The storage of grains amassed a volume of 1.4 billion tons at peak periods across 10 key countries profiled in Kline’s Stored Grain Insect Control: Global Market Analysis and Opportunities study.
The report, covering five major grain crops—corn, soybeans, wheat, rice, and barley—and factoring in minor grain crops, values the insecticide market for storage facilities across all analyzed countries to be $165 million in 2017.
“After a five-year high, global stocks for grains are expected to start slowing down in the next production season, lowering pressure of oversupply,” comments Aneesa Moolla, the project’s lead. “Immense stocks increased the demand for more storage facilities, leading to a solid growth for the storage insecticides market.”
Post-harvest grains can be stored in on-farm or off-farm facilities, as well as at port warehouses, containers, etc., for grains destined for exports. Countries such as Japan and Mexico choose to store solely in off-farm storage facilities (excluding export crops), while France and Germany have a greater amount stored in on-farm facilities.
The conditions at which these grains are stored are essential to the prevention of damage, with temperature, length of time, and aeration of the storage facility all factoring in reducing any potential spoiling. When these factors are not appropriately maintained, insect infestations from beetles, mites, and weevils are more likely to occur.
Insecticide applications are commonly made as an additional precautionary control measure, either in the form of a fumigant or liquid spray. Aluminum phosphide is the predominant active ingredient used for treatments, accounting for over 50% of the total sales in 2017. Other significant active ingredients include Deltamethrin, either by itself or in combination with Chlorpyrifos-methyl, Phosphine, Primiphos-methyl, and Cyfluthrin.
The industry is supplied by a multitude of companies, both large and small, especially since many products are from generic ingredients. Kline estimates the leading supplier for this global market to be Bayer, accounting for about 16% of the total market share.
In addition to insects, rodent control is also necessary to prevent contamination and damage. Kline evaluates the rodenticide market for global stored grains to be about $20 million. Rodenticide applications are typically used around the buildings, usually being either wax blocks or pellets placed in bait stations. The leading active ingredients are second generation anticoagulants, such as Bromadiolone, Difethiolone, and Difenacoum. Bell Labs/Motomco is the global leader, accounting for an almost 30% market share.
The global market is predicted to maintain steady growth in the next five years, with a CAGR of about 2%. Brazil is expected to have higher growth, as its grain export market continues to expand. Alternatively, China will have a slight decrease in storage grains as it is already at a peak production capacity.