5.00

6.13

5.90

Barley

0.59

0.54

0.76

1.17

1.81

1.26

Wheat

4.73

3.56

4.58

4.63

3.16

3.65

Sunfiower

1.97

1.55

1.76

1.85

1.66

1.30

Area:Million hectares Source:SIIA / Minagri

In 2013, Argentina produced 24.4 million hectares of GM crops,

which corresponds to 14.4% of the total area cultivated with GM
crops in the world. Corn production is largely for export, 65%, but
in the case of soybeans, only 16% is allocated to the outside. Just
like corn, wheat also has a large export volume, with Brazil as
main destination.

Figure 1. Production by culture in 2008 to 2014 in Brazil

8 Latin America Focus

August 2014

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Market Insight
Outlook
The expectation of rising in production, and expansion of the
agricultural area in Latin America is strongly linked to the increased
demand for agricultural products in Asian countries, which has
gained much importance, especially for being the main imports
and has the greatest potential for increased demand.
Regarding the next season (2014/15), the outlook is for
increased production in all countries, especially those that produce
soybeans, corn and wheat. The price at the moment is favorable
for producers to invest in the culture, and climate projections for
Figure 2. Production by culture in 2008 to 2014 in Argentina

In the least years, Argentina has gone through economic and

political issues, which makes the country has high rates of inflation
and taxes on agricultural products. So, this ends up penalizing a
lot of farmers who end up stocking up on agricultural production
to avoid the loss of purchasing power of their production. This
practice happens especially in soybeans. In general, agriculture is
responsible for approximately 10% of the country's GDP.

the next harvest indicate that everything goes favorably for crops.
In the case of soybeans is projected that Brazil and Argentina
produce 91 and 54 million tons respectively. As for corn production
is expected to 74 million tons for Brazil and 26 million tons for
Argentina.
Also in the 2014/15 season the occurrence of El Nio is
expected, which historically represents good production rates in
almost every producing regions of Latin America. However, as
other producer countries also increase their production, if demand
does not increase in the same proportion stocks will rise, and
consequently prices worldwide will go down.

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August 2014

Latin America Focus

Market Insight

Multinationals Being Major Players

in Latin American Market
By Christina Xie

strategy, would of course took first action to

achieved increased sales of insecticides.

Editor of AgroPages.com,

capture the market. According to a rough

Monsantos GM crop penetration drove

Christina@agropages.com

calculation based on the sales indicators of

its increased sales of glyphosate in the

the global agrochemical industry leaders in

region. For FMC, Latin America has been

2012, the crop protection product sales from

the largest market of growth of 2013, where

market over recent years, Latin America is

the world top 7 agrochemical giants in Latin

the performance of soybean fungicides and

no doubt a very attractive market to global

America accounted for above 90% of the

insecticides in Brazil and the release of new

agrochemical companies. According to the

total sales in the region, being respectively

product contributed greatly to the growth;

statistics of famous agrochem consultancy

ranked as the following Syngenta, Bayer

furthermore its performance in Argentina

Phillips McDougall, the crop protection

CropScience, BASF, Dow AgroSciences,

and Mexico played a part in the growth.

market value of Latin America reached

Monsanto, FMC and DuPont. The ranking

DuPonts insecticide chlorantraniliprole and

$14.547 billion in 2013, nearly 27% up

simply shows that the market of Latin

other insecticides enabled its growth in the

year on year over the $11.467 billion of

America has minimum space now left over

region due to the strong demand in Brazil.

2012. The crop protection market of Latin

for new players except for the relatively

America has been growing at double-

bigger market which may be still exploitable

digit rate in average over the last 5 years,

in Brazil, which is the 1st largest market in

which is far higher than other regions of

Latin America and the second largest market

the world. The growth in this region in 2013

in the world. According to the statistics

was primarily attributable to the developed

of Brazilian agrochemical consultancy

overall economy resulting from the globally

AllierBrasil, the top 8 agrochemical

continued growing demand for soybean and

enterprises in the Brazil have taken up

maize, as well as the continued growing

approximately 72% of the total market in

GM crops and the worldwide raise of crop

2012; the balance was shared by more

prices.

than 100 companies including the generic

As a most-fast growing crop protection

agrochemical companies from China and

Fig. 1 Companies sales in Latin America
Total market value was $11.467 billion in 2012

India.
2013 saw excellent performance of the
multinational companies. Syngenta achieved
sales growth by 7% in the region reaching
$3.5 billion, attributable to the firm price of
soybean and the hot sales of seed treatment
products as a result of increased demand
for seed. The robust increased sales of
Bayer enabled a 20% growth, resulting from
its good performance in Brazil and Argentina

Sales

particularly the sales of fungicides and

The fast growing market has attracted

insecticides. Although having been affected

close attentions of large number of

by unfavorable exchange rate, BASF

enterprises, where multinational companies,

managed to maintain a 3.7% growth in

who have a sharp eye on the market and

Latin America, mainly due to the increased

are very knowledgeable on marketing

insecticides sales. Similarly Dow also

10 Latin America Focus

August 2014

Fig. 2 Sales in Latin America region in 2012

Expansion
As far as we known, Brazil and
Argentina are the most important markets
in Latin America region, therefore, it's
reasonable for multinational companies
mainly concentrated their investments and
expansions activities in these two countries.
Based on the analysis of activities of the
companies in recent years, it is not hard to
find that seed and biotechnology are the
most concerned fields of these companies.
At the end of 2012, Syngenta announced
to invest $5 million to upgrade its research
station located in Cear, Brazil. The station
mainly focused on research experiment
covering soybean, maize, sugarcane and
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Market Insight
fruit such as watermelon and cantaloupe.

August 2013, BASF launched a biological

introduced for earworm in 2013-2014 as per

The company also planned to raise

facility in Chile.

the following:

investment to expand the capacity of its

maize seed factory based in Brazil.

At the end 2013, FMC announced a

Apart from the approved insecticides

3-year $20 million investment in a capacity

for earworm control as stated above, the

extension to its pesticide plant in Brazil

companies also released various products

Argentine seed company FN Semillas S.A.,

which will end up in an annual output of 250

in the 2013/2014 planting season. Syngenta

who specializes in the breeding, production

million liters of pesticide.

registered in Argentina its seed treatment

In 2013, Bayer CropScience acquired

and marketing of improved soybean seeds

2013-2014, another active company

insecticide FORTENZA (cyantraniliprole)

in Argentina. The acquisition has allowed for

Sumitomo Chemical has established

for application to soybean, maize and

Bayers successful entry into the soybean

a branch in Argentina for expansion of

sunflower; and released in Brazil its

market of Argentina; additionally Bayer has

herbicide business as well as the branch

fungicide ELATUS (benzovindiflupyr +

entered into an agreement with the Brazilian

Summit Agro Chile SpA in Chile to develop

azoxystrobin), which is said to be the most

company wheat breeding company Biotrigo

the marketing of its pesticide and plant

effective product against Asian Rust since

Genetica to have obtained the legal right

growth regulator.

10 years. In Brazil, Bayer CropScience

released the fungicide Serenade with

for use of new wheat varieties of Biotrigo

Genetica.
Monsanto built an R&D facility in
Petrolina of Brazil last year in a purpose to

active ingredients being Bacillus subtilis

Product

strain QST713 for application to fruit and

Over recent 2 years the earworm

vegetable.

speed up the research of crops including

(Helicoverpa armigera) in Latin America

In 2013, the 2 fungicides of BASF

maize, soybean, cotton, sorghum and

especially in Brazil has been a trouble to

against Asian Rust were approved by

sugarcane of the country. Over the last

farmers and administrations, and recently

Brazilian government, being respectively the

10 years Monsanto has made over $1

same problem is reported to occur in

Orkestra (fluxapyroxad + pyraclostrobin)

billion investment in Brazil, mainly spent

Argentina and Paraguay as well. In the

and Xemium (fluxapyroxad). In 2014

on research of seed, biological technology,

planting season 2012/2013, earworm

BASF released the insecticide Fastac

genetic improvement, genetic and

already caused damages to the main crops

Duo (alpha-cypermethrin + acetamiprid) for

conventional breeding.

of Brazil, resulting in nearly a loss of $5

the primary pest control in soybean field.

The R&D center of Dow AgroSciences

billion although farmers had planted worm-

DuPont released the fungicide Aproach

in Mato Grosso of Brazil has been brought

resistant GM varieties and also applied

Prima (picoxystrobin + cyproconazole) for

on stream this year, being engaged mainly

conventional insecticides. During the times

soybean rust control and herbicide Accent

in development of hybrid maize which suits

of plague of earworm in Brazil, multinational

(nicosulfuron) for maize field weed control.

tropical zone, also engaged in research and

companies seized the opportunity to

Accent is the only nicosulfuron-based

development of soybean, gramineae and

promote their respective pest control

post-emergent herbicide using NicoDry

sorghum.

products resulting in hot sales of insecticides

technology. FMC also released in Brazil the

which contributed considerably to the growth

insecticide Mustang (zeta-cypermethrin) for

expansion activities taken place include the

of several transnational companies in 2013,

soybean and maize.

following:

as mentioned aforesaid. The pesticides

Crop protection business related

In March 2014, Bayer CropScience

acquired the Argentine seed treatment

solution provider Biagro, which enhanced its

Pesticides introduced for earworm control in Latin America

Company

Product

Active ingredient

Applied crop

AgBiTech

HzNPV CCAB

Nucleopolyhedrovirus

Andermatt Biocontrol

Diplomata

Nucleopolyhedrovirus

the crop protection production capacity

Arysta

Atabron 50 CE

Chlorfluazuron

cotton, soybean

within the Guaratinguet chemical plant,

BASF

Pirate

Chlorfenapyr

oilseeds

Certis

Gemstar

Nucleopolyhedrovirus

cotton, soybean

of establishment of its latest Xemium

Dow AgroSciences

Tracer

Spinosad

cotton, soybean

(fluxapyroxad) formulation plant as well as

Dow AgroSciences

Intrepid

Methoxyfenozide

cotton

DuPont

Premio

Chlorantraniliprole

maize, soybean

competiveness in biological seed treatment.

