Trends and Drivers in the Global Crop Protection Industry

Global human population growth is around 75 million annually, and estimates place our total population at over 9 billion by mid-2050.

The logistical challenge is not only the projected 9 billion people, but also the estimated hundred billion head of livestock we will need to feed to maintain our current consumption standards.

Without crop protection strategies, we risk losing almost half of our overall crop production to insects, weeds, and disease. Plant Protection agents — including biopesticides — reduce these losses, while Crop Enhancement agents (including biostimulants and biofertilizers) contribute to increasing overall crop production.

Ag-Biologicals-in-Crop-Protection
Figure 1: Agricultural Biologicals in Crop Protection.

 

To provide sufficient crop resources, new and innovative crop protection strategies are constantly being developed and implemented.

These include formulation and application innovations for conventional pesticides (herbicides, insecticides and fungicides), as well as the development and application of economically viable biopesticides.

Crop Protection Trends

Estimates of global market sizes for crop protection products (conventional pesticides as well as biopesticides) vary, but the consensus is that biopesticides are expected to increase from about 2% of the global pesticide market in 2003 to about 8% of the global pesticide market (estimated to exceed 82 billion USD) in 2020.

Current opinion is that the compound annual growth rate (CAGR) for biopesticides during this period is expected to exceed 12%, compared to an expected overall pesticide CAGR of about 7%.

Market
Figure 2: Estimates of global market sizes for crop protection products.

 

Falling commodity prices reduce the value of crops for farmers, and thus demand for crop protection products. While lower oil prices permit cheaper production, associated declines in bioethanol margins restrict grower willingness to invest in these products.

Conventional Pesticide Trends & Drivers

Pesticide production is increasing to meet demand in rapidly expanding regions such as Latin America, Asia-Pacific, and Africa — a potential overcapacity may, however, lead to a decline in prices.

A few active ingredients, such as dicamba and 2,4-D are experiencing increased interest, due to trends in GMO technologies (trait stacking) and advances in formulation development (seed treatments).

Stricter pesticide regulatory requirements in the EU and Brazil restrict access and increase registration costs, while an associated decline in the number of registered active substances in the EU is reducing the potential of crop protection resistance strategies.

Trends-drivers
Figure 3: Global industry trends and R&D drivers.

 

Biopesticide Trends & Drivers

Within the EU, stricter pesticide regulatory requirements, consumer awareness regarding hazards caused by chemical pesticides, and the phasing out of toxic conventional pesticides are factors driving the growth of the biopesticide market.

The leading agchem companies are expanding their biopesticide R&D and portfolios, with focus on biochemicals, such as naturally occurring metabolites with entomopathogenic or antifungal activities, microbiome (beneficial microbes which improve nutrient uptake and disease resistance in crops), and molecular biological techniques (gene targeting) such as CRISPR and RNAi.

Efficacy trials demonstrate conclusively that biology-based crop protection strategies can attain an efficiency at least on par with conventional crop protection strategies, when applied with due regard for factors such as plant-response kinetics and disease pressure development.

On the other hand, reports of inconsistent efficacy in the field lead to either over-optimism or skepticism by corporate decision makers and farmers alike. From a grower / end-user point of view, an important strategic strength of biopesticides lies in their application at specific timings, such as pre-harvest application.

Short pre-harvest intervals allow the application of biopesticides (especially biofungicides) immediately before harvest, where few (if any) conventional pesticides are available.

Potential restraining factors include the current low adoption rates of biopesticides, as well as the expectation of stricter future regulatory requirements for biologicals. Of importance with respect to toxicology, the formation of plant-produced toxins induced by biopesticides requires immediate attention.

