Chile Estimates More Expensive Agrochemicals in 2018

Andreas Kobrich has his eyes set on the current wheat harvest. As general secretary of the Wheat Growers’ Association in the region of Araucanía, Chile, Kobrich is worried about the paucity of rains in the region and the effect that it may have on the production and quality of the cereal.

The international price scenario is also dismal for the farmers. High stocks in the northern hemisphere have depressed the prices of cereals and grains. In addition, changes in China have increased the agrochemicals prices, which will soon be felt in Chile.

“With the current value of wheat, we will have a complex harvest. Added to more expensive inputs, we will have a demotivating situation, in the beginning of the 2018-2019 season,” said Kobrich. The worry comes from the restrictions on the other side of the Pacific Ocean.

“Recently, we have seen the authorities in China raising environmental requirements. In 2017, the restrictions forced factories and some industries to shut down, which led to lower supply of agro materials,” noted Gabriel Ormeño, general manager, Wheat Growers’ Association.

China produces 90% of the world’s active ingredients. These products are the raw material used to produce agrochemicals everywhere. Because of the restrictions in China, the export prices have seen a bullish trend since last October. Industry analysts say this is a global economic situation. “This is a mid and long-term change. It is a sign that the Chinese authorities will be stricter in their environmental standards and the production restrictions will be maintained,” affirmed Max Donoso, general manager at the Coagra Company.

Ormeño believes that the situation of agrochemicals in China is similar to that of copper in Chile. Jiangxi Copper, the largest refiner of the metal, was forced to close its doors in December because of contamination. The result was a sustained high in copper value, which depressed the dollar quotes in Chile.

The annual agrochemicals market in Chile is around US$400 million, and it might not see a robust 2018. The numbers are clear: Glyphosate jumped to $4,384 per ton last November – a hike of 20.83% compared to the same period in 2016. For imidacloprid, the jump is even steeper. The November quotes reached $37,800 – an increase of 108.33% from a year ago.

Chlorpyrifos, the molecules that control insects and caterpillars, are in short supply in China. According to a technical report of the Think Real consultancy, there are three factories still in operation in 2017. In November, the price reached $7,560 per ton, which a year ago was quoted at $5,000.

“The impact of the change in Chinese production and prices has not been totally felt in Chile. The market is still resisting a very abrupt price increase. Besides, there are older supplies with lower prices that need to be sold. However, the price pressure will soon be felt locally,” claimed Donoso.

Leave a Reply

Agrichemicals

Fungicides

STK’s REGEV Hybrid Fungicide now Available in Serbia for Apple Scab

STK bio-ag technologies, a leading company in the development and marketing of botanical-based food protection solutions, has announced that REGEV

India-farm-Photo-Hindustan-Times
Asia

Study: Weeds Cause Annual Crop Loss of $11 Billion in India

Weeds lead to India losing an average of $11 billion each year in 10 major crops, according to a study,

Fungicides

BASF Protects Fungicide Intellectual Property Rights with Patent Infringement Lawsuit

BASF has filed a lawsuit against Willowood LLC to halt the ongoing infringement of certain BASF patents relating to the

Corn field Ohio
Herbicides

HELM Agro US Expands Portfolio with Four New Herbicides

HELM Agro US, Inc. has launched four new crop protection products in the first quarter of 2018. In total, HELM

Insecticides

Insecticides: Making the Most of Limited Chemistries

While no widespread, plague-like insect infestations hit growers in 2017, a number of traited Bt crops continued to struggle under

Signs-Agriculture
Agrichemicals

Opinion: Why the Crop Protection Industry Needs Strategic Vision

The crop protection industry faces a dilemma. In the uncertain and globally competitive world of crop protection, focus has primarily

Agrichemicals

Global Crop Protection Market: Overcoming Challenges and Finding Opportunity in 2018

The end of the old year and start of the new is a natural time to reflect on where we’ve

Agrichemicals

ADAMA’s Global R&D Center Launches Operations in Nanjing

Global crop protection group ADAMA, the combination of Adama Agricultural Solutions Ltd. and Hubei Sanonda Co., Ltd., has inaugurated its

Insecticides

Bayer Inaugurates New Greenhouse for Insecticide Research

Bayer is aiming to consolidate its leading position in the global pest control market. To this end, the company has

Agrichemicals

Cropchem Doubles Portfolio with Seven New Formulations in 2017

After obtaining the registration of Meson 480 SC (Mesotrione 480 SC) in December 2017, Cropchem closed the year with seven

Agrichemicals

Update Your Listing: The AgriBusiness Global Sourcing Network

We are beginning to update our database for the 2018 AgriBusiness Global® Sourcing Directory. Last year’s directory included more than

Herbicides

EPA: Monsanto’s Glyphosate Likely Not Carcinogenic to People

The U.S. Environmental Protection Agency has said that glyphosate, the key ingredient in Monsanto Co.’s top-selling weedkiller Roundup, is not

Rice
Agrichemicals

Agrichemicals: India Has Room to Grow

India is growing and it is growing at a fast pace. The growth has been seen on every front —

Agrichemicals

Court Cancels Publicly Held Syngenta Shares

Syngenta has announced that the Appellate Court Basel-City (Appellationsgericht Basel-Stadt) has cancelled all publicly held registered shares of Syngenta AG.

Agrichemicals

ADAMA Opens New Global Formulation Center in Jiangsu Province

Global crop protection group ADAMA, the combination of Adama Agricultural Solutions Ltd. and Hubei Sanonda Co., Ltd., has announced that

Agrichemicals

Eurofins Finalizes Acquisition of EAG Laboratories

Eurofins Scientific, parent company to Eurofins Agroscience Services Group, has announced the successful closing of the transaction to acquire EAG

Agrichemicals

Syngenta May Start Local Production of Crop Protection in Russia

Switzerland’s Syngenta is considering setting up local production facilities of crop protection products in Russia rather than relying on importing

Herbicides

Another U.S. State Announces Restrictions on Using Herbicide Dicamba

MINNEAPOLIS (AP) — Minnesota announced restrictions Tuesday on how farmers can use the herbicide dicamba in 2018, responding to complaints

Agrichemicals

Slideshow: AgriBusiness Global Hosts Trade Summit Southeast Asia

AgriBusiness Global hosted its Trade Summit Southeast Asia from Dec. 5-6 in Jakarta, Indonesia at the J S Luwansa Hotel.

Latest News

Asia

China Pesticide Exporting Workshop Highlights Price Trends, Supply Strategies

China is a major pesticide producer and exporter. It provides abundant pesticides ranging from herbicides, insecticides, fungicides, plant growth regulators

Europe

EU’s Race to Zero Tolerance Risks Global Trade and Farmer Livelihoods

Whether it’s almonds from the United States, cocoa from Ghana, or rice from India, we enjoy eating good food from

Europe

Staphyt Opens New Regulatory Office and Trial Site in Austria

The regulatory division of the Staphyt Group (Staphyt Regulatory) specializes in regulatory consulting (agrochemicals, biocides, etc.) and supports manufacturers in

Africa/Middle East

Sub-Saharan Africa: Time for a Paradigm Shift to Sustainable Farming Practices

Farming in sub-Saharan Africa (SSA) has remained fairly conventional over the years and involves intensive use of synthetic chemicals and

Asia

India Aims to Deliver Groundbreaking Agricultural Blockchain

It’s become a joke in some circles. Just cash in by inventing a blockchain for something. A blockchain for dentists?