2013, BASF announced its EUR

50 million investment in an expansion of

which mainly includes an extension to the

boscalid production capacity in support

the Heat (saflufenacil) formulation plant; in

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August 2014

Latin America Focus 11

Market Insight

Agricultural Growth in Latin America:

The Need for Innovative Agrochemical Products

Latin America, the emerging agricultural powerhouse, is

to reach a value of $350.1 million by 2019. In terms of application,

growing at a rapid pace above the global growth average. Growth

the oilseeds & pulses segment is projected to grow at the highest

in this region is significantly contributed by the growth in the

CAGR of 6.4 % from 2014 to 2019.

The Brazilian insecticides market was valued at $981.0 million

agricultural sector of Brazil and Argentina.

Latin American agrochemical market result ($ million)

in 2013 and is projected to reach $1,293.9 million by 2019. The

demand for soybean has increased in the last decade in Argentina,

Category

2013

2012

Change%

2019 (est.)

Herbicides

5,524.2

5,251.2

+5.2

8,375.8

a CAGR of 4.1% from 2014 to 2019. The organic phosphorus

Insecticides

2,218.8

2,129.4

+4.2

2,834.6

compounds segment is the fastest growing segment in the Latin

Fungicides

2,071.4

1,967.1

+5.3

2,916.1

Seed
treatment

524.0

465.8

+12.5

1,063.2

Source: MarketsandMarkets Analysis

The Latin American market is led by Brazil in terms of pesticide

which is projected to help the insecticides market to grow at

American insecticides market. Growing at a CAGR of 4.8% from

2014 to 2019, it is expected to be worth $753.8 million by 2019.
The fruits & vegetables application is projected to have a market
share of 23.6% by 2019 in the Latin American insecticides market.
Latin America, Fungicides Market Size

consumption and utilization. The Latin American herbicides market

was valued at $5,524.2 million in 2013 and is projected to touch a
value of $8,375.8 million by 2019, at a CAGR of 7.3% from 2014
to 2019. Argentina saw a consumption 123.4 thousand tons of
herbicides in 2013 and is expected to reach 166.8 thousand tons
by 2019. The non-selective herbicides segment is expected to
grow at a CAGR of 8.0% from 2014 to 2019 and is likely to reach a
value of $6,218.2 million by 2019. The cereals & grains application
was the largest segment, valued at $2,107.2 million in 2013.
Latin America, Herbicides Market Size

Brazil was the largest fungicide market in Latin America and

its market size in terms of value was $814.5 million in 2013 and is
projected to reach a value of $1,208.7 million by 2019, growing at
a CAGR of 6.8%. The triazoles segment within the Latin American
fungicides market is the largest in terms of value, and is projected
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Latin America, Insecticides Market Size

The Latin American seed treatment market was valued at

$524.0million in 2013 and is expected to reach $1,063.2million by
2019, growing at a CAGR of 12.5% from 2014 to 2019. The seed
treatment segment is the largest within the Insecticides market,
and was valued at $271.4 million in 2013. Brazil is the second-

August 2014

Latin America Focus 13

Market Insight
largest user of GM seed in the world after U.S. Brazil holds about

increasing production costs accompanied with much environmental

15% of the global seed treatment market and 80% of the Latin

impact on their farmlands. If Latin American nations have to come

American seed treatment market.

up facing all the odds, it should implement necessary steps to

mend the plight of their farmers and farmlands for a better future.

Latin America, Seed Treatment Market Size

The statutory bodies must formulate policies that help the farmers
to gain better returns for their products, especially for the cash
crops produced in this region. Better crop management practices
with the infusion of sustainable organic farming could lead the way
for an everlasting production of food to feed the masses.
The Latin American agrochemicals market is growing at the
fast pace. Due to the vast area undertaken for cultivation, greater
adoption of agrochemicals has been observed in Latin America.
Companies and manufacturers around the world must develop a
long term strategy of sustained growth of the agrochemicals. This

Today, there is a massive volume of research being carried out,

aiming at developing agricultural technologies across the globe.
Farmers have embraced new technologies because it makes them
more efficient in protecting or increasing yields and reduces their
reliance on the harmful chemicals.
Latin America contributes 11% to the current value of
global food production and had a share of 13% in the

strategy includes phasing out of the old molecules from the market
which have posed a threat to the environment. Research and
development activities have been undertaken in order
to develop molecules which have comparatively
lesser environmental impact. Taking a cue from
the European market, companies in Latin
America should prepare to face saturation
and therefore should have a non-

global agricultural trade in 2013. Brazil produces

myopic vision and start investing in

a wide range of crops but the soybean crop

sustainable solutions.

has gained tremendous importance in the

The coffee rust fungus,

last couple of years and now more

also known as la roya

than half of the global soybean

is creating havoc

production comes from the Latin

among coffee

American nations of Brazil, Argentina,

plantation owners

Paraguay, Uruguay and Bolivia.

in the Latin American

Currently, Latin America is the world's

region. According

fastest-growing agrochemical market owing to

to International Coffee

Brazil's strengthening agribusiness and economic

Organization the fungus has

improvements in Argentina. Latin America has immense

potential to help in meeting the growing global demand
for food, feed, and fuel in a sustainable, productive way. Even
leaders in the World Economic Forum are optimistic about the
contribution of South America related to the global food supply.
According to Global Harvest Initiative (a private-sector voice
for productivity growth throughout the agricultural value chain
to sustainably meet the demands of a growing world), the food
demand could be met within the region as well as passed on to
the global agricultural markets if the current total factor productivity
of 2.67% is maintained every year.

Challenges the farmers face and what should

agrochemical companies do?
The Latin American farmers have been facing the problem of

14 Latin America Focus

August 2014

damaged crops worth $500 million

which has resulted in loss of 374,000
jobs in Latin America. The crop protection
companies have a significant opportunity to
introduce solutions that can counter this fungal
infection for which famers are ready to pay premium
prices in order to protect coffee plantations.
The dry climate in Brazil and Argentina is increasing insect
pressure on crops. This has created significant demand for
insecticides in these countries. The increase in glyphosate
resistant weeds is creating significant demand for herbicides in
the Latin American region. Increasing intensity of soybean rust
infection is creating massive demand for advanced fungicides in
the Latin American region.
The increasing pressure on farmers to optimize crop yield
for export grade agricultural products is increasing demand for

www.agropages.com

Market Insight
advanced crop protection chemicals in Latin American region. Soybean
rust as common fungal infection has increased demand for fungicides
in Latin America where soybean crops occupy maximum share in
cultivation.
The high intensity of conventional herbicide resistant pigweeds
in Brazil is creating concerns related to ecological balance in this
country. Herbicide manufacturers need to explore advanced varieties of
herbicides to tackle these ever evolving weeds.
The Brazilian farmers are embracing genetically modified crops due
to price sensitivity of various agricultural inputs such as agrochemicals
and water which are required in fewer amounts for cultivating these
crops. As compared to the North American region where governments
shower various incentives for agricultural community, the Latin
American governments lack the required resources for providing heavy
incentives for the agricultural sectors. Hence farmers in this region
have started using genetically modified crops which require lesser
agricultural inputs.
Global warming and green-house emissions have resulted in an
increase in the intensity of infestation of fungus and insects on crops.
This has consequently created substantial demand for crop protection
chemicals in this region. The increasing demand for bio-fuel, which
requires agricultural inputs such as corn and sugarcane, is creating
substantial demand for advanced crops to suffice the high production
requirements of bio-fuel. This has increased the use of crop protection
chemicals for the purpose of optimizing yield.
Increasing awareness related to crop protection and utilization
of modern agricultural practices warrant a substantial utilization of
agrochemicals in the Latin American region. Taking into consideration
the modern motto of sustainable agriculture, the agrochemical
manufacturers have to develop products that have a minimum
environmental impact. If they are able to strike a balance between
effectiveness and sustainability, then the Latin American market
can provide maximum return on investment to agrochemicals
manufacturers.
About MarketsandMarkets
MarketsandMarkets is a global market research and consulting
company based in the US. It publishes strategically analyzed market
research reports and serves as a business intelligence partner
to Fortune 500 companies across the world. MarketsandMarkets
also provides multi-client reports, company profiles, databases,
and custom research services. For further details please visit www.
marketsandmarkets.com

www.agropages.com

August 2014

Latin America Focus 15

Market Insight

LATIN AMERICA
the Main Driving Engine to Global GM Crops
By Christina Xie
Editor of AgroPages.com
Christina@agropages.com
According to the statistics of ISAAA,
a total of 27 countries have planted GM
crops in 2013 amounting to a total area
of 175 million hectares, which is a new historic record. There
are 11 countries in Latin America having planted GM crops
accounting for 41% of the world total number of countries; the
total planted area of the countries in Latin America reaches 71.2
million hectares, accounting for 41% of the world total planted
area of GM crops. The 11 countries are respectively Brazil,
Argentina, Paraguay, Uruguay, Bolivia, Mexico, Colombia, Chile,
Honduras, Cuba and Costa Rica, where main GM crops include
maize, soybean, cotton and canola.
In terms of planted area of GM crops, the top 5 countries
in Latin America are respectively Brazil, Argentina, Paraguay,
Uruguay and Bolivia. The total planted area of the top 5 countries
has reached 70.8 million hectares accounting for 99.4% of the
total planted area of GM crops in Latin America, where Brazil and
Argentina appear to be far ahead with their respective planted
area of 40.3 million hectares and 24.4 million hectares ranking
No.2 and No.3 globally following to the No.1 planted area of 70.1
million hectares in the US. It has been the first time for Brazil
to break through 40 million hectares. The growth of Brazil has
been a driving force to the global growth for 5 consecutive years
with its increased planted area exceeding all other countries.
Additionally, Brazil achieved a breakthrough in the plantation of
the 2.20 million hectare soybean of herbicide tolerant (HT) and
insect resistance (IR) stacked traits while its locally cultivated
anti-virus GM black crop to be commercialized soon.

