Market of plant protection chemicals in the CIS countries increases by 5.6%

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The market for chemical plant protection products in CIS countries increased by 5.6%.

Between 2015 and 2019, pesticide production in the CIS countries increased by 5.6% to 138.5 thousand tonnes in 2019.

The volume of production of plant protection chemicals depends on the availability of useful resource deposits in the countries used for the production of pesticides and the state of agriculture. The pesticide market is now far from saturated: manufacturers are increasing capacity and seeking to produce competitive and import-substituting products, while farmers and agrarians are developing more and more land for farming.

In 2020, some supply chains between countries were shut down to prevent the spread of coronavirus, and imported raw materials rose in price due to the devaluation of the national currency of CIS countries. However, the pandemic did not collapse the market – production was not halted and employees continued working with the necessary precautions. Pesticide production in the CIS is expected to decrease by only 4.9% to 131,800 tonnes at year-end.

Manufacturers will continue to increase capacity in the years to come and by 2024 CIS pesticide production is expected to reach 157,000 tonnes, up 13.4% from 2019. The introduction and implementation of new interstate collaboration projects in the chemical industry will also have a positive impact. The factories will seek to locate their facilities in the territory of the consumer in order to save on customs payments.

Source: RBC