Fungicide Use on the Rise in Indonesia

The global crop protection market in 2017 increased at a rate of 1.9% in nominal terms over that of 2016. As such, the market for crop protection products in 2017, when measured at ex-manufacture level and using average-year exchange rates throughout, comes in at U.S. $54.15 billion.

In the August issue of AgriBusiness Global™ magazine we focused on the transformation of the Indian market for crop protection products between 2009 and 2017. India remains one of the fastest-growing markets globally from the perspective of overall economy and the agrichemical market. On a global basis India is the fifth-largest market for agrichemicals and also one of the fastest-growing markets.

This article is focused on the Southeast Asian markets and, in particular, Indonesia. While collectively the 11 markets covered (at U.S. $2.3 billion) are only just larger than the Indian market in terms of sales (Fig. 1), they do offer quite different individual niches and opportunities.

Geographically speaking, Southeast Asia is a subregion of Asia, consisting of the countries that are south of Japan and China, east of India, west of Papua New Guinea, and north of Australia (Fig. 2).

In many aspects the region is dominated by Indonesia, which accounts for more than one-third of the region’s U.S. $2.7 trillion nominal GDP and almost 40% of the region’s estimated population of some 650 million. With the exception of East Timor, all the nations are part of the Association of Southeast Asian Nations (ASEAN). Among other aspects, the group has secured various low and free trade agreements between themselves and other nations, most notably China and the U.S. Unlike GDP and population, however, the region’s trade is dominated by Singapore (in electronics) whereas Indonesia’s total exports, including palm oil, are overall quite small by comparison.

Crop area is, however, very much in line with the ratios of GDP and population in terms of the relative importance of Indonesia. According to the latest available Food and Agriculture Organization Corporate Statistical Database (FAOSTAT) data (2016), the region as a whole has a cropping area of some 122 million hectares (ha); an area that is a little more than that of the U.S. (at 105 million ha) but considerably less than that of India at close to 200 million ha.

Rice dominates the region as a whole, accounting for close to 40% of the overall cropping area. Thereafter, “other crops” is the most significant in terms of area. Other crops in this instance include more than 30 different named crops, but the plantation crops of palm oil, rubber, coconut, coffee, and cocoa beans account for close to 90% of that area.

That importance of the plantation crops is further increased within Indonesia, where the crop group of “other crops” accounts for some 47% of the total crop area.

As with the region as a whole, other crops in this instance include a number of named crops, but once again the plantation crops of palm oil, rubber, coconut, coffee, and cocoa beans account for more than 92% of that area. In all of the plantations mentioned for Southeast Asia, Indonesia ranks as the top area, with, for example, almost twice the area of palm oil as compared to Malaysia.

Crop area change over recent years within the Southeast Asian region has been broadly similar to crop area change on a global basis, with an increase of some 6% since 2008. This small change in crop area has, however, been surpassed by significant growth in the overall market value since that time, which reflects an increasing spend per ha. The same trend is seen on a global basis (where the market value has increased by close to 25% since 2008), but in the Southeast Asian region this overall growth has been closer to 75% when comparing value in 2017 to those from 2008 (Fig. 3).

When looking at the same data for Indonesia, a very similar trend can be seen, although the impact of the decline in the market from 2012 until 2017 is more dramatic in Indonesia as compared to the region as a whole (Fig. 4).

In looking for future developments for the Indonesian crop protection market, many of the trends over the last year are likely to continue. One such trend is the increasing importance of fungicides (largely at the expense of insecticides) as a proportion of the market. In value terms, fungicides have grown from 8% to 16% (Fig. 5) between 2008 and 2017. The use of fungicide seed treatments is also increasing, especially over the last two to three years. Another trend since 2008 is the declining importance of the plantation crops (other crops), which, as a percentage of the market, accounted for close to 45% in value in 2008 whereas by 2017 that proportion had reduced to just over 25% of the total market (Fig. 6).

Editor’s note: Analysis provided by Kleffmann Group is based on data collected from farmer surveys, interviews with distributors in emerging markets, proprietary market trend studies, subject matter experts, and open-source information. Dr. Bob Fairclough is the team leader for amis AgriGlobe, Kleffmann Group’s agricultural input market trend information and consulting unit. He is an editorial advisor to AgriBusiness Global™. For more information, visit kleffmann.com.