Outbreak of earworm boosted planting area of

GM cotton in Brazil
According to the statistics of the Brazilian consulting company
Celeres, soybean is of the largest planted area of GM crops in Brazil
in the 2013/2014 planting season, which is a slight increase by 1.5%
over the 2012/2013 season, having reached 27.4 million hectares.
The planted area of GM soybean in Brazil accounts for as much as
91.8% of the total planted area of soybean; the planted area of GM
maize remains more or less the same as the 2012/2013 season,
being 12.5 million hectares accounting for 81.6% of the total planted
area of maize in Brazil; the planted area of GM cotton has grown
fastest in the 2013/2014 season, being 17.9% up year on year and
having reached 710,000 hectares accounting for 65% of the total
planted area of cotton in Brazil.

Top 5 countries planting GM crop in Latin America (million ha)

Country

2013

2012

Change%

GM crops planted in Brazil (million ha)

Brazil

40.3

36.6

+10.1

Crop

2013/14

2012/13

Change%

Argentina

24.4

23.9

+2.1

Soybean

27.4

27.0

+1.5

Paraguay

3.6

3.4

+5.9

Uruguay

1.5

1.4

+7.1

Maize

12.5

12.48

+0.2

Bolivia

1.0

1.0

Cotton

0.71

0.60

+17.9

Source: ISAAA

www.agropages.com

Source: Celeres

August 2014

Latin America Focus 17

Market Insight
The analysis of Celeres reveals that because soybean sells at

5 years, especially the fast growth of soybean and maize. There is

a much higher price than maize therefore farmers would of course

no comparability between conventional and GM technology in the

prefer to plant more soybeans when planting area remains within

present planting season except cotton for which conventional method

certain extent thus resulting in the higher growth rate of soybean than

is still attractive to farmers.

that of maize. Moreover the main reason for the significant increase

GM applications for the planting season coming up next will

of planted area of GM cotton lies on the outbreak of earworm over

continue to grow while conventional method will become a niche

the last 2 years. Although at present GM cotton is not proved to

business. However due to the increasing of demand from Europe

be resistant to all pests, yet farmers enthusiasm is not affected.

and Asia for non-GM crops, the conventional produce will be of high

In addition the short supply of cotton in Brazil and the high price of

value.

cotton in international market are also important reasons for farmers

to increase the planted area.
The planted GM crop variety in Brazil has currently 3 kinds of
traits -- HT, IR, HT and IR stacked. In the 2013/2014 planting season,
GM crops of HT is of the largest planted area which is approximately

Argentinas 3 major crops being mostly GM

varieties
Like Brazil, Argentinas planted GM crops are primarily soybean,

63.7% of the total planted GM crop area amounting to 25.9 million

maize and cotton. According to the statistics of ArgenBio, Argentinas

hectares, being 0.7% down year on year, mainly due to the decreased

GM soybean is of the largest planted area, 7.22% up year on year

market share as captured by the commercialization of soybean of HT

over that of the 2012/2013 planting season having reached 20.5

and IR stacked traits, insect-resistant cotton and composite property

million hectares. The planted area of GM maize dropped by 14.6%,

cotton.

being 3.74 million hectares while the planted area of GM cotton

GM crops of HT and IR stacked traits are of the 2nd largest

increased significantly by 28% having reached 550,000 hectares.

planted area amounting to 8.2 million hectares, being 45.8% up year

Almost all soybean and maize planted in Argentina are GM varieties;

accounting for 20.2% of the total planted GM crop area. This kind of

and planted area of GM cotton accounts for as high as 95% of the

GM crop variety is liked by farmers for its several benefits brought

total planted area of cotton.

to farmers such as easy handing, reduced filed working hour and

decreased work load.

GM crops planted in Argentina (million ha)

In Brazil the GM crop variety only with IR trait is now limited to

Crop

2013/14

2012/13

Change%

Soybean

20.5

19.12

+7.22

accounting for approximately 16.1% of the total planted area of GM

Maize

3.74

4.38

-14.61

crops. Similarly the market of GM crop variety only with IR trait is also

cotton

0.55

0.43

+27.91

maize and cotton, the planted area of which increased by 10.5%

up to the 6.5 million hectares in the 2013/2014 planting season

squeezed by the increasingly growing GM crops with stacked traits.

Source: ArgenBio

Nevertheless for Brazilian farmers, GM crop variety only with IR trait

still remains to be an important variety, particularly the insect-resistant

The statistics of Argentine biological institution ArgenBio reveals an

cotton, because there is few commercialized cotton with stacked

economic value of roughly $70 billion being generated by GM crops in

traits.

Argentina during the 15 year-period starting from 1996 when the first

According to Celeres, during the 17-year GM crop planting period

GM crop was approved.

(1996-2013), an economic value of $24.8 billion has been generated,

55% of which is originated from GM maize. Although planting of GM
maize started only from 2009, which however has rapidly led the GM
crop market growth of Latin America. The GM soybean which was
started in the 90s last century contributed 41% market value; the
balance of the 4% is generated by GM cotton.
Celeres predicts that in the 10 years ahead starting from

Multinationals promote new varieties as China

gave green light to some GM soybeans
According to ISAAA, a total of 13 GM crop varieties were
approved in Latin America in 2013. Mexico has the largest number of
approved varieties -- 6 varieties including maize, soybean and canola;

2013/2014 planting season up to 2022/2023, GM crops in Brazil will

Argentina and Paraguay each has 3 varieties approved; Brazil has

generate a market value of $90.8 billion. The takeoff of GM soybean

only 1 approved variety which is the Herculex XTRA Maize jointly

is expected to cause changes to the GM market structure in the

developed by Dow AgroSciences and DuPont Pioneer.

future, when 56% of market value will come from GM soybean, 38%
from GM maize and 6% from GM cotton.
Brazil has maintained stable growth of GM crops over the last

18 Latin America Focus

August 2014

Back in 2010, Brazil approved planting of Monsantos Intacta

RR2 PRO GM soybean. According to Monsanto, this kind of
GM soybean seed is a customized especially for farmers of South

www.agropages.com

Market Insight
of 2013. China is Brazils largest soybean

New GM crop approvals in Latin America in 2013

Country/Product* (Event name)

GM trait

Approved use

destination country, taking 70% of Brazils

Company

Mexico
food use

Dow
AgroSciences

Glufosinate &
Glyphosate & 2, 4-D
HT, Coleopteran &
Lepidopteran IR

food use

Dow
AgroSciences

Glufosinate HT,
Glyphosate HT,
Lepidopteran IR,
2,4-D HT

food use

Glyphosate HT

food use

Maize1 (DAS40278 x NK603)

Glyphosate HT, 2,4D HT

Maize1 (MON89034 x TC1507 x

MON88017 x 59122 x DAS40278)

Maize (MON89034 x TC1507 x

NK603 x DAS40278)
TruFlex Roundup Ready Canola
(MON88302)

soybean. In June 2013 Chinese government

approved import of this kind of soybean,
followed by Monsantos official release of
its Intacta RR2 PRO; Monsanto estimated
that 8% of the soybean seed used in the
2013/2014 planting season in Brazil would
be the Intacta.
In 2014, Dow AgroSciences announced

Dow
AgroSciences

successful development of a GM insectresistant soybean variety customized for

Latin America, which is not only resistant to

Monsanto

various herbicides but also resistant to the

commonly existing leaf eating worms. The

Soybean (MON87708 x MON89788)

Glyphosate HT,
Dicamba HT

food use

Monsanto

new variety has been submitted to Brazilian

Agrisure Duracade Maize (5307)

Multiple IR, MM

food use

Syngenta

put into commercial sales in 2016. Once

being approved, this soybean variety will

Argentina
Cultivance Soybean (CV127)

Maize1 (TC1507 x MON810)

Optimum Intrasect Maize (TC1507

x MON810 x NK603)

Sulfonylurea HT

food, feed use

BASF
& cultivation

Glufosinate HT,
Lepidopteran IR

Dow
food, feed use AgroSciences/
DuPont (Pioneer
& cultivation
Hi-Bred)

Glufosinate HT,
Glyphosate HT,
Lepidopteran IR

food, feed use DuPont (Pioneer

& cultivation
Hi-Bred)

Pro of Monsanto.
Furthermore, the Brazilian research
institution Embrapa is currently developing a
drought-resistant GM soybean crop, which
will bring benefit to the growers in the dry
southern part of Brazil.
biotechnology committee approved the

