The industrial vegetation management (IVM) market is pivotal in balancing industrial development with environmental sustainability. Kline’s IVM Market for Pesticides: Mexico and Brazil show that these markets are evolving.
Mexico is expanding its railroads and tackling deforestation. Brazil’s rangeland and pastureland are crucial for the country’s production of beef, and its forests support the lucrative pulp and paper industry. Both countries are expanding their infrastructure and adopting sustainable practices, highlighting the critical role of effective vegetation management in supporting economic growth and environmental sustainability.
How is Mexico Tackling Deforestation and Infrastructure Challenges?
In Mexico, the stability of rangeland and pastureland areas has been a cornerstone for the agricultural sector, ensuring consistent productivity. However, the forestry sector faces severe challenges, with the country experiencing one of the highest deforestation rates globally, losing approximately 180,000 hectares of forest annually.
This alarming rate of deforestation underscores the urgent need for effective vegetation management strategies when new trees are planted to replace the mature ones being cut down. In such cases, herbicides are essential to control weeds and ensure that the young saplings grow into healthy, mature trees in the future.
Expansion of Mexico’s Railroad Network
The expansion of Mexico’s railroad network, highlighted by major projects such as the Mayan Train and the Tehuantepec Isthmus Interoceanic Train, aims to boost connectivity, economic activity, and sustainable transportation, particularly in the southern regions of the country. This railway expansion is being undertaken for several key reasons, including tourism and regional connectivity, offering sustainable transportation options by reducing the number of cars on the road. The railway expansion will also enable an alternative trade route to the Panama Canal. These expanded railway miles offer opportunities for growth for the manufacturers of vegetation management herbicides since vegetation control is required to maintain operational safety and efficiency.
Despite these advancements in railroads, the roadway network still faces challenges, with a relatively low percentage of paved roads impacting the efficiency of transport for agricultural and industrial products. This highlights the need for continued investment in road development and maintenance.
Growing Energy Demands and Sustainably
The electric utilities sector in Mexico is expanding to meet the country’s growing energy demands and has significant implications for vegetation management. With a total installed capacity of 92,503 MW in 2022, the Federal Electricity Commission (CFE) manages a diverse mix of energy sources, including thermal, hydroelectric, coal, nuclear, and renewable energy. This expansion requires extensive vegetation management to ensure the reliability and safety of power lines and other infrastructure.
Effective IVM is crucial for preventing vegetation-related outages and maintaining the integrity of the power grid. As the sector grows, so does the need for integrated vegetation control strategies to manage the areas around power lines and substations. This includes the use of herbicides and other vegetation management techniques to keep the right-of-way areas clear, reducing the risk of power disruptions caused by overgrown vegetation.
Moreover, the shift toward renewable energy sources, such as wind and solar, introduces new challenges and opportunities for IVM. These renewable energy installations often require large tracts of land, which must be managed to prevent vegetation from interfering with equipment and operations. As Mexico continues to develop its energy infrastructure, the role of IVM becomes increasingly important in supporting sustainable and reliable energy production.
When Will Mexico Phase Out Glyphosate?
As part of a broader initiative to promote sustainable agriculture and protect public health and the environment, Mexico has set forth to reduce glyphosate imports by 50%, reflecting an ongoing commitment to eliminate the herbicide, which has been linked to health issues and environmental damage.
However, after attempting to ban the ingredient in 2020, 2023, and again in 2024, Mexican government delayed full implementation of the glyphosate ban until 2027.
This postponement aims to ensure that any replacement for glyphosate does not compromise agricultural productivity and food security. The government continues to seek sustainable alternatives while balancing weed control needs and environmental protection. Postponement of the glyphosate ban underscores the challenges in balancing agricultural needs with health and environmental concerns.
“Mexico’s commitment to phasing out glyphosate by March 31, 2024, reflects a broader initiative to promote sustainable agriculture and protect public health and the environment.”
The Ministries of Economy, Environment, and Agriculture, and the Commission for Protection Against Health Risks (COFEPRIS) emphasized the importance of finding alternatives that do not adversely affect productivity. As a result, while the search for safer and effective alternatives continues, Mexican farmers can still import and use glyphosate under strict regulations to manage weeds in their fields.
How is Brazil Balancing Agricultural Productivity and Environmental Concerns?
In Brazil, the rangeland and pastureland areas remained stable in 2023, totaling 206 million hectares. This stability is crucial for the country’s beef productivity. However, the area of natural forest in Brazil has declined from 503.7 million hectares in 2019 to 494.1 million hectares in 2023, a decline of 1.9%. The area of planted forest remained stable at 9.9 million hectares, indicating a balance between deforestation and reforestation efforts.
Brazil’s railroad network extended to 31,000 km (19,000 mi) in 2023, representing a 2.9% increase compared to 2019. This expansion supports the country’s economic growth and necessitates effective vegetation management to ensure the safety and efficiency of rail operations. Despite having an extensive roadway network of 1.7 million km (1.07 million mi), only 12% of Brazil’s roads are paved. This figure has remained stable since 2019, highlighting the need for continued investment in road infrastructure to support economic activities.
“Brazil’s railroad network extended to over 31,000 km in 2023, representing an increase of 2.9% compared to 2019, supporting the country’s economic growth.”
The IVM market in Brazil grew at an approximate CAGR of 5% from 2019 to 2023. Sales increased due to a sharp rise in pesticide prices following the pandemic and supply chain disruptions. Pesticide prices rose from a median price of BRL 94.6 in 2019 to BRL 113.1 in 2023, marking an increase of 20.5% over four years.
Both Mexico and Brazil are making strides in expanding their infrastructure and adopting sustainable practices, reflecting the dynamic nature of vegetation management there. While Mexico grapples with deforestation and infrastructure issues, Brazil faces the dual pressures of maintaining agricultural productivity and managing environmental concerns. These efforts highlight the importance of effective vegetation management in supporting economic growth and environmental sustainability.
The data and insights in this article come from two Kline & Company studies that analyze the industrial vegetation management (IVM) market in Mexico and Brazil. The Brazil study examines sectors like forestry, rangeland, railroads, and roadways, detailing herbicide and insecticide market sizes, sales by brand, and active ingredient metrics. The Mexico study offers similar insights, emphasizing the importance of effective vegetation management for economic growth and environmental sustainability. These studies provide manufacturers with reliable assessments of IVM pesticide sales, product usage patterns, and five-year forecasts, aiding in informed decision-making and strategy development.
