Brazil Agrochemical Update - 01/25/2023

Brazilian Agrochemical Market Fertilizer and Pesticide News

Petrobras must resume construction on unfinished fertilizer plants

The wheat pesticide market grew 60% in 2022, reaching US$ 460 million during the winter agricultural season, compared to US$ 290 million of the previous season. Herbicides were the most sold products, with US$ 230 million in sales and 47% of the total. Wheat is the fifth largest crop in purchases of agricultural pesticides in the country, behind soybeans, sugarcane, corn and cotton. The conflict in Eastern Europe, weather problems in Argentina and a favorable exchange rate for exports boosted the Brazilian market. (Kynetec)

Record deficit in the trade balance of chemical products in 2022, reaching US$ 63 billion. Value is 36.4% higher than the total registered in 2021. Increases in imported values were registered for almost all product categories, with emphasis on the increase of 75.1% in agricultural pesticides, 63.2% in inorganic chemical products and 27.9% in various organic chemicals. (Abiquim)

Cropfield invests US$ 17.28 million in expansion of their unit in Apucarana, State of Paraná. In May 2023, the company should inaugurate its biological products factory and, by 2025, it should inaugurate their agrochemical formulator factory. Currently, Cropfield has a constructed area of approximately 11,000 m² and handles around 400 trucks a year at the site, a figure that is expected to double after the expansions. “The group has a turnover of approximately US$ 150 million, placing it among the 20 largest in Brazil in the plant protection and nutrition sector”, said the co-owner of the Cropfield Group, Anderson Faustino. (Cropfield)

BP BungeBioenergia plans to eliminate the use of mineral fertilizers by 2025. The company is increasing the use of bioinputs and organic matter, such as compost and vinasse. During the current agricultural season, BP Bunger reports that it replaced the use of nitrogen fertilizers in 100% of its planting area, of approximately 50,000 hectares. For this, it expanded the use of the nitrogen-fixing bacteria Nitrospirillum amazonense, a technology developed by Embrapa. (BP Bunge Bioenergy)

The Production Costs Inflation Index presented a decrease of 9.55% in 2022, while the Inflation Index of Prices Received by Farmers increased by 10.36% in the period. This means that farmers are spending less and getting paid more for their products. (Farsul)

FertMinas, company specialized in fertilizer additives, announced an investment of approximately US$ 5.76 million in a project in the Export Processing Zone in Uberaba, State of Minas Gerais. (FertMinas)

Average reduction of 20% in the price of fertilizers in the State of Mato Grosso do Sul in December 2022, when compared to the same period in 2021. When compared to 2020, fertilizers showed an average price increase of 99%. (Aprosoja – MS)

Adubasul, an organic fertilizer industry, opened a new factory in the city of Três Palmeiras, State of Rio Grande do Sul, with investments of US$ 2.88 million. (Adubasul; Prefeitura de Três Palmeiras)

Unigel will invest US$ 1.5 billion in a green hydrogen (HV2) manufacturing project in the State of Bahia. According to the fertilizer manufacturer, this will be the first HV2 project on an industrial scale in Brazil. (Unigel)

Port of Paranaguá, State of Paraná, received the largest fertilizer ship in the world, transporting 73,310 tonnes of ammonium sulfate from China. The amount is a historical record in Paranaguá. (Ports of Paraná)

Minister of Agriculture, Carlos Fávaro, said that Petrobras must resume construction on unfinished fertilizer plants. “… one of the programs that Petrobras has to participate in is the continuity of nitrogenous production plants, that had already started and were paralyzed, the three that are missing”, said the minister. Fávaro refers to the three units where construction was paralyzed, in Três Lagoas, State of Mato Grosso do Sul (UFN3), in Laranjeiras, State of Sergipe (UFN4), and in Uberaba, State of Minas Gerais (UFN5). The Uberaba unit was paralyzed with 80.95% of construction completed. (Ministry of Agriculture)

Cibra started to sell ammonium nitrate. The first shipment was made to the company’s unit in Uberaba, State of Minas Gerais. “…we expanded our area of operation and offered new possibilities to customers who need this product, aimed mainly at sugar cane and coffee crops, but also applied to other crops, such as corn, potatoes, garlic, onions and carrots”, said the commercial director of the company, Luiz Freiberger. (Cibra Fertilizantes)

Federal Highway Police seized two pesticides smuggled from Argentina, totaling 6,500 L of paraquat, banned in Brazil. Apprehensions took place in the State of São Paulo, in the cities of Itapetininga and Assis. Products showed signs of counterfeiting. (PRF; Ministry of Justice and Public Security)

Biological pesticides and bioinoculants reached US$ 560 million in the 2021/22 season in Brazil. This represents an increase of 67% compared to the previous season. Bionematicides were the most traded products, with a share of 39.6%, equivalent to US$ 220 million, followed by bioinsecticides, with a share of 30.7%, or US$ 170.89 million. Bioinoculants and biofungicides accounted for 19.2% and 10.5% of sales, respectively. (Kynetec)


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