Latin America is becoming one of the fastest growing regions for agrochemical sales, according to "Crop Protection in Latin America", a January 1996 publication by Agrow Reports. Latin America accounts for approximately US$2.6 billion, which is 9% of annual world agrochemical sales.
The greatest increase in sales will most likely be for pesticides used on maize, soybeans, fruit and vegetables; demand for pesticides in cotton and wheat production may grow, but more slowly. The region produces approximately 60% of the world's coffee, 40% of the world's bananas, 25% of the world's beans, 20% of the world's cocoa and significant quantities of sugar, maize, cotton, potatoes, rice and wheat.
According to the report, Brazil (US$1.4 billion in 1994) accounts for 55% of pesticide sales in Latin America. From 1993 to 1994, sales of agrochemicals increased for all leading crops, including soybean, sugar cane, citrus, maize and coffee.
Sales of agrochemicals for cotton production increased 57% between 1993 and 1994, and cotton ranked third in insecticide purchases throughout this period.
Herbicide sales dominate the agrochemical market in Brazil, accounting for more than 50% of pesticide sales in 1994. Brazilian herbicide use may continue to expand, especially as more farms convert to minimum tillage practices, which often rely on increased herbicide applications to control weeds.
Agrow points out that many large farms are experiencing severe problems with soil erosion and deteriorating soil structure, and that this situation is driving the shift to low tillage systems. In response to greater herbicide use, Monsanto's Brazil division is stepping up efforts to introduce Roundup Ready soybeans, genetically engineered soybeans that can tolerate Roundup (glyphosate), a Monsanto product.
Argentina is also a major market for pesticides. According to Agrow, Argentine agrochemical distributor sales were US$521.5 million in 1994 — up 50% from 1992. The report states that 1995 data, which were incomplete at publication, may show growth by as much as 40% due in part to greater herbicide use on soybeans, cotton and maize. More than half of agrochemical inputs are for soybeans.
Other countries with large markets for agrochemical sales in 1994 included Mexico (US$320.9 million), Colombia (US$316.2 million), Ecuador (US$93.3 million), Peru (US$84.3 million) and Costa Rica (US$81.0 million). Between 1993 and 1994 agrochemical sales grew in Colombia, Ecuador and Peru by 19.8%, 13.7% and 27.2% respectively.
Mexico's pesticide market declined 41.4% in US dollar sales between 1993 and 1994, and is projected to decline an additional 30-35% in 1995. According to Agrow, causes of this decline include reduced agricultural subsidies, drought in 1994 and 1995 and market liberalisation.
[From Pesticide Action Network North America Updates Service.]