Professional Documents
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CONTENTS
PUBLISHER
STANLEY ALLIANCE INFO-TECH LIMITED
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EMAIL: info@agropages.com
Advertiser Index
Anhui Huaxing Chemical Industry Co., Ltd. P16
Beijing PLM Biosciences Co., Ltd. P12
Bharat Group P27
Bio Huma Netics Back Cover
CAC Show / CCPIT P35
Dextra International P5
Dr.Knoell Consult GmbH P6
GSP Crop Science Ltd. P13
Hangzhou Ruijiang Crop Science Co., Ltd. Inside Front Cover
Hebei Bestar Bio-Technology Co., Ltd. Head Page Market Overview
Hebei Veyong Bio-Chemical Co., Ltd. P22 2 Brazilian Agrochemicals Market Continues Growth in 2014
Indofil Industries Limited Special Page
4 Agrochemical Regulations in Latin-American Countries: General
Jiangsu Fengdeng Crop Science Co., Ltd. P3
Overview, Challenges and Changes
Jiangsu Fengshan Group Co., Ltd. P13
Jiangsu Good Harvest-Weien Agrochemical Co., Ltd. P29
Jiangsu Kesheng Group Co., Ltd. Special Page Company Watch
Jiangsu Sevencontinent Green Chemical Co., Ltd. Inside Front Cover
8 Multinationals’ Dynamics in Latin American Agchem Market
Leili Marine BioIndustry INC. P12
14 Rotam’s Innovative Solutions Boosted Its Industry Leading Performance
Leshan Fuhua Tongda Agro-chemical Technology Co., Ltd. P19
MWV Specialty Chemicals P34 Growth
Oxiteno P17 18 Farmer-Centric Focus - Core Secret to Adama’s Growth in LATAM
Qingdao Seawin Biotech Group Co., Ltd. P11 20 Exploring the Development Path of Local Agchem Companies
Shaanxi Sunger Road Bio-Science Co., Ltd. Special Page
Shandong Binnong Technology Co., Ltd. P13
Shandong Luba Chemical Co., Ltd. P31 Viewpoint
Shanghai IPRO-DVA Inspection Technology Co., Ltd. P35 24 Channel Access – Who Chooses Whom?
Shanghai MIO Chemical Co., Ltd. P30
Siddaganga Oil & Bio Industries LLP P23 China Pesticide
Stockton Group P7
26 Analysis of China Pesticide Export to Latin America in 2014
Tradecorp Nutri-Performance P34
Yifan Biotechnology Group Co., Ltd.
Zhejiang Corechem Co., Ltd.
Facing Content
P31
Formulation Technology
Zhejiang Zhongshan Chemical Industry Group Co., Ltd. P23 32 A Wide Array of Kraft Lignosulfonates for a Wide Array of Uses
36 Innovation through Formulation – Oil Dispersion
Disclaimer: If some advertisements and product profiles in this issue contain references to active ingredients still under patent protection in certain countries, such content are deemed
inapplicable to those countries.
Market Overview
Based on Kleffmann amis®AgriGlobe® data, the Brazilian As far as the segment-wise importance for the agrochemical
agrochemicals market reached $8.83 billion in harvest year 2013 market in 2014 is concerned, insecticides have shown a strong
at ex-manufactured level. In 2014 Kleffmann conducted more than growth, clearly surpassing 10%. This extraordinary growth was
15,600 interviews in Brazil alone – covering 24 crops and 94% mainly driven by the increased pest pressure – coming from larger
of cultivated area. According to most recent Kleffmann data the caterpillars. Major insect pests in 2014 were Chrysodeixes (=
positive trend of the previous years also continued in 2014 – with Pseudoplusia) includens and Helicoverpa spp., clearly growing in
growth ranging between 5% - 10%. importance.
Although Brazil has only the fourth largest crop area in the With more than 30%, Herbicides constituted the second largest
world, after India, China and USA – since 2011 it is the world’s share in the Brazilian agchem market. Bindens pilosa, Digitaria
largest agrochemicals market. Undoubtedly, at the same time it horizontalis, and Conyza spp. were responsible for the growth
is also the most important agrochemical market in Latin America. in the herbicide segment in 2014. The main active ingredient in
Brazil and Argentina alone account for more than 70% of the 2014 was the herbicide glyphosate, with more than 10% of the
regional agrochemicals market. market, and represented the only herbicide in the top ranked co-
Growth in 2014 was mainly driven by Soybean, which formulations.
contributed more than 40% to the overall market value. Area gains Strobilurin co-formulations, making up the largest share in the
had their share in growth, alongside other key drivers such as Brazilian fungicide market, carried the growth in the fungicides
pest pressure from Helicoverpa and Lepidoptera – which clearly sector in 2014.
affected the input costs of the growers who had to rely on premium
caterpillar products (e.g. diamides). Similar developments for the Table 1. Top 10 active ingredients sold in Brazil in 2014
country’s other key crops also contributed to the overall positive
Acephate Flubendiamide
market development in 2014. The country’s four main crops
Azoxystrobin / Cyproconazole Glyphosate
contributed more than 60% of the market value.
Compared to 2013, the cotton area in 2014 expanded Chlorantraniliprole Lambda cyhalothrin / Thiamethoxam
considerably. As cotton in Brazil is a chemically- intensive crop, Epoxiconazole / Pyraclostrobin Prothioconazole / Trifloxystrobin
the expansion in area leads to an exponential growth in the use of Fipronil / Pyraclostrobin /
Thiamethoxam
agrochemicals. While sugarcane is not a profitable crop in Brazil, Thiophanate
overall farmer expenditures on inputs have surged. market share, followed by other international players such Ihara
and FMC.
