DVA Group returns to agrochemical market in Brazil

Date:04-11-2024

Germany’s DVA Group announced to AgroPages that it is returning to the Brazilian agrochemical market after nine years of absence. This comeback is marked by the debut of a new brand, Agroallianz, with a portfolio strategy of 22 solutions covering fungicides, insecticides, and herbicides for various crops, in addition to specialties already developed by DVA, which aims to expand the portfolio to 44 technologies by 2028 and achieve revenues totaling US$100 million.

For commercial reasons, the group ceased all its operations in Brazil in 2015. However, in 2021, it returned to the country with specialty solutions, technologies for fertilizers, and adjuvants. Focusing on solutions such as bio-stimulants manufactured in Spain, the company recently invested in a factory in Brazil, therefore, capitalizing on a complete portfolio for all crops. After a contract period in which DVA could not operate with agrochemicals in the national territory, the group restarted in this segment this month through its new brand, Agroallianz. For this comeback, a team of professionals has been working since 2017 on registration and research in crop protection.

Fernando Fernandes, General Director of Agroallianz, said the company understands the fact that the specialty market is also experiencing rising demand and is growing very rapidly in Brazil. ″In light of this, throughout this journey, the DVA Group has invested over US$80 million to offer the market its specialties line distributed through INCENTIA for bio-stimulants and fertilizers, ADYUVIA for adjuvants, and ESENCYS for biologicals, in addition to the agrochemical registration protocols,″ Fernandes said.

The return to the segment is strategic since the pesticide market is significant and well-established in the country, he added. 

″We understand that the producer already knows how to use these tools and already has planned purchases. In addition to these technologies already known to him, we will propose new solutions with differentials to speed up the specialty line we were already working on,″ he further said.

Fernandes explained that in 2023, US$8 million was spent just on the specialty segment. ″However, for 2025, agrochemicals are expected to rise to US$25 million. That is, three times more every year,″ Fernandes stated.

In other countries where DVA operates, it has more than 800 registrations in the global crop protection segment and reinvests around 4% of its revenue in research and development (R&D).

″Here in Brazil for our re-entry, we are aware that it is an atypical, even more difficult year. However, we see Brazil as one of the largest markets for our solutions and objectives. From 8% today, the Brazilian market will eventually represent half of DVA’s annual revenue,″ he added.

The crop protection market in Brazil was estimated at around US$20.6 billion in 2022, but it is dominated by just a few companies. ″It is a competitive but very large segment. Additionally, there has been a strong trend in this scenario, especially over the last three years, with industries opting to have direct access to producers. This made us rethink the format in which we operate,″ he further added. Considering the size of this market potential, Agroallianz aims to reach all types of producers. According to Fernandes, the goal is for the brand's portfolio to be even more competitive by 2028.

In 2022, the group was recognized by the Brazilian Ministry of Agriculture as the second company that obtained the most prioritizations for the publication and regulation of agrochemicals in the country. ″This prioritization happens when the government observes the current difficulties facing the sector related to pests and diseases and sees the companies that file solutions to help combat or control that situation. Therefore, this process receives priority. And that is how we gain momentum,″ Fernandes said in conclusion.

(Editing by Leonardo Gottems, reporter for AgroPages)