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Farmers in the 9 biggest provinces of Mekong River Delta Vietnam invested USD 291.5 million on crop protection in first half of 2014: GfK
Over three quarter was spent on fungicide and insecticide
HO CHI MINH – The crop protection market in Vietnam’s Mekong River Delta generated some USD 291.5 million in revenue in the first six months of this year. According to GfK RetailTrack conducted across the nine provinces in the region (except Tra Vinh, Ca Mau, Bac Lieu and Ben Tre), over 23 million tonnes of crop protection products, including insecticide, fungicide, herbicide, seed treatment, plant growth regulators and molluscicide were sold by retailers.
As one of the richest agricultural country in the world, Vietnam is naturally one of the most intensive crop production regions with rice being its main produce. Mekong River Delta churns out some 44 million tonnes of rice (2013) for half the country’s own population’s consumption as well exportation each year. GfK retail census conducted last year revealed around 6,300 stores selling crop protection products in the Mekong River Delta to help generate enough rice to meet this demand.
“Vietnam is amongst the top global rice producers and exporters with an estimated close to 90 percent of all crops being grown in Mekong River Delta being rice,” said Van Tran Khoa, Managing Director for GfK in Vietnam. “Such intensive agricultural activities naturally lay the foundation for a lucrative market for crop protection products which are essential items for farmers to safeguard their valuable harvest and livelihood, for some, in the country.”
Fungicides and Insecticides dominate the crop protection sector in Vietnam, accounting for nearly 77 percent of total sales. In the first half of the year, fungicides and insecticides generated USD128 million and USD95.6 million in revenue respectively. Herbicide is among the top three crop protection products purchased, although it constituted only 14 percent with a USD 40.8 million turnover.
According to GfK findings, the top three revenue generating provinces for the crop protection sector are An Giang, Dong Thap and Kien Giang with 21, 16 and 12 percent of the total market value in last 6 months. The sizeable market of Vietnam’s crop protection sector has attracted more than 100 brands offering their products in this region.
“Although competition in this sector is intense, three key players dominate with slightly over a third of the total market share, while the rest are occupied by the smaller brands, many of which are generic,” noted Khoa Van. “The larger proportion of farmers opting for smaller and generic brands indicate the price sensitivity of the sector—an important factor for players competing in this space to note; that devising an attractive pricing strategy is key to maintain competitiveness in Vietnam’s crop protection market,” he concluded.
GfK is the trusted source of relevant market and consumer information that enables its clients to make smarter decisions. More than 13,000 market research experts combine their passion with GfK’s long-standing data science experience. This allows GfK to deliver vital global insights matched with local market intelligence from more than 100 countries. By using innovative technologies and data sciences, GfK turns big data into smart data, enabling its clients to improve their competitive edge and enrich consumers’ experiences and choices.
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