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Manufacture Pesticides other Agrochemicals Industry South Africa

The Manufacture of Pesticides and other Agrochemicals Industry in South Africa 2022

Carole Veitch | South Africa | 08 April 2022

The Manufacture of Pesticides and other Agrochemicals Industry in South Africa 2019

Ebrahim-Khalil Hassen | South Africa | 17 July 2019

The Manufacture of Pesticides and other Agrochemicals Industry in South Africa 2017

Ebrahim-Khalil Hassen | South Africa | 28 February 2017

The Manufacture of Pesticides and other Agrochemicals Industry in South Africa 2015

Ebrahim Khalil Hassen | South Africa | 01 December 2015

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Report Coverage

This report focuses on the manufacture of pesticides and other agrochemicals, including information on the state and size of the industry, trends, research, development and innovation, environmental and health issues and other influencing factors. There are profiles of 23 companies including international players operating in South Africa such as Bayer, BASF and Syngenta and local manufacturer AECI. Other profiles include companies such as Oro Agri, UPL and River Bioscience.

Introduction

South Africa is an important regional pesticides hub and is Africa’s largest exporter of pesticides and related agrochemicals. Although pesticide export volumes have doubled over the past decade, South Africa is a net importer of agrochemicals and is wholly dependent on foreign suppliers for the active ingredients required in the formulation of chemical pesticides. Since the outbreak of the COVID-19 pandemic, South Africa’s pesticide manufacturers have been grappling with a severe supply and demand imbalance resulting from supply chain disruptions, shipping delays and stock shortages. Although local players are under growing pressure to reduce their reliance on hazardous chemicals, industry sources say that there is still strong demand for chemical pesticides in South Africa.

Strengths

• Biocontrol programmes have been developed and successfully implemented to control mosquitos and other disease-transmitting insects.
• Pesticides and agrochemicals improve production efficiency.
• South Africa is the major supplier of pesticides to the African continent.
• There is a high level of research and development focusing on of biopesticides and on improving the safety and environmental impact of existing products.

Weaknesses

• Failure to control the widespread misuse and abuse of pesticides.
• Over-reliance on imported active ingredients.
• Pesticide residue testing is inadequate.
• Regulations are not systematically enforced, notably with regard to occupational safety and many workers are not provided with adequate protective clothing.
• The correct disposal of hazardous substances is not effectively monitored.

Opportunities

• Bionematicides for the control of roundworms.
• Development and supply of biopesticides and biocontrol solutions for agriculture and forestry and for water resource management and the control of invasive plants and insects.
• Drone crop-spraying services.
• Pesticide waste management and container recycling.
• The development and production of biopesticides that make use of indigenous knowledge.
• The development and supply of natural pesticides for residential, institutional, commercial and industrial settings.
• The establishment of integrated pest management programmes.

Threats

• Chemical pesticides pose environmental, health and safety risks.
• Climatic shocks and the continued evolution of pesticide-resistant pests.
• Economic pressures, including the depreciation of the rand.
• The potential impact of further waves of COVID-19, including continued supply chain disruptions and shipping delays.
• The risk of spiralling food and fuel prices escalating into global food and energy insecurity as a result of Russia’s invasion of Ukraine.
• The threat of class-action lawsuits against the manufacturers of pesticides containing highly hazardous active ingredients.
• Unregistered biopesticides that have not undergone the required trials, pose potential safety risks.

Outlook

The devastating chemical spill that occurred when a Durban agrochemicals warehouse was set ablaze during the July 2021 unrest, has highlighted the hazardous nature of synthetic pesticides and amplified the need to substitute toxic chemicals with safer, environmentally-friendly alternatives. While South Africa’s biopesticides industry is still in its infancy, role players anticipate that it is poised for strong growth as traditional players increasingly shift their focus to natural pesticides. Stakeholders say that robust enforcement of regulations is needed to mitigate environmental, health and safety risks. Furthermore, they say that stricter controls must be implemented to deal with the misuse and abuse of substances such as rat poison.

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The Manufacture of Pesticides and other Agrochemicals Industry in South Africa 2022

Full Report

R 6 500.00(ZAR) estimated $339.32 (USD)*

Industry Landscape

R 4 550.00(ZAR) estimated $ 237.52 (USD)*

Industry Organogram

R 450.00(ZAR) estimated $ 23.49 (USD)*

Historical Reports

The Manufacture of Pesticides and other Agrochemicals Industry in South Africa 2019-07-17

R 1 900.00(ZAR) estimated $99.18 (USD)*

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The Manufacture of Pesticides and other Agrochemicals Industry in South Africa 2017-02-28

R 1 900.00(ZAR) estimated $99.18 (USD)*

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The Manufacture of Pesticides and other Agrochemicals Industry in South Africa 2015-12-01

R 1 900.00(ZAR) estimated $99.18 (USD)*

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Table of Contents

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PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 4
2.2. Geographic Position 5
2.3. Size of the Industry 6
2.4. Key Success Factors and Pain Points 7
3. LOCAL 8
3.1. Key Trends 9
3.2. Notable Players 10
3.3. Trade 11
3.4. Corporate Actions 13
3.5. Regulations 13
3.6. Enterprise Development and Social Economic Development 16
4. AFRICA 17
5. INTERNATIONAL 19
6. INFLUENCING FACTORS 22
6.1. COVID -19 22
6.2. Economic Environment 22
6.3. Environmental Issues 24
6.4. Health and Safety Concerns 25
6.5. Labour 26
6.6. Technology, Research and Development (R&D) and Innovation 27
7. COMPETITIVE ENVIRONMENT 28
7.1. Competition 28
7.2. Ownership Structure of the Industry 29
7.3. Barriers to Entry 29
8. SWOT ANALYSIS 29
9. OUTLOOK 31
10. INDUSTRY ASSOCIATIONS 31
11. REFERENCES 31
11.1. Publications 31
11.2. Websites 2
APPENDIX 1 1
Summary of Notable Players 1
COMPANY PROFILES 5
ADAMA South Africa (Pty) Ltd 5
AECI Ltd 7
AgBiTech Pty Ltd 13
Agro-Serve (Pty) Ltd 14
Andermatt PHP (Pty) Ltd 16
Avima (Pty) Ltd 18
BASF Agricultural Specialities (Pty) Ltd 20
BASF South Africa (Pty) Ltd 22
Bayer (Pty) Ltd 24
Corteva Agriscience RSA (Pty) Ltd 27
Degesch South Africa (Pty) Ltd 30
Enviro Bio Chem (Pty) Ltd 32
Farm-AG International (Pty) Ltd 34
InteliChem (Pty) Ltd 36
Kombat (Pty) Ltd 38
Nufarm Agriculture (Pty) Ltd 40
Oro Agri SA (Pty) Ltd 41
River Bioscience (Pty) Ltd 43
Scientific Chemicals (Pty) Ltd 45
Sumitomo Corporation Africa (Pty) Ltd 47
Syngenta South Africa (Pty) Ltd 49
UPL South Africa (Pty) Ltd 52
Villa Crop Protection (Pty) Ltd 56

Introduction

This report focuses on the manufacture of pesticides and other agrochemical products in South Africa since 2017. The latest data estimated the industry to be worth R4.6bn in 2016. The industry is facing major changes in terms of technological developments and consumers being more conscious about health in the context of mega-mergers internationally. The industry thus faces an environment that is rapidly changing and the outcomes are unpredictable. The growth of the industry in biopesticides, that are derived from natural materials such as animals, plants, bacteria, and certain minerals, may yet prove a boon for South African companies.

Strengths

• Large number of multinationals, with large research and development budgets.
• Necessity for increased food production as available land for agriculture decreases.

Weaknesses

• Products are damaging to environment and health.
• Regulatory system is complex.

Opportunities

• Development of pesticide products that respond to changing weather conditions.
• Growth of organic food markets.
• Increased usage of technologies for precision farming.
• Shift to biopesticides.
• South African companies expanding into Africa.
• Threats from pests, such as the fall armyworm, will provide new markets for pesticide manufacturers.

