South America Calling

Brazilian farmers invested more than ever in crop protection last year, driven by demand for insecticide.

Purchases totaled $9.7 billion, up 14% on the year before amid sharp growth in planted area, maintaining Brazil as the world's No. 2 market.

A surge in caterpillar attacks has fueled insecticide demand, despite growth in area planted with genetically engineered strains that are resistant to insects.

And insecticide demand will likely remain strong next year with the emergence of a new strain of Helicoverpa caterpillar -- Helicoverpa armigera -- in Brazilian grain fields.

The arrival of the strain, for which recommended chemicals were not approved in Brazil, caused soybean and cotton farmers in the northeastern states of Bahia and Piaui to spend vast sums controlling attacks this summer.

Last month, the government approved the import of emamectin benzoate-based chemicals, on a temporary basis, but has maintained a ban on methamidophos-based insecticides, which are also effective in controlling caterpillars.

Sales of insecticides rose 22% to $3.6 billion in 2012, while sales of herbicides increased 14% to $392 million.

Nearly half of all crop chemical purchases were used on soybean fields last year. Farmers spent $4.6 billion on beans, $1.2 billion on sugarcane, $915 million on corn and $901 million on cotton.

Spending on crop protection is equivalent to 7.9% of total Brazilian farm revenues.

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