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Argentinean Crop Protection Chemicals Market Makes a Phenomenal Comeback Notes Frost & Sullivan - Argentinean Crop Protection Chemicals Market makes a phenomenal comeback with a growth Rate of 23.6 Percent in 2010 after a Negative Growth Rate of 26.9 Percent in 2009
Argentinean Crop Protection Chemicals Market Makes a Phenomenal Comeback Notes Frost & Sullivan

 

NewswireToday - /newswire/ - Buenos Aires, Argentina, 2011/07/08 - Argentinean Crop Protection Chemicals Market makes a phenomenal comeback with a growth Rate of 23.6 Percent in 2010 after a Negative Growth Rate of 26.9 Percent in 2009.

   
 
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Mergers and Acquisitions to Insulate the Market for Price Fluctuations in the Global Market

The crop protection chemicals market in Argentina has recently been having a rub of the green with an increase in rainfall bringing some much-needed succor to the agriculture industry. The last couple of years have been rough for the market as failed monsoons and the strained relations between the agricultural sector and the Government made agricultural producers apprehensive about the profit they would gain from certain crops. However, the improved rainfall has raised the humidity levels of some key productive zones, encouraging higher crop plantations.

New analysis from Frost & Sullivan (chemicals.frost.com), Crop Protection Chemicals Market – Argentina, finds that the market earned revenues of $1.53 billion in 2010 and estimates this to reach $2.32 billion in 2015.

During 2010-2011, the total volume of agricultural production (comprising wheat, corn, and soybean) is expected to be more than 90 million tons – a 50 percent hike in volume over 2008-2009. The larger production volumes imply a greater use of crop protection chemicals, especially fungicides.

Apart from the enhanced demand, product manufacturers will also benefit from Argentinean agricultural producers' tendency to adopt the latest products and top-of-the-line technologies. These novel products and technologies are helping to keep the market vibrant and delaying market maturity.

"Market demand depends not only on innovation but also on the incidence of plagues or diseases that spread according to certain temperature, humidity and crop development conditions," says Frost & Sullivan Chemicals, Materials & Food Leader Alessandra Lancellotti. "Agriculturalists are always willing to use new technologies that might increase the yields of their crops, or protect them from different plagues."

In 2010, stakeholders in the agricultural sector enjoyed wider profit margins with the rise in international grain prices, especially due to the local exchange rate. This helpful environment gave agricultural producers an incentive to augment production and thereby, up their utilization of crop protection products.

On the flip side of global trade, the market is vulnerable to changes in the prices of Chinese products, as China is one of the main manufacturers of the raw materials used in the production of glyphosate and other more specific crop protection chemicals.

In 2009, the international prices for the main products in the market, especially glyphosate, began to fall. Therefore, the total revenues dipped in spite of the increase in volumes sold.

Even though there was a revival of demand and revenues throughout 2010, the market was still not able to replicate the highs of 2008. These challenges intensified the competition in the crop protection chemicals market.

The higher competition and consequent decline in prices has led to producers expecting hectic merger activities so that structural costs did not become prohibitive for the small- and medium-sized companies. In the last decade, the market experienced many mergers and acquisitions, wherein many local companies were acquired by foreign companies looking to increase their share in the Argentinean market.

Currently, very few companies are owned or controlled by Argentinean capitals and this trend is expected to continue in the future as the global market becomes more competitive and consolidated.

"Argentina currently represents a small part of the global crop protection chemicals consumption, but has potential to grow," notes Lancellotti. "Annually, there is a global increase of 75 million food consumers, and Argentina has geographic capabilities to supply the food demand through better productivity and expansion to unused lands."

If you are interested in more information on this study, please send an email to Tatiana Brull, at tatiana.brull[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

Crop Protection Chemicals Market – Argentina is part of the Chemicals Growth Partnership Services program, which also includes research in the following markets: packaging, polymers, food additives, personal care 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, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents.

Crop Protection Chemicals Market – Argentina / N8C2

 
 
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Argentinean Crop Protection Chemicals Market Makes a Phenomenal Comeback Notes Frost & Sullivan

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Publisher Contact: Tatiana Brull 
+5511 3065-8445 tatiana.brull[.]frost.com
 
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