Threats

• Active consumer organisations against the use of pesticides.
• Debt in larger South African companies.
• Stricter regulations in countries that South Africa exports to.
• Unclear land reform process.

Outlook

The pesticide and agrochemicals industry is in a period of extensive change due to technologies and the tastes and preferences of consumers. Industry consolidation makes it more difficult for smaller companies to compete. The shift to biopesticides offers South African companies an opportunity to create new products and technologies.

The Manufacture of Pesticides and other Agrochemicals Industry in South Africa 2019

Full Report

R 1 900.00(ZAR) estimated $99.18 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.43 (USD)*

Historical Reports

The Manufacture of Pesticides and other Agrochemicals Industry in South Africa 2022-04-08

R 6 500.00(ZAR) estimated $339.32 (USD)*

View Report Add to Cart

The Manufacture of Pesticides and other Agrochemicals Industry in South Africa 2017-02-28

R 1 900.00(ZAR) estimated $99.18 (USD)*

View Report Add to Cart

The Manufacture of Pesticides and other Agrochemicals Industry in South Africa 2015-12-01

R 1 900.00(ZAR) estimated $99.18 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Supply Chain 1
2.2. Geographic Position 2
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 3
4.1. Local 3
4.1.1. Corporate Actions 5
4.1.2. Regulations 5
4.1.3. Enterprise Development and Social Economic Development 7
4.2. Continental 8
4.3. International 9
5. INFLUENCING FACTORS 12
5.1. Economic Environment 12
5.2. Technology, Research and Development (R&D) and Innovation 13
5.3. Labour 14
5.4. Environmental Concerns 14
6. COMPETITION 15
6.1. Barriers to Entry 15
7. SWOT ANALYSIS 16
8. OUTLOOK 16
9. INDUSTRY ASSOCIATIONS 17
10. REFERENCES 17
10.1. Publications 17
10.2. Websites 21
APPENDIX 1 22
Summary of Notable Players 22
COMPANY PROFILES 25
AECI LTD 25
ARYSTA LIFESCIENCE SOUTH AFRICA (PTY) LTD 31
ASCENDIS HEALTH LTD 34
BASF AGRICULTURAL SPECIALITIES (PTY) LTD 41
BASF SOUTH AFRICA (PTY) LTD 43
BAYER (PTY) LTD 45
FARM-AG INTERNATIONAL (PTY) LTD 48
INTELICHEM (PTY) LTD 50
KOMBAT (PTY) LTD 52
MONSANTO SOUTH AFRICA (PTY) LTD 54
ORO AGRI SA (PTY) LTD 57
PLANT HEALTH PRODUCTS (PTY) LTD 59
RIVER BIOSCIENCE (PTY) LTD 61
SCIENTIFIC CHEMICALS (PTY) LTD 63
SYNGENTA SOUTH AFRICA (PTY) LTD 65
VILLA CROP PROTECTION (PTY) LTD 68

Report Coverage

The Manufacture of Pesticides and other Agrochemical Products describes current conditions and the regulatory environment and provides information on imports and exports. Factors that influence the success of the sector are also covered, and include drought and threats to crops posed by new pests such as the Fall Armyworm. Profiles for 12 companies are provided including smaller players, Scientific Chemicals (Pty) Ltd and Kombat (Pty) Ltd which both have one manufacturing site and employ fewer than 30 people. Also profiled is Intelichem (Pty) Ltd, which received Competition Commission approval to acquire Meridian Agrochemical Company (Pty) Ltd and Synovatech (Pty) Ltd in July 2016.

Introduction

This report focuses on the manufacture of pesticides and other agrochemical products in South Africa since 2015. The manufacture of pesticides and other agrochemicals plays a central role in food security and economic growth. Since 2015 several international mega-mergers have been proposed that will impact on the future of the industry. The international mega-mergers however occur in a context of significant challenges in the agricultural sector. These challenges include drought and threats to crops posed by new pests, specifically the Fall Armyworm, as well as greater calls for land redistribution and more limited usage of pesticides, especially glyphosate.

