Brazil crop prices outdo agrochemicals

Brazil's farmers are gaining greater returns on their investments in pesticides, the country's agrochemical industry trade union, the Sindag, says. It cites a study from the agricultural market research group, the IEA. The annual survey measures the "swap relationship" between the price of agricultural commodities and the cost of crop inputs, such as agrochemicals.

 

Some 11.5 60 kg bags of soybeans were required to purchase a basket of pesticide products in August last year. Only seven bags of the same weight of soybeans would have bought the equivalent pesticide products in August this year. That reflects an effective agrochemical product price fall of 39.3%, the Sindag says.

 

There was a similar reduction in the swap relationship between maize and pesticide products. Some 8.1 60 kg bags would have bought a basket of pesticide products in August last year, compared with 5.1 this August, representing a 37.7% drop in agrochemical prices.

 

Among all the major agricultural commodities in Brazil, only sugar cane saw a deterioration in the relationship. Despite a rise in the swap relationship for sugar cane against last year, the relative price has gone down when compared with August 2005, the Sindag points out. Some 27.4 tonnes of sugar cane were required to buy a basket of pesticide products two years ago against 19.9 tonnes this August, a 27.5% improvement for farmers. Prices for sugar cane fell from R$44.62 ($20.56) per tonne in 2006 to R$31.76 per tonne this August, the Sindag says.