OTHERS
FRUITS &
VEG
SOYBEAN
CEREALS
COTTON
MAIZE
SUGARCANE
agrochemical product is safe under the However there are some movements that Latin American countries represent
particular climate conditions of the country. could lead again to national regulations in a good opportunity for agrochemical
In fact, some countries of the Andean Pact the near future. companies that can bring new solutions
demand the trial in two different areas The timings to get the registrations in and new sources of agrochemicals. The
because the soil and climate varies from Latin America, after complete information expertise and knowledge of local people
the coast to the forest. has been submitted to the authorities, is of high importance to invest properly on
One of the biggest difficulties that varies from approximately 6 months to 5 registrations. From our dilated experience
face international companies with the years. In some cases several ministries in those markets, a preliminary analysis of
registration of formulated products is are involved and in other cases, the crops and diseases is a key for success.
the decision on crops investment. One Ministry of Agriculture has a leading role. Investment in registrations is limited for all
botrycide used in grapes in France or In Colombia, 3 Ministries take part in companies, whether the regulatory budget
Spain, could have an excellent control in the registration process: the Ministry of is high or low, so companies are required
Ecuadorian roses. The local knowledge Health (INS), the Ministry of Environment to make the most of their investments.
of crops and uses is a key point for a (ANLA) and the Ministry of Agriculture In order to assure this purpose, a
good investment and a good consequent (ICA). In Chile, by contrast, the Ministry supranational knowledge of all Latin
marketing position. of Agriculture is responsible for all the American markets leads to a cost saving
There is an increasing concern in the process (SAG). and timing reduction.
area for the effect on honeybees. Some Costa Rica, today, is facing a real
Ministries of Agriculture are now starting difficult situation in order to authorize new
to require an acute toxicological study. registrations. The industry has been in
The Andean Community has a common discussions with the authorities for several
regulatory process (Decision 436). Bolivia years in order to modify the agrochemical
Scan to Read This Article
has been the last one in implementing it. regulation to speed up the process.
Multinationals’ Dynamics in
Latin American Agchem Market
Editor's Note
2014 saw climate drought, lower crop price, changed crop planting area and unfavorable exchange
rate, which had resulted in the slow-down of the growth of the agrochemical market in Latin
America. According to the statistics from Phillips McDougall at distributor level, the 2014 global
crop-oriented pesticide market value reached US$56.65 billion being 4.5% up year on year. It is
noted that Latin America generated a most robust sales of US$16.15 billion in 2014 being 15.1% up
year on year. However the growth rate had slowed down compared with the growth rate of 22.3% in
By Grace Yuan
2013. A relevant data prediction shows that the pesticide market of Latin America will continue to
Editor of AgroPages
grow in 2015, but at a lower growth rate than that of 2013/2014.
grace@agropages.com
Multinationals’ market performance 2014 than US$300 million sales, which was a considerable contribution
to the overall increase of sales of the company.
Multinationals’ sales in 2014 in Latin American market were Although some companies’ sales in Latin America dropped to
affected by the above mentioned reasons. Lots of companies’ certain degree, some products appeared to be appealing. BASF’s
performance growth rates saw decline in 2014, but some sales in Latin America grew slightly by 2.3% having reached
companies’ performance growth rates showed contrarian growth. EUR1.3 billion, but its fungicide Xemium® (fluxapyroxad) and the
Nevertheless each company performed different market highlights. herbicide Kixor® (saflufenacil) demonstrated a good performance.
Nufarm’s performance was very impressive with a growth rate Dow AgroSciences’ new product Spinetoram and the insecticide
of 54% in the Latin American market in 2014, having reached Isoclast™ (sulfoxaflor) contributed significantly to the increased
sales of US$609.7 million. Its sales in Brazil increased by 60% sales of the company. DuPont’s strategic products Rynaxypyr
(calculated at local currency), mainly attributable to Nufarm’s (chlorantraniliprole) and Cyazypyr (cyantraniliprole) achieved a
differentiated product – glyphosate formulation “Crucial”, as well further growth in several locations of Latin American market.
as the introduction of a number of novel products. Furthermore,
Nufarm achieved robust sales in Argentina, where its fast-growing Multinationals continued making
sales of glyphosate-resistant weed control products greatly investment in the region
promoted sales in the region, arriving at a growth rate of over
70%. Although the growth of Latin American market has slowed
Bayer CropScience maintained strong growth in Latin down to certain extent, it will remain to be the fastest growing
American regions in 2014 with the growth rate reaching 24% in market among the several prime regions of the world, where the
Brazilian market. The company said that its fast-growing fungicide great market space is attracting investment from multinationals,
sales, increased sales of herbicide, satisfactory performance of especially in the seed industry which has appeared to grow year
SeedGrowth and insecticide contributed to the sales growth in by year.
Latin American market. Under its globalization strategy, Bayer CropScience continued
Syngenta achieved a growth of 7.7% in the region, which is to increase its investment in seed and primary crop sectors for
slightly higher than last year, having reached US$3.77 billion. capture of higher market share. In 2014 Bayer started to set up 5
Since being released to the Brazilian market, its new fungicide seed research facilities respectively in 5 states in Brazil including
Elatus™ (benzovindiflupyr +azoxystrobin) set a record of more Mato Grosso, Tocantins, Goias, Parana and Rio Grande do Sul.
