Chinese companies come to Brazil to dispute sector of pesticides and herbicides
DCI
Chinese companies land in Brazil to dispute with multinationals of the sector - among which Monsanto - the market of pesticides and herbicides in the Country. The Asian companies are already getting ready to become not only suppliers of agricultural pesticides and herbicides but also holders of the registration for the sale. Most products offered are generic products and already enter the market at fairly competitive prices.
Steven Lu, officer of the Fuhua Group, is one of the executives who arrived this week in Brazil to evaluate the market and prospect possible partners. According to the entrepreneur, until the end of the year the company will be the second biggest manufacturer of glyphosate of China and the third largest of the world. "Since we are so big we do not have another option if not to enter great markets and, in this case, Brazil is the largest", he said. The Fuhua Group already has applications for registration in progress in Brazil and, as soon as they are approved, the expectation is that within the period of five years the Country represents from 20% to 30% of the sales volume of the company. "The cost of the registration in Brazil is high, but the profits are proportional", affirms Lu. In Brazil, the leader in the sales of glyphosate is Monsanto, a giant of the agricultural sector.
According to Lu, quality and competitive prices is what it takes to enter in the dispute, which, according to the executive, will be possible due to the productive capacity of the company, which also intends to bet in the post-sale customer services.
Flávio Hirata, director of Allier Brasil, is one of the intermediators of the entrance of the Chinese companies in Brazil. He organizes the third edition of the AgrochemShow, the main event of commercial exchange with China in the area of inputs held this week, in São Paulo. "The Chinese companies have started understanding that the registration is the entrance door to the Brazilian market", he says. "Those interested are Brazilian and foreign companies of generic products, besides the multinational companies of the sector that want to see what happens in the market", Hirata says.
The officer leads a party with nearly 100 representatives of 55 companies. In the previous years of the fair, held every two years, 23 companies took part in the event. The visit is funded by the Chinese Government to promote the companies of the country. According to Hirata, the interest of the Chinese companies is increasing because they are the biggest producers of agrichemicals of the world and are not able to absorb the production.