Agrochemical Update Brazil & Latin America - 06/21/2023

fertilizer sales

Pesticide aerial spraying ban discussed in 10 Brazilian States


Brazil

Prohibition of aerial spraying of pesticides is under discussion in 10 Brazilian States. By now, only the State of Ceará has legislation that prohibits the practice. At the end of May, the Supreme Court unanimously decided that the Ceará law should be considered constitutional, clearing up space for the approval of this measure in other States. States of Paraná, São Paulo, Rio de Janeiro, Minas Gerais, Mato Grosso, Pará, Maranhão, Piauí, Paraíba and Pernambuco have similar projects awaiting approval. (NGO Repórter Brasil; State Legislative Assemblies)

Roberto Risolia is the new CEO at Microgeo, a Brazilian biological fertilizer company, and CMO at Pátria Investimentos. (Microgeo; Pátria Investimentos)

Biological fertilizer launched by Corteva allows plants to get nitrogen from the air, that will be converted into a nutrient source. “By using the atmosphere’s inexhaustible source of nitrogen, we save the soil and reduce the emission of greenhouse gases”, said Cristiane Delic, leader of Corteva’s biologics portfolio for Brazil and Paraguay. (Corteva Agriscience)

Uby, a plant nutrition holding company, invests US$ 20.93 million in a new biofactory in the city of Uberaba, State of Minas Gerais. The objective is to manufacture approximately eight thousand tonnes of biofertilizers/year. “We expect the factory to reach revenues of US$ 73.25 million by 2027. This, added to the group’s income, could reach US$ 250 million over the next five years”, said Fabrício Simões, president of the company. Uby operates in the production of biological pesticides, biological fertilizers and special fertilizers. (Uby)

Environment Commission holds a meeting on 06/21 to vote on the Bill that creates a new regulatory framework for bioinputs, Bill No. 3668/2021. The Bill was postponed at the end of 2022 because of a review request and is now back on the committee’s agenda. (Agência Senado)

Ministry of Agriculture approves 55 pesticide registrations of formulated products, including 13 biological products, seven of which are for organic agriculture. So far, in 2023, 121 products were registered, 28 of which were classified as low impact products. (MAPA)

CTNBio approves GDM’s transgenic soybean resistant to glyphosate and glufosinate ammonium. (CTNBio; GDM)

Nutrigesso is in the process of acquiring Yara’s fertilizer processing unit in Catalão, State of Goiás. The facility has been disabled since 2022. (Nutrigesso; Yara Fertilizantes)

In compliance with court decision, Anvisa approves the toxicological evaluation of the insecticide bifenthrin + thiamethoxam, from Syncrom. (Anvisa)

Rovensa Next announces estimated revenues of US$ 210 million by 2025. According to Luís Carlos Cavalcante, marketing and sales director, the forecast is for an increase of 40% per year. Company aims to lead the Brazilian bio-input market over the next five years. (Rovensa Next)

Judgment on tax exemption for pesticides was expected to end on 06/16, but was suspended by a review request by Minister André Mendonça. The case was given a period of 90 days to be resumed. Tax incentives for pesticides are debated in the Supreme Court through the Direct Action of Unconstitutionality – ADI No. 5553, that seeks to review Decree No. 7660/2011 and Convention No. 100/97, of the National Finance Policy Council. Those favor pesticides with a 60% reduction on the ICMS tax (State tax on product circulation). Certain categories of those products are also exempt from the IPI tax (tax on industrialized products) (STF; Confaz)

President of Petrobras, Jean Paul Prates, said to the governor of the State of Mato Grosso do Sul, Eduardo Riedel, and to the Minister of Planning and Budget, Simone Tebet, that there is a possibility to finalize the construction of the Nitrogen Fertilizer Unit III, in Três Lagoas, State of Mato Grosso do Sul. Construction was stopped in 2019. “It was a very good meeting because they resumed the fertilizer and gas agenda in the company and started a discussion so that we can, in the coming years, conclude this, that is one of the greatest assets that we have built over time”, according to a note from the advisory of Governor Eduardo Riedel. (Petrobras; Government of Mato Grosso do Sul)

