Pesticide sales in Brazil jump as prices rise -industry group (updated)

SUMITOMO CHEMICAL

22/08/2022 21:09

(New throughout, adds details and background)
    By Nayara Figueiredo
    SAO PAULO, Aug 22 (Reuters) - Pesticide sales in Brazil rose
by almost 18% to 34.26 billion reais ($6.65 billion) in the
first half of the year, industry group Sindiveg told Reuters on
Monday, attributing the rise to higher logistics and raw
material costs.
    Sindiveg represents companies like Adama  000553.SZ ,
Nutrien  NTR.TO  and Sumitomo Chemical  4005.T , among others.  
    
    According to the industry group, prices rose reflecting
global supply and demand dynamics, the effects of the war
between Russia and Ukraine and the lingering effects of the
COVID-19 pandemic.
    Domestic agrochemical prices also rose because of exchange
rate factors. Most of the industry inputs are imported, Sindiveg
said.
    The area sprayed with agrochemicals was practically stable
in Brazil, growing 0.2% between January and June, to 741.28
million hectares, Sindiveg said.
    The total area planted with grains including soy, corn and
wheat in Brazil is 73.8 million hectares (182.3 million acres),
according to government data. 
    But commonly fields are sprayed with pesticides more than
once, and with more than one type of product, hence the total
area of applications is much larger than actual planted area,
according to Sindiveg data.
    Despite the rise in sales value, the growth was limited by
problems concerning the soy crop, which was partly damaged by
drought, reducing overall chemical applications on fields.
    
    ($1 = 5.1521 reais)

 (Reporting by Nayara Figueiredo; writing by Ana Mano; editing
by Jonathan Oatis and David Gregorio)
 ((ana.mano@thomsonreuters.com; Tel: +55-11-5644-7704; Mob:
+55-119-4470-4529; Reuters Messaging:
ana.mano.thomsonreuters.com@reuters.net))