Roundup Ready Cotton (MON1445)

Glyphosate HT, AR

food, feed use

Monsanto
& cultivation

Roundup Ready Bollgard Cotton

(MON531 x MON1445)

Glyphosate HT,
Lepidopteran IR, AR

food, feed use

Monsanto
& cultivation

Intacta Roundup Ready 2 Pro

Soybean (MON87701 x MON89788)

Glyphosate HT,
Lepidopteran IR

food use &

cultivation

Monsanto

GM soybean DAS-444O6-6 of Dow

AgroSciences, which is resistant to 3 kinds
of herbicides glyphosate, glufosinate and
2,4-D.
In early 2013 Paraguay approved the
commercialization of the Intacta RR2 Pro of
Monsanto; recently Paraguay approved the
commercialization of the GM Maize NK603

Brazil
Glufosinate HT,
Coleopteran IR,
Lepidopteran IR

become a competition to the Intacta RR2

In 2014, Argentinas agricultural

Paraguay

Herculex XTRA Maize (TC1507 x

59122)

regulatory authorities, being planned to be

Dow
food, feed use AgroSciences /
DuPont (Pioneer
& cultivation
Hi-Bred)

Note: * if the product has no trade name, only shows the crop type; 1 trade name is not available;
HT= herbicide tolerance; IR= insect resistance; AR= Antibiotic resistance; MM= Mannose
metabolism.
Source: ISAAA

of Monsanto. To this end, Paraguay has

totally approved 5 GM maize varieties.
What is different from countries like
Brazil, Argentina and Paraguay, who are in
favor of GM crops, there are countries in
Latin America who are firmly against GM
crops. At the end of 2012, Bolivia released
a regulation to ban plantation of GM crops.

America for increase of yield, which has 3 advantages: yield increase, glyphosate resistance

Just 1 month later, a policy of Peru which

and soybean pest control. In view of the present soybean planting area of Brazil and the use of

bans the plantation or use of GM crops has

this seed, Brazil is expected to become the world largest soybean exporting country surpassing

officially come into effect after the 10-year

the US, bearing in mind that this kind of seed is put into mass plantation only from the latter part

suspension of plantation of GM crops.

www.agropages.com

August 2014

Latin America Focus 19

Market Insight

THE BRAZILIAN CROP PROTECTION

MARKET IS RIPE FOR GROWTH

The growing global population,

increasing need to improve crop yields,
and increasing demand for biologically-

increases produce crops and the

that do not have share in the four major

associated inputs.

crop markets in Brazil are investing in

Lastly, the adoption of high value

based new products are expected to

seed technology and the related seed

drive the demand for crop protection

protectant products purchased as

chemicals in the future. Brazil continues

insurance policies.

its role as a primary driver of global

long focused on Brazil as a potential

Being the seventh largest economy in

growth target. Syngenta is the long-

the world and the largest among those in

term leading company with an estimated

the Southern hemisphere, Brazil is also

20% market share. Bayer and BASF are

one of the fastest growing economies,

strong and consistent second and third

as well as, most importantly, the largest

players, and fast-growing FMC jumped

crop protection country market.

five spots from the ninth position to

With a 14% increase to nearly $10

the fourth position in the last 10 years,

billion in manufacturer level sales, based

passing companies such as Monsanto,

on interviews gathered and analyzed

DuPont, and Dow AgroSciences in the

through November 2013 for the full

process due to the historical strength

previous year, 2012 was an excellent

of its sugar cane and strong performing

year for the crop protection industry

soybean positions in recent times.

While these major crop protection

the estimated sales jumped by 18%

producers are holding onto their sizable

to some $11.5 billion. This remarkable

market share in the face of generic

growth was driven by three main drivers:

competition from smaller companies,

Primarily, export demand for

this may change as the speed of

corn and soybeans generated steady

registering new products appears to

increases in acreage of these crops and

be increasing due to pressure from

a corresponding increase in use of crop

growers and manufacturers to increase

protection products. Although the export

the efficiency of the product registration

growth may be slowing somewhat, it is

infrastructure. Nowadays, approval

far from mature as China rebounded as

for a chemical pesticide can take up

a customer of Brazilian soybeans and

to five years, but a biological may be

corn.

registered within 60 days as registration

Secondly, increasing domestic food

consumption by a growing population

www.agropages.com

Brazil Crop Protection Company Market

Shares

Crop protection manufacturers have

growth in the crop protection market.

across all product categories. For 2013,

products for these segments now.

of biological products is a governments

priority. Additionally, those companies

Among the leading indicators of crop

protection market changes was growth
in herbicides sales, driven by increases
in the planted areas of winter corn and
soybeans, which increased by over
14% in 2012. Additionally, glyphosate
resistance in weeds continues to be an
industry concern, forcing an increase
in selective herbicide sales. Moreover,
the increase in insect pests, such as H.
armigera, which is a new pest for Brazil,
aided the heightened use of insecticides,
which grew over 21% and was the
second leading category, representing
over 30% of the total market. Notably,
seed treatments also reaped doubledigit growth despite its minor presence
in the Brazilian crop protection market.

August 2014

Latin America Focus 21

Market Insight
Market Share by Product Type, 2013
(preliminary findings)

registration regulations and government

based new products, continued seed

encouraging organic farming. Bayer and

and/or chemical integration, and the

BASF have acquired leading companies

emergence of plant health as a distinct

in the biological arena, and others have

market segment will be future drivers

negotiated technology agreements

in the Brazilian market. Moreover,

to stay competitive with biopesticide

external factors that will shape

technology.

Brazils agribusiness sector include

Furthermore, farm economics are

Some of the leading trends in recent

years include integrated marketing by
companies that sell both seeds and
crop protection products to offer onestop shopping platform, consolidation
of distribution, and increasing market
power of mega growers among others.
For new crop protection companies
entering the market, distribution is
significant in a country the size of
Brazil, which has such large regional
variations in crops, climate, and
culture. Other trends include growth in
biological products based on favorable

22 Latin America Focus

August 2014

sustainability of crop production, water

favorable for growers now. Despite

management, climate change, logistics,

higher input costs for seeds and

and governmental registration time lag.

chemicals, commodity prices have

remained high in Brazil. As a result,

About Kline Group

farming is seeing record setting

Kline is a worldwide consulting and

profitability in this region and is not

research firm dedicated to providing the

showing signs of slowing down in the

kind of insight and knowledge that helps

near future. Growing pest issues will

companies find a clear path to success.

also play a role in developing this potent

The firm has served the management

market as weed and pest resistance

consulting and market research needs

is emerging as a key issue in Brazil.

of organizations in the chemicals,

Glyphosate weed resistance is growing

materials, energy, life sciences, and

and Bacillus thuringiensis (Bt) insect

consumer products industries for over 50

resistance is becoming prevalent.

years. For more information, visit www.

Global population growth, biologically-

KlineGroup.com.

www.agropages.com

Market Insight

Paraguayan Agrochemical Market

Sales Boosted in 2013
The total sale of pesticide in Paraguay in 2013 was
$299.33 million; 41% corresponds to herbicides, 36%

Paraguayan agrochemical sales per crop ($ million)

to insecticides and 23% for fungicides. Market increase

Crop

Sales of 2013

Sales of 2012

Change%

soybean

367.63

294.1

+20%

Corn

34.97

29.72

+15%

Sunflower

4.09

2.86

+30%

Wheat

39.33

32.25

+18%

Rapeseed

5.31

5.04

+5%

Total

451.36

369.98

+22%

in Paraguay is related to increasing new areas being

developed. Beef and rice production are the activities
responsible for increasing new productive regions.
Regional economy also helps to be attractive for foreign
capital investments.
Paraguayan pesticides market result ($ million)
Category

Sales of 2013

Sales of 2012

Change%

Herbicides

121.94

83.51

+46.01%

Insecticides

107.44

94.72

+13.42%

Fungicides

69.94

60.42

+15.75%

Source: El Tejar Paraguay SRL

Paraguayan agrochemical import volume (Kg)

Source: Import Custom House Information

Products

2013

2012

Adherents

147,050

347,307

Adjuvants

1,216,266

1,544,802

Correctors

210,087,600

124,422,000

4,409,980

718,528

809,657,963

653,907,377

Foliar Fertilizer

6,138,855

5,021,762

Formulated Fertilizer

2,213,000

336,000

Mineral Mixed Fertilizer

12,326,000

1,056,000

Mineral Simple Fertilizer

1,354,500

234,000

Fungicides

3,254,212

3,079,798

Herbicides

32,298,605

22,291,677

Inoculants

359,492

254,179

8,146,327

8,520,366

Adjuvants Insecticides

133,363

146,391

Acaricide Insecticides

337,263

206,834

Seed Insecticides

78,809

226,258

143,238,799

18,800,113

223,790

293,151

450,383

Soil Improvers
Fertilizer

Insecticides

Raw material for fertilizers

Substrates
Others

www.agropages.com

August 2014

Latin America Focus 23

Market Insight
According to sources from the Senave, the reduction of
products revenues responds directly to a hard drought occurred
in 2012 and large volumes of products could not be sold, at the

Argentinas development in the market is better, since the measure

was introduced much earlier than in Paraguay.
Lastly, the technician said that in 2014 not only will new patents

same time, the price of the dollar was low during that year which

be granted, but also those approved in the past will be validated.

increased income products.

