Global pesticide market in 2014 was 63.2 billion US dollars
[Introduction · China Pesticide Fertilizer Network] In 2014, the global crop pesticide market value was 56.565 billion US dollars, an increase of 4.5%. If non-crop pesticides are included, global pesticide sales totaled $63.212 billion, an increase of 4.2% year-on-year. Among them, the sales of non-crop pesticides was 6.557 billion US dollars, an increase of only 1.2%.
According to statistics from the British Phillips McDougall Consulting Company, the market value of global crop pesticides in 2014 was US$56.655 billion, an increase of 4.5% year-on-year.
If non-crop pesticides are included, global pesticide sales totaled $63.212 billion, an increase of 4.2% year-on-year. Among them, the sales of non-crop pesticides was 6.557 billion US dollars, an increase of only 1.2%. Exchange rates and economic weakness in some countries are the main reasons for the decline in the growth of non-cluster pesticide markets.
At the beginning of 2014, crop prices were firm, but as the agricultural harvest increased, prices weakened. Phillips McDougall pointed out that Thailand has suppressed rice prices in order to go to stocks. In 2014, glyphosate prices were lower; the market for fungicides and pesticides benefited from farmers' preference for more advanced products. Last year, the impact of the exchange rate on the market was the same as last year. Except for the euro, the US dollar performed strongly against most currencies. In developing markets, the increase in sales has become a major factor driving the market higher.
If the effects of exchange rate fluctuations and inflation are not considered, the global crop pesticide market is estimated to increase by 5.4%.
In Latin America, the Latin American market still recorded the strongest growth, but its growth rate slowed down compared to 2012/13. The region has also become the world's leading market for crop pesticides, with sales of US$16.147 billion in 2014, an increase of 15.1% year-on-year. Among them, Brazil and Argentina led the growth. Due to better harvests in the United States and lower crop prices, crops in Latin America have changed in 2013/14, and farmers have switched from growing corn to growing soybeans. At the beginning of 2014, Asian soybean rust (Phakopsora pachyrhizi) was lighter due to the dry weather; coupled with the reduction of sugar cane production and the decline in crop prices, the growth of the Brazilian market was dragged down. Despite the limited trade in crops and pesticides in Argentina, the devaluation of peso and the high level of accounting, the country's pesticide market is still performing well, and good weather has become the biggest positive factor. Although the downward price of corn affected the acreage of corn, the market still started well in the 2014/15 season. In the developing Latin American region, its pesticide market has maintained steady growth.
2014 was a difficult year for the Asian crop pesticide market. However, in the US dollar, pesticide sales in the region have continued to grow slightly. Due to the lack of monsoon climate, some areas are suffering; and the exchange rate fluctuations of the currency against the US dollar also affect the pesticide trade. Increased agricultural labor costs, lower glyphosate prices, and weaker palm oil prices have all affected pesticide profits. Rice prices continue to fall, mainly due to destocking in Thailand. Although India has good market conditions, the lack of water in parts of the country due to the weak monsoon climate has hindered the growth of the Indian pesticide market. Drought has also become a factor in the pesticide market in northern China, Indonesia, parts of Thailand and the Philippines; the drought in Australia continues. In 2014, the Japanese pesticide market has recovered from the tsunami and the market has stabilized. Last year, sales of crop pesticides in the Asian market reached US$ 14.644 billion, a year-on-year increase of 1.5%.
The European market benefited from warm winters and early spring weather, but some parts of Central Europe suffered from cold and wet summers. Nordic enjoys superior growth conditions and the pesticide market is positive. However, there are few market excitements in the South. The Central European market is generally good, but Ukraine has cut its pesticide trade due to political turmoil. Overall, sales of pesticides for crops in Europe increased by 1.8% year-on-year in 2014 to US$ 13.885 billion.
Unfavorable weather conditions, high crop stocks and excessive transportation costs have suppressed the growth of the Canadian pesticide market. Although the area planted with corn and small grains has declined, the area of rapeseed and soybeans has increased. In the United States, due to the fall in corn prices, the area planted with corn has declined, but the area planted with soybeans and cotton has increased. The corn and soybean seasons started poorly, leading to a lack of improvement in the pre-emergence herbicide market. However, the market is strong during the summer growing season. The drought has once again affected the southern and western United States and the Mexican market. In 2014, North American Free Trade Area (NAFTA) crop pesticide sales fell 2.0% year-on-year to US$9.81 billion.
In the rest of the world, such as Africa and the Middle East, where crop exports dominated, sales of crop pesticides were US$2.169 billion, up 3.1% year-on-year. The Zambian market continues to benefit from immigrants from Zimbabwe and South Africa, while Nigeria’s imports have increased, although many of its imported pesticides are used for re-exports.
High-yield food production in 2014 has led to an increase in crop stocks and lower prices of agricultural products, which has put pressure on the growth of the pesticide market. However, the global pesticide market is still expected to grow in 2015, but the growth rate is less than the previous year.
The corn market in 2015 will continue to be weak due to the record high US corn production in 2014. Corn prices have fallen and have led to a decline in corn acreage. Argentina and Brazil have switched from corn to soybeans. The US planting intention survey shows that the market will undergo the same changes. However, soybean stocks have been high, and in 2015, soybeans are likely to increase production, so the future soybean prices will be under downward pressure.
The wheat market is also relatively fragile. Although Argentina's wheat area has increased in 2014/15, it is expected that the area of wheat in the US and EU 28 countries will decline in 2015, while the area of wheat in Canada may increase. Rice market demand has increased, and rice prices are currently rising, as Thailand’s price cuts have led to a decline in rice stocks.
The Latin American pesticide market is expected to continue to grow, but its growth rate may not be as high as the 2013/14 level. The main reasons include: the transfer of crops in Brazil and Argentina; the lower crop prices and the dry weather, the further promotion of GM crops will reduce the Brazilian herbicide and pesticide market; and Argentina's trade disputes and inflation. In the developing Latin America region, the market in the region will continue to grow due to increased domestic market demand and improved economic conditions. In North America, Canada will likely break the stagnation of 2014 and the market will resume growth; however, the US market lacks positive support, as corn acreage declines, corn prices fall, and glyphosate prices fall.
The outlook for the European pesticide market is unpredictable. Declining wheat prices and reducing subsidies will hit traditional EU member states, but Central and Eastern European countries should be able to benefit from increased support, while lower production costs can offset the impact of falling crop prices. In 2014, the South Asian and Australian markets were hit by adverse weather and are expected to recover this year.
Phillips McDougall believes that although the pesticide market is greatly affected by weather conditions, it still predicts that global pesticide sales will increase by 1% to 2% in 2015, and Asia and developing markets will lead growth.