In 2015 Bayer acquired the seed business of Brazilian Central market share in Latin America in 2012/2013 being taken by
Gaúcha Cooperative (CCGL), which aiming to build a global seed soybean-oriented pesticide, followed by fruit plus vegetable (14.5%)
platform. Over the last several years Bayer also acquired a number and maize (10.4%), as shown in Figure 1.
of companies which are adapted to Brazilian and Argentine oil crop
germplasm bank, including Melhoramento Agropastoril, Wehrtec,
SoyTech, CVR (Brazil), FN Semillas S.A. (Argentina) and Granar
S.A. (Paraguay).
Further to the opening of the first Seed Care Institute in Brazil,
Syngenta opened its second Seed Care Institute in Argentina in
2014, and the company plans to open a third one in Mexico in
2015. The 3 institutes target at the 3 prime crops of Latin America
– soybean, maize and rice for the purpose of increasing the sales
of the 3 crops in Latin America. Figure 1. Crop Protection Crop Split 2012/2013 in Latin America
In 2014 Dow AgroSciences started the operation of the Sorriso
Research Center in MatoGrosso, which provides most advanced Soybean rust disease and cotton bollworm are the most
technologies for application to the worldwide maize improvement, devastating pest diseases in Latin America, to which the
as well as to carry out researches into soybean, grass family mainstream products registered or launched by multinationals
and sorghum. In 2015 Mycogen Seeds of Puerto Rico, which is are closely related, as soybean rust disease could cause 90%
affiliated to Dow AgroSciences, kicked off the new seed research soybean losses. According to the Anti-Rust Consortium, the cost
facility in Salinas/Guayama for provision of best maize/soybean of fungicide used for this disease each season reaches nearly
technology and trait to the farmers. US$2 billion. A recent report says that the disease has become
Besides the seed investment, some companies made multi-pesticide resistant due to repeated use of same product
investments in crop protection fields. In 2014 BASF spent € 50 and prolonged planting season. At present fungicide for soybean
million on the establishment of 2 agrochemical formulation plants rust disease control is losing effect in Brazil and new product is
in Brazil to increase its agrochemical formulation production urgently needed. Damages caused by cotton bollworm should also
capacity. FMC opened its innovation center in St. Paulo, Brazil, not be underestimated, the loss resulting from cotton bollworm in
which is the fourth following the ones in North America, India and Brazil over the last several years has reached R$10 billion.
America (Table 1) shows that most of the registered/launched For fungicide, BASF launched OrkestraTM SC fungicide
products have focused on soybean and maize crops which are the (fluxapyroxad + pyraclostrobin) in Brazil in 2015. The product
main crops in the region. Statistics reveals 42.1% of the pesticide is the first fungicide released in the market for the control of
Table 1. Pesticides registered/launched in Latin America during the 2014-2015 season (incomplete statistics)
Insecticides
Herbicides
Fungicides
Bayer
Nativo Trifloxystrobin +Tebuconazole Citrus Brazil
CropScience
Bayer
Luna Experience Fluopyram +Tebuconazole Fruit, Onions and other crops Chile
CropScience
Syngenta Elatus Benzovindiflupyr+Azoxystrobin Soybean Brazil
Rotam Glider 720 SC Chlorothalonil Potatoes, Tomatoes, Kidney beans and Peanuts Brazil
Nematicides
Bayer
Verango Fluopyram Banana Black Sigatoka Costa Rica
CropScience
Ihara Pottente Benfuracarb Sugarcane Brazil
Jean-Michel Duhamel
pillars co-exist to maintain the sustainable rapid growth of the
Rotam's Four Pillars of Strategy management solutions, etc. Ronaldo Pereira said: “Resistance
management requires alternatives mode of actions and Rotam’s
existing portfolio (nicosulfuron, clethodim) can help growers
to maintain better weed control over grasses that are no more
sensitive to glyphosate in maize and soybean, We have also
registered several herbicides in chemical fallow that we have
developed in sequencing of application or in mixture to provide the
best field conditions before planting. Last but not least our large
portfolio of insecticides leaded by methomyl has provided excellent
pest management solutions while lepidopetera are also getting
less susceptible to Bt stacked traits. We aim at providing farming
community with a sustainable and global alternative.”
Furthermore, seeds and fertilizers are another potential market
complementary seasonality and reduces sales risks.”
segments in agriculture that Rotam is exploring. As the company
In order to support and facilitate company’s sustainable growth,
has successfully developed in Asia a range of biostimulants and
Rotam has been strengthening the channel cooperation with other
foliar fertilizers which it transfer the technology to other markets
companies. Jean-Michel Duhamel, Rotam’s Chief Commercial
including Latin America. Its midterm target is working on superior
Officer, stresses: “We are quite active in cooperation in Latin
crop protection solutions which would combine the expertise in all
America. Some companies have seen Rotam as a valuable way
the dimension of crop protection, including seeds.
to penetrate new markets, producing and distributing multinational
companies’ products in many countries. It is a win-win situation:
Technology innovation and market
our partners can count on our market access while Rotam can
promotion maintain the sustainable
broaden the product portfolio providing advanced technology and
competitiveness
new chemistry to fill the gap to serve our customers’ need.”
we have no doubt Latin America will always be a key region for got from the customers, it has worked.”
