Crop Protection: Beyond 2012
20 June 2012 
The global crop protection industry growth has been based on frequent changes in weather conditions, instability in the prices of agricultural commodities, skepticism among the farmers in the emerging nations about the usage of agrochemicals, and the lack of availability of liquidity to invest in agricultural inputs. However, in the recent past, government initiatives to support agricultural production in order to meet the rising demand for agricultural food products in nations such as India, China and several other Southeast Asian countries has encouraged the usage of agrochemicals in these regions.
The global crop protection market rose 17.3% in 2011, led by Latin America, which witnessed strong growth of 38.7%, followed by Asia with a growth rate of 23.3%. The contribution of regions such as NAFTA and Europe have been faltering over the years due to several factors, including the reduction in the arable land area and the prevailing credit crunch, which has resulted in a lack of available credit to the farmers.
The crop protection industry has been dominated by herbicide chemicals in recent years as a result of increased planting areas for corn and soybeans, especially GMOs based on herbicide resistance.
Upcoming Growth
The biopesticides, micronutrients and adjuvant markets are considered to be important areas for growth in the crop protection industry across the globe. Biopesticides sales globally increased at a CAGR of 6.8% during the period from 2005 to 2011. Generic crop protection products sales in the world grew similarly during the same period due to the rising preference for and availability of generic agrochemicals in developing nations.
Syngenta is the market leader in the industry, largely due to its varied product line, innovative formulations and wide network of distribution channels spanning across the globe. The top three players accounted for more than 50% of the global crop protection market.
The future of the crop protection industry is expected to be favorable because of the rising growth in global population, rising crop prices due to increasing demand, and preference for fossil fuel substitutes. But several challenges, such as rising application of genetically modified crops resistant to disease, may act as a governor for the growth of the traditional crop protection market.
The global crop protection market is expected to reach $59 billion by 2016 with Asia leading the way to the strong performance in the markets of India and China.
For more information, please visit www.ammindpower.com, and look for additional data from their reports in the coming months.
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