Market Trends of Australia Crop Protection Chemicals (Pesticides) Industry
Rising Adoption of Bio-based Products
- Biopesticides are derived from natural materials, such as plants, bacteria, and fungi, and are typically less harmful to non-target organisms than conventional pesticides. Biopesticides are designed to target specific pests. They work by disrupting the biological processes of the pest or by introducing a natural predator or disease to control the pest population. Because biopesticides are often more targeted in their approach, they can be more environmentally friendly and safer for humans and non-target organisms. Although the biopesticide segment generated only a small fraction of the revenue generated by the chemical industry, it is likely to witness significant growth during the forecast period in Australia.
- Developing new pesticide products takes nearly ten years and an expenditure of around USD 250 million. Besides, it takes 12-13 years and roughly USD 130 million to develop genetically modified (GM) crops. These factors make bio-based products increasingly popular among Australian farmers practicing environment-friendly agriculture. The demand for such products will likely drive the country's crop protection chemicals market during the forecast period.
- Additionally, the area under organic cultivation is also increasing in the country. Australia has the largest area of land under organic farming, i.e., 35.59 million hectares in 2021, which indicates the rising demand for bio-based solutions. In 2020, the Australian Minister for Agriculture, Water, and the Environment created a national regulatory framework for domestically producing and selling organic products.
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Sugarcane is the Highest Produced Crop in Australia
- Pesticides are used widely in the sugarcane industry in Australia to prevent or mitigate losses from such conditions. Several companies, such as Syngenta and Bayer, have products primarily aimed at control of these diseases. To keep the production of sugarcane growing, the use of crop protection chemicals is vital. Thus, demand among sugarcane cultivators will drive the market during the forecast period.
- Along with wheat and cotton, sugarcane is one of the region's most popular and widely cultivated plants. Sugarcane was the highest-produced crop in Australia in 2021, with a production of 31.1 million metric tons. However, sugarcane production is often restricted by dangerous diseases, such as red rot, sour rot, and rust.
- With the increasing land being converted to agricultural production, particularly sugarcane, inputs of pesticides into the Great Barrier Reef area have increased with time. However, the use of organochlorines such as hexachlorocyclohexane (HCH) and dichlorodiphenyltrichloroethane (DDT) have ceased. The quantities of the insecticide chlorpyrifos and herbicides atrazine, diuron, and 2,4-D applied in the Herbert catchment have increased in the last few years.
