Market Trends of Brazil Seed Treatment Industry
Brazil's Market Dominated by Bio-based Seed Treatment Products
Farmers are increasingly turning to seed treatment to safeguard their investments in high-quality seeds. This shift comes in response to heightened regulatory scrutiny on fumigation and the foliar application of pesticides. Farmers grapple with challenges like seed diseases and unpredictable environmental conditions, both of which can diminish crop yields. As a result, there's a growing demand for seed treatments. Coating seeds with pesticides, fertilizers, and plant growth regulators not only enhances seed performance but also accelerates germination.
Brazil's seed treatment industry is evolving with the increased adoption of biopesticides. The country aims to balance agricultural advancement with environmental preservation, viewing biopesticides as a step towards sustainable farming. In 2022, Brazil registered over 480 biopesticides, including 83 products developed from microorganism combinations. Growing awareness of chemical pesticides' environmental and health impacts is driving biopesticide demand in Brazilian agriculture. A trend towards sustainable practices addresses social and environmental issues associated with traditional farming methods. Increased focus on food and environmental safety has prompted the development of safer seed treatment products. The integration of sustainable farming in mainstream agriculture is encouraging farmers to increase the use of bio-based seed treatments to enhance productivity while protecting the environment.
Brazil leads Latin America in the organic products market, driven by increasing consumer awareness of organic produce benefits. This has resulted in a steady rise in demand for organic products, prompting more farmers to adopt organic farming methods. According to the Ministry of Agriculture, Livestock, and Food Supply (MAPA), the number of organic producers in Brazil grew from 24,506 in 2022 to 25,688 in 2023, representing a 4.8 percent increase. This growth in organic farming is anticipated to drive the market for bio-based seed treatment pesticides during the forecast period.
Pulses and Oilseeds Lead the Market
Seed treatment plays a crucial role in Brazil, particularly for major crops like soybeans and various pulses including beans and lentils. The application of microbial formulations and effective microorganisms (EM) in seed treatment has demonstrated positive impacts on crop growth parameters, enhancing productivity, biomass accumulation, and disease resistance. Soybean, the primary commodity in Brazilian agribusiness, has positioned the country as a global leader in oilseed production. According to the United States Department of Agriculture, Brazil produced 153 million metric tons of soybeans in 2023, becoming the world's largest soybean producer. This output surpassed the United States (113.7 million metric tons) and Argentina (48.7 million metric tons), with Brazil contributing 39% of the total global production that year.
Soybean crop protection challenges begin at planting, particularly in areas of crop succession where insect pests from previous crop residues, such as stink bugs, and soil-borne pathogens target seeds. The Antiferrugem Consortium's 2023 surveys revealed that Asian soybean rust, caused by the fungus Phakopsora pachyrhizi, remains the most severe disease affecting soybean crops. In the 2022/23 harvest, over 119 cases of Asian soybean rust were reported across nine Brazilian states. This represents an increase of more than 220% compared to the same period in the previous year (November 2022 to January 2023). This significant rise in disease prevalence necessitates increased seed treatment, driving market growth during the forecast period.
Additionally, Brazil’s soybeans are exported all over the world, with the increasing export volume driving the demand for effective seed treatment. According to the ITC Trade Map, Brazil's soybean exports rose from 78.9 million metric tons in 2022 to 101.8 million metric tons in 2023, with China accounting for 73.1% of the export value. To meet international standards and maintain high-quality exports, Brazilian farmers employ seed treatments to protect soybeans from pests and diseases, ensuring seed quality and viability during transportation and storage. The rising global demand for soybeans, particularly from China, motivates farmers to maximize yields. Brazil's stringent regulations on crop protection products, including seed treatments, ensure that exported soybeans are safe and residue-free. The economic advantages of soybean exports encourage farmers to invest in seed treatments, as crop protection and higher yields enable them to capitalize on the lucrative export market.
