AgroGalaxy carried out mass layoffs to reduce payroll
Brazil
Anvisa approves the toxicological evaluation of Syngenta’s technical product based on bicyclopyrone, an active ingredient not yet registered in the country. (Anvisa)
In compliance with court decision, Anvisa approved the toxicological evaluation of a fungicide based on mancozeb, from Tecnomyl. (Anvisa)
Minister of Mines and Energy, Alexandre Silveira, said the national policy for natural gas was “decided”, despite the “conflict of interests” with Petrobras. According to Silveira, the government’s orientation is to increase Brazilian supply of natural gas to reduce fertilizer prices and increase production. (MME)
Eduardo Monteiro is the new country manager at Mosaic, responsible for the commercial area for Brazil and Paraguay, supply chain and mixing units. (The Mosaic Company)
According to Kroll, among the 450 mergers and acquisitions from January to April of 2023, 17 were from agribusiness. The record turnout of 3.8% is more than double the average of the past two years, that was 1.5%. The agrochemical dealers stood out: “This market was formerly formed by regional companies, that had a more limited product portfolio, and has been undergoing a big consolidation in the past three years”, says Alexandre Pierantoni, head of mergers and acquisitions at Kroll. (Kroll Brasil)
Giuliano Argenta Scalabrin is the new business director at UPL’s natural plant protection line in Brazil, focused on bio-inputs. (UPL)
Eurochem now holds 79.98% of Fertilizantes Heringer after a share auction. On June 27th, Eurochem acquired 15,347,607 shares, that represent 28.49% of the total common shares issued by the company during the public tender offer. Each share was acquired at the price of US$ 3.14, totaling approximately US$ 48.13 million. (Eurochem)
Port of Paranaguá should increase fertilizer imports during the next quarter. “In the first five months of 2023, the amount of Brazilian imports of fertilizers was 17% lower than in the same period last year, so there is still a large margin. This indicates an upward trend in the coming months, to meet demand from farmers”, said Décio Gomes, executive manager of Sindiadubos. (Sindiadubos; Portos do Paraná)
Welles Pascoal returns as CEO of AgroGalaxy. Axel Labourt is the company’s new vice president of operations. (AgroGalaxy)
Joint operation by the Ministry of Agriculture, Federal Highway Police and Ibama seized 275 L of unregistered pesticides in Limeira, State of São Paulo. Product label contains the description “pesticide with dislodging, repellent, fungicidal, nematicidal and acaricide action”. Company was fined by Ibama for an environmental crime and by the Ministry of Agriculture for manufacturing and selling pesticides without registration. (Ibama; MAPA; PRF)
Six years after the beginning of the criminal action, the Court of Catanduva, State of São Paulo, absolved Companhia Agrícola Colombo – manufacturer of the sugar brands Caravelas and Carrefour. Colombo was accused of the death of approximately 112 million bees in the State of São Paulo, supposedly caused by the insecticide thiamethoxam. The case may be subject to new lawsuits again. Prosecutor Yves Atahualpa Pinto, one of those responsible for the case, said he is studying the possibility of filing a civil lawsuit. (Court of Catanduva)
According to Pedro Lupion, president of the Agricultural Parliamentary Front, the Pesticide Bill No. 1459/2022 is one of its main demands. The Bill “seeks to update the legislation for the approval of more modern and less toxic pesticide molecules”, according to Lupion. The congressman said that “according to current legislation, sometimes it takes 10 years to approve new pesticide molecules and to allow their use. Countries like the US and even Argentina use more efficient products, and in lower amounts”. (FPA)
Majority of the Supreme Court overturned excerpts of the Decree No. 10.833/2021, that established rules to make pesticide registration easier. The vote of the rapporteur, Minister Cármen Lúcia, prevailed, who claimed “prohibition of environmental setbacks” to invalidate several excerpts of the decree. Among the points considered unconstitutional, there are: exclusion of the Ministries of Agriculture, Health and Environment from the task of establishing the maximum limits of pesticide residues in food; exemption from presenting a report on the presence of relevant impurities from a toxicological and environmental point of view in pesticides; requirement for a complementary rule to establish criteria for the destruction of food produced with the application of unauthorized pesticides. (STF)
AgroGalaxy carried out mass layoffs to reduce payroll by US$ 4.16 million after losses doubled in the 1Q of 2023. Losses of US$ 20.1 million in the 1Q, compared to a negative balance of US$ 9.3 million in the 1Q of 2022. In 2022, AgroGalaxy’s net income reached US$ 11.22 million, that represented a drop of 64.2%. (AgroGalaxy; Money Times)
Fertilizer prices remain low. Urea, for example, has dropped approximately 40% since the beginning of the year, reaching Brazilian ports below US$ 300 per tonne CFR, a value that had not occurred since January of 2021. The downward trend should also continue for phosphate monoammonium chloride (MAP) and potassium chloride (KCl) for the rest of the year. (Rabobank)
Senate will discuss in a thematic session on July 7th the production and sales of fertilizers in Brazil. “This debate is essential because we need to move forward in search of solutions that guarantee the domestic production of fertilizers from natural gas”, said senator Laércio Oliveira. (Agência Senado)
SLC Agrícola purchased in advance a share of the inputs for the 2023/24 grain and oilseed season, with sowing scheduled for September. The company said it has already purchased 78% of the need for potassium chloride, 82% of the phosphate fertilizers, 97% of the nitrogen fertilizers and 22% of the pesticides. (SLC Agrícola)
Adama aims for a “double-digit” share of the Brazilian pesticide market. The company’s president and CEO, Steven Hawkins, said he is optimistic about the prospects for the country. “Brazil is important for its size and the innovation it brings to our business. We want to have a double-digit market share here”, said Hawkins. Brazil is Adama’s main operation in Latin America, a region that accounted for 29% of the company’s global sales in 2022. (Adama)
According to Agrivalle, the bionematicide, bioinsecticide, inoculant and biofungicide market should reach US$ 1.29 billion by 2025. (Agrivalle)
Latin America
Profertil, Argentina‘s main fertilizer manufacturer, is expected to operate with power generated 100% from wind energy. The company signed a 10-year agreement with YPF Luz, that provides for 95 GWh/year. Profertil produces approximately 1.32 million tonnes/year of granulated urea. (Profertil; YPF Luz)
Urea is the most widely used fertilizer in Uruguay, used for almost all crops. The country imports approximately 332 thousand tonnes of urea per year, that represents US$ 152 million, an average of US$ 458 per tonne. According to the Future Energy Leaders Program, Uruguay has great potential for sustainable production of urea through “green hydrogen”, because of the good wind and solar resources in the country. The group estimates that an investment of US$ 1.3 billion would be needed to replace 50% of the country’s consumption of fossil urea. (Future Energy Leaders)
Government of Argentina estimates farmers will invest US$ 12.5 billion during the next soybean season. According to the official figures, 14.9% of the expenses will be directed to the purchase of pesticides, and 13.2% to fertilizers. (Ministry of Agriculture of Argentina)
Argentina‘s agricultural market needs approximately US$ 1 billion to import inputs in July. The Ministry of Agriculture will request this amount from the Ministry of Economy. US$ 330 million will be used to purchase phytosanitary products. (Ministry of Agriculture of Argentina)
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