Mexican Agrochemical Market is Dominated by Foreign Companies

28 Jul 2010 • by Natalie Aster

At a time of rising food prices, population growth and concerns about global food security, there is a growing need for using agrochemicals and every available technology to meet future food needs and tackle the emerging challenges of climate change and resource conservation. Today, over 250 million tons of chemical pesticides are applied widely and intensively in agricultural zones around the globe each year. Agrochemical (or agrichemical), a contraction of agricultural and chemical, is a generic term for the various chemical products used in agriculture. In most cases, agrichemical refers to the broad range of pesticides, including insecticides, herbicides, and fungicides. It may also include disinfectants, rodenticides (for the control of rodents), hormones and other chemical growth agents, etc.

Nowadays the global agrochemical market is experiencing growth of 10% comparing to the level of 2009. By 2013, the growth is expected to accelerate by double-digits and reach 16%.

In Mexico only 11% of land area is arable, less than 3% of it is irrigated. Top revenue-producing crops include corn, tomatoes, sugar cane, dry beans, and avocados. In total, agriculture accounted for 4.3% of GDP in Mexico in 2009.

The largest segments of Mexican agrochemicals are insecticides and herbicides, each accounting for about 36% of the market and totally 60% in domestic agrochemical production. Fungicides made up 21.5% of sales, while plant growth regulators accounted for 4.2% and seed treatments some 2.5%. According to FAO statistics Mexican domestic production of agrochemicals achieved 40,000 tons in 2008. Country’s demand is 70,000 tons annually. USA is the main trade partner for Mexico. Mexico imports about 46% of insecticides, rodenticides, fungicides, herbicides, and etc from US. Other countries-suppliers are European countries Germany and France, and also Brazil and Colombia. Mexico export agrochemicals to USA, and to Latin American countries: Guatemala, Panama, Honduras, Costa Rica and etc.

The major pesticide-treated crops in Mexico are: maize, which made up 21.7% of the market; tomatoes (10.2%); chillies (7.6%); potatoes (7.4%); cucurbits (6.3%); pasture (5.6%); and sugar cane (5.4%).

Mexican agrochemical market is dominated by international companies. The largest agrochemical market players in the country include such global firms as BASF (Germany), Cheminova (Denmark), DuPont (USA), FMC (USA), Syngenta (Switzerland), Arysta LifeScience (Japan), Polaquimia (Mexico, member of Polak Group). These large-scale companies take up a total share of 80% of the pesticide market in Mexico. Some experts even believe that US and European countries dump their products on the Mexican agrochemical market.

More information on the Mexican pesticides market may be found in the report Agrochemicals and Pesticides Market in Mexico: Business Report 2010 recently published by TD The Market Publishers, Ltd.