|Title:||Indonesia pesticides manufacturers' market share in percentages for 2011|
|Source:||Indonesian Commercial Newsletter|
Start of full article - but without data
Producers of and market share
in Indonesia 2011
Players Market share (%)
PT Syngenta XX PT Bayer Crop Science XX PT Dow Agro Science X.X PT Du Pont Agriculture Product X Nufarm X Monsanto X.X BASF X FMC X.X Sub total XX.X Other companies XX.X Total XXX
Indonesia is a big market for pesticide products. Local producers, however, have failed to take advantage of the big market as the country has continued to depend much on imports for a number of pesticide products.
In 2009 the pesticide business in Indonesia was worth around Rp X trillion. Imports, mainly from China, both in basic materials and end products, account for one third of the market value of pesticides in the country.
Pesticides that kill pests and plant diseases. Are chemicals used much in the agriculture sector in Indonesia? The types of pesticides include insecticides, fungicides, rodenticide, herbicides, acaricides and bactericides.
Consumption of pesticides in the farm and plantation sectors grows in the country with the introduction of modern farming to increase productivity.
No additional production capacity
In the past several years, there has been no increase in the country's production capacity for pesticides. The production capacity has remained unchanged at XXX,XXX tons per year since 2005 to 2009.
The production capacity has not expanded as there is no incentive to boost production such as in the availability of basic materials. And producers see no guarantee for market opportunity amid sharp competition.
Pesticide industry needs a lot of basic materials in upstream petrochemical materials. Supplies of basic materials are not easily available in the country as most of the materials are not yet produced locally. Producers, therefore, will have to rely on an import that makes investment not feasible and less competitive. Meanwhile, imports of finished products of pesticides are growing at more competitive prices.
Currently, there are X big players in the industry in the country. They are multinational companies such as Syngenta of the United States, Bayer Agro, DuPont Agriculture Product, and Dow Agro Science.
PT DuPont Agriculture Products Indonesia, the local unit of the US-based DuPont Agriculture has an X% share of the pesticide market in Indonesia. Its business in the country is worth around US$ XXX million-US$ XXX million per year. PT DuPont produces insecticides, herbicides, and fungicides with four factories--in Karawang, Sidoarjo, Pasuruan, and Malang.
The country's production of pesticides has remained almost the same at XXX,XXX tons per year. The production peaked at XXX,XXX tons in 2005 before shrinking by around XX% in 2006. In 2007, the production almost doubled again to XXX,XXX tons, and up again to XXX,XXX tons in 2009.
The slow growth in production followed the low growth of only X% a year in demand.
Growing imports contribute partly to sluggish growth of the domestic pesticide industry. Imports of pesticides include in the forms of finished products and basic materials.
Imports of pesticides in the past three year have increased from only XXX tons valued at US$ X,XXX,XXX in 2008. In 2009, imports surged to XX,XXX tons valued at US$ XXX million.
Imports grew further in the following year to XX,XXX tons valued at US$ XXX million. In the first X months of 2011, imports already reached XX,XXX tons valued at US$ XXX million. In the whole year of 2011, imports are expected to increase from 2010.
Imported pesticides in the past three years include the basic materials for insecticides, insecticides, fungicides, herbicides. Rodenticide was no longer imported in the past three years.
Multinational players dominate market
Among multinational companies having units operating in the country include Du Pont, Syngenta, Bayer, BASF, and Nufarm. Dow Chemical, Monsanto, and FMC. The companies together dominate the domestic market with a market share of XX% leaving only XX% of the market for local producers.
Among the main local players is PT Petrosida Gresik. This company produces active ingredients of pesticides; liquid herbicides; solid herbicides; liquid insecticides, solid insecticides and solid fungicides.
The multinational players have modern and more complete production facility making them more competitive.
China's products potential competitors
In addition to the multinational players, the competition in the market is sharper with the growing imports from China, which is known for high competitiveness in price. The implementation of the Asean-China Free Trade Agreement since January 2010, has resulted in an increase in imports from China with the X% import duty.
Indonesia's pesticide production
Production Year capacity Growth (tons) (%)
2005 XXX,XXX -- 2006 XXX,XXX X 2007 XXX,XXX X 2008 XXX,XXX X 2009 XXX,XXX X
Sources: Industry ministry
Indonesia's production of
Year Production Growth (tons) (%)
2005 XXX,XXX 2006 XX,XXX -XX.X 2007 XXX,XXX XXX.X 2008 XXX,XXX X 2009 XXX,XXX X
Sources: Industry ministry