Likewise, Marecos stated that in the market there is a great

Paraguay agrochemicals and fertilizers business achieved an

increase of 13% reaching $3,043 million in 2013.
It should be noted that the entry of fertilizers and plant

demand for crop protection products since the region presents

tropical weather, which allows for the existence of all kinds of fungi
and insects.

protection products has three legal ways, which are through the
processing industries, the formulator and multinational companies
which import the product totally prepared.

About Overseas Agro

OVERSEAS AGRO, born in the year 2010, inspired by Agr.
Eng. Fidel Macul Junior. It dedicates to service to requirements

Registration

of customers related to the Agrochemicals market in Paraguay.

Offers quickness, professionalism and consistency in their

Paraguay granted 400 registrations of crop protection products

operations. Focalized in the complete offer of local Agrochemicals

in 2013, some of which were generic while others belonged to

from multinational industries via local distributor, up to finally

different companies, according to the specialist Cristian Marecos

provide to farmers producing commodities in Paraguay. The

from the Senave of Paraguay.

company covers the complete service of regular procedures for

Marecos highlighted that this was a particularly busy year

REGISTRATION MANAGEMENT, up to IMPORT of agricultural

because of all the work derived from the new implementation of

inputs. It has as warranty, the remarkable quality of products of

the chemical equivalence a procedure that must be observed for

global companies most important of China and India.

each product since the late 2012. In relation to this, he said that

24 Latin America Focus

August 2014

www.agropages.com

Market Insight

The Most Destructive Pests & Diseases

Faced by Latin American Farmers
According to the report published by CropLife Latin America, in
Latin America and the Caribbean regions, agriculture generates 28%

1. Coffee Rust (Hemileia vastratrix)

of employment. Average agricultural exports from Latin America

Type: Fungus

represent 23% of the world total. In 2013, the farmers contributed 3%

Crop affected: Coffee

of the gross domestic product (GDP) in Latin America.

Today, farmers lose between 20% and 40% of their crops by

Coffee Rust is a disease which is caused

by the class of fungus named uredinales,

the actions of pests, weeds and diseases. Pesticides help avoid

which specializes in parasite living cells. The

the proliferation of pests, weeds and diseases affecting millions of

climate change has increased the impact and

hectares of crops.

the attack expanded to areas of higher altitude. The loss is immediate

Another fact we have to know is that $270 million worth of

for the fruits that fall or do not mature because of the defoliation of

investment in R&D is behind every pesticides development, dozens

plants.

of scientists multidisciplinary teams are part of the research behind

Losses:

each molecule. And the pesticide industry is one of the most

regulated in the world, 9.5 years is the average time of R&D of each
pesticide, a package of 130 studies needs to be submitted before the
national authorities to obtain sales and marketing permission.
The science behind a pesticide, guarantees that when the
pesticides are used under the instructions on the label, they are
safe for human health and the environment. By 2050 we will be a
population of 9,500 million people, pesticides can support farmers to
face the challenge of feeding a growing population.
Below are a few of the pests that farmers have had to face during
2013.

In Latin America, from 2012, 30% of crop losses have occurred. In

Central America, between 2012/13, losses have occurred to the value
of $243 million.

www.agropages.com

August 2014

Latin America Focus 25

Market Insight
2. Earworm (Helicoverpa armigera)

excessive rainfall, late applications of fungicides and large amount of

Type: Pest

Losses:

Crops affected: Soybeans, cotton and corn

The Helicoverpa Armiguera is a
polyphagous and cosmopolitan insect

fungus inoculums cause high losses.

In Brazil, during the 2012/2013 season, there were losses of $738
million. Until now, their control has been to the value of $21 billion.
During the 2000/2001 season, cases of Asian Rust were reported

which has a high mobility and high

in Paraguay for the first time. That year there were losses of up to

reproductive rate. They feed on leaves,

50%.

stems, buds, inflorescences, fruits and

beans.

5. Crown Rot (Phytophthora palmivora)

Losses:
In Brazil, during the 2013/2014 season, the pest caused losses of

Type: Fungus
Crop affected: Palm

$2.2 billion.
Paraguay is currently in observation of concentrated areas of the
earworm.

This disease produces young tissue rot,

impairs the issuance and maturation of new

In Argentina, although this insect is currently present, there are no

arrows and stops the growth of the plant.

Losses:

reports of damage.

It is responsible for the disappearance

3. Yellow Shoot Disease or HLB (Candidatus

Liberibacter spp)

of entire plantations in Panama, Colombia,

Suriname, Brazil, and Ecuador.

Type: Bacteria transmitted by insect

Crops affected: Orange, lemon, lime,
grapefruit and tangerines
Yellow shoot disease is one of
the most serious diseases of citrus
crop. It causes the death of the tree
irretrievably. The disease is transmitted
by an insect called the Asian citrus psyllid and affects leaves, stems,
roots and citrus fruits.
Losses:
In Paraguay during 2013, 20% of citrus fruit were affected.
In Mexico 526 thousand hectares of citrus in 23 states are

6. Black Sigatoka (Mycosphaerella fijiensis

Morelet)
Type: Fungus

threatened by the plague.

In Brazil during 2013, 64% of the plots were contaminated.
North of the province of Misiones, in Argentina, an outbreak of the
disease concerned authorities and producers.
Costa Rica, have made investments of about $1 million in
prevention campaigns.

Crop affected: Banana

Black sigatoka affects the plant
growth and production. It reduces the
capacity of photosynthesis and yield of
crops.
Losses:

4. Asian Rust (Phakopsora pachyrhizi)

Type: Fungus

Black sigatoka has caused 27% of crop losses in Central America

as well as 50% 100% in Colombia. In 2012, Black sigatoka had
caused 35% of crop losses in Ecuador.

Crop affected: Soybean and other

legume species
This is a biotrophic fungus, which

7. Frosty Pod Rot (Moniliophthora roreri)

can cause early defoliation of plants

Type: Fungus

and in severe cases it can affect

Crop affected: Cacao

pods and grains. Factors such as

26 Latin America Focus

August 2014

Frosty pod rot is a disease caused by the fungus basidiomycete

www.agropages.com

Market Insight
which is characterized by causing

their crops. Colombia also suffered losses to their crops by up to 50%

necrosis, warp and rot of cocoa ears. The

as well as Peru by up to 30% and Venezuela by up to 50%.

internal damage is more serious than the

external which means almost all of the
almonds of the fruits will be ruined.
Losses:
Frosty pod rot has caused 80%

9. Stink Bugs (Dichelops furcatus, Dichelops

melacanthus, Piezodorus guildinii, Euschistos
Heros, Nezara viridula)

damage to the Cacao crops in Peru, 70% damage in Colombia, 60%

Type: Pest

damage in Ecuador and 30% - 100% damage in Nicaragua.

Crop affected: Soybean

They are sucking insects of the

8. Potato White Worm (Premnotrypes vorax)

hemiptera group with incomplete

Type: Pest

adulthood without going through a

Crop affected: Potato

stage of inactivity), mainly eating grains and pods.

The white worm is a bedbug

with terrestrial and nocturnal
habits and can be found in the
South American Andes. When in

metamorphosis (several stages to

Losses:
During the 2012/2013 season in Brazil, stink bugs had caused
losses in productivity of 180 to 300 kg/hectare.
In Argentina, during 2012 stink bugs had caused reductions in

a state of larva, they produce irregular deep drilling in tubers and the

yields in some batches between 25% and 40%. Stink bugs are also

shaped adults feed on leaves.

appeared in Paraguay but there is no official data.

Losses:
During 2013, Ecuador suffered losses between 20% and 50% to

www.agropages.com

August 2014

Latin America Focus 27

Interviews

Its all about stewardship

- Interview with Csar Lamonega

A: Brazil and Argentina represent 80% of

Q: Why does Bayer want to grow more

the Latin American market, followed by

into biologics?

Mexico and Paraguay. In Brazil for example,

Editor's Note: Latin America accounts for a

quarter of the global seed treatment market.
AgroPages discussed with C sar Lamonega,
Asset Director at Bayer CropScience Latin
America, challenges that the industry may face
as well as Bayer's role in biological products
and stewardship measures.
Q: How would you describe the role
of Bayer CropScience in the Latin
American seed treatment market over

80% of soybean seed is treated on the

A: Bayer is very keen on biological

farm, and in Argentina the figure is 90%, as

solutions. That started some years ago

soybean growers there produce their own

when we launched our first biological

seed. But the market is developing strongly

product VOTiVO and evolved to the

towards industrial treatment. Take corn for

acquisitions of AgraQuest, Prophyta and

example. Most of the seed is treated with

now Biagro. We definitely want to grow

industrial equipment and that is our focus for

into biologicals because of their different

good reasons: First because the treatment is

mode of action and environment friendly

much better but more so because we want

profile. Biological crop protection products,

to reduce to a minimum the dust that comes

in combination with our state-of-the-art

from the seed. Thats why we recommend

chemistry, are a great tool for the growers to

growers to use seed that is already treated.

manage resistance. Furthermore, inoculants

the past 100 years?

A: Bayer CropScience has always been a
pioneer. The company recently celebrated
a century of innovation in seed treatment. In
Latin America too we have been in business

Making sure that what we sell to our clients is not

just the best possible but also sustainable solution,
which is equally important.

for almost a century. Uspulun, launched

by Bayer in 1914, was the very first seed
treatment product on the market and was
sold in Argentina shortly after its launch
in Germany. Bayer also pioneered the
approach to the market ten years ago with
the acquisition of Gustafson, a renowned
U.S. equipment manufacturer. From then
on we started using equipment to teach
technology to our customers, and in 2013
Bayer was under the top 2 seed treatment
company of the World and third biggest in
Brazil. We are very confident that we will
recover the number one position in Latin
America in the next few years
Q: How would you describe the Latin
American seed treatment market in
terms of figures?

