ANALYSIS OF MARKET CONCENTRATION IN THE AGRICULTURAL

PESTICIDE SECTOR IN THE WORLD

OTÁVIO HENRIQUE PIRES1

WILLIAN APARECIDO LEOTI ZANETTI 2
DANIEL BORGES CARDOSO3
ANA MARIA SANTANA DO AMARAL4
BRUNO CÉSAR GÓES5

ABSTRACT: The demand for food productivity, driven by population growth, encouraged the
use of techniques capable of securing significant values, such as the use of pesticides. Based on
this reasoning, the work presented the objective of evaluating the export trade of agricultural
pesticides in the period between 1995 and 2019 through the market concentration ratio (CRk).
For development, data collection was carried out on the Platform of the Observatory of
Economic Complexity - OEC, referring to the category that encompasses chemical pesticides.
Identifying that the advance of agribusiness in the country and internal use, the concentration
of agrochemical production in the country for export has decreased over the years. Concluding
from this analysis, that the expressive use of pesticides linked to the real national importance
of the agricultural sector, the exports of these products fell.

Keywords: Agriculture; Defensive; Economics; Productivity.

ANÁLISE DA CONCENTRAÇÃO DE MERCADO DO SETOR DE DEFENSIVOS

AGRÍCOLAS NO MUNDO
Resumo: A demanda pela produtividade de alimentos impulsionado pelo crescimento
populacional, fomentou o emprego de técnicas capazes de assegurar valores significativos,
como o uso de defensivos agrícolas. A partir desta fundamentação, o trabalho apresentou o
objetivo de avaliar o comércio de exportação de defensivos agrícolas no período entre 1995 e
2019 por meio da razão de concentração de mercado (CRk). Para desenvolvimento foi realizado
o levantamento de dados na Plataforma do Observatório de Complexidade Econômicas – OEC,
referente a categoria que engloba os defensivos químicos. Identificando que o avanço do
agronegócio no país e o uso interno, a concentração da produção de agroquímicos no país para
exportação diminuiu ao longo dos anos. Concluindo a partir desta análise, que o expressivo uso
de defensivos atrelado a real importância nacional do setor agrícola, as exportações desses
produtos obtiveram queda.

Palavras-chave: Agricultura; Defensivos; Economia; Produtividade.

1
Graduando em Administração, UNIFENAS, otavio.pires@aluno.unifenas.br
2
Doutorando em Agronegócio e Desenvolvimento, UNESP, willian.zanetti@unesp.br
3
Mestrando em Sistemas de Produção na Agropecuária, UNIFENAS, daniel.borges@aluno.unifenas.br
2
Doutoranda em Agricultura Sustentável, UNIFENAS, ana.amaral@ unifenas.br
2
Doutor em Agronegócio e Desenvolvimento, UNIFENAS, bruno.goes@ unifenas.br

IV SIMPÓSIO INTERNACIONAL DE AGRONÉGOCIO E DESENVOLVIMENTO – SIAD

“Desafios e soluções para a redução de perdas e desperdícios de alimentos”
Tupã – SP: 25 a 27 de outubro de 2022
1. INTRODUTION
With population growth and demand for food, agribusiness has secured a prominent role.
Providing transformations in recent decades, from the introduction of companies related to the
agricultural, agro-industrial, and agrochemical sector to financial and sales agents. Boosting
production capacity and job creation, in addition to the intensification of innovation and technology,
as a way to circumvent adverse effects (CALICIOGLU et al., 2019; OLIVEIRA; CARRARO, 2019).
Strongly leveraged from the Green Revolution of the early 60's, with encouragement and
insertion of new principles in world agriculture, from the adoption of pesticides to modified seeds,
that is, seeking to provide the use of techniques and technology in the field as a way of guarantee
food production (PELLEGRINI; FERNÁNDEZ, 2018; SORIA-LOPEZ et al., 2022).
Evidencing that these transformations impacted the expressive growth of the agricultural
sector in many countries, as well as Brazil. In which, agribusiness with the increase in planted area,
efficiency and productivity reflect positively on the country's economy, with a share of close to 30%
in the Gross Domestic Product (GDP) (CRUZ; MEDINA; OLIVEIRA JÚNIOR, et al., 2022).
However, the need for consumption of inputs also increased. The reports representing the
commercialization of pesticides exposed by the Brazilian Institute of the Environment - IBAMA,
pointed to an increase in the amount of these products in the period 2010 and 2018. With values that
represent a growth of 43% (HESS; NODARI; LOPES-FERREIRA, 2021).

