ID: MRFR/AGR/5266-CR | September 2019 | Region: Global | 140 pages
Impact of Covid-19 Outbreak on Organic Pesticides Market
The Covid-19 pandemic has impacted the agricultural supply chain as many countries are under lockdown and have sealed their borders to curb the spread of the virus. As the global economy struggles with the pandemic situation, its impact on the global trade and supply chain is growing owing to the rapid weakening of global investment flows. Strict containment measures imposed by governments of various countries and preventive measures to control the impact of the outbreak have led to a significant restriction in transportation, driving a knock-on effect globally. This trend is expected to continue owing to the uncertainty in the global market and measures to address the supply/demand imbalance. As of the beginning of May 2020, more than four million confirmed cases of Covid-19 were reported globally, and more than 284 thousand deaths were reported due to outbreak of Covid-19 . Organic pesticides find major application in the production of cereals, fruits, and vegetables. Even though a significant impact may not be witnessed for a short term of the pandemic, a prolonged outbreak and trade barriers are expected to heavily impact the production of organic pesticides and crop cultivation across the globe as organic pesticides play a vital role in enhancing crop yield and quality.
With countries across the world locking down their borders, there have been minimum export-import movements, which has disrupted the crisis in the logistics space. Nationwide lockdowns and trade restrictions are expected to have a significant impact on countries such as Australia, which are highly dependent on the import of fertilizers and crop protection products from China to meet the domestic demand. China, a key producer of the agrochemicals, which accounts for approximately 35% of the global production, is also witnessing disruptions in its supply chain owing to the poor logistics due to traffic control and restrictions on public movement. Brazil is yet another export destination for China-based pesticides, especially herbicides. Brazil relies heavily on the import of pesticides from China to cater its domestic demand. The Covid-19 impact on logistics has hampered the supply of these agrochemicals in Brazil and is expected to result in price hike of such agrochemicals, including organic pesticides, if the trade barriers are further extended.
Demand of China-based Pesticides in Brazil, by Type (2019)
However, many agriculture-based countries, including India, are closely monitoring the production and distribution of the fertilizers to ensure an uninterrupted supply of soil nutrients to the farmers during the harvesting period amid the COVID-19 outbreak. As per the Indian Ministry of Chemicals and Fertilizers, real-time monitoring is being undertaken to tide over any issues in the production and supply chain by the Department of Fertilizers (DoF).
Source: United States Department of Agriculture