Brazil Biological Seed Treatment Market - Growth, Trends And Forecasts (2014-2020)
Sep 28 2015
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The Brazilian market for biological seed treatment is projected to reach US$41.2 million by 2020 to reflect the faster CAGR of 10.5% over 2014-2020 when compared to the chemical seed treatment market.
Brazil’s planted area for wheat in 2014-15 is expected to decrease by 9% from the previous year to 2 million hectares (mHa), with production forecast to be 5 million metric tons (MMT), a decline of 6% from the previous year due to lower prices. Consumption of wheat in Brazil is anticipated to post a marginal increase in 2014-15, with growing middle classes including more processed products in its diet. Brazil’s corn production for 2014-15 is expected to decline by 3% to reach 71 MMT based on decreased area and a second (“safrinha”) crop. In 2014-15, corn consumption in Brazil is forecast to register an increase due to projected expansion in the corn feed industry, which is taking advantage of current low global prices. For the year 2014-15, it is estimated that the area under rice production in Brazil would decrease by 1% over the previous year, based on the assumption that a few farmers will rotate rice out of their crop rotation cycle. Consumption of rice in Brazil in 2014-15 is expected to remain at 7.85 MMT. While rice continues to be a staple food in Brazil, changes in diets of the emerging middle class are being offset by population growth.
Soybean production for 2014-15 is forecast to increase by 8%, reaching a record 97 million metric tons (MMT), primarily because of steady increases in planted area and yields. Brazil and the United States would continue to compete with each other to attain number one ranking for soybean production globally. With 2014-15 exports forecast at 50 MMT, Brazil is poised to continue as the world’s largest soybean exporter due to augmentation in available supplies and strengthened export capacity.
The market for seed treatment gains in significance due to a number of factors, prominent among which are agronomic trends that comprise development of high quality seeds through the enhanced potential offered by genetically modified organisms (GMOs), changes in climatic conditions, increasing rates of crop rotation, flexibility in sowing approaches and greater pressure from regulatory requirements. Primary requirements of seed treatment include capability of offering good protection during the germination period, supporting early plant development and enhancing stress tolerance at an early stage. These can be achieved by improving the quality of seed treatment products that offer ease of application at low rates. In short, it may be summed up that the foundation for the future lies in the concept of innovation in seed treatment.
Syngenta, Bayer CropScience and BASF are the top three players in the global seed treatment market, with all of them having an extensive portfolio of agricultural products and solutions. While BioWorks Inc, Advanced Biological Marketing Inc and Valent USA Corp are comparatively smaller players, they offer the potential of becoming big game changers in the area of seed treatment in future. Each company has adopted an individual approach in terms of strategy for future growth. A few have focused on horizontal growth by expanding their presence in emerging markets that offer greatest scope for future prospects, while yet others have been content to operate within their established boundaries and go in for vertical growth by concentrating on innovations in the area of products and solutions.
This report provides a comprehensive analysis of the Brazilian market for biological seed treatment. Companies covered in the report include Adama Agricultural Solutions Ltd (Formerly Makhteshim Agan Industries Ltd), Advanced Biological Marketing Inc, BASF SE, Becker Underwood, Bayer CropScience AG, BioWorks Inc, BrettYoung Limited, Chemtura AgroSolutions, DuPont, Germains Seed Technology, INCOTEC Group BV, INTX Microbials LLC, Monsanto Company, Novozymes A/S, Nufarm Ltd, Plant Health Care, Precision Laboratories LLC, Syngenta International AG, Valent USA Corporation and Wolf Trax Inc.
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