How South Africa Crop Protection Market is Positioned?
South Africa is one of the most developed countries in the African region. At present, South Africa is not only self-sufficient in virtually all major agricultural products but is also a net food exporter, which makes it 1 out of 6 countries in the world capable of exporting food on a regular basis. The crop protection market in South Africa is at a growing stage. South African crop protection market is dominated by imports. With no technical being manufactured in South Africa, the country has been majorly dependent on several countries for the procurement of technical which are used in crop protection. Majority of the global players have concentrated the crop protection market in South Africa. The presence of global players in the market has ensured that South Africa has access to quality products and innovations in the crop protection industry.
In terms of revenue, South Africa crop protection market generated gross revenue of ZAR ~ million in 2017. An increase in the number of resistant weeds and pests made crop protection companies to focus on bringing out newer and more effective herbicides and insecticides. Fungicides are still not used in an extensive manner. This is mainly due to the limited remedial measures that fungicides offer. Fungicides can only act against fungal infections and cannot control growth of pests or insects. In South Africa, the government regulations are strict and there are proper check points, at every stage of the sales process. This gives the government a control over the trading of crop protection products and as a result the market share of organized market is high.
South Africa Crop Protection Market Segmentation:-
By Market Structure:-
In South Africa, the government regulations are strict and there are proper check points, at every stage of the sales process. This gives the government a control over the trading of crop protection products and as a result the market share of organized market is high. The share of the organized market is said to increase in the future with government increasing the scrutiny and the various crop associations ensuring that farmers are purchasing crop protection products from legitimate means. This will also reduce the share of unorganized sector.
By Type of Pesticides:-
An increase in the number of resistant weeds and pests made crop protection companies to focus on bringing out newer and more effective herbicides and insecticides. The biopesticides market is still at a nascent stage with a huge potential to grow in the future. Farmers are still unfamiliar with biopesticides and their effectiveness. Since biopesticides leave little or no residue behind, with stricter Maximum Residue Level guidelines coming in, biopesticides is anticipated to grow in the future.
By Nature of Pesticides:-
Presently, the generic pesticides dominate the crop protection market. In the future, a lot of active ingredients are going to become off patent products. This is going to increase the number of generic pesticides in the market. The share of generic pesticides in the crop protection industry is said to remain constant in the future as well since we will also see an increase in the number of patented products. The increase in number of patented products is due to increase in investment in research and development in biopesticides and investment into manufacturing conventional pesticides with lower residues.
By Form of Pesticides:-
Liquid pesticides have a majority share in the crop protection products as of 2017 in terms of revenues. Pesticides in liquid form are relatively easier to use and can be applied over the entire crop. Since the use of liquid pesticides is relatively easier, farmers prefer to use liquid pesticides. The pesticides in Granules and Powder form contain a mixture of 2 or more active ingredients with other chemicals mixed to form the pesticide. Granules and Powder form of pesticides are sold in fixed quantities per hectare making it easier for the farmer to apply the pesticides on the crop. The share of liquid and granules and powder form of pesticides are expected to remain the same in the future as well.
By Type of Crops:-
Cereal crops have contributed the most in the overall crop protection market on the basis of revenues with Maize contributing the most out of all the cereal crops. In case of Fruit crops, the pesticides are effective in combating against pests and increase the yield of the fruits. Vegetable crops such as potato, tomato and others are sprayed with pesticides thrice in different times. They are treated with fungicides during the growing season and with Herbicides before harvesting.
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Ankur Gupta, Head Marketing & Communications