The Manufacture of Pesticides and Other Agrochemicals in South Africa 2024

This report on the manufacture of pesticides and other agrochemicals in South Africa, which includes insecticides, herbicides, fungicides and nematicides, contains information on the state of the industry, the growing use of biopesticides, developments relating to hazardous pesticides and regulations, key trends and issues and notable players, as well as environmental, health and safety issues, and innovation.

It includes profiles of 24 companies such as AECI, whose interests include Nulandis and AECI Plant Health, the local operations of international companies such as Bayer, BASF and Syngenta, and household pesticides producers such as Tiger Brands and Agro-Serve.

Key Market Insights

• The South Africa agrochemicals industry is expected to increase its revenue in 2024. 
• Most active ingredients of crop protection products are imported, mainly from China. The volatile exchange rate influences manufacturing costs and retail prices. 
• Although South Africa’s chemical crop protection industry is the largest in Africa, it accounts for less than 2% of global volumes.
• The industry is under pressure to reduce usage of hazardous chemicals, but demand for chemical pesticides remains strong. 
• Many farms are using biopesticides and biocontrol measures in conjunction with chemical pesticides.
• Some farmers are reluctant to change due to the efficiency of synthetic chemicals, and fears that it will affect stability of their yields.

Market Trends

• Civil society organisations continue to lobby for the banning of highly hazardous active ingredients.
• Greater focus on occupational health and safety issues relating to farm workers, such as wearing protective clothing.
• Increased research and development focusing on of biopesticides.
• Increasing use of drones for crop spraying.
• The uptake of biopesticides is being driven by concerns relating to environmental, health and safety issues.

Opportunities

• Crop protection products that do not leave residues.
• Development and supply of biopesticides and biocontrol solutions for agriculture and forestry, for water resource management and the control of invasive plants and insects.
• Drone crop-spraying services.
• The development and supply of natural pesticides.
• The establishment of integrated pest management programmes.

Challenges

• Chemical pesticides pose environmental, health and safety risks.
• Economic pressures, including the depreciation of the rand.
• Pesticides that that are banned in the EU are being exported to South Africa.

Market Outlook

• Pesticide demand is expected to remain strong due to South Africa’s limited arable land and water resources, and the significant role pesticides play in improving crop yields and quality.
• However, the widespread use of pesticides has also caused harm to health and the environment, including on water, climate and biodiversity. 
• Regulatory changes in many parts of the world are driving the need to develop safer natural pest control products. 
• Stricter environmental regulations are expected to impact the herbicide and insecticide segments globally.
• In South Africa, European Union regulations on chemical residues and controlled substances are forcing growers to look for alternatives.