crop protection chemicals market in argentina– what are the major challenges?
DESCRIPTION
An anaylsis by Isolina Lopez Rivarola, Frost & Sullivan.TRANSCRIPT
Crop Protection Chemicals Market in Argentina –What are the Major Challenges?
Isolina Lopez Rivarola, Industry Analyst
Chemicals, Materials and FoodChemicals, Materials and Food
March 29th, 2011
Today’s Presenters
Isolina Lopez Rivarola
Industry Analyst
2
Chemicals, Materials and Food
Focus Points
Market Segmentation
Objectives
Top 10 Trends in the Global Chemicals Industry
Market Growth and Overview
Hot Topics
3
Growth Strategies in Latin America
Key Drivers and Restrains
Conclusions
Major Challenges
Market Forecast
Key Findings
Objectives
� Provide a market overview of the Crop Protection Chemicals Market in
Argentina;
� Evaluate opportunities;
� Review the major drivers, restraints and challenges the market will
face in the short, medium and long run;
4
face in the short, medium and long run;
� Analyze the current strategies that market participants are
implementing;
� Identify what market participants can do so as to succeed in the
market.
Top 10 Trends in the Global Chemicals Industry
5
Source: Frost & Sullivan
Market Growth
1000
1200
1400
1600
1800
Crop Protection Chemicals Market: Demand (Argentina), 2008-2010
• 2009 was a year of depressed
demand levels.
• Due to the agricultural
conflicts taking place in
Argentina, as well as one of the
worst droughts experienced in
decades, consumption
6
0
200
400
600
800
1000
2008 2009 2010
Market Revenues -Billion US Dollars
decades, consumption
decreased.
•During 2010 humidity levels
rose and yield and income
prospects were positive,
encouraging higher product
applications.
Market Overview – Argentina
Crop Protection Chemicals Market Age (Argentina), 2010
GrowthIntroduction Mature Decline
• The crop protection chemicals industry is in a stage approaching maturity.
7
Crop
Protection
Chemicals
Source: Frost & Sullivan
Market Segmentation
Crop Protection
Chemicals Market:
Market Segmentation
(Argentina), 2010
Crop Protection Crop Protection ChemicalsChemicals
Crop Protection Crop Protection ChemicalsChemicals
Crop Protection Chemicals Market: Percent of Revenues by Product Type (Argentina), 2010
Others
3.0%Fungicides
12.0% Herbicides
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FungicidesFungicidesFungicidesFungicides
HerbicidesHerbicidesHerbicidesHerbicides
InseticidesInseticidesInseticidesInseticides
Others, moslty
acaricides
Others, moslty
acaricides
12.0%
Insecticides
18.0%
Herbicides
67.0%
Note: Others includes other less
employed products.
Market Segmentation (Contd.)
Crop Protection Chemicals Market: Percent of Glyphosate in the Total Market (Argentina), 2010
Glyphosate
43.0%
Other Crop
Protection
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Protection
Products
57.0%
Currently, Glyphosate accounts for most of the herbicides market. Itrepresents 43.0 percent of the total crop protection chemicals market inArgentina.
Hot Topics (from the current & beyond current year)
Logistical
capabilities
Environmental impact of
Development of Biotechnology
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crop protection
chemicals
Changes in Land
Ownership
System
Major Challenges
Institutional framework and the agricultural sector’s relationship with the government
Increasing technical
capabilities within the
agricultural sector
Maturity level of
the market
11
Source: Frost & Sullivan.
Growth of agricultural
production
agricultural sector
Dependency on imports
Challenges
Key Drivers Summary
Provision of logistical services
Increased knowledge of
specific plagues
12
Openness to new
technologiesFavourable
climate conditions
International market prices of grains and
crops
plagues
Source: Frost & Sullivan.
Inflation levels and increase in operational
Agricultural market
uncertainties
Price variation that depends on
Chinese imports
Growth of Chinese imports
Key Restraints Summary
13
operational costs
Source: Frost & Sullivan.
Market Forecast
• The Crop Protection Chemicals Market was valued at 1.53 billion US Dollars in 2010.
3.00
4.00
Re
ve
nu
es
($
Billio
n)
4%8%12%16%20%24%28%32%36%40%
Re
ve
nu
e G
row
th R
ate
• Revenues in the crop
protection chemicals market
in Argentina are expected to
grow from $1.53 billion in
2010 to $ 2.32 billion in
14
0.00
1.00
2.00
20
08
20
09
20
10
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20
12
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13
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Year
Re
ve
nu
es
($
Billio
n)
-40%-36%-32%-28%-24%-20%-16%-12%-8%-4%0%4%
Re
ve
nu
e G
row
th R
ate
Revenues ($ Billion) Revenue Growth Rate (%)
2010 to $ 2.32 billion in
2017.
• Technological progress,
anyhow, has the power to
alter growth rates and
redefine utilized products.
Summary of Major Findings (Contd…)
Technical Support
Major Growth Strategies in the Argentinean Crop Protection Chemicals Market:
Distribution
Networking
15
Logistics
Investments
Distribution
Techniques
Complete Product
Portfolios
Courses and
Training Events
Pricing
Strategies
Source: Frost & Sullivan
Mergers &
AcquisitionsProduct
Improvement
Distribution Techniques
Major Growth Strategies in the Latin American Biofuels Market:
Courses and Training Events
Growth Strategies in the Crop P in Latin America
16
Product Improvement
Source: Frost & Sullivan
Complete Product Portfolios
Conclusions
The total market
currently shows growth
signalling recovery from
the crisis, and moderate
growth is expected in the
future.
Uncertainty due :
Cost considerations come first and
Key client-specific services can
make a difference
0.00
1.00
2.00
3.00
4.00
20
08
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09
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10
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12
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14
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15
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Year
Re
ve
nu
es
($
Billio
n)
-40%-36%-32%-28%-24%-20%-16%-12%-8%-4%0%4%8%12%16%20%24%28%32%36%40%
Re
ve
nu
e G
row
th R
ate
Revenues ($ Billion) Revenue Growth Rate (%)
17
Uncertainty due :
• climate changes, • the agricultural sector's relation with the government, • the dependency on the Chinese Market, and,• the changes new technologies might bring about.
Increase in international
cereal and grain prices
Thank you for your attention!
18
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For Additional Information
Isolina Lopez Rivarola
Industry Analyst
Chemicals, Materials & Food
(54 11) 4771-8006
Fernando Serra
Sales Director
Latin America
(54 11) 4777-1550
22
Alessandra Lancellotti
CBU Leader
Chemicals, Materials & Food
(55 11) 3065-8447
Tatiana Brull
Marketing Communications Executive
Corporate Communications LA
(55 11) 3065-8445