Strengths

• Large number of multinationals, with large R&D budgets.
• Necessity for increased food production as available land for agriculture decreases.

Weaknesses

• Products are damaging to environment and health.
• Reduced local ownership, with several companies being bought by multinationals.
• Regulatory system is complex.

Opportunities

• A new market in the small-holder sector.
• Development of pesticide products that respond to changing weather conditions.
• Shift to biopesticides.
• South African companies expanding into Africa.
• Threats from new pests, such as the Fall Armyworm, will provide new markets for pesticide manufacturers.

Threats

• Active consumer organisations against the use of pesticides.
• Banning of glyphosate.
• Mega-mergers create uncompetitive markets for agricultural inputs, thus threatening the development of local markets.
• Unclear land reform process.

Outlook

The local pesticides industry will face a period of change as international merger processes unfold and governments across the globe undertake regulatory reviews. These processes as well health and environmental concerns raised by advocacy groups are expected to have an impact on the South African market. These challenges are significant enough to suggest that uncertainty will be the major theme facing the pesticides industry. This uncertainty however has significant potential for market players especially in developing markets like South Africa, where the growing middle class and government support for small-scale farming potentially create opportunities for growth.

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The Manufacture of Pesticides and other Agrochemicals Industry in South Africa 2017

Full Report

R 1 900.00(ZAR) estimated $99.18 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.43 (USD)*

Historical Reports

The Manufacture of Pesticides and other Agrochemicals Industry in South Africa 2022-04-08

R 6 500.00(ZAR) estimated $339.32 (USD)*

View Report Add to Cart

The Manufacture of Pesticides and other Agrochemicals Industry in South Africa 2019-07-17

R 1 900.00(ZAR) estimated $99.18 (USD)*

View Report Add to Cart

The Manufacture of Pesticides and other Agrochemicals Industry in South Africa 2015-12-01

R 1 900.00(ZAR) estimated $99.18 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 6
4.1. Local 6
4.1.1. Corporate Actions 9
4.1.2. Regulations 10
4.1.3. Enterprise Development and Social Economic Development 12
4.2. Continental 13
4.3. International 14
5. INFLUENCING FACTORS 16
5.1. Economic Environment 16
5.2. Government Initiatives 17
5.3. Environmental Concerns 17
5.4. Socio-Economic Issues 18
5.5. Technology, Research and Development (R&D) and Innovation 18
5.6. Intellectual Property Issues 19
5.7. Labour 19
6. COMPETITION 20
6.1. Barriers to Entry 21
7. SWOT ANALYSIS 22
8. OUTLOOK 22
9. INDUSTRY ASSOCIATION 22
10. REFERENCES 23
10.1. Publications 23
10.2. Websites 24
APPENDIX 1 26
Import and Export of Pesticide Sub-Sectors (2009-2014) 26
APPENDIX 2 28
List of Merger and Acquisition Deals (2016) 28
COMPANY PROFILES 40
AECI LTD 40
ARYSTA LIFESCIENCE SOUTH AFRICA (PTY) LTD 46
BASF AGRICULTURAL SPECIALITIES (PTY) LTD 49
BASF SOUTH AFRICA (PTY) LTD 51
BAYER (PTY) LTD 53
DOW AGROSCIENCES SOUTHERN AFRICA (PTY) LTD 56
FARM-AG INTERNATIONAL (PTY) LTD 58
INTELICHEM (PTY) LTD 60
KOMBAT (PTY) LTD 62
MONSANTO SOUTH AFRICA (PTY) LTD 64
SCIENTIFIC CHEMICALS (PTY) LTD 67
SYNGENTA SOUTH AFRICA (PTY) LTD 69

Report Coverage

The report on the Manufacture of Pesticides and other Agrochemical Products discusses the current state of the domestic industry, the growing importance of the African market, illustrated by a number of recent mergers and acquisitions, and factors influencing the success of the manufacturing sector. The report profiles 13 companies, including Nulandis, part of AECI’s Speciality Chemicals division and South African subsidiaries of multinationals, Syngenta, Dow, Bayer, BASF and Arysta LifeScience. Also included are smaller unlisted players, such as Kombat (Pty) Ltd, a manufacturer and distributor of pesticides to farmers, nurseries, co-operatives and chain stores.