Despite the decrease in commodity prices, the exchange ratio is more favorable to farmers than in 2022, according to Itaú BBA. One of the best scenarios is pointed out for wheat, whose prices collaborate to keep the exchange ratio below the historical average of the last five years. (Itaú BBA)

Taskforce against counterfeiting and sale of pesticides results in the arrest of seven people and the seizure of an airplane valued at US$ 2.09 million. According to the Civil Police of the State of Goiás, investigations were initiated on 06/14 and extend to the cities of Itumbiara (Goiás), Franca (São Paulo), Jundiaí (São Paulo), Cascavel (Paraná), Caeté (Minas Gerais), Varginha (Minas Gerais) and Bacabau (Maranhão). In addition to the production and sale of counterfeit pesticides, the investigated group is also responsible for money laundering through shell companies. (Goiás Civil Police)

Federal Government should present the revision of the National Fertilizer Plan – PNF in 90 days, that is the deadline established during the first meeting of the National Fertilizer Council – Confert, held on 06/14. Objective is to review priorities from the perspective of the current government, since the PNF was elaborated during the previous government. For this, six working groups were formed, focused on: Production of Nitrogenous, Phosphatic and Potassium Fertilizers; Use and Application of Nitrogenous, Phosphatic and Potassium Fertilizers; Agricultural Affairs; Emerging Chains; Science, Technology and Innovation and Environmental Sustainability; and Regulatory, Economic, Infrastructure and Logistics Affairs. (Confert)

Logistics companies VLI and Copi launched a fertilizer import corridor from the Port of Itaqui, in São Luís, State of Maranhão, to the Integration Terminal in Palmeirante, State of Tocantins. Copi will transport the fertilizers using VLI trains to Palmeirante, where the cargo should be received, stored and distributed. The service has an initial capacity of 1.5 million tonnes per year. In February, Mosaic fertilizer company announced investments of US$ 83.78 million in a mixing, storage and distribution unit to be installed at the VLI terminal. (VLI Logistics; Copi)



Latin America

In 2022, 81,500 tonnes of empty agrochemical packages were recovered by the Campo Limpo Program in 18 countries in Latin America, an increase of 5% compared to 2021. “78% of recovered rigid plastic was recycled and transformed into new products…”, according to CropLife Latin America. (Croplife Latin America; Campo Limpo Program)

“Argentina consumes the highest amount of pesticides per capita in the world”, said Mauricio Cornaglia, president of Paren de Fumigarnos. “Argentina consumes 600 million liters of pesticides per year… with an average of 12 liters of pesticides per capita each year”, according to Cornaglia. (Paren de Fumigarnos)

YPF Agro, Argentina‘s largest agri inputs company, announces the launch of Sistema Integra, a bulk phytosanitary product sales service. This is a “new model, that will begin to replace the one that has existed for decades in Argentina, with enormous operational and environmental advantages for those involved”, said Regina Izaguirre, manager of the company’s crop protection products. (YPF Agro)

Registration of pesticides in Mexico can take 4 years and cost US$ 5,200. “Registrations must be granted within nine months, but in reality the wait, on average, is up to three or four years…”, said Romy Ursúa Monreal, founding partner of Ikan Consultores. Mexico’s pesticide market is estimated at US$ 1.65 billion. (Ikan Consultores; Mexican Union of Agrochemical Manufacturers and Formulators)

Dominican Republic depends on imported raw materials for the production of pesticides and fertilizers. The country does not have mines or deposits of nitrogen, potassium and phosphorus, for example. Executive director of the Association of Pesticide Manufacturers, Representatives and Importers, Manuel Núñez, says that the Dominican pesticide market has diversified in recent decades. “Today, there are dozens of importers that distribute phytosanitary products and other technological solutions (plant nutrition products, machinery, equipment, seeds and technical advice) for the national market”, he said. According to the Directorate-General for Customs, the FOB value of pesticide imports reached US$ 135.5 million in 2022, and re-exports reached US$ 12.5 million. (DGA; Afipa)



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