Because the Ecuadorian market is highly dependent on imports and its local industry is incipient, there are opportunities for bulk exports and packaging in the South American country.
To enter the market, products can be sold to distribution companies, whether these register the products themselves under their own brand, import in bulk/concentrate, repackage and distribute, or do so under the manufacturer's brand and import and distribute ready-to-retail products (this can be on an exclusive basis), explains a study by the Foreign Trade Promotion Agency (Procomer).
From January to March 2020, companies in the countries of the region imported from Mexico fertilizers for $19 million, an amount that exceeds in 722% the reported in the same period of 2019.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
Between January and September 2019, Central America allocated $639 million to fertilizer imports, 7% less than in the same period in 2018, with Honduras and Guatemala being the markets that recorded the most significant reductions.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphics"]
Because fertilizers became more expensive due to the tax reform implemented last year, for the 2019-2020 agricultural cycle the volume demanded in the country fell by approximately 220,000 quintals.
Distributors in the country estimate that with the Tax Concentration Law approved at the end of February 2019, fertilizer prices increased up to 17% and agrochemicals between 20% and 30%.
Due to atypical purchases made from Finland and Latvia during the first half of 2017, fertilizers imports totaled $93 million, 46% more than in the same period in 2016.
Figures from the information system on the the Market for Fertilizers in Honduras, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]
Last year exports of 17 types of fruits, vegetables and organic grains may registered a 4% increase compared to 2016.
In the last ten years, the number of agricultural producers dedicated to the cultivation of fruits, vegetables and organic grains increased from 1,500 to 6,451, according to figures from the National Secretariat for Health and Food Safety (SENASA). Also in the last decade, it is estimated that the planted area grew from 4,400 hectares to 31 thousand hectares.
American Vanguard Corporation has announced the acquisition of Grupo Agricenter, dedicated to the production and commercialization of crop protection products in Central America.
From a statement issued by Agricenter:
NEWPORT BEACH, Calif.--(BUSINESS WIRE)--American Vanguard Corporation (NYSE:AVD) announced today that its wholly owned subsidiary AMVAC Netherlands BV, will acquire Grupo Agricenter to reinforce its commercial, technical and development structure in the Latin-American region. AMVAC has been a key player in the Latin American agricultural sector for more than a decade and has become a leader in the nematicides segment for crops such as banana and pineapple. The acquisition of Grupo Agricenter, a well-established distributor of multiple crop protection products in seven Central American and Caribbean countries, will considerably expand AMVAC’s product and service offerings in the region.
At the end of October this year, operations will start at a plant in Guanacaste that will process leftovers from pineapple production to produce biofertilizers.
The production plant is in the process of being built in the Villa del Tarso estate, in Upala, and will be dedicated to the cultivation of organic pineapples.
"...The implementation of the plant was undertaken by the administration of Valle del Torso, in order to manage the 220 tons of stubble generated per hectare of pineapple.This involves a pilot plan that aims to find a solution to the amount of stubble- the term used to describe surplus from the pineapple harvest- that is generated in the country by the agricultural exploitation of this product."
In the last five years, the average price of a kilo of fertilizers imported in the countries in the region fell by 43%, going from $0.54 to $0.31.
Figures from the information system on thethe fertilizer market in Central America, compiled by the Business Intelligence Unit atCentralAmericaData: [GRAFICA caption = "Click to interact with the graph"]
Among the main products demanded by the Caribbean country are pesticides and organic fertilizers, bio-controllers, biological, botanical and general products for non-conventional agriculture.
From the executive summary of Procomer's study of "Pesticides and Fertilizers in the Dominican Republic"
- The Dominican Republic has a smaller land area than Costa Rica, however 49% of its area is arable, making the country a strong consumer of pesticides and fertilizers.
Between January 2012 and December 2016, the average price of a kilogram of fertilizer imported into the country fell from $0.65 to $0.37.
Figures from the information system on the the Market for Fertilizers in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption="Clic para interactuar con la gráfica"]
Between January and September 2016 the volume of regional fertilizer imports from the Asian country grew by 17% compared to the same period in 2015.
Figures from the information system on the the Fertilizer Market in Central America, compiled by the Business Intelligence Unit at CentralAmerica Data : [GRAFICA caption = "Click to interact with the graph"]
Through a new unit at the MIDA, the government will provide certification, according to international standards, for farms in the country growing organic crops.
Besides the option provided by the new Control Authority of Certification of Organic Agricultural Production, which began operating in January, farmers can also choose to opt for certifications that are provided by private companies already operating in the country.
It has been estimated that in 2017 the sector producing and selling agricultural chemicals will achieve a performance similar to that of 2016, having ended the year with growth of 15% in sales.
The dynamism of agricultural activity in the country is the main reason behind the good performance of the agrochemical sector.Although official figures for the close of 2016 are not yet known, entrepreneurs estimate that growth was achieved in sales of around 15%.
In 2015 the countries of the region imported $800 million worth of fertilizers, led by Guatemala, which bought 658 thousand tons, equivalent to $240 million.
Figureson the fertilizers market in CentralAmerica, compiled by the Business Intelligence Unit at CentralAmericaData.com show that imports from all countries in 2015 amounted to 2 million tons, at a value of $803 million.
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