28 Latin America Focus

August 2014

So one main objective for Bayer is to equip

are the most efficient way to make nitrogen

and train seed companies and multipliers

available to plants. So its a really effective

with professional machines.

and cheap way in comparison to common

fertilizers.

Q: In March 2014 Bayer announced

the acquisition of the Biagro Group in

Q: Will there be more acquisitions

Argentina. Do biologicals now play a

to strengthen Bayers success with

more important role for Bayer?

biological crop protection products in

Latin America?

A: Absolutely. The Biagro Group is one of

the major players for inoculants in Latin

A: We are continuously looking for further

America. They have been an important

opportunities, but surely we cannot talk

driver for the adoption of biofertilizers

about them now.

especially in Argentina and Brazil. Right now

we have inoculants that are applied as on-

Q: When we take a look at the whole

farm treatments but we now want to develop

seed industry in Latin America are

industrial inoculants.

there any major challenges ahead?

www.agropages.com

Interviews
A: Yes, I think that we are at a turning point

our 4 Bayer SeedGrowth areas of

right now. Because when we talk about

competence products, coatings,

soybeans and corn, we need to get to

equipment and services we

the next step in control of insects through

are well positioned to offer

innovative traits. For instance, last year we

appropriate and tailored

observed that traits introduced to control

solutions.

Lepidoptera insects in corn did not perform

as expected. So this is one big challenge.

Q: How would you

Last year, soybeans varieties containing

describe your role

these traits were launched in Brazil and

there?

Argentina with promising results. Over the

past couple of years a new Lepidoptera

A: I always say that

pest, Helicoverpa has been growing as a

we have to educate the

problem and the damage it does is really

customers so they know how

bad. So it will be interesting to see whether

to use our products responsibly

seed companies have these traits that will

and safely. Not least because adding

work on Helicoverpa armigera for example.

a coating makes the treatment process

more complex. You need to know when

Q: Will that be the only challenge?

and how to apply it. But obviously, I am

talking about the future here. Coatings are

equipment too, but not their own equipment.

A: I think something that has to be prioritized

still not common practice at farm level. But

We are the only company that provides

is plants that are resistant to stress and still

it is something we must keep an eye on

solutions in all 4 areas of competence

produce high yields. Because there will be

for the future. So we do have an important

based on in-house development and

9.7 billion people in the world by 2050 and

role at this point especially when it comes

manufacturing. So we can offer custom-

feeding them is a top priority. So technology

to sharing our expertise and equipment in

made solutions through our Bayer

has to be improved as agricultural acreage

seed treatment.

SeedGrowth Centers.

Q: Are you aiming at Bayers

Q: Lets end by taking a look at the

SeedGrowth Centers?

future. What is Bayer aiming to achieve

is getting more and more scarce.

Q: Another hot topic is dust exposure.
What exactly is Bayer doing to
minimize dust?

in the next few years in Latin America?

A: Exactly. Our Bayer SeedGrowth
Centers are technology centres where we

A: Our main aim is to maintain our leading

A: We have been working a lot on this. In

train people to treat seed the right way. That

role in seed applied technologies. The

the first step we took samples of treated

is one of the services we offer. Through our

second aim is related to stewardship.

seeds in several Latin American countries

three SeedGrowth Centers in Latam, Brazil,

Making sure that what we sell to our

and measured the dust that came out. This

Argentina and Mexico, we have already

clients is not just the best possible but

helps us to adopt measures to minimize

trained 4,000 technicians over the past few

also sustainable solution, which is equally

this exposure. A very important thing that

years.

important.

dust many times over. Unfortunately this

Q: We talked about products, coatings,

About Csar Lamonega

is something that is not common practice

equipment and services, all parts

Bayers Asset Director for SeedGrowth and

at the farm level in Latin America at this

of Bayer SeedGrowth. How has the

Third Party Relationships for Latin America

point but it is, at industrial seed treatment

response to the brand been in recent

is a seasoned professional with more than

sites. When we approach a new seed

months?

37 year experience in the Crop Protection

we offer is coatings. Coatings minimize

multiplier, distributor or even big grower

market. In 2009 he joined AgraQuest in

who treat seeds the first thing we do is

A: It has been great. Before its launch

California. After the acquisition, he moved

assessing the facilities and recommend

customers did not realize that we can offer

back to Brazil to assume his current role at

changes to minimize dust exposure. With

complete solutions. Other companies offer

Bayer CropScience.

www.agropages.com

August 2014

Latin America Focus 29

Interviews

CAC Exhibitions
- Grow Together with the Chinese Pesticide Industry
The successfully closed China International

appliance and business consultancy

Agrochemical & Crop Protection Exhibition

service. The number of CAC exhibitors has

(CAC 2014) marks the 15-year harvest of

grown from the past less than 100 up to the

the world largest agrochemical exhibition. In

present nearly 1,000; the number of trade

recent years, booming overseas exhibitions

visitors from more than 120 countries and

also benefit more and more companies who

regions has reached nearly 30,000. CAC

are interested in the markets beyond China.

today has grown to be the world largest

The Vice Chairman of CCPIT Sub-Council

trade exchange platform of agrochemical

of Chemical Industry (CCPIT Chem), Ms. Ma

industry, which has become a price

Chunyan talks to AgroPages about the growing

watershed of world pesticide prices, as well

course of CAC and the achievements they have

as a window of promotion of trade brand

made.

for industry players. CAC provides a chance

Q: How would you comment on the

of industry gathering for exchange of ideas

development and achievement of CAC

on market, future tendency, new technology

over the last 15 years?

and novel product.

A: Since the initiation of the 1st CAC in

Q: CAC has made great

Beijing in 1999, we have been endeavoring

contributions to the exchange between

to establish a global agrochemical

Chinese pesticide industry and the

exchange platform with the conception of

world pesticide industry. What is your

the Agrochemicals of the World, Gathering

feeling of the functions of CAC in this

together. I can say that the achievement

regard?

that has been made so far is a result of the

A: 15 years ago very few Chinese

agrochemical enterprises were

15-year development.
The 15-year development of CAC is a

acknowledged by foreign companies, except

representation of the development of the

for the several prime Chinese enterprises

Chinese pesticide industry. Starting from

who were doing exporting business; at

1994 when Chinas pesticide export value

that time our technical level was at a low

exceeded import value, Chinas export

side. Later on, our enterprises started to

started to grow continuously at a high speed.

participate in CAC where they have come to

In 2013 Chinas pesticide export reached

know the demand from international market

1.60 million tons covering territory of over

and could find opportunity of export via this

160 countries and regions. Meanwhile CAC

most active industry platform in the world.

has developed in line with the grown scale

Furthermore, our production enterprises

of pesticide industry; also the CAC platform

have learned from the exchanges with

has provided agrochemical enterprises with

the world advanced companies as how to

convenient export access. In March each

improve themselves to fill up the gap via the

year, CAC not only presents to the world the

input into the research work and upgrade of

Chinese pesticide industry, but also gives

facilities.

an exhibition of Chinese fertilizer, pesticide

production machinery, pesticide application

30 Latin America Focus

August 2014

Q: Over the recent 2 years, CAC is

going global with its presence in more

Ms. Ma Chunyan
Vice Chairman of CCPIT Chem

and more countries. What do you think

will be the influence of CAC overseas
exhibitions to the global agrochemical
development?
A: CAC overseas exhibitions are
an extension of CAC Shanghai; they
complement each other. After the CAC
Shanghai each year, we would organize
CAC overseas exhibitions in selected
regions as a follow-up to assist enterprises
in sorting out issues that were left over
from CAC Shanghai, such as the details of
contract; also to help enterprises to better
understand their target market such as
the local law, market entry requirement,
crop structure, pesticide application, sales
channel and even local folk custom to
enable a smooth entry into the target market
with differentiated strategy taking into
consideration of local characteristics. In the
meantime, we help local enterprises to get
into touch with Chinese enterprises.
Q: What will be the highlighted
subjects expected in the forthcoming
Brazil AgrochemShow?
A: No.1: Concerns of enterprises
We will invite officials of MAPA to
elaborate on the reassessment requirement
on neonicotinoids pesticides, abamectin,
glyphosate and paraquat, which will guide

www.agropages.com

Interviews
enterprises to formulate their

more big enterprises with a turnover

marketing strategy.

of RMB10 billion or above. I am

No.2: Market division in Brazil

looking forward that more technical

Experts will be invited to

innovation will take place in the

give analysis so as to inspire

Chinese pesticide industry, which

enterprises how to deal with

will create more novel products of

issues like the market division,

Chinese independent intellectual

sales of the registered product,

property for sales in the international

establishment of a high-efficient

agrochemical market. I hope

marketing system for sales of the

Chinese enterprises to make more

preferred brands, which will guide

studies on the international market

enterprises to formulate their

and speed up the establishment of

marketing plan.

distribution channels for the landing

No.3: Access to the most active

business platform in South America
Brazil AgrochemShow is the only
specialized agrochemical trade platform in
Brazil, which has been held for 6 sessions
starting from 2005. The Exhibition has
now become a highly recognized brand
exhibition in Brazil and South America,
which has so far attracted the participation
of more than 200 exhibitors accumulatively;
over 2,000 trade visitors have attended
the exhibition coming from 18 countries
and regions, which has greatly facilitated
the agrochemicals from all over the world

www.agropages.com

to enter the market of Brazil and South

America.
Q: What is your expectation toward
the future prospects of Chinese
pesticide industry?
A: I think that the Chinese pesticide
industry in the future needs to be
restructured as supported by government
policies, in a purpose to facilitate the
upgrade of productions while phasing out of
the out-of-date facilities. Industry mergers
should be encouraged to ensure long-

of more Chinese brands. Meanwhile

I expect more Chinese pesticide enterprises
will perform their social responsibility via
effective input to make contributions to the
protection of our living environment.
I avail myself of this opportunity to give
my best wishes to CAC Shanghai and
CAC overseas exhibition, which is a good
platform for the globalization of Chinese
pesticide industry and for the landing of
Chinese brands in the international business
arena.

term sustainable development and to form

August 2014

Latin America Focus 31

Interviews

More Companies Registered Bio-pesticides in 2013

Editor's Note: According to data released by the Brazilian Crop Protection Industry Union, the Sindiveg, Brazil's agrochemical sales jumped by 18% to
US$11.454 billion in 2013. Ivan Sampaio, Information Manager of Sindiveg told AgroPages the main factors that driving market growth.

