Brazil: Ag-chem Sales To Increase 10%
21 September 2007 These expectations are influenced by:
- An increase in volume sales of inputs.
- An increase in sugarcane and the out-of-season corn areas.
- Good international prices for soybeans, corn, and cotton.
- Above-average international prices for coffee.
- Favourable conditions in forestry.
IEA also reports that the sugarcane area is forecast to rise by 7.4% in 2007/08, to 6.6 million hectares (Ha).
Improving international prices for food and fiber crops helped the pesticide sector get off to a strong start, with the first quarter of the year seeing increased demand for herbicides, particularly for sugarcane and out-of-season corn.
A Classic Rebound
Agrochemical sales in Brazil fell by 7.6% in 2006 from 2005, according to IEA. It cites a study from the Brazilian agrochemical trade union, the Sindag, which reported sales of US $3,920 million, compared to 2005 sales of US $4,244 million.
Sales were down in each segment as many farmers had unprofitable seasons, amassed debt, and were unable to buy products. Manufacturers and exporters told FCI during that time that collecting payments for products sent to Brazil was difficult, if not impossible.
Not all sectors struggled, however. Sales of pesticides for use on sugarcane jumped by 36.3%, and agrochemical sales for beans rose by 19.6% and fruit by 4.3%. These gains were offset by large drops in agrochemical sales for use on cotton, corn, tobacco, wheat, and grapes. Sales for products used on soybeans, the most important crop for agrochemical sales, fell by 19.4%.
Overall, soybean pesticides accounted for 38.5% of 2006 sales. Following soybeans, cotton consumed 12.6%, corn 7.5%, coffee 4.9%, and citrus 4.2%.
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