Agrochemical Update Brazil & Latin America - 11/29/2023

Senate approves with amendments Pesticide Bill No. 1459/2022 on November 28th. The Bill regarding production, sales and use of pesticides, is now subject to presidential approval or rejection. Deadline for President Luiz Inácio Lula da Silva’s decision is of 15 working days after the date on which he receives the official notification. (Agência Senado)

Anvisa published five withdrawal requests of pesticide toxicological evaluation from Nortox: azoxystrobin + tebuconazole; cypermethrin; difenoconazole; amicarbazone; and technical difenoconazole. (Anvisa)

In November, CFR Brasil urea prices fell by more than 20%. “When we talk about the exchange ratio between off-season corn and urea, October ended with a ratio above 70 bags per tonne, which was not attractive to farmers. This same index is 59 bags in Sorriso, State of Mato Grosso, a value that is very close to the averages of the last five years and is more interesting than in the same period last year”, according to Jeferson Souza, market intelligence analyst at Agrinvest Commodities. “Farmers who have not yet purchased their fertilizers for the off-season of 2024 – by the way, we have more than 30% of fertilizer purchases open for our off-season corn – may have a bigger motivation to buy”. (Agrinvest Commodities)

Lavoro, distributor of agricultural inputs, announces partnership with BTG Pactual to provide rural insurance to farmers. “In recent years, there has been an increase in demand for agricultural insurance, due to several factors, including sudden climate changes, which harm the production cycle and force farmers to look for alternatives to protect themselves”, according to Ruy Cunha, CEO of Lavoro. “BTG has less than 5% of the MS. It is very young in the market, but it is investing a lot and intends to carry out a more ‘granular’ pricing, based on data from specific regions”, said Gustavo Modenesi, head of B2B and services from Lavoro. (Lavoro Agro; BTG Pactual)

Import prices of potassium chloride continued to fall. In October, prices were quoted at US$ 0.30/kg, a value 61.9% lower than in October of 2022. Potassium chloride also accumulated the lowest increase among the three main raw materials imported by Brazil, with a gain of just 5.3% between January of 2020 and October of 2023. Prices of urea and monoammonium phosphate – MAP rose in October. Urea prices had four consecutive months of increases, while MAP had its second month of increases. Prices of urea and MAP were, respectively, 63.3% and 58.1% below the value observed in October of 2022. (Comex)

Anvisa approved toxicological evaluation of active ingredients that are not yet registered in Brazil. Approved chemical formulated products difenoconazole + fenpropidin + picoxystrobin, from Adama; ametoctradin, and fenpropimorph + mefentrifluconazole, from Basf. Approved evaluation of the new microbiological product Priesta megaterium, from Solubio. Approved evaluation of technical benzovindiflupyr, from Syngenta. (Anvisa)

Brazilian Chemical Industry Association said the local chemical industry should end 2023 with a deficit of US$ 47 billion, the 2nd largest negative balance in history. The drop happened due to “imports driven by predatory prices from Asia”. Imports of chemical products reached US$ 52 billion, while exports reached US$ 12.2 billion until October. (Abiquim)

“With the introduction of Nitrospirilum spp. and Azospirillum spp., we have replaced 100% of nitrogen fertilizers in our planting area and 50% in ratoon sugarcane. Because of projects like this, we had an increase in yields of around 20 tonnes/hectare when compared to the previous harvest”, said Germano de Souza, corporate manager at BP Bunge. “We are progressing in the construction of places for the production of these organomineral fertilizers in all our units, in which we concentrate byproducts from the sugarcane processing process, such as filter cake and ash, and enrich them with other organic materials, such as manure and reactive natural phosphates. With this input, we replace mineral fertilizers purchased externally, generating financial and quality gains, and better yields”, said Souza. (BP Bunge)

Faesp released a report on the prices of agricultural inputs in the State of São Paulo. There was an upward trend in the prices of dolomitic limestone and gypsum in the State. In October, these products showed a monthly increase of 14.4% and 6.2%, respectively, and an annual increase of 23.2% and 41.2%. There was a 19% reduction in the price of chlorantraniliprole-based insecticide between September and October. Ivermectin 1%, despite having shown a monthly drop of 9.8%, still accumulates a significant increase of 69.2% before 2022. Urea remained stable in relation to the previous month, but showed a drop of 40.4% when compared to October of 2022. (Federation of Agriculture and Livestock of the State of São Paulo)

EuroChem’s Serra do Salitre Mineroindustrial Complex will manufacture, from March of 2024, approximately one million tonnes of phosphate fertilizers per year, which represents 15% of Brazilian production. This is EuroChem’s first mining unit outside of Europe, which received investments of around US$ 1 billion. (EuroChem)

Startup Krilltech invests in nanotechnology for green fertilizers. The company resulted from a partnership between Embrapa and the University of Brasília. “Our nanosolutions are capable of supporting plant growth and health, as well as protecting them from abiotic factors, such as drought or water stress”, according to Diego Stone, CEO of Krilltech. The active ingredient is derived from arbolin, which could “increase the absorption of NPK by plants by up to 30%”. (Krilltech)

Petrobras announced the resumption of investments in the UFN3 fertilizer factory, located in Três Lagoas, State of Mato Grosso do Sul. Completion of the work, which has been on hold since 2014, is scheduled to happen between 2026 and 2028. The factory will be able to manufacture 3,600 tonnes of urea and 2,200 tonnes of ammonia per day. It is estimated a total investment of US$ 1 billion. (Petrobras)

Bunge acquires assets from Nutrien subsidiaries in the State of Goiás, which were two warehouses of solid bulk products of plant origin from the companies Sementes Goiás and Fronteira Comércio e Representação de Produtos Agropecuários. (Bunge; Nutrien)