According to the report published by Sindiveg, Brazilian

Q: agrochemical
market gained positive growth in 2013,

products
Q: What
were re-evaluated

what have been the major factors for market growth?

or restricted during
2013?

A: The positive growth published is justified mainly by the expansion

of the planted area in Brazil and the need to combat new pests

A: There are many

in the agriculture - among which we can mention lesser cornstalk

toxicological and

borer, soybean looper, fall armyworm, silverleaf whitefly, cochineal,

environmental

nematode and helicoverpa armigera. These attack especially cotton,

revaluations in process.

corn and soybean plantations.

In 2013, the acephate

The insecticides registered the highest growth in commercialization,

revaluation was

being responsible for about 40% of agrochemicals sales in 2013.

completed.

Were there any negative factors impeding market

Q: development?

many
Q: How
pesticides
approved for

A: The difficulties found in the regulatory system are the main barriers

registration in 2013?

to the development of the agrochemical industry.

A: According to the Ministry of Agriculture, 110 agrochemicals were
What impact did earworm and soy rust have on crops

Q: and agrochemical industry in 2013?

approved. The timing for approval is between 36 to 48 months.

A: The Sindiveg have no data regarding a specific pest, but it is

Q: or introduced some bio-pesticides in Brazil these two

speculated that the earworm contributed specially to increase the

years, what are your expectations of the development of bio-

commercialization of insecticides. The soy rust had a lower rate in

pesticides in Brazil?

As far as we know, many companies have registered

2013 compared to 2012.

A: This is a new segment of the agrochemical industry. Sindiveg has
no solid data for the development analysis but believes this market is
expected to grow in coming years.

Q: What are your expectations of market trends in 2014?

A: For this year, Sindiveg forecasts a growth of 6% to 9% in the
agrochemical industry. The main reason for the optimistic outlook is
the expected 3% to 5% increase in planted area, plus intensive use of
advanced technologies.

32 Latin America Focus

August 2014

www.agropages.com

Viewpoints

Brazilian Pesticide Market

More Barriers for Access

for 84% of the total market of US$ 11.6

possible exception of Argentina.

Perceptions changed and decisions

billion.
The top 20 players have combined

Author: Flvio Hirata

to access this growing market started

sales of US$11.5 billion and represent

to increase in 2006 after changes in

more than 95% of the market, but of the

regulatory laws and the issuance of a

20 there is only one Brazilian company.

new presidential decree established

Why then in a field of tremendous

a path to new product registrations

Mr. Flvio Hirata, MBA, agronomist, partner

opportunities would there be so few

based on equivalency. In addition to

to AllierBrasil. He can be reached at

players? Are the barriers to access in this

a clearer definition of the proceedings

allier@allierbrasil.com.br

market so difficult to overcome that only

for registration, the cost dropped to

few companies are able to succeed?

US$250,000 along with a reduction in the

For the third consecutive year, the

Brazilian pesticide market has been
ranked # 1 in the world by a considerable
margin. In one of the most profitable
and concentrated agricultural markets in
the world, it is not difficult to understand
that access to that market will be
proportionally as difficult to realize as are
the opportunities.
In the Latin America region where
sales in 2013 where almost US$15
billion, Brazilian sales represent 79%.
The second largest market in this region
is Argentina with sales of US$2.5 billion.
In the world, Brazil represents 21% of the
entire US$55.66 billion market.
In a such large market with many
lucrative opportunities is easy to imagine
that there would be hundreds or even
thousands of players fighting to enter
the market, or if already in, to increase
their market share. Indeed, competition
is fierce, but less than 100 players are
currently present in the market. The top 10
players are global companies accounting

Several companies have been trying

time required for registration approvals

to access this market for years. Some of

to 1 or 2 years. Several new players

them succeeded but most of them, after

had the foresight to invest significant

considering the entrance barriers, chose

resources in laboratory trials to take

to abandon such challenging task. On

advantage of this opportunity while others

the other hand, many of them have been

waited to see what would happen. One

trying to launch their own products for

such example is CONSAGRO. During

years.

this period, CONSAGRO obtained

registration approvals in as few as 12

Since 1999, AllierBrasil has been

discussing with foreign players the

months, illustrating one of the most skilled

opportunities presented by the Brazilian

strategies to access the market through

pesticide market. At that time the market

registration.
Unfortunately, many local companies

was US$2.32 billion but because of

registration costs, totaling as much as

lacking manufacturing experience

US$500,000, most
of them decided to
focus on faster and

Fig.1 Pesticide Sales (US$) per Region (2013)

cheap registration
markets, such as in
Asia, Eastern Europe
and Argentina, in
spite of the fact that
in those countries
the perspective of
agriculture growth
was limited, with the
Source: Phillips McDougall

34 Latin America Focus

August 2014

www.agropages.com

Viewpoints
Total sales of Latin America is US$14.547 billion

attempted to

Distribution:

source product

- Dealers prefer a broad product portfolio in order to better

from suppliers

service end users and to obtain required guaranties for credit

claiming to

with suppliers/distributors.

have factories
capable of
manufacturing
suitable product
Fig.2 Top Ten Players Market Share (Brazil, 2013)

but in fact had

no factories

at all or one that could synthesize a product which could meet the
registration standards required in Brazil. As a result, millions of dollars
were wasted and projects were delayed. Because of these issues, a
considerable number of potential registrants spent twice the amount
of money actually needed to secure the desired registrations. These
are not entrance barriers created by the market, but those due to a
complete lack of experience by those responsible for sourcing and
securing the desired registrations.
Even for companies with market experience and financial
resources, there are other issues that can negatively impact the

- Big dealers and cooperatives are very committed with big

suppliers/distributors.
- Bundling low margin products together with high margin
products by same suppliers.
- Low margin sales through cooperatives represent almost
50% of total sales.
- Regional dealers/distributors are becoming more important
due to the lack of countrywide distributors.
Despite of all barriers and difficulties to access this market,
more and more new players are willing to face such challenges.
Many of these subjects shall be discussed with experts in
the following venues:
- 7th Brasil AgrochemShow August 18th and 19th in Sao
Paulo, Brazil;
- 3rd Forum AllierBrasil - India, October in India;
- 4th Forum AllierBrasil - China, in January, 2015 in China.

cash flow of any project attempting to access a given segment of the

Brazilian market. Some of those issues are described below:

Registration:
- Frequent changes in regulatory laws.
- Not knowing how best to execute a registration application.
- Drastic decrease in the number of registration applications being
evaluated.
- Tremendous increase in the number of new registration
submissions.
- Increases in the time required for registration approval to 4-6
years in some cases.
- Legal action against regulatory agencies and competitors.
- No timeframe perspective on registration evaluations/approvals.
- High number of registration rejections (26%), in some cases
without clear reasons.
- Preference given to organic and biological registrations.
- Agency review of registered products delaying evaluation of new
applications.
- Sales permit for emamectin benzoate without registration.
Credit and Payment Term:
- Overly optimistic guaranties from buyers without firm market
commitments.
- Payment term from 90 days up to 360 days.
- High credit risk.
- Interest rates from 1% to 1.5% per month can potentially
obliterate the sales margin.

www.agropages.com

August 2014

Latin America Focus 35

Viewpoints

How to Cope with

Volatile Economies in Latin America?

By Dr. Alberto L. Zuppi

the real value of foreign currency -generally

shown at the black market- diminish the

exchange rate. Exceptions are rare.

