FEATURE
1). While the European market has remained
relatively stable, other regions have shown
strong growth. A few years ago, for example,
fungicides were almost unknown to US soy, corn
(maize) and grain farmers. But fungicide sales in
North America have grown to $736 million (from
$649 million) and, at the same time, the share
of soy, corn and grain fungicides has increased to
almost 19% (from around 6%). Although 2007
figures aren’t available yet, the crop protection
industry is reporting a significant rise in fungicide
sales in row crops, mainly corn.
Several factors have contributed to the increasing
use of fungicides in US row crops. Over the
past few years, growers have been quick to
recognise the yield and plant health benefits of
Photo: BASF
the market has grown steadily
advantages. Plant health has also become a the ripening process more uniform and allow
differentiating factor in the South American high- fruits and vegetables to withstand stress factors
as Latin America and Asia adopt
value segment, which has motivated innovation- such as cold and bacterial infestation. These
modern agricultural practices and
driven crop protection companies to invest in products provide value to growers, as well as to
US growers discover the benefits
solutions tailored to this market. other stakeholders in the value chain.
of fungicides in row crops.
Rising demand for high-quality fruits and Steady growth in the global fungicide market
vegetables has also propelled growth in the over the past several years is just one part of
fungicide market. We expect this trend to the picture, however. While the overall trend has
intensify as people in expanding regional been up, there have been regional dips, some
markets such as China and India, as well as quite hefty. Dry weather in large parts of Europe
Eastern Europe, consume more fresh produce. In in 2003 caused fungicide demand in the region
BASF’s fungicides, such as F 500. Such products this segment as well, plant health products, such to fall sharply. Two years ago, the distribution
bring yield benefits in addition to disease or those containing our active ingredients boscalid channel in North America was full of fungicides,
insect control. At the same time, the agricultural and F 500, are creating new opportunities that as growers prepared for an outbreak of Asian
community in the US was preparing for the benefit the entire value chain. These products soybean rust that never happened. In 2006,
spread of Asian soybean rust from Latin America, can prolong shelf life, improve storability, make fungicide sales in Latin America fell because
which increased awareness of the impact of
fungal disease. As input costs and commodity
Table 1 – global fungicide market by crop ($)
prices rise, farmers now see fungicides,
Crop 2002 2003 2004 2005 2006
especially fungicides with plant health effects, as
Cereals 1183 1154 1613 1677 1596
an important tool to manage risk and increase
Maize 9 13 14 18 18
returns on investment. The continuation of this
Rice 555 552 633 630 587
trend will depend in part on whether corn prices
stay high.
Soybean 95 182 709 625 692
Rape 91 117 173 197 206
In contrast, the demand for fungicides in South
Sunflower 8 10 13 29 18
America has always been strong. In addition Cotton 41 42 77 77 62
to Asian soybean rust, sales growth in the
Sugar beet 49 67 68 69 59
region has gone hand-in-hand with economic
Sugarcane 1 1 1 7 1
growth and the adoption of modern farming
Fruit and vegetables 2720 2865 3311 3416 3308
practices. At the same time, we have observed
Other crops 673 742 718 746 633
a shift in purchasing behaviour to high-value
Total 5425 5745 7330 7491 7180
products, with growers willing to pay a premium
Source: Philips mcDougal
for innovative products that offer biological
www.agrow.com • November 2007 7
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