Defensive industry designs fall in sales

The pesticide industry is preparing for a second half of reduced sales, even in the midst of planting a record grain crop, due to effects of high-dollar and stocks accumulated by farmers.
"How did infestation (pests) lower than expected in the last harvest, farmers are stocked mainly herbicides and insecticides. This should reflect in low sales ", told Reuters the Executive vice President of the National Union of industry products for Plant Defense (Sindiveg), Silvia Fagnani.
Unlike seeds and fertilisers, whose purchases and deliveries need to be practically finished before planting, the demand for products such as herbicides, insecticides and fungicides floats along the crop, according to the occurrence of pests and diseases in crops.
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The billing with defensive sales between January and June were 2.7 billion dollars, 25 percent below the same period in 2014, according to recent statistics of the Sindiveg.
"This trend should be confirmed also in the second half," said the Executive.
The Brazil begins to grow in the middle of this month the soy harvest 2015/16, according to consultants should have a slight elevation of the area.
The fall recorded in the first half, according to the Union, about 15 percentage points were derived from the high of the dollar, which makes the products. Much of the raw materials used in the formulation are imported. The dollar accumulates high of over 60 percent against the real in the last 12 months.
Companies in the industry have been trying to keep the prices in reais transferred to resellers and farmers, which helps decrease the billing in dollars, Sindiveg said. "The big impact is because we don't rescinded the rate of the dollar. By the end of the year that should be maintained ", designed the Executive.
Credit release barriers in banks, which account for part of the cost of inputs, also worried about the defensive industry.
"We have verified problem in the release. This will reflect in sales for the crop, "said Silvia, who chose not to design a kickback rate on marketing in the second half.