our business given the strength of its agriculture, as well as its “Our approach to biotechnology is slightly different: we have
tremendous potential for future growth.” Ronaldo Pereira noted. invested in partnerships to bring non-GMO crops that are resistant
In regard to competition, Ronaldo Pereira said: “we respect our to important classes on herbicides as a way to solve some
competitors and acknowledge some are very strong, we believe important problems faced by growers.” said Ronaldo Pereira.
that there is a need in the market for a company like Rotam Cibus Global and Rotam launched non-transgenic SU Canola™
that uses a platform of off patent molecules to continue to bring (Sulfonylurea Tolerant) in the United States in 2014, while Rotam
affordable innovation for the growers. We invest 10% of our annual developed two new effective weed control solutions Draft™ and
turnover in R&D expenditure and another significant value in field Cleat™ specifically designed for use on SU Canola™. In 2015,
presence. This means that we are there when our customers need Rotam announced the merger of China’s Rotachem Company to
us, not only trading goods, but ensuring their needs are met and build a R&D and crop protection factory.
we exceed their expectation. ”
Conclusion
Biotechnology is full of opportunities and
challenges In addition to having a good performance in the field of crop
protection, Rotam has begun to gradually get involved in the
Multinationals’ product portfolio form such a structure where field of biotechnology, while it continuously expands its fertilizer
GM seed drives the sales of agrochemicals, which provides business, to provide customers with more comprehensive crop
farmers with more comprehensive solutions, and supports the solutions, which eventually improve the overall performance of the
industry. Regarding this sales model, Ronaldo Pereira commented: company.
“Engineered seeds will, more and more, need superior protection,
and no company has the total best solution to offer because each
grower has a distinct set of needs. We strive to bring the best Scan to Read This Article
Farmer-Centric Focus
—Core Secret to Adama’s Growth in LATAM
Global sales of Adama increased by 4.7% to $3,221.3 million in 2014. This increase reflects
growth in all of the main regions in which the company operates, and is one of the highest
growth rates of the main companies competing in the crop protection sector. The strongest
growth region for the year was Latin America, where revenues grew by 8.6% to $822.5
million. Commenting on the results, Mr. Yang Xingqiang, Adama's Chairman, said, Adama's
2014 results, which ranked among the best in our industry, reflect the ongoing execution of
our strategic plan, the strength of our integrated platform and our ability to effectively serve
farmers' needs in key agricultural markets across the globe."
Recently AgroPages also held a dialog with Mr. Shaul Friedland, Executive VP and Chief
Commercial Officer, ADAMA Agricultural Solutions Ltd., further exploring how Adama is Shaul Friedland
executing the development strategies in Latin America market. Executive VP and Chief Commercial Officer
of ADAMA Agricultural Solutions Ltd.
“Our global strategy at Adama is to move from a sales-focused organization development and technical support that helps
to a marketing-focused one,” Friedland says. “This switch to a marketing-focused ensure correct product positioning and also to
organization is a total change of mindset from a decade ago, or even five years train the technical network of distributors and
ago, and it has been a real progression for Adama, and we see real benefits, for cooperatives. On average, around 3 thousand
Adama and our distributors and the farmers that use our products.” small events are performed with farmers per
In Latin America market, this switch is reflected by establishment of the year including product demonstrations, sessions
integrated marketing networks, sustained promotion and marketing programs, as for clarification of doubts and technical lectures.
well as the farmer-centric positioning of the products, and their design. Adama has rich product lines to serve this
Friedland told AgroPages that the growth rate stemmed from the growing emerging market. It can produce more than
market, mainly in Brazil, Mexico, and to some extent, Argentina. In Brazil, Adama 120 varieties of active ingredients and 800
has two production plants, generating a production of 170 million liters per year. types of preparations, and has nearly 5,000
The company also has 15 regional sales units, and three distribution centers in product registrations and over 6,000 trademarks
Brazil, while in Mexico and Argentina, it has very established and long-standing worldwide. “Our hybrid portfolio is one of the
activities and business relationships. Adama also established a new company in widest and most complete product lines in
Peru approximately 18 months ago and acquired an existing company in Chile. the industry. It includes the very basic and
Integrated marketing networks covering more markets in this region enables the commoditized products, as well as differentiated
strong growth in recent years. products, often based on unique mixtures and
Adama has strong presence in the field in Latin America via sustained marketing novel formulations that are proprietary to Adama,
programs, with three business departments in Brazil aimed directly for the farmer. and everything in between,” says Friedland.
There are 112 technical sales representatives, 60 more technical assistants Furthermore, Adama integrates product
and agronomists in Brazil which is the result of company's partnership with local positioning and design into marketing programs
companies. In addition, it also features the presence of a strong team of market based on insights from different markets and
fully understanding of farmer’s needs. “Our novel, proprietary the next, would create problems with the corn encroaching on the
nematicide, Nimitz™, will soon be available in Latin America and soybean as a weed. We therefore prepared solutions for farmers
is in the registration process in relevant countries such as Brazil to overcome the weeds in the soybean fields using products that
(expected 2017), Mexico (expected beginning of 2016)and Central would overcome their resistance. Instead of glyphosate, we offered
America. Another of our proprietary products, Rimon, has already a herbicide called Arrow that kills the weed, but not the soybean.
been commercialized in Latin America for several years, from By alternating herbicides rather than using the same product over
Mexico to Argentina. Both of these products simplify the lives of and over again, the farmer is able to combat the resistance issue.
farmers, which is the purpose of Adama as a company,” says Since Adama has such a broad range of products, mixtures and
Friedland. formulations to choose from, we are uniquely positioned to help
farmers overcome such resistance problems.”