2. OBJECTIVES
In this sense, the present research sought to evaluate the export trade of agricultural pesticides
in the period between 1995 and 2019, using the CR(k) market concentration analysis.

3. METHODOLOGICAL PROCEDURES
The development of the work was based on the collection of data from a period between 1995
and 2019 on the Platform of the Observatory of Economic Complexity - OEC. Exploring the entire
category of pesticides included in the international classification of the Harmonized System (HS07)
3808.
In which, it allowed the use of the Concentration Ratio (CRk), to analyze the world
agricultural pesticides market. So, this analysis made it possible to identify the degree of saturation
of this market in relation to the main countries holding this market share, analyzing in relation to the
participation of the four (CR4) and/or eight (CR8) countries in the analyzed sector. So, this
determination is expressed by the equation (OLIVEIRA et al., 2020):
𝑘

𝐶𝑅(𝑘) = ∑ 𝑠𝑖
𝑖=1
Considering the concentration ratio represented by the sum of the relative shares of each
country (k) in the pesticide market, in which it corresponds to the share of participation.
Taking the interpretation regarding the results of market concentration expressed on the
analysis of Table 1, below:

Table 1. Classification of the degree of concentration of the largest exporting countries.

Degree of concentration CR (4) CR (8)
Very high 75% or more 90% or more
High 65% - 75% 85% - 90%

IV SIMPÓSIO INTERNACIONAL DE AGRONÉGOCIO E DESENVOLVIMENTO – SIAD

“Desafios e soluções para a redução de perdas e desperdícios de alimentos”
Tupã – SP: 25 a 27 de outubro de 2022
 Moderately High 50% - 65% 70% - 85%
Moderately Low 35% - 50% 45% - 70%
Low 35% or less 45% or less
Source: Bain (1959).

4. RESULTS AND DISCUSSIONS

Although the pesticides sector presents a relatively high market concentration, endowed with
large technological investments, and occupied by few large dominant companies in the sector, it is
possible to observe in Figure 1, a gradual decrease in the concentration of the agricultural pesticides
market during the analyzed period, with regard to the pesticide export market.

Figure 1 – Concentration Ratio of the pesticide export market between the period 1995 and 2019.

Source: Authors (2022).

The CR4, considering levels above 57% of market concentration, is highly concentrated in
the period between 1995 and 2001, with a gradual decline until 2005, reaching around 45% of
concentration. However, the market regains the concentration power of the few large agrochemicals
that dominate the agricultural pesticides sector in the world.
The same behavior is observed when analyzing the market in relation to the level of
concentration of the eight (CR8) largest exporting countries in the sector, the level of concentration
of this market being considered moderately high.

5. FINAL CONSIDERATIONS
Due to the barriers imposed for new entrants in the pesticide market, since it requires high
technological investments, market concentration is considered moderately high, that is, the sector is
dominated by few large companies, representing, on average, a higher concentration. to 50% among
the four largest exporters of agricultural pesticides in the world.

IV SIMPÓSIO INTERNACIONAL DE AGRONÉGOCIO E DESENVOLVIMENTO – SIAD

“Desafios e soluções para a redução de perdas e desperdícios de alimentos”
Tupã – SP: 25 a 27 de outubro de 2022
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IV SIMPÓSIO INTERNACIONAL DE AGRONÉGOCIO E DESENVOLVIMENTO – SIAD

“Desafios e soluções para a redução de perdas e desperdícios de alimentos”
Tupã – SP: 25 a 27 de outubro de 2022