How can you be protected against

original debt with just the passing of time.

these problems? First thing, look for local

extensions of Latin American it is easy

When the debt is finally settled, the real

assistance. A local counselor will inform you

to realize that the potential agrochemical

credit could have lost as much as 60 or

about the specific difficulties that you may

market is huge as well as the benefits

70% of its original value in a short period

find in a given market and the best way to

accordingly, but taking part of it involves

of time. In Argentina, at the time of writing

cope with them.

certain risks that you may ponder before

these lines, the difference between the

concluding a sale.

official exchange rate and the black market

no hard currency could be used even

is near 45% whereas the inflation rate is

for obtaining a fair rate of exchange, but

affected by chronic volatile economies.

approaching to more than 40% yearly.

you still want to participate, a couple of

Symptoms are easily recognizable:

Having considerable inflation as it happens

postulates should be applied: First, try

inflation, strong participation of the

in Argentina or in Venezuela means

to get a written contract. Despite most of

central Government in the economy,

automatically that the related Government

international sales are oral, or concluded

disproportionate increase of public

will implement some restrictions on currency

by phone or even through the internet, you

expenses, currency exchange controls

exchange, limiting or prohibiting the free

should try to maximize some precautions,

and difficulties in returning home capital

exchange, and usually transforming

and making a written contract is one of

investments. When these symptoms appear

repatriation of investments or profits into

them. If no strong currency could be used

in everyday economy, usually local debtors

a difficult or impossible proceeding. If

as a means of payment and you would be

immediately begin to show a remarkable

the debtor is obliged by contract to pay in

accepting local currency, then turn your

reluctance to pay any foreign debt, because

strong currency, when being prevented to

frame of reference to commodities like

daily inflation erodes the capital due and the

freely buy foreign currency, the credit will be

soybeans, petrol or coffee. You are going to

gap between the official exchange rate and

legally paid in local currency at the official

arrange that if, for any reason, the payments

Thinking in the vast agricultural

Several South American countries are

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If you are facing a scenario where

August 2014

Latin America Focus 37

Viewpoints
could not be done in your desired currency,

tool for compelling the debtor to reach a

it will not work for a fast track proceeding

then you would accept local currency in an

payment agreement through your counselor.

and you will lose one of the virtues of the

amount enough for buying a determined

However, be aware that when shortages

letter of exchange. Never, ever put as date

quantity of commodities in a given market.

of strong currency in the open market take

for payment something like 60 days after

We used this alternative with success when

place, the subrogated creditor will have

issuing B/L. First, acronyms in foreign

the Argentine Government impeded any

problems collecting its credit which will be

language should be avoided, but secondly

indexation of contracts. Do not believe that

recovered in local currency.

and most important, if the due date could

you are going to earn a lot of money with

As means of payment, certainly a

be determined only after issuing another

this solution. What you are going to do is

confirmed letter of credit is the best

document like the bill of lading, then your

avoid is an economical disaster that you will

alternative for the first sale. However,

letter of exchange is not self-sufficient and

exchange for a not-so-bad business.

being realistic, it is so expensive that, as

will be engaged in an ordinary proceeding

an exporter, you are going to lose your

that could take years to finish.

Secondly, export insurance is a main

precaution that exporters should take. Its

potential buyer if you insist on it. If you are

relative low cost (around 0,35%) and the

giving credit to you buyer, a private letter

ample percentage of the credit covered

of exchange works as a fine alternative

Dr. Alberto L. Zuppi works as attorney

(85%) assures the seller that in case of non-

but always use a bank as intermediary.

at law at Sena & Berton Moreno, Buenos

payment of the credit due by the debtor

However, some precautions should be

Aires, Argentina, PhD Germany, former

-usually letter of credits- premiums are

taken when drafting the letter of exchange.

Robert & Pamela Martin Professor of

recovered against the presentation of a

Be aware that one of the major merits of the

Law, LSU, available at alzuppi@gmail.

claim for bankruptcy of the debtor at the local

letter of exchange is that it is a document

com.

court. Being an easy way to get covered, it

easily and quickly enforced by the judiciary.

is also transformed in a formidable bargain

But if the document is not self-sufficient,

38 Latin America Focus

August 2014

About the Author

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Why Can We Get Competitive in the

Paraguayan Agrochemical Market?
The agrochemical market in Paraguay is represented by three groups in which we can
divide the market supply. Each of these groups is well individualized from each other and
allows us to understand and analyze the market. This division corresponds to the first
group as multinational companies, product normally we call brand. On the other hand,
companies importing formulated product ready for sale. Finally, the rest is companies that
formulate locally. Our company Chemtec belongs to this last group and unlike the other
groups, only import raw materials for local formulation. This division can identify which is
the position of the market in terms of volume and price.
The distribution of contribution of each sector can be summarized as follows:
As can be seen in these graphs the distribution market is fairly balanced between the
various players in the market. It is clear also that the average selling price is higher in the
case of multinationals, with a market share of 30% in volume but 45% in their turnover.
The global market has achieved sustained grow since 2010. During 2013, in terms of
USD CIF, rising prices increase in both raw materials and finished products was reflected

Author: German Pessagno

Operations Manager of Chemtec S.A.E.

in increases in these amounts.

Today Paraguay has a total of more than 5,500 formulated products registered in
SENAVE with 160 registrants companies, based on approximately 270 active ingredients. If
we compare with other countries in the region, Argentina has 4,150 registered formulations
from 338 registrants based in 437 active ingredients, Brazil, with the registration difficulties
we all know, holds only 660 formulated products from 126 registrants. This means,
Paraguay has, on average, for the same active ingredient, more than double registered
products than Argentina. It is clear that compared to the markets of Argentina and Brazil,
the huge amount of players in the Paraguayan market make of it a highly competitive
market.

Paraguay Market In Volume (kg / lt) 2012

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Paraguay Market Invoicing (USD) 2012

August 2014

Latin America Focus 39

Viewpoints
Lets take Chemtec as an example,
the mission of Chemtec is based in the
quality assurance of their products and
this made possible us to consider as a
leader in the development of new products
and preserve our market presence, even
competing with low prices products.
This quality, added with a direct contact
with customers, ensures the quality of our
product throughout the cycle, from the
selection of our suppliers abroad, control
of raw materials, finished goods control
and aftersales feedback. The commercial
factor coupled with a strong development
work keeps our product portfolio updated
according to market requirements.
This is a clear picture of the strong relationship between business development and the
process or registration requirements.

Moreover, an important point on

competitiveness depends directly on
the influence of government policy in
terms of protecting local industry. Today

Competitiveness

Paraguayan industry continues to grow

We have seen the significant presence of Chinese industry in the Paraguayan market.
This presence is significant both in its strong presence in the distribution market, as well
as in the number of registered companies and products. The local industry is in a constant
challenge in terms of how to maintain competitiveness against this strong presence of
Chinese products.

and as such has generated greater

pressure to the government seeking for
protection. The industry now has some
custom duties and tax advantages that
keep this competitive. These advantages
can be summarized as follows:

Duties
Local Formulation
Imports:
Active Ingredients
Formulation additives

Imported Formulated Product

Due to a presidential decree, all raw

materials involved in the formulation

Between 6% to 14% Duties

0% Duties
This competitiveness is achieved from two fields. On one hand, maintain and ensure
the quality of products and technical assistance.

40 Latin America Focus

August 2014

Import Duties:

process, are exempt off any duty for local

industries.
This benefit applies only to established
local industries and directly affects the
cost of products.

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Viewpoints
As you can see, the local industry can take advantage of the
exoneration of the import duties, improving the competitiveness against
imported formulated products.
Taxes:
Below image is the comparison of tax regimes between Paraguay
and the other countries in the region. Thats why the local formulators
like Chemtec can stay competitive to other markets and so, increase
their productions.
Tax benefits for investments:
This benefit allows the company to get some support for investment
in infrastructure and equipment also allows local industry to keep
updated in equipment and technology for improving formulation
competitiveness.
Also, on the same objective, local authorities, both Customs and
the Ministry of Industry and Trade have increased controls to reduce
the entry of irregular products. Whether smuggling, under-invoiced
goods as well as controlling certificates of origin for products entering
from member countries of MERCOSUR, where those certificates are
of dubious origin. These measures allow healthy competition on equal
terms.

Registration
As I mentioned before, the registration process not only ensures the
quality and safety in the handling and use of plant protection, but it plays
an important role in competitiveness in the market.
Like other countries in the region, Paraguay began in 2006 a
process of adaptation of its registration system and adopted the Me
Too (Equivalence) registration method. As has Argentina (in the late
90s), Brazil and most recently Chile, Paraguay based its registration
regulation in FAO guidelines.
In terms of documentation, registration requirements are very similar
to those of Argentina. The process requires, in short, the submission of:
Registration of Equivalent Active Ingredients:
File I: Expedient: Registration datas, samples data, MSDS
File II: Confidential Information: Identity, Manufacturing process, Five
batch analysis, etc.
File III: Technical Data: Physical-Chemical properties, toxicological
studies, aspect related to its use

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August 2014

Latin America Focus 41

Viewpoints
and data of effects on the environment.

File IV: Other information

registration to suffer constant changes

and patches. The process has been like

The company interested in registration

The regulatory process involves the

must be registered in SENAVE. After that

registration of both technical grade and

a pendulum, for certain periods the all the

the company can start registration.

formulated grade, even if the product is

process was at a standstill where all the

formulated locally or abroad.

files were stopped , then due to some

Registration of Formulated products

based on Equivalent Active Ingredients:

As you might see, the documents

pressure or authorities change it moved

needed for registration are similar to

to periods where records were issued

Product General Information, Samples,

other countries, which makes easier for

with excessive flexibility, thus generating

MSDS

local or abroad companies to expand

a number of registrations that have

their registration to other countries in the

cast doubt on the quality of supporting

region.

documents.

File I: Expedient. Company Information.

File II: Confidential Information. Identity,

Formulation Process, Five batch analysis,

Since the beginning of this process,

Certificate of origin.
File III Technical Data. Composition of
the formulated product.

Today, almost eight years after the

the revalidation of registers has not been

start of this process, the regulator itself

a simple process and unfortunately has

begins to normalize, the requirements are

been very messy. The constant changes

clearer and the whole registration is in

properties related with use, Methods of

in the regulatory authorities and the

the process to ensure the quality of the

application, labeling, packing, Handling

pressures of the various sectors have

supporting documents.

specification, Acute Toxicological studies

led to the system of revalidation and

Physical Chemical studies, Physical

42 Latin America Focus

August 2014

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