Farmer-centric focus leads to customized Adama builds their offering according to the needs of the
products and services farmers as well as trying to envision their future needs and future
crop dynamics. “For example, a few years ago, we knew that
Based on years of marketing experience, Adama’s vision is a certain product was in the process of being phased out, and
increasingly farmer-centric, in the sense that they understand we introduced Galil, a novel mixture of two different products,
farmers’ needs better. “We want to serve farmers properly and to replace it,” says Friedland. “Another example is in Colombia,
create simplicity for them, with the right products for the right we partner with a company that provides herbicide application
crops. In the future, we may offer some services, not just products, services in sugar cane crops. Instead of purchasing crop protection
to expand our business. We build our offering according to the products and managing the process himself, the farmer pays per
needs of the farmers as well as trying to envision their future treated hectare with everything included. We're looking at various
needs and future crop dynamics,” Friedland says. types of services like this so that our relationship with the farmer
From the day GM was introduced in Latin America, Adama will expand beyond agrochemicals into other ways in which we can
thought it would have implications for resistance, and it did. In Latin bring simplicity to their lives.”
America, it developed quite quickly, due to the weather conditions “We have an established presence in most countries in Latin
which results in rapid rotation of crops, since there is practically America, and this is definitely one of the major growth engines of
no winter. While resistance causes shifts in the weed and insect our company globally. Now our focus is on helping our company
populations, for Adama, it is an opportunity to help farmers. And grow in that region,” Friedland told AgroPages at the end of the
they developed formulations and mixtures to mitigate resistance. conversation.
“We typically look at the GM crop and try to predict what
resistance problems will arise. In many cases, we have been
very successful in identifying the challenges before they become
apparent, and we have therefore been able to prepare solutions Scan to Read This Article
for farmers ahead of time. For example, it was clear to us that
planting GM corn one season, and then rotating it with soybean
import formulated products ready for products. Suppliers should facilitate data
sale. The rest of companies import raw to register new products, stand behind
materials for local formulation, registration product quality and business terms, and
and sell. keep clients informed regarding market
Disagro is a Guatemalan company
In recent years, a new group of players tendencies without speculation practices.”
who supplies agricultural inputs
are emerging in this market besides the in the region that includes
above three conventional groups. An Future development path Central America and Colombia.
increasing number of companies from Disagro offers complete portfolio
China and India have been gradually When talking about the future of agricultural inputs, including:
agricultural fertilizers, crop protection
expanding the formulation exports and development path, it is necessary to
products, animal nutrition products,
infiltrate into the supply chain terminal first take some analysis and prediction agricultural and agro-industrial
in Latin America, which bring new about the market environment where machinery and equipment.
competitions and challenges to local the companies are operating. It is
companies. difficult to generalize when referring America.”
Anasac: “Anasac is a company that to Latin America. Each country has its “We are in a continuous pursuit of
has and will continue seeking cooperation own features and different realities. To providing value-added solutions to the
with local agrochemical companies, understand these realities, it is essential farmer. Through our technical-commercial
multinationals as well as competitors. to identify the different elements that support and R&D investment, we seek
We truly believe that cooperation is a key influence the growth of the agrochemical alternatives to the products that are or will
element to maintain a successful value market. These elements include the be restricted in their use.”
chain. ” necessary investments to keep developing “We are a company that provides
“China the agricultural support and trust to our customers by
certainly has industry, incorporating committing ourselves with the economic,
some advantages technology into small social and environmental development
as a supplier of farmers and regulatory of the communities and markets in which
ANASAC is a Chilean company
agrochemical stability to obtain we participate. We work on products and
present in 17 countries, with
products. Therefore, product registrations. solutions to satisfy our clients needs and
over 60 years of experience in
we established diverse industries and markets. Market analysis we assess them in the correct use of
our own offices in Forestry and agricultural business, reveals that the use the technology. We position ourselves as
China and founded specifically crop protection, is of products with less strategic partners, creating long term of
a joint venture with a ANASAC's major area. confidence, respect and mutual benefit
environmental impact
Chinese company to and lower risks for users with our clients.”
develop and export our portfolio products will be an increasing trend. Companies Agrofina: “We take R&D as an
with our hallmark. Our focus is to develop must understand social and environmental important factor in our business since
with our clients the different solutions, and changes to maintain higher growth the farmers need to increase their yields
provide customized products to farmers. rates, adapting their products to the real based on intelligent decisions. We are
Comprehensive solutions that contribute needs of the farmers and the society. working on the path to become a company
to the success of our business.” Agrochemical market will continue to have that is able to develop specific solutions
Disagro: “A lot of companies from a sustained growth and it is considered for the domestic market.”
China and India are entering Latin to be an important factor to maintain the Disagro: “We will continue to provide
American market through low-price based productivity of agriculture. our clients a combination of technical
strategies, which usually work in a short Anasac: “We tailor our solutions to support and outstanding products/
term. When small farmer uses cheap local realities by constantly renewing our solutions.”
and inefficient products, purchased with product portfolio. Our corporate vision is
limited resources, it may be their last to support the growth of our customers
chance to produce during that particular through sustainable and value-added
Scan to Read This Article
season. Responsible companies, such solutions, constantly. We believe these
as Disagro, do offer competitive prices are the key elements to keep growing and
and take quality as a big asset for their maintaining a healthy business in Latin
Editor's Note
Access to the right Channel partner is critical for success. New comers struggle most in finding the right fit, and often waste a lot of precious
energy in the process. In this article, the author Mr. Guy Cooper will try to provide some insight into the channel selection process and help
aspiring innovators improve their chances of success. Generic Companies may not need to go through the full process but must remember that
being first to market is critical from a market share point of view (and is innovative in its own right). A simple me-too strategy, which does not
aim at getting first to market, is bound to bring limited success.
