Crop Protection

Exclusive: Why is Mancozeb important for UPL?

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24 January 2024, New Delhi: In a statement released by UPL earlier this month, the company announced the planned acquisition of Corteva Agriscience’s mancozeb global fungicide business outside of China, Japan, South Korea, and EU member countries.

It is important to note that the global production capacity of mancozeb as of 2022 is about 2,50,000 tons as per Proficient Market Insights’ report on mancozeb. There are currently five companies that hold over 80% of the global mancozeb market share and dominate this segment. These companies are UPL, Corteