Brazilian cotton pesticide market rises 9% to R$7.4 billion

Agrochemicals used in Brazilian cotton generated R$7.4 billion in the 2023-2024 season, representing a 9% growth compared to R$6.8 billion in revenue from the previous season (2022-2023). 

According to Kynetec's market intelligence analyst Felipe Lopes Abelha, the growth is primarily associated with increased planted area and additional specific applications.

Abelha stated that cotton is the sixth most important crop for the Brazilian agrochemical industry. In the last season alone, cotton recorded a record cultivation area of two million hectares, an 18% increase compared to the 2022-2023 season, when 1.64 million hectares were cultivated.

"We highlight from the research that producers added two applications on average, resulting in an increase of nine treatments compared to the 2022-2023 cycle. This occurred despite an 11% reduction in the average cotton price during the period, to US$23 per arroba," added the executive from the consulting firm known for its agrochemical and seed sector data.

According to Kynetec's market intelligence analyst, insecticides remained the leading category of agrochemicals used in cotton, with business totaling R$3.7 billion, 21% higher than the 2022-2023 season. "The crop's main pest, the boll weevil, required an increase from 13 to 15 treatments. Whitefly also demanded attention, increasing pesticide adoption. Caterpillars pushed for an average of 1.5 additional field applications. Together, these three pests accounted for R$700 million in business."

Herbicide Market Declines

The Cotton FarmTrak survey found a 10% growth in fungicide adoption, reaching R$150 million, compared to 2022-2023. According to the research, the number of treatments increased from 11.8 to 13.3 on average due to producer concerns related to ramularia, the primary disease affecting the crop, and target spot control, especially in the Brazilian states of Mato Grosso and Mato Grosso do Sul.

"The 2023-2024 season proved challenging from planning to harvest. Initially, it was heading toward a period with lower rainfall indices in major producing regions, such as Bahia and Mato Grosso. However, between January and February 2024, recurring rains enhanced the incidence of these diseases," Abelha said.

The Kynetec executive explained that, unlike other categories, herbicides experienced a 22% decline in the 2023-2024 season to R$1.148 billion, a drop of R$300 million compared to the 2022-2023 cycle. "This difference is mainly due to the decline in herbicide prices observed throughout the season," Abelha said in conclusion.

(Editing by Leonardo Gottems, reporter for AgroPages)