Leave a Reply

Asia

India-farmers
Asia

Report: Farming in 20% of Indian Districts Threatened by Climate Change

Crops, plantations, even livestock in 151 districts, or slightly more than one-fifth of the total districts in India, are susceptible

Agrichemicals

Corteva to Launch New Fungicide, Starting in Asia Pacific

Corteva Agriscience announced Adavelt active as the new brand name for a novel fungicide that will offer farmers curative and

Asia

Marrone in Distribution Deal with Input Supplier in Turkey

Marrone Bio Innovations, Inc., a leading global provider of bio-based pest management and plant health products, announced that it has

Americas

Russia, Brazil Use Precision Ag Platform in Unexpected Ways

“For the first time ever, farmers are seeing that our imagery is as good as walking in the field. Farmers

Agrichemicals

ADAMA Hit by Drought in Europe, Higher Sourcing Costs

Shortage in certain raw materials and intermediates, mostly owing to increased environmental focus in China, led to higher procurement costs

Phillips-F-Richard
Americas

U.S.-China Trade Forum Held Amid Trade Disputes

U.S.-China Agriculture Food Trade Forum was held Thursday in the western U.S. state of California, focusing on the promotion of

Cargo-of-Brazilian-soy-Photo-VCG
Americas

Opinion: Brazil’s Bolsonaro Can’t Afford to Upset Ties with China

Brazil’s far-right ex-army captain Jair Bolsonaro rode a wave of voter rage to the presidency on Sunday, writes CGTN’s Liu

Chilean-Farmland
Americas

Chilean Delegation Seeks Agricultural Collaboration with India

A high level agricultural Chilean delegation is arriving on Monday in India to talk about the new strategic guidelines of

Agrichemicals

Belchim Crop Protection: Reevaluating Sourcing

Belchim Crop Protection began hearing rumblings about China’s crackdown on manufacturers violating environmental regulations and potential supply disruptions in late

Asia

PMFAI Applauds Court Ruling Against Pesticide Imports without Technical Registration

The Pesticides Manufacturers & Formulators Association of India (PMFAI), a national association representing the Indian agrochemical industry, supports the Hon’ble

US-China-Trade-War
Asia

China Eases Pollution Campaign in Move to Offset U.S. Tariff Impact

China’s government announced it is scaling back its pollution control campaign this fall and winter, in an effort to offset

Rice
Agrichemicals

BASF Launches Revysol Fungicide in South Korea

With the first global regulatory approval for the new compound received from South Korean authorities earlier this year, farmers in the country will be among the first in the world to benefit from the company’s latest offering.

Agrichemicals

Willowood USA to Hike Prices on Tariffs

Willowood the latest U.S. agrichemical company to announce price hikes.

Agrichemicals

Citing Tariff, Albaugh Raises Prices

"We are left with no alternative but to increase prices reflective of the higher tariffs."

Asia

India Could Fill Gap in Agricultural Imports Amid China-U.S. Trade War

The ongoing China-U.S. trade dispute will provide a chance for China and India to strengthen their agricultural trade, which will

Agrichemicals

What to Do If You Have Products Subject to New U.S. Tariffs

The new retaliation lists hit almost every product that the Chinese import from the U.S.

Americas

Trump Tariffs on Chinese Imports to Begin Sept. 24

Starting Jan. 1, 2019, the level of the additional tariffs will increase to 25 percent.

Pam Marrone
Asia

Marrone Enters Distribution Partnership in Vietnam, Cambodia

Key factors driving the rapid adoption of biologicals in Vietnam include pesticide residue problems in agro-products for local consumption, new requirements for Maximum Residue Levels on agro-products imported to the EU and U.S., and a growing number of banned pesticides.

vietnam flag
Asia

Vietnamese Government Encouraged to Embrace Ag Innovation

"We call on the government to ensure that crop protection tools are properly assessed through a consistent, scientifically rigorous process in line with internationally accepted methods and standards."

Latest News

Biopesticides

Terramera Gets EPA Approval for Biocontrol Product

Terramera announced the U.S. Environmental Protection Agency approved registration of its novel, broad-spectrum agricultural insect, fungal disease, and mite control

Industry News

Cibus Files Registration Statement for Proposed Initial Public Offering

Cibus Ltd., a leader in advanced plant-breeding technologies, has publicly filed a registration statement on Form S-1 with the U.S.

Agrichemicals

What to Expect for U.S. Dicamba Use in 2019

Long-awaited news from U.S. Environmental Protection Agency on its decision to extend the registration for the new dicamba technologies arrived Halloween

Asia

Report: Farming in 20% of Indian Districts Threatened by Climate Change

Crops, plantations, even livestock in 151 districts, or slightly more than one-fifth of the total districts in India, are susceptible

Agrichemicals

Bayer: Study Shows its Soybeans Reduce Environmental Impact

Results from a five-year peer-reviewed study on Intacta RR2 PRO™ soybeans planted in South America were recently published, indicating that