Crop Protection Industry Enjoys Double-Digit Growth in 2011

Avatar for By Stefanie Toth|5 December 2011

The global crop protection market increased 18% to reach $45 billion in 2011, according to a new Phillips McDougall report showing preliminary ending estimates.

Latin America saw the most growth. The region’s crop protection market increased 29.7% ($10.4 billion), up from $8.4 billion the previous year. Strong crop prices, increasing demand for cotton and sugarcane and high disease pressure on soybeans contributed to the rise.

Asia also enjoyed industry growth of 18.3%, or $11.8 billion, compared to the $9.9 billion it managed in 2010. Currency valuation led to the increase as a falling US dollar strengthened the yen, euro and most major currencies. Thailand suffered from flooding and Northern China saw a decrease in crop production due to drought.

A normal monsoon season and improved crop prices led to positive economic growth in India, according to Phillips McDougall. A continuing shift to higher-value products boosted the country’s economy as well.

In Europe, dry weather in the Ukraine held back the grains market, but the country enjoyed an early winter and began to shift back to cereal production due to decreased stocks. A dry spring affected the country’s fungicide market.

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All sectors of the crop protection market experienced growth in 2011, according to the report. Glyphosate price stabilization boosted herbicides, new products improved the insecticide sector and favorable weather conditions helped fungicide sales. In particular, strong crop prices promoted fungicide use on maize and soybeans in the United States.

Preliminary estimates in 2012 show continued growth, according to Phillips McDougall. Future prices and crop prices are estimated to remain strong because of a continuing increase in demand. The potential of recovery exists in countries and regions that suffered crop reduction due to weather, including Europe, North America, China and Thailand. A stronger 2011/12 farm economy could also improve the agrochemical market.

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