Businesses are constantly looking offering, and brand are some of the most field” and improve their position during
for new ways to grow their revenues. important factors in winning commercial the negotiations. Failing to answer these
This seemingly simple quest is probably success, along with supporting operational questions as early as possible may very
the hardest to achieve as it depends on and financial platforms. often result in lost investments, wrong
many factors, most of which are not under A successful supplier is one that positioning of products, lower sales, and
the control of the firm. In the world of goes through a structured commercial loss of margin.
agriculture, weather patterns, for example, development process and is able Uniqueness is present in many forms
play a major role in setting the demand to answer several questions before including product innovation (e.g. new
curves, season after season. Despite this, approaching a distributor. The answers to mode of action; new Active Ingredient)
there is still a lot a firm can do to influence most of these questions require market proximity innovation (e.g. new delivery
its environment and gain market share. knowledge and experience. Such an system of a known Active Ingredient; new
A clear strategy, differentiated product approach shortens the time required to combination of existing Active Ingredients)
close a deal, optimizes profit margins and process innovation (e.g first generic
in accordance with the real value being registration of existing Active Ingredient,
About the author: offered, and can dramatically increase the improved production process yielding
Cooper Investment and Consulting, The structured process aims at Property (IP) will determine the duration
a boutique consulting service answering a series of questions and strength of the effective competitive
dedicated to the business and revolving around one central theme advantage and the subsequent margin
investment aspects of Crop – Uniqueness. Uniqueness forms the along the distribution channel.
Protection in Agriculture. He has basis of a competitive advantage and We can divide the questions into
worked in Europe, NAFTA, Latin is very important in establishing the TWO groups: (1) product specific (2)
America, China, Africa and APAC in energy level of the commercialization distribution specific. Successful suppliers
a variety of business fields including process. Uniqueness also influences the use a checklist and go through these (and
bio-pesticides, seed coating division of margin along the distribution more) questions during the commercial
and traditional crop protection chain. Distributors have a “home court” development phase. Obtaining clear
chemicals, has rich experience in advantage in answering these questions, answers, is key to facilitating a mentality
commercializing a large array of as they are closest to the market. It of collaboration and trust with the selected
products ranging from premium would be very natural for them to take distribution partners, and will ensure long-
a.Which market segment (territory, crop g.Who are the most successful would I need in order to do so?
group, use, and price) does my product fit into distributors in the relevant markets for k. Does my product fill a portfolio
and how big is it? my product and why? gap? With whom?
b.What is the unique value proposition/ h.What are the typical distribution l. Does the distributor have the
benefit of my brand/product? structures required to reach an end ability to create demand for my
c.What are the claims and prices of user and what are the typical channel product?
competing products? margins in the relevant markets? m. Which market share can they
d.Which kind of effort is required to create i. Who are the most successful reach and at which price?
significant demand for my product? distributors in the relevant markets for Answering these questions and
e.What kind of support can I provide in my product and why? others will enable an aspiring supplier
educating the market on the value of my j. Which layer of distribution would I like to hold in-depth dialogues with several
product? to sell to (global, national, sub-national, relevant partners and select the one
f.What is the cost of producing one unit and direct to farm), and which infrastructure with the best fit.
the margin potential?
which are part of the commercial with three relevant distributors, and in completing the submission, and is
development process, is given below: concluded a deal securing a high gross therefore demanding a very aggressive
margin. Distributor closed a portfolio gap price from the Supplier, which leaves a 2%
Examples: while obtaining an above average margin. margin for the proposed transaction. After
1) A supplier of an innovative soft Both parties are fully motivated to push months of discussions, the transaction
insecticide with NO distribution structure the product forward. falls apart.
is looking for a distribution partner in
the USA. The product is fully registered. 2) Supplier Y is looking for a distribution Summary:
Supplier has extensive field data from partner in Brazil for a commodity herbicide A structured commercial development
relevant climatic zones proving high they recently started producing. Supplier is plan is a vital tool in the commercialization
efficacy at competitive dose rates and end eager to get into the market but does NOT process and enables suppliers to
user prices. The product has excellent have a better cost position than his peers “level the field” while discussing the
control on key pests in high value crops, do. Supplier recently invested hundreds of commercial potential of their product with
especially when used after synthetic thousands of dollars in generating data, for any distributor. Using this approach will
chemicals towards the end of the spray the purpose of supporting a registration, increase the likelihood of a successful
program. The product uses a novel, but is currently not selling. dialogue, and enable the selection of the
scientifically proven mode of action and The product offered is already most suitable distribution channel and
leaves no residues. As a result of this registered in Brazil by 15 distributors, and access point in each individual market.
information supplier decides to focus on a has five different supply sources beside Suppliers who fail to do their
narrow list of candidates with the following the original manufacturer. As a result, “homework” may often find themselves
criteria: prices have eroded by 80% since patent sacrificing a lot of potential margin,
● National level distributor expiry 3 years ago, and margins are tight. wasting valuable time on futile negotiations
● Strong technical support team Distributor X is one of the 15 existing or significantly decreasing the chances of
● Portfolio gap in the end of crop cycle registrants, and holds a 1% market share a successful conclusion of a transaction.
insecticides in the product. He is contemplating adding
● Excellent track record of building a second source to his registration, and
premium brands is looking for a new cheaper supplier.
