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Brazil: Exchange, reduction of cultivated sugarcane area cause slight drop in pesticide market

The survey, titled, “BIP - Business Intelligence Panel,” by Spark Consultoria Estratégica, showed a 2% drop, in US dollars, in the trade of pesticides for sugar cane. 

According to the company, in 2019, the sugar-energy sector totaled US$1.441 billion in terms of products compared to US$1.471 billion in the previous season. In the local currency, however, the study indicates a 15% growth, or R$5.462 billion. According to Spark, the total treated area rose by 1% to 62.7 million hectares.

Agronomist André Dias (Managing Partner of Spark) pointed out that the reduction in market trade in US dollars was mainly due to a negative exchange rate of 14% during that period, with the average value of one dollar quoted at R$3.79.

According to the consultancy firm, herbicides led the list of the most widely used agrochemicals on sugarcane, with a 51% share and sales of US$737 million. In second position are insecticides with US$555 million, accounting for 38% while in third place are growth regulators at 6%, reaching US$86 million. Of this amount, Spark noted that 61% is equivalent to ripeners valued at US$53 million, 36% to flowering inhibitors at US$31 million, and 3% to phytoregulators at US$2 million.

Fungicides came in fourth place, with sales of US$48 million, accounting for 3% of total. This category is divided between leaf and soil products. According to Spark, the first accounted for 57% of the segment at US$28 million while the remaining accounted for 43% at US$21 million. Adjuvant and inoculant products account for a 2% share at US$15 million.

Executive Alberto Oliveira (Project Coordinator and Market Research Specialist at Spark) added that so-called selective herbicides account for 78% of sales of weed management products while pointing out that, according to market data, the insecticide segment was led by products that control leafhoppers with a 37% share, and caterpillars, mainly the cane borer (Diatraea saccharalis), with 21%, followed by the pest Sphenophorus levis at 16%, nematodes at 13%, termites at 11%, and other insects at 2%.

Oliveira noted that the state of São Paulo remains at the forefront of sugarcane production, with 53% of the total 9.289 million cultivated hectares, corresponding to 4.958 million hectares. The Midwest region (GO/MS/MT) represents 23% or 2.125 million hectares. Minas Gerais and Espirito Santos came next with 9% at 843,000 hectares), followed by the Northeast region (AL, BA, PB, PE) with 8% at 722,000 hectares, while Paraná occupies 7% at 641,000 hectares. 

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