Agrochemical Update Brazil & Latin America - 09/27/2023

Ministry of Agriculture approved 11 pesticide registrations of equivalent technical products. (MAPA)

Basf announces changes in its agricultural division in Brazil. Daniela Ferreroni is the new sales director; Hugo Borsari is the new marketing director; and Mario Lavacca Jr. will be the director of customer experience and commercial excellence. (Basf Agricultural Solutions)

The Senate Economic Affairs Committee approved on September 19^th the Bill that creates the Fertilizer Industry Development Program – Profert. Authored by Senator Laércio Oliveira, the Bill No. 699/2023 received a favorable analysis from Senator Eduardo Gomes and was sent to the Agricultural Commission. The Bill grants tax benefits to encourage the production of fertilizers in Brazil, such as granting a zero rate to certain taxes related to the commercialization or import of inputs necessary for fertilizer production. (Agência Senado)

Amanda Pit Nunes is the new national coordinator of organic products at Santa Clara Agrociência. (Santa Clara Agrociência)

According to newly-released data from the Brazilian Federal Revenue Agency, 26 companies account for 46% of federal tax benefits, with each one receiving at least US$ 200 million in tax benefits from the government in 2021 (2022 figures have not yet been released), totaling almost US$ 20.15 billion in taxes that were not collected. Among the companies, four are in the agribusiness input and machinery markets: CNH Industrial, Yara Fertilizers, Mosaic International and Syngenta. The main benefits that these companies received are tax reductions for the imports of fertilizers and pesticides and the Special Customs Regime for Industrial Warehouses under Computerized Control (Recof). (Receita Federal)

Fertilizer industry is responsible for 15% of the agricultural inputs chain GDP, 2.2% of the agribusiness GDP and 6% of the agricultural GDP in Brazil, in addition to contributing to the generation of 28 thousand direct and indirect jobs in the country. (Sinprifert)

Agrosilvopastoral Health Defense Agency of the State of Rondônia – Idaron issued a warning about the use of fipronil in the State. According to the agency, “the indiscriminate use of pesticides during the flowering season may have caused the death of thousands of bees in the Alto Alegre dos Parecis region… The use of fipronil-based pesticides in coffee farms has decimated several hives that were raised by a beekeeper and may have been responsible for the death of thousands of wild bees”. According to Idaron’s pesticide program coordinator, Sirley Ávila, “we are in the flowering season, so the irregular use of pesticides can pose a serious threat to the ecosystem. Ideally, the farmer, before using any pesticide, must consult the responsible agronomist and check whether the insecticide used is ideal for the cultivated crop”. (Idaron)

The illegal pesticide market in Brazil represents more than US$ 3.02 billion per year and accounts for 25% of the products used on farms. (Idesf)

“Since the Ministry of Agriculture suspended the need for the registration of adjuvants in 2017, the market lacks precise and reliable recommendations, which establish specific standards and norms… One of the alternatives found by the market has been the search for seals and quality certifications, such as those offered by the IAC Spray Adjuvants Program”, according to Henrique Alves, agricultural solutions marketing manager at Dow. Alves said that the global market for agricultural adjuvants is expected to grow from US$ 3.8 billion in 2023 to US$ 4.8 billion by 2028, with a CAGR (compound annual growth rate) of 4.7% in the period. In South America, a CAGR of 5.11% is estimated, which could reach US$ 1.2 billion by 2026. (Dow Brasil)

BioConsortia Inc. announced that it will begin a “strategic expansion” process in Brazil. The US company is focused on microbial products that “reduce the need for synthetic nitrogen fertilizers and that protect crops from pests.” The CEO Marcus Meadows-Smith said the company decided to accelerate its entry in Brazil “because, even though the country is a world leader in the use of biological products, we believe that BioConsortia’s products can offer a better performance.” (Bioconsortia Inc.)

