The Manufacture of Pesticides and other Agrochemicals Industry in South Africa 2022

Introduction

South Africa is an important regional pesticides hub and is Africa’s largest exporter of pesticides and related agrochemicals.

Although pesticide export volumes have doubled over the past decade, South Africa is a net importer of agrochemicals and is wholly dependent on foreign suppliers for the active ingredients required in the formulation of chemical pesticides. Since the outbreak of the COVID-19 pandemic, South Africa’s pesticide manufacturers have been grappling with a severe supply and demand imbalance resulting from supply chain disruptions, shipping delays and stock shortages. Although local players are under growing pressure to reduce their reliance on hazardous chemicals, industry sources say that there is still strong demand for chemical pesticides in South Africa.

Opportunities

Bionematicides for the control of roundworms.

Development and supply of biopesticides and biocontrol solutions for agriculture and forestry and for water resource management and the control of invasive plants and insects. Drone crop-spraying services. Pesticide waste management and container recycling. The development and production of biopesticides that make use of indigenous knowledge. The development and supply of natural pesticides for residential, institutional, commercial and industrial settings. The establishment of integrated pest management programmes.

Outlook

The devastating chemical spill that occurred when a Durban agrochemicals warehouse was set ablaze during the July 2021 unrest, has highlighted the hazardous nature of synthetic pesticides and amplified the need to substitute toxic chemicals with safer, environmentally-friendly alternatives.

While South Africa’s biopesticides industry is still in its infancy, role players anticipate that it is poised for strong growth as traditional players increasingly shift their focus to natural pesticides. Stakeholders say that robust enforcement of regulations is needed to mitigate environmental, health and safety risks. Furthermore, they say that stricter controls must be implemented to deal with the misuse and abuse of substances such as rat poison.

Report Coverage

This report focuses on the manufacture of pesticides and other agrochemicals, including information on the state and size of the industry, trends, research, development and innovation, environmental and health issues and other influencing factors.

There are profiles of 23 companies including international players operating in South Africa such as Bayer, BASF and Syngenta and local manufacturer AECI. Other profiles include companies such as Oro Agri, UPL and River Bioscience.

Strengths

Biocontrol programmes have been developed and successfully implemented to control mosquitos and other disease-transmitting insects.

Pesticides and agrochemicals improve production efficiency. South Africa is the major supplier of pesticides to the African continent. There is a high level of research and development focusing on of biopesticides and on improving the safety and environmental impact of existing products.

Threats

Chemical pesticides pose environmental, health and safety risks.

Climatic shocks and the continued evolution of pesticide-resistant pests. Economic pressures, including the depreciation of the rand. The potential impact of further waves of COVID-19, including continued supply chain disruptions and shipping delays. The risk of spiralling food and fuel prices escalating into global food and energy insecurity as a result of Russia’s invasion of Ukraine. The threat of class-action lawsuits against the manufacturers of pesticides containing highly hazardous active ingredients. Unregistered biopesticides that have not undergone the required trials, pose potential safety risks.

Weaknesses

Failure to control the widespread misuse and abuse of pesticides. Over-reliance on imported active ingredients. Pesticide residue testing is inadequate. Regulations are not systematically enforced, notably with regard to occupational safety and many workers are not provided with adequate protective clothing. The correct disposal of hazardous substances is not effectively monitored.