MARKET DEVELOPMENT
22-12-2004
Brazil Companies Fly In Fungicide To Combat Asian
22/12/04 SAO PAULO (Dow Jones)--With planting now complete across Brazil'smassive soybean belt, farmers are nervously stalking their crop withmagnifying glasses searching for signs of the deadly Asian rust fungus.Farmers lost up to 10% of their last crop to the fungus, which spreadon the wind across Brazil, amid shortages of key fungicides.To ensure there will be no shortages this year, the main fungicideimporters, Basf and Syngenta, have set up special supply routes, includingregular flights from Europe.German chemical giant Basf will import the principal agent of itsOpera fungicide from Spain, which will then be mixed at its Guaratinguetaplant in Sao Paulo.Swiss agrichemical company Syngenta says it will have a fleet of 20planes flying out of Grangemouth, Scotland, to ensure supply of itsPriori-Xtra fungicide."A ship takes 30 days while a plane takes just 12 hours. Of course thecost will be higher, but it's worth it to increase our share of themarket," said Odanil Leite, manager of Syngenta's fungicide department.Demand for anti-rust fungicides has rocketed since the disease wasfirst identified on Brazilian soil in 2001. The anti-rust market will turnover $700 million this year, according to Brazil's Herbicide, Pesticideand Fungicide Industry Association, or Sindag.But it is more or less certain that there will be a shortage offungicides across some part of the soy belt this season, according to JoseTadashi Yorinori, crop pathologist of the Agriculture Ministry's crop-research agency.The fungus attacks the leaves of soy plants, exposing the pods to thesearing Brazilian sun and can reduce yields by 80%.Producers now are better prepared, and they are expected to increasethe number of fungicide applications per hectare from 1.7 to 2 times percrop cycle.But equally, farmers have less money to spare as they have seen pricesfall and input prices rise."As a result, producers are likely to spray after rust has been foundinstead of before, which is less efficient," said Syngenta's Leite.Endrigo Dalcin prowls his 700 hectares of soybeans in Nova Xavantina,Mato Grosso, in search of signs of the disease.His region has yet to register a case of rust this year, but he ispreparing to spray after Christmas, once flowering starts.The fungus has been spotted in nine Brazilian states, across 81municipalities, and is assumed to be present across the entire soy belt.Embrapa has warned farmers to be particularly observant over the nextcouple of weeks in areas.The largest number of cases was registered in the No. 2 state ofParana, which has been particularly wet.
