SOURCE: The Freedonia Group, Inc.

June 20, 2005 15:20 ET

World Pesticide Demand to Reach US$28.4 Billion in 2009

CLEVELAND, OH -- (MARKET WIRE) -- June 20, 2005 -- World demand for pesticides is projected to increase 1.7 percent per year to US$28.4 billion in 2009. While modest, these gains represent an improvement over the 1999-2004 period, when the prices of many key products dropped, in part due to patent expirations. Average price reductions were more evident in developed regions, which are generally reliant on higher value products. In developing countries, this trend was less pronounced, as farmers and other users in these regions use older, off-patent products whose prices are already relatively low. Regulatory requirements around the world vary widely, although there is a discernible trend nearly everywhere away from the most objectionable products. These and other trends are presented in World Pesticides, a new study from The Freedonia Group, Inc., a Cleveland-based industrial market research firm.

The global market for pesticides presents remarkable diversity in terms of usage trends, product mix and regulatory climates, especially in agriculture, which accounts for the great majority of demand. In developed areas with fairly mature agricultural markets such as the United States, Canada, Japan and Western Europe, volume growth is expected to be minimal. Meanwhile, value gains will be prompted by increased use of newer active ingredients -- especially biopesticides, which will register growth well above the global average -- at the expense of lower value products that are less efficient, more environmentally problematic, or both.

In developing nations, such as China and some countries in Latin America, Asia and Eastern Europe, volume gains are expected to be more significant. Farmers in developing areas are often still in the process of adopting modern agricultural techniques, which include the use of pesticides designed to increase crop yields, reduce risks associated with pesticide application, reduce pesticide residues on food, and diminish the toll taken on the environment. However, the growing use of transgenic seed will restrain volume growth in countries where agricultural biotechnologies are being embraced.

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