● Primarily focused on horticultural After looking at the data generated by Scan to Read This Article
crops. Supplier, Distributor realizes he will need
● Supplier was able to hold discussions to invest one hundred thousand dollars
China exported 499,260 tons of pesticide to over $ 100 million respectively, with formulation export increasing gradually. As for
Latin America in 2014, valued at $ 3.58 billion with pesticide exported to Peru, Guatemala, and Ecuador, the value of Top 5 formulations
export destination covering 31 out of 34 countries has surpassed top 5 technicals (Table 3).
and regions in Latin America. The top 10 export
countries in terms of value are Brazil, Argentina,
Figure 1. Top 10 export destination countries of Chinese agrochemicals in 2014
Mexico, Uruguay, Colombia, Chile, Paraguay, Peru,
Guatemala, and Ecuador, accounting for more than
90% of the total value that exported to the region
(Figure 1).
Brazil and Argentina remained the two largest
export destinations for Chinese pesticide products,
with export value of $ 1,200 million and $ 796.64
million, accounting for 32% and 21% respectively
of the total . The two major agriculture countries
imported mostly pesticide technicals. According
to SINDIVEG, Brazil imported pesticide 418,030
tons or value at $ 7.3 billion in 2014, with China its
largest pesticide supplier country.
Pesticide exported from China to Mexico,
Uruguay, Colombia, Chile, and Paraguay were
TOP Products Analysis Table 1. Top 20 pesticide products exported from China to Latin
America in 2014
Export Value
Top 20 pesticide products exported from China to Latin Product Name Ranking
(million USD)
America reached 353,270 tons with value at $ 2.25 billion, making
Herbicides
up 62.69% and 70.76% respectively of all the products exported
Glyphosate 1004.36 1
to this region, indicates that export from China mainly focused on
Paraquat 243.65 2
some bulk commodities.
Glyphosate IPA 133.69 4
11 products out of the top 20 were herbicide products, making
Glyphosate-monoammonium 58.23 7
it the largest category, with value accounting for 76.4% (Table
2,4-D 56.09 9
1). The problems of weed resistance to glyphosate and other
Atrazine 56 10
herbicides are getting worse in Brazil and Argentina, leading to
2,4-D-dimethylammonium 44.24 13
the increase of herbicide use. 4 of top 20 were fungicide and
Sulfentrazone 44.13 14
their export value accounted for 7.4%. Multinationals launched
Picloram 41.76 15
many new patented fungicide products in Latin America,
Clomazone 28.83 18
including Syngenta’s benzovindiflupyr and BASF’s fluxapyroxad.
Haloxyfop-P-methyl 21.66 19
However, fungicide exported from China to Latin America stayed
Insecticides
on the traditional products. Insecticide took 5 places in top 20
Imidacloprid 155.39 3
and had16.2% in terms of value. More stressful pressure of
Emamectin 83.41 5
cotton bollworms (Helicoverpa armigera) and soybean loppers
Fipronil 59.23 6
(Pseudoplusia includes) has driven the demand of insecticide
Chlorpyrifos 47.85 11
products in the region.
Abamectin 21.41 20
Among the top 20 products exported, the export value of
Fungicides
glyphosate, paraquat, imidacloprid and glyphosate IPA all passed
Carbendazim 56.11 8
Azoxystrobin 44.37 12
Tebuconazole 37.26 16
Chlorothalonil 29.65 17
Total 2267.32
*Note: Data related to Emamectin includes Emamectin and emamectin benzoate; Data
related to paraquat includes paraquat and paraquat dichloride
TOP Companies Analysis Table 2. Top 20 Chinese pesticide exporters for Latin America in 2014
Export Value
Top 20 Chinese companies of export pesticide No. Company
(million USD)
volume and value to Latin America are 241,140 tons
1 Shandong Weifang Rainbow Chemical Co., Ltd. 245.53
and $1.74 billion, accounting for 48.3% or 48.4% of
2 Sichuan LeshanFuhuaTongda Agro-chemical Technology 195.83
the total exportation from China to this region (Table2),
among which 7 companies exported more than $ 100 3 Youth Chemical Co.,Ltd. 177.66
million pesticide. The companies include Rainbow, 4 Zhejiang Wynca Chemical Group Co., Ltd. 145.71
Leshan Fuhua, Youth Chemical, Wynca Chemical, 5 Nanjing Red Sun Co.,Ltd. 138.9
Nanjing Red Sun, Sinochem Ningbo and Nantong
6 Sinochem Ningbo Ltd. 119.3
Jiangshan.
