Agrochemical Update Brazil & Latin America - 06/07/2023

Treated area with pesticides in Brazil increased by 13.4%

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Brazil

In compliance with court decision, Anvisa approves toxicological evaluation of the herbicide picloram + 2,4-D (CHDS). (Anvisa)

A small decrease in the purchasing power of fertilizers by farmers happened in May, but indices remain favorable. Result is a reflection of the decrease in commodity prices, of approximately 5.2%, impacted by the drop in corn (19%) and soybeans (7%) prices. Fertilizer prices showed an average drop of 8%. Now is the time for farmers to plan their input purchases. (Mosaic Fertilizers)

Secretariat of Agriculture of the State of Rio Grande do Sul warns farmers about the expiry date of agrochemicals. According to the Secretariat, more than ten notices of infraction were issued in May for companies that sold expired products, above average for the period. “Inspection has already identified, in two cases, that the companies inserted the correct lot in the invoice, but changed the expiry date of the document”, said the head of the Agricultural Inputs and Services Division at Seapi, Rafael Lima. (Seapi-RS)

Petrobras started discussions with Unigel about joint businesses in the areas of fertilizers, green hydrogen and low carbon projects, in line with the review of Petrobras’ business plan for the 2024-2028 period. The companies signed a non-binding confidentiality agreement, effective for two years. (Petrobras; Unigel)

Orizon and Tera Ambiental announce a consortium to explore activities of composting organic sludge and preparing organic fertilizers from waste received. Each of the companies have a 50% share in the consortium. Deal has already been approved by the Administrative Council for Economic Defense. (Orizon; Tera Ambiental)

Hinove, a manufacturer of special fertilizer, issued US$ 20.37 million in Agribusiness Receivables Certificates (CRA). The company aims to improve its balance sheet and support its growth plan, that includes the reopening of a factory acquired from Mosaic in Guará, State of São Paulo, that should involve investments of US$ 10.18 million. This was the company’s second operation in the capital market. The first operation involved the issuance of US$ 14.26 million in debentures in 2022. With the new funding, Hinove now has 65% of its debt in the capital market. (Hinove)

Ibama publishes Normative Instruction No. 16, of June 1^st, 2023, that establishes criteria for setting administrative fines, provided for in art. 64 of Decree No. 6.514/2008, for the cases involving pesticides, their components, and related products. (Ibama)

Investment fund XP Private Equity II is in the process of acquiring a 20% stake in Superbac’s share capital. Deal should be completed through the subscription of new shares, generating an increase in share capital. (XP Investimentos; Superbac Biotechnology Solutions S.A.)

Lavoro acquired a majority share of Cromo Química, a company focused on adjuvants and performance enhancers for soybean, corn, and cotton. (Lavoro Agro; Cromo Química)

Andermatt Brasil’s revenue doubled from 2022 to 2023. According to Carlos Gajardoni, the company’s CEO, two biological nematicides were launched and another five products to control pests and diseases should be announced during the 2023/24 harvest. (Andermatt Brasil)

According to Ruy Cunha, CEO of Lavoro, fertilizer sales should increase by 11% during the 2023/24 harvest. Demand should go back to levels seen before the Russia-Ukraine war. Sales of pesticides, fungicides and other agrochemicals are expected to increase by 9%. (Lavoro Agro)

Fertilizantes Heringer had a net loss of US$ 26.74 million in the 1Q of 2023, compared to US$ 126.09 million of net profit in the same period of 2022. (Fertilizantes Heringer)

Marcelo Silvestre is the new president of Galvani, a fertilizer company. “With the new operations and investments, we seek to contribute to a reduction of up to 20% in the need to import fertilizers in Brazil”, said Silvestre. (Galvani Fertilizantes)

Port of Santos records imports of 670 thousand tonnes of fertilizers during April, an amount 4.1% higher than the same period in 2022. (Port of Santos)

In the State of Paraná, approximately 4,000 farmers adopt organic agriculture practices, the highest number in the country. These farmers represent 16% of all certified farmers in Brazil who do not use pesticides. (MAPA)

Embrapa research points out that inoculation of rhizobium (Bradyrhizobium spp.) in cowpea seeds (Vigna unguiculata) can replace nitrogen fertilization in no-tillage farming, maintaining yields of approximately 1.5 tonne/ha. Rhizobium generated a 20% decrease in costs, allowing similar yields to the use of 40 kg of nitrogen/ha. (Embrapa Western Amazon)

Daniel Nigro is the new global technical manager for weed control at Syngenta. (Syngenta)

Arthropod Resistance Laboratory from the University of São Paulo confirms resistance of psyllids to pyrethroids and neonicotinoids. The insects, that transmit greening, were collected from orchards in the States of São Paulo and Minas Gerais. According to researcher Fernando Amaral, 123 cases of psyllid resistance have already been identified in the world, for nine active ingredients. “On an emergency and temporary basis, it is essential to avoid the use of insecticides from those two chemical groups…”, said Celso Omoto, research coordinator. (Esalq/USP)

Anvisa completed the process of digital transformation of pesticide services. As of 06/01, requests for the registration of pesticide components and related products will migrate to the Solicita system. Pesticide ownership transfers to other companies will be automated. This should improve the user experience of the regulated sector. (Anvisa)

Environment Committee of the House of Congress received a document about water contamination by pesticides on the Cerrado biome. Report shows data collected by Fiocruz in the States of Goiás, Mato Grosso, Mato Grosso do Sul, Maranhão, Tocantins, Piauí, and Bahia. Pesticides were present in all of those States. “Glyphosate, atrazine, and 2,4-D, among the five most consumed pesticides in Brazil, appeared in most of the samples. In total, we found 13 pesticides. In the State of Maranhão, we found nine different pesticides in a single sample of water, in a well that is 35 meters from a soybean farm…”, explained Aline Gurgel, researcher at Fiocruz. (Agência Câmara de Notícias)

EuroChem, a Russian group that controls Fertilizantes Tocantins and Fertilizantes Heringer, plans to double its fertilizer sales in Brazil. In five years, the amount sold should increase from 5 million to 10 million tonnes. With 11% market share, the company intends to reach 25%, according to Gustavo Horbach, vice president of upstream production in South America. One of the company’s strategic projects is the phosphate mining complex in Serra do Salitre, State of Minas Gerais, that received investments of US$ 1 billion. “We should start operating the unit in the 1Q of 2024, with the potential to manufacture 1 million tonnes/year, or 15% of the country’s consumption”. (Eurochem)

Treated area with pesticides in Brazil increased by 13.4% in the 1Q of 2023, compared to the same period of last year. Growth occurred mainly because of soybean, a result of the greater proliferation of pests. Soybean represents 37% of the total Brazilian treated area, an increase of 4% compared to 2022. “It is interesting to note that these numbers are in line with the latest data, that showed that soybean yields increased by 15% in the 2022/23 harvest…”, said Júlio Borges Garcia, president of Sindiveg. (Sindiveg)

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