Introduction

This report focuses on the manufacture of pesticides and other agrochemical products in South Africa since 2010. The manufacture of pesticides and other agrochemical products is an important determinant of food security and economic growth. South Africa is expected to experience more rapid population growth, and with it increased demand for food, according to Statistics South Africa (StatsSA). At the same time, agricultural producers face a myriad of challenges that have seen them increasingly adopt farming methods that use genetically modified organisms (GMOs) to respond to climatic conditions and the market structure. Taken together these factors have boosted the use of agrochemicals to protect crops and increase yields. These changes in the industry have proven controversial and raise ethical and developmental questions for South Africa.

Strengths

• Large number of multinationals, with large R&D budgets, which increases choice for farmers.
• Necessity for increased food production as available land for agriculture decreases.

Weaknesses

• Products are damaging to environment and health.
• Reduced local ownership, with several companies being bought by multinationals.
• Regulatory system is complex.

Opportunities

• A new market in the small-holder sector.
• Development of pesticide products that respond to changing weather conditions.
• Shift to biopesticides.
• South African companies or branches expanding into Africa.

Threats

• Active consumer organisations against the use of pesticides.
• Banning of glyphosate.
• Unclear land reform process.

Outlook

The South African pesticide manufacturing sector faces significant challenges to its existing practices. The challenge is about how the pesticides industry responds to environmental concerns, activist challenges and to possible banning of one key product. Local systems of crop protection may emerge as an area with potential for smaller players. In particular, it may require a shift towards researching and producing biopesticides. If such a shift occurs, stakeholders believe the potential for a less concentrated industry might be possible.

Read More..
The Manufacture of Pesticides and other Agrochemicals Industry in South Africa 2015

Full Report

R 1 900.00(ZAR) estimated $99.18 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.43 (USD)*

Historical Reports

The Manufacture of Pesticides and other Agrochemicals Industry in South Africa 2022-04-08

R 6 500.00(ZAR) estimated $339.32 (USD)*

View Report Add to Cart

The Manufacture of Pesticides and other Agrochemicals Industry in South Africa 2019-07-17

R 1 900.00(ZAR) estimated $99.18 (USD)*

View Report Add to Cart

The Manufacture of Pesticides and other Agrochemicals Industry in South Africa 2017-02-28

R 1 900.00(ZAR) estimated $99.18 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF INDUSTRY 1
2.1. Industry Value Chain 2
3. SIZE OF INDUSTRY 3
4. STATE OF THE INDUSTRY 6
4.1. Local 6
4.1.1. Corporate Actions 9
4.1.2. Regulations 9
4.1.3. Enterprise Development and Social Economic Development 11
4.2. Continental 12
4.3. International 14
5. INFLUENCING FACTORS 16
5.1. Economic Environment 16
5.2. Rising Input Costs 16
5.3. Labour Resources 16
5.4. Technology, Research and Development (R&D) and Innovation 17
5.5. Environmental Concerns 18
5.6. Land Reform and Food Security 18
6. COMPETITION 19
7. SWOT ANALYSIS 20
8. OUTLOOK 20
9. INDUSTRY ASSOCIATIONS 20
10. REFERENCES 21
10.1. Publications 21
10.2. Legislation 21
10.3. Websites 22
COMPANY PROFILES 23
AECI LTD 23
ARYSTA LIFESCIENCE SOUTH AFRICA (PTY) LTD 28
BASF AGRICULTURE SPECIALITIES (PTY) LTD 31
BASF SOUTH AFRICA (PTY) LTD 33
BAYER (PTY) LTD 36
DOW AGROSCIENCES SOUTHERN AFRICA (PTY) LTD 39
FARM-AG INTERNATIONAL (PTY) LTD 41
KOMBAT (PTY) LTD 43
MONSANTO SOUTH AFRICA (PTY) LTD 45
SCIENTIFIC CHEMICALS (PTY) LTD 48
SYNGENTA SOUTH AFRICA (PTY) LTD 50