Embrapa Clima Temperado (Temperate Climate), in partnership with Partamon, a company focused on integrated pest management, obtained a certification for the native wasp (Doryctobracon areolatus). The wasp is capable of controlling fruit fly species, which can cause damage of up to US$ 36.27 million per year to Brazilian fruit farming. The parasitoid wasp received a Reference Specification (ER 54), classified as a phytosanitary product by the Ministry of Agriculture. According to Embrapa, this is the first phytosanitary product that uses “local biodiversity and 100% local technology”. Considered a biological insecticide, the wasp can achieve a parasitism rate of 40% of the fruit fly larvae. The release of 10,000 wasps/hectare is recommended. (Embrapa; Partamon)

Adama announces that its fungicide Almada is now being produced in Londrina, State of Paraná. The active ingredient, prothioconazole, was previously imported from Israel, but now it is manufactured by Adama in Taquari, State of Rio Grande do Sul. (Adama)

172 kg of pesticides were seized on September 22^nd on BR-050 in the city of Uberaba, State of Minas Gerais. According to the Federal Highway Police, the merchandise was valued at US$ 40.29 thousand and did not have a tax receipt. It is suspected that the products contain the insecticide emamectin benzoate. (PRF)

State of Paraná Agricultural Defense Agency – Adapar started Operation Agro+, which carries out inspections of agricultural sprayers on farms in the State. So far, 260 pieces of equipment have been inspected, in the cities of Astorga and Marialva. “Three years ago, we carried out initial works in Marialva to inspect sprayers, as it is an area with a high risk of pesticide drift. From 2021 to 2022, we noticed a 50% improvement in the quality of the equipment analyzed, in addition to a reduction in problems with drift”, according to Adapar’s plant health manager, Renato Young Blood. (Adapar)

The National Union of Agricultural Aviation Companies and the Brazilian Institute of Agricultural Aviation launched a campaign with the objective of “stopping prejudice against agricultural aviation”. According to the executive director of both institutions, Gabriel Colle, “the general population’s lack of knowledge about the processes and tools used in agriculture, especially in large-scale production, has always been a breeding ground for stereotypes.” (Sindag; Ibravag)

The Senate Environment Committee approved the substitute for the Bill that regulates production, import, registration, commercialization, use, inspection, research, experimentation and incentives for the production of bioinputs in agriculture, including those produced by farmers for their own use. The Bill aims to encourage the transition from the use of pesticides to bioinputs. The Legal Framework for Bioinputs, Bill No. 3668/2021, received an alternative text proposed by the rapporteur, senator Veneziano do Rêgo, with the approval of four amendments. The Bill was sent to the Chamber of Deputies [Brazilian Lower House of Congress] for further analysis. (Agência Senado)

Rapporteur of the Pesticide Bill No. 1459/22 at the Senate Environment Committee, senator Fabiano Contarato, presented an analysis about it on September 20^th. “We note that the Bill’s text from the Chamber of Deputies [Brazilian Lower House of Congress] is, in general, constitutional, both materially and formally… There are, however, reservations regarding specific provisions that will be highlighted during the course of this analysis”, according to Contarato. The Bill was included in the agenda of the Environment Commission meeting, scheduled for September 27^th. (Federal Senate)

A patent request from Embrapa Agroenergia was approved for the “Production Process of Calcium Carbonate and Kraft Lignin Nanocomposite from Gaseous Emissions”, with exclusive commercial exploitation for the next 20 years. The process uses CO₂ to produce a product capable of fixing pesticide and fertilizer molecules, which can provide a gradual release of the products. (Embrapa Agroenergia)

Fertilizer purchases for the 2023/24 season are facing delays. Many farmers have not yet purchased the inputs and the last opportunities to purchase will happen in the coming days of September, according to the Safras & Mercado analyst Maísa Romanello. “On the demand side, we have a concentration of purchases in the 2H of the year. Farmers have waited for prices to drop further, so purchases are delayed compared to previous years, concentrated in the next six months”, said Romanello. According to Jeferson Souza, fertilizer analyst at Agrinvest, the international prices of urea and phosphorus are rising, which makes purchases for the off-season in Brazil difficult. “Right now, especially for the 2024 off-season corn, we need to pay very close attention, not only to prices, but also to logistics. For now, the situation is not alarming…”, said Souza. (Safras & Mercado; Agrinvest Commodities)