According to Débora Prado, crop manager at FMC, losses caused by soybean Asian rust can reach up to US$ 1.22 thousand/ha in severe conditions. “Farmers need to be attentive from the beginning, and rotate pesticide active ingredients… losses can exceed US$ 1.22 thousand/ha, considering yields of 65 bags of soybeans per hectare, with a value of US$ 24.42 each”, said Prado. (FMC Corporation)

“Less than 10% of the microorganisms present in the soil are being used by the bioinput industry”, according to Fernando Andreote, a researcher at the Luiz de Queiroz College of Agriculture. “There is an infinite number of bioinputs hidden in Brazilian soils. You just need to understand and explore them, as they are essential for controlling the effects of extreme weather in the farms”. (Esalq/USP)

Due to climate problems faced by farmers in 2023, the 1H of 2024 is expected to have the lowest fertilizer sales in the last five years. Only 31% of estimated sales for January to June of next year have already been closed. “This can be explained by the delay and uncertainty in planting the 2023 summer crop, combined with the unattractive exchange ratio given the decrease in corn prices and the high costs of fertilizers, mainly nitrogen, which prevailed until recently”, said the StoneX fertilizer director, Marcelo Mello. (StoneX Consulting)

On November 23^rd, in the city of Guaíra, State of Paraná, a ship was seized while unloading pesticides smuggled from Paraguay in a clandestine port on the banks of the Itaipu Lake. A vehicle and approximately 400 kg of smuggled pesticides were also seized, valued at US$ 133 thousand. (Federal police)

Bayer’s training program, developed in partnership with the National Rural Apprenticeship Service – Senar, teaches techniques for efficient weed management and safe application of pesticides. Locations where the training sessions are held have simulators that reproduce weather and wind conditions that exist in Brazil. “The rooms have simulators and equipment that reproduce the most diverse spraying conditions in the farms, facilitating the transfer of knowledge”, said Vivian Nascimento, manager of training and future soybean products at Bayer. More than 73 thousand people have already benefited from the training programs. (Bayer; Senar)

Interministerial Ordinance MDIC/MF/MTE/MMA No. 28, published on November 23^rd, allows the chemical sector to receive tax benefits provided for by the Special Regime for the Chemical Industry – reestablished by presidential decree in August of 2023. “This not only improves the competitiveness conditions of the sector, but also brings gains to the entire Brazilian economy, because the chemical industry is at the base of several other production chains”, said the vice-president of Brazil, Geraldo Alckmin. (MDIC)

In the first nine months of 2023, Verde Agritech’s gross revenue reached approximately US$ 24.47 million, half of the total recorded in the same period of 2022, but still above the US$ 22.43 million for the entire year of 2021. The company’s main product is a mineral fertilizer composed of potassium, silicon, magnesium, cobalt, zinc and manganese, made from glauconitic siltstone. (Verde Agritech)

There are 10 fertilizer companies in the State of Pará. According to the State of Pará Economic Development Company, the region is becoming a hub for fertilizer production, attracting investors with tax incentives that can reach up to 90%. The proximity of the Port of Vila do Conde, in Barcarena, has proven to be a strategic advantage for companies such as Fribon Fertilizantes, Fertilizantes Tocantins (Eurochem Group), Fertz Fertilizantes, HR Fertilizantes, Yara and GeN Fertilizantes. In Santarém, companies such as Campo Rico Brasil and Fertilex Agro already receive government benefits. (Codec)

Armed criminals stole more than US$ 410 thousand worth of pesticides from a farm in Paranatinga, State of Mato Grosso. The stolen cargo contained: Climur (84 kg); Sumisoya 500 SC (200 L); Mitrion (135 gallons of 20 L); Dual Gold (140 L); Select (110 gallons of 20 L); Decorum (12 gallons of 20 L); Match (100 gallons of 20 L); Samurai (56 boxes); Cypress (45 gallons of 20 L); Maxim (100 L). (Polícia Civil)

Ibama published Normative Technical Guidance No. 02/2023 regarding the classification of environment remediation products subject to registration. Remediation products are used in the recovery of contaminated environments and ecosystems and in the treatment of waste and effluents. (Ibama)

According to agronomist José de Freitas, from Sipcam Nichino’s market development area, the heavy rains that hit southern Brazil during the beginning of the soybean season, it is possible that cases of soybean Asian rust will intensify. Freitas said that “it will be essential for the farmer to closely monitor the crops, with the purpose of controlling the disease when it begins”. (Sipcam Nichino)

The 2023 agricultural inputs market was defined by “falling prices, focus on the reduction of stocks, a slow pace of sales, payment delays and the weather”. Furthermore, “only 25% of stores planned for 2023 were open by September.” For 2024, just 30 Cooperatives, 285 distributors and 570 farmers represent more than 60% of the estimated market. (Crosara Consultoria)

Brazilian purchases of macronutrients on the international market are decreasing, even though there are delays in purchases for the off-season, especially nitrogen. There are also reports of delays during cargo unloading at the ports due to rainfall. For phosphates, demand continues to decrease, with Brazil late in purchasing for the off-season and with Europe reducing purchases. China has reduced its production capacity and still has export quotas in force, which could reduce global supply. Potassium prices have decreased with the reduction in purchases from the two countries that usually have the biggest demand in this period, Brazil and India. (Itaú BBA)

Ministry of Agriculture published Act No. 51, from November 23^rd, with deliberations in the area of pesticide registration. There were 31 import authorizations, 9 registration withdrawals, 4 voluntary registration request withdrawals, 3 rejections, etc. (MAPA)