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Colombian Agricultural Producers Adopt the Latest Products and Top-of-the-line Technologies, Finds Frost & Sullivan


News provided by

Frost & Sullivan

25 Sep, 2012, 18:51 GMT

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- Crop protection market witnesses constant product and technology launches despite approaching maturity

BUENOS AIRES, Argentina, Sept. 25, 2012 /PRNewswire/ -- Emerging countries are key consumers of agricultural products, and agrochemicals have experienced impressive growth rates in these countries. With Colombia, an emerging nation, becoming an important consumer of agricultural products, the demand for crop protection chemicals is soaring in this country.

New analysis from Frost & Sullivan (http://www.chemicals.frost.com), Analysis of the Crop Protection Chemicals Market in Colombia, finds that the market earned revenues of $394.0 million in 2011 and estimates this to reach $543.0 million in 2017.

The agriculture market in Colombia has considerable potential. Globally, the number of food consumers swells by approximately 75.0 million and Colombia has geographic expanse to meet this demand through better productivity and use of vacant lands.

"Many food producers know how to manage new production methods and are aware of the importance of promoting new technologies," said Frost & Sullivan Research Analyst Camilo Marin. "Therefore, producers always pay attention to new product releases."

Various regulatory agencies in Colombia conduct several tests on a new product before its commercial launch. Chemicals manufacturers not only need to ensure the greatest cost benefit when using pesticides, but also prepare a mixture that causes the least damage to both humans and the environment.

Meanwhile, with the country settling its internal conflicts, exports are bound to improve and boost the crop protection chemicals market. The stronger purchasing power of Venezuela's citizens is creating a vast market for agricultural food and consequently, the Colombian agrochemicals market.

Despite a favourable environment for growth, the country's agrochemicals industry has slowed down in recent years due to the smuggling of chemicals and fertilizers, which generated an oversupply of agrochemicals and lowered prices. To combat the challenges of counterfeiting and smuggling, the national government and local authorities are conducting joint campaigns and establishing complaint cells.

Further, the market is being flooded with low-cost imports from China, which is one of the main manufacturers of the raw materials used in the production of glyphosate and other crop protection chemicals.

In 2009, the international prices of the main products in the market, especially glyphosate, began to fall. This considerably decreased the total market revenue in spite of amplified volumes. Throughout 2010, volumes continued to balloon and even though there was a concurrent rise in revenues, the market was not able to replicate the highs of 2008.

Owing to the crisis in the agricultural sector in 2009, the crop protection chemicals market has become more competitive. This, along with the drop in prices, has compelled manufacturers to resort to mergers and collaborations.

"In the last decade, the market experienced many mergers and acquisitions; many local firms were bought by foreign companies looking to expand their footprint to the Colombian market," noted Marin. "Currently, there are many international participants and this trend is expected to continue in the future, as the global market becomes increasingly consolidated."

If you are interested in more information on this research, please send an email to Francesca Valente, Corporate Communications, at francesca.valente@frost.com, with your full name, company name, title, telephone number, company email address, company Web site, city, state and country.

Analysis of the Crop Protection Chemicals Market in Colombia is part of the Chemicals & Materials Growth Partnership Services program, which also includes research in the following markets: Polymers, Packaging, Animal Feed Ingredients and Construction Chemicals, among others. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Analysis of the Crop Protection Chemicals Market in Colombia

N9DA-39

Contact:
Francesca Valente
Corporate Communications – Latin America
P: +54 11 4777 5300
F: +54 11 4777 5300
E: francesca.valente@frost.com

http://www.frost.com

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