Related: Agricultural Biologicals: Terms and Definitions

Leave a Reply

Markets

India-Smart-Farming
Asia

India: Enabling Modern Agriculture Through IoT

Since the first green revolution in the 1960s that radically transformed the face of Indian agriculture, the sector has consistently

Asia

Reuters: Trump Greenlights Next Round of Farm Payments in China Trade War

The Trump administration will move forward with plans to distribute a second round of payments to farmers caught in the

La-Hornilla-Gesex-32-1
Markets

AgriBusinessGlobal.com: Top 10 Stories from 2018

What a year it’s been for the global agribusiness industry. While the mergers and acquisitions once again dominated headlines in

Asia

AgFunder Releases India AgriFood Startup Investing Report

AgFunder has released the inaugural India AgriFood Startup Investing Report in collaboration with its report partner Omnivore. In this five-year

Agrichemicals

University of Utah Recognizes Aqua-Yield/Nano Institute Partnership in New Annual Report

In a newly-published annual report, the University of Utah’s Center for Technology & Venture Commercialization (TVC) touts the first-of-its-kind collaboration

Asia

China Could Subsidize Agribusiness Buying in Trade Truce

With a trade truce delaying escalation of tariffs between the U.S. and China into March, there is an opportunity for

Soybean field
Asia

Report: U.S. Farmers Still Planning Fewer Soybeans in 2019 Despite Promise of China Trade Deal

When President Donald Trump was having the highly-anticipated dinner with China’s President Xi Jinping at the G20 summit, farmers in

Agrichemicals

UPL Mauritius to Acquire Bioquim Group

UPL Mauritius, a subsidiary of UPL, India is set to acquire 100% shares of Bioquim Group which includes companies based

Aphids Cotton
Agrichemicals

Nichino America Gets EPA Approval for Insecticide

PQZ insecticide from Nichino America, Inc. has been granted a U.S. EPA label expansion for food crop use, the company

Asia

PMFAI: Market Trend Updates, Agchem Awards Highlight ICSCE 2018

The 13th International Crop Science Conference & Exhibition (ICSCE 2018), organized by the Pesticides Manufacturers and Formulators Association of India

Asia

Indonesia: Forward Thinking, Fast Growth

Yet again, Indonesia was chosen as the destination for AgriBusiness Global Trade Summit 2018 for good reason: the country and

Asia

In New Plan, Vietnam Favors Bioproducts

By Vinh Dao Agriculture is the most important economic sector in Vietnam, and more than 70% of the country’s population

Agrichemicals

Crystal Crop Protection Acquires Three Syngenta Brands

New Delhi-headquartered Crystal Crop Protection, a firm backed by private equity firm Everstone Capital, has acquired three insecticide and fungicide

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

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

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

Americas

Mexico: Ripe for Growth in High-Value Horticulture Crops

Editor’s Note: Eric Viramontes is Executive Director of Meister Media Worldwide Mexico, based in Guadalajara. Here he provides an overview

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

wheat-field
Agrichemicals

Albaugh Discusses 2018 Trials of CoAXium Wheat System

Albaugh announced that the CoAXium Wheat Production System driven by Aggressor herbicide exceeded expectations in 2018 performance evaluation trials, demonstrating

Latest News

Asia

India: Enabling Modern Agriculture Through IoT

Since the first green revolution in the 1960s that radically transformed the face of Indian agriculture, the sector has consistently

Asia

Reuters: Trump Greenlights Next Round of Farm Payments in China Trade War

The Trump administration will move forward with plans to distribute a second round of payments to farmers caught in the

Markets

AgriBusinessGlobal.com: Top 10 Stories from 2018

What a year it’s been for the global agribusiness industry. While the mergers and acquisitions once again dominated headlines in

Trade Summit

Three Things We Learned at Trade Summit Southeast Asia

Since 2006 AgriBusiness Global™ (ABG) has hosted Trade Summits in all corners of the world in an effort to empower

Asia

AgFunder Releases India AgriFood Startup Investing Report

AgFunder has released the inaugural India AgriFood Startup Investing Report in collaboration with its report partner Omnivore. In this five-year