The Argentina Biopesticide market is estimated to grow at a CAGR of 16.54% during the forecast period. Argentina constitutes a key Latin American market for biopesticides, with Bioherbicides forming the largest and Bio fungicides as the fastest growing segments. Argentina ranks as the third-largest global producer of soy and corn, and curtailing the use of pesticides on these crops as envisaged by the government is expected to increase costs for farmers. The total soy crop and a substantial proportion of corn and cotton crops in the region are genetically modified. Though this was intended to reduce the consumption of pesticides, the fact remains that the overall utilization has grown by nine times since 1990 due to increased production, through demand for higher crop yield, and pests developing resistance to the chemicals.
Key Market Trends
Increasing Yield of Agricultural Produce
In Argentina, the pesticide market, biopesticides are witnessing a steady growth and the key market drivers for the industry in the region are the adoption of herbicides tolerant crops, increasing area of crop production and increasing yields of agricultural produce. However, strict regulations posed by US EPA and EU on pesticidal residue limit on food crops will limit the use of synthetic pesticides on crops and will increase the demand for biopesticides in the region. Principal factors driving the same include greater adoption of biopesticides in place of traditional chemical-based pesticides as a consequence of increasing efficacy and enhanced consumer confidence in their performance output. Cereals and Grains are the major crops that are cultivated at a higher volume compared to the Fruits and Vegetables in the region. During the forecast period, Argentina topped in the production of Wheat, Maize, Soyabean and Sugarcane meaning that the domestic and international demand for the agricultural produce is high and there is a need to increase the yield and quality of the crops grown which is driving the market.
Increase in Organic Farmland
In 2017, the organic farmland in Argentina amounted to over 3.38 million hectares, up from more than 3.01 million hectares registered a year earlier and hence, the use of fertilizer and in terms of increasing the quality and Yield, there are more chances for biopesticides demand to increase in the market. The Argentina government has also adopted land policies to integrate the agriculture production system in the region. Due to factors like high output cost, Government initiatives, and higher demand for organic produce, farmers are ready to shift from traditional farming to organic farming which in turn is driving the demand for bio-based fertilizer and pesticides in the market. Moreover, prominent research studies have indicated that the residual pesticides in food can cause health concerns and other effects that may take place in a prolonged period of time without immediate manifestation.
The Biopesticides market is witnessing a surge in corporate activity with several agrochemical companies entering into the agricultural biologicals sector either through dedicated R&D investment, licensing deals, partnerships, and mergers and acquisitions. The analysis of major companies in the Biopesticides industry has taken into account strategy adopted, financial revenues and the latest developments in the market. Some of the leading players covered include Bayer CropScience, BASF, Marrone Bio Innovations, De Sangosse, and Valent Biosciences.
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