Volga Baikal AGRO News Update on the Plant Protection Market !!!
In the past year, the cost of production has increased significantly: fertilizers, feed components, plant protection products, agricultural machinery, etc. At the same time, market participants are not unreasonably afraid of further price increases, which means an increase in cost. You will learn from our article how prices for the crop protection agents can change in 2022, and what factors will affect the market.
Salis Karakotov, CEO of Shchelkovo Agrochem:
In 2022, the plant protection product market will be affected by a noticeable shortage of certain groups of agents, in particular, soil herbicides, some types of fungicides. On average, prices for crop protection agents in the new year can increase from 5-7% up to 15-20%. It is worth noting that from 2015 to 2018, prices in rubles for agrochemicals fell due to high competition in the market. From 2018 to 2021, they grew by only 3%. At the same time, the demand for the plant protection products did not fall, and by the end of 2021, on the contrary, the market in physical volume increased by 8-10%: many farmers began to understand that against the background of a significant increase in the cost of fertilizers, good plant protection products can help preserve the economy of the agricultural production.
Mikhail Danilov, CEO of the company “August”:
The world’s largest plant protection product factory – China – produced two-thirds of the active components, it was helped by India, Europe and the USA. However, in September 2021, the energy crisis began in China: China hadn’t enough electricity anymore, enterprises stopped working or switched to the mode of two or three work days a week. As a result, production chains began to break, and there were shortages of various intermediates, and then the final products – active substances of pesticides. Together, this led to an intensive increase in prices for almost the entire spectrum of active substances.
By 2022 prices have not increased as significantly as active substances, surfactants, solvents, packaging, etc. And since the energy crisis is felt not only in China, but also in the European Union, prices for the components of formulas have also risen noticeably there, and there are certain problems with the availability of products, delivery times, which, among other things, affects the price increase in conditions of shortage. In the current situation — in anticipation of possible sudden shortages – agricultural producers are also actively concluding contracts for plant protection products for 2022.
Andrey Sarnatsky, Head of the BASF Sales Department:
In 2021, the costs of resources and logistics have increased significantly. The price increase, in my opinion, is an absolutely market phenomenon that is characteristic of all producers of agricultural products. At the same time, the increase in fertilizer prices is absolutely incomparable with the increase in the cost of crop protection agents. Some fertilizers have soared in price several times.