7 Nantong JiangshanAgrochemical&Chemicals Co., Ltd. 114.79
Rainbow, Fuhua and Wynca provide high qualified
agrochemicals to global market, and also they are the 8 Jiangsu Rotam Chemistry Co., Ltd. 80.59
major suppliers of glyphosate. Rainbow has business 9 Jiangsu Lianhe Chemical Technology Co.,Ltd. 78.63
covering 19 countries in Latin America, and has built 10 Jiangsu Good Harvest-Weien Agrochemical Co., Ltd. 53.7
a manufacture and logistics center in Panama in Aug
11 Sinochem Agro Co.,Ltd 48.23
2014 to support its operation in the market. Fuhua
12 Ningbo Generic Chemical Co., Ltd. 46.04
in China completed a 120, 000 tons of glyphosate
resource recycling project, aiming at creating a globally 13 JIANGSU HIGH HOPE CORPORATION 40.73
glyphosate production center. Wynca ranked No.1 14 Shandong Huayang Technology Co., Ltd. 40.44
on the list of top Chinese agrochemical companies
15 China Jiangsu International Economic Technical Cooperation 38.54
released by AgroPages. Good Harvest-Weien exported
16 HebeiVeyong Bio-Chemical Co., Ltd 35.94
$ 53.7 million of pesticide in 2014, the company has
strengthened the diversification of its product portfolio 17 Nutrichem Company Limited 35.39
Total 1731.95
By product:
Glyphosate, Paraquat, 2,4-D, Atrazine, Sulfentrazone, Picloram, Clomazone, Haloxyfop-
p-methyl, Imidacloprid, Emamectin, Fipronil, Chlorpyrifos, Abamectin, Carbendazim,
Azoxystrobin, Tebuconazole, Chlorothalonil...
Table 3. Top5 TC/TK & formulations of China’s export pesticide by Latin America country in 2014
Country Top5 TC & TK Top5 Formulations Country Top5 TC & TK Top5 Formulations
It all starts from a renewable resource molecular weight and level of sulfonation
Figure 1A.
– the pine tree. The two most abundant occur under controlled, reproducible
Typical Charged Dispersion
bio-based polymers on earth, cellulose conditions generating consistent materials.
and lignin, are harvested from trees. Most Kraft lignosulfonates are lightly
Cellulose is separated from the lignin to sulfonated, retaining their hydrophobic
make paper and packaging materials. character and making them highly
Lignin and its most common derivative, surface active. Sodium lignosulfonates
lignosulfonate, find use in diverse have different CAS numbers, which
applications including dispersants for crop differentiates them by type of sulfonation
protection formulations. reaction.
Two dominant technologies exist to The mechanism by which
separate cellulose from lignin: the Sulfite lignosulfonates stabilize dispersions
process and the Kraft process. The is different from surfactants or small
Sulfite process isolates cellulose fibers molecule dispersants. Anionic dispersants,
by sulfonating the lignin using salts of like naphthalene sulfonate, form a double Figure 1B.
sulfurous acid, which solubilize and extract layer and stabilize water insoluble particles Kraft Lignosulfonate Dispersion
a different dispersant chemistry than Figure 2. Effect of degree of sulfonation on adsorption (hydrophobic particles)
do solid formulations, such as water
dispersible granules (WDG). To meet
these challenging and diverse formulation
requirements, a range of dispersant
products is required, each with its own
unique chemistry tailored to the needs of
the crop protection formulation.
In a suspension concentrate,
a hydrophobic active ingredient is
suspended in an aqueous liquid. SC
formulations place a high demand on
the dispersant. The most important
performance factor influencing the
dispersing agent is the extent to which
it absorbs to the surface of the active
ingredients in solution. In lignosulfonates, In Figure 2, a lower degree of sulfonation yields a higher affinity for the surface of the
and wettable powders (WP), both agrichemicals market in the Americas. Tom can
The recent phase out of insecticides endosulfan and methamidophos in the Brazilian Neonicotinoid and pyrethroids are obvious
market has forced many companies to develop new insecticide formulations to replace choices among non-patented pesticides.
these popular pesticides used primarily to control insects in soybean and cotton crops. Due to their physico-chemical properties,
most pyrethroids usually are formulated
Figure 1. AIs in development as ECs (Emulsifiable Concentrate) while
neonicotinoids as SCs (Suspension
Concentrate). To formulate a mixture of
these active ingredients, the natural choice
would be a SE (SuspoEmulsion), but
even for skilled formulators, development
of SEs is not an easy task and very time
consuming. In this way, Oxiteno developed
an OD (Oil Dispersion) system, where
neonicotinoids can be suspended in the
oil phase, while pyrethroids are solubilized
in it, making easily feasible to formulate
different active ingredients with different
solubilities in oil and water (fig 2).
New OD formulations are of great
interest as they can be considered
i.e., SCs or flowables that already contain oil-based adjuvants Figure 2. Different approaches on neonicotinoid + pyrethroid
formulation
commonly added to tank-mix products.1 Most oil-based tank
mix adjuvants are primordial for improvement and guarantee of
biological efficacy of SCs, which are known for not having the
highest efficacy due to the fact that the active ingredient are
suspended particles. In addition, ODs show another advantage
compared with SCs regarding the hydrolysis of active ingredients,
which is overcome in such oil-based system.
On the other hand, the active ingredient must be insoluble
in the oil phase (< 200 ppm) to be suspended and to avoid
crystal growth during long-term storage. Another issue is that
ODs usually have a high viscosity at low shear rate to prevent
sedimentation jeopardizing the self-emulsification process
during dilution in water. In this way, the great challenge in the
development of OD formulations is to achieve shelf-life stability
and desired behavior when diluted in water for spraying. Figure 3. Formulation process
A mix of neonicotinoid and pyrethroid was successfully
formulated in an OD formulation-type. For that, new products as
dispersants, emulsifiers and rheology modifiers were developed
to be suitable products for this type of formulation since the oil
phase requires different surfactants (fig 3). Accelerated stability
and rheology tests showed that these formulations were stable in
a long-term shelf life. In addition, by tests upon dilution in water
it was demonstrated that the formulations gave the desirable
performance for tank mixing and spraying.
To prove the biological efficacy of the OD formulation
and compare the performance in the field of insecticides OD
formulation versus other insecticides formulation types and tank Figure 4. Field trials results