Market Trends of south america biofertilizer Industry
Growing export demand organic crops soy, corn, sunflower, and wheat, rising the organic acreage for their cultivation in the region
- The area under organic cultivation of crops in South America was recorded at 672.8 thousand hectares in 2021, according to the data provided by The Research Institute of Organic Agriculture (FibL statistics). Argentina and Uruguay are the major organic-producing countries in the region, with a large area under organic crop cultivation, with Argentina occupying a share of 11.5% of the organic area in the region in 2021. The primary organic crops produced in Argentina include sugarcane, raw wool, fruits, vegetables, and beans. The primary organic exports are soy, corn, sunflower, and wheat.
- Cash crops accounted for the maximum share of 53.9% under organic crop cultivation in 2021, with 384.3 thousand hectares of land. The region is a major grower of cash crops like sugarcane, cocoa, coffee, and cotton. Brazil is the largest sugarcane-growing country in the region.
- On the other hand, Uruguay is a large grower of organic fruits and vegetables in the region. The Organic Farmers' Association of Uruguay promotes organic cultivation in the country by partnering with various organic retail outlets. The World Bank-financed Sustainable Management of Natural Resources and Climate Change project (DACC) assisted 5,139 farmers in 2022 to adopt climate-smart agriculture (CSA), which helped increase the area under cultivation of organic crops in the region.
- Millions of farmers in South America continue to practice no-external input agriculture, which may very well represent the future of the region's economy despite the noticeably low domestic production. The population is becoming more health conscious, which creates a larger market for South America's increasingly eco-friendly and sustainable farming system.
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Approximately 49% consumers are interested in purchasing organic food, which is majorly observed in Argentina, Brazil, and Colombia countries
- South America is one of the important producers and exporters of organic food products globally. The per capita spending on organic food products in South America is comparatively lesser than in other parts of the world. The average per capita spending was recorded as USD 4.3 in 2022. Nevertheless, these export-oriented countries are now generating an often-overlooked domestic demand.
- The demand for naturally grown products like organic food in South American countries like Argentina, Brazil, and Colombia has increased. A survey conducted by Wisconsin Economic Development in 2021 proved that consumers are willing to pay higher prices for organically grown food. The study revealed that 43-49% of consumers are conscious about their health. Brazil ranks 43rd globally for per capita spending on organic packaged food and beverages.
- The organic products market in Argentina reached a value of USD 15.9 million in 2021, representing 0.03% of the global market value, with a per capita consumption of USD 0.35, as per the data given by Global Organic Trade in 2021.
- Currently, the market for organic foods in the region is very fragmented, with its availability limited to a few supermarkets and specialty stores, as only people from higher-income families are potential customers. Many supermarkets, specialized stores, and local farmers’ markets in the region are now selling organic food to satisfy the growing latent demand for such products, mainly in Costa Rica, Mexico, and urban centers of South America. Growing awareness among consumers and their buying motives are expected to lead to a better understanding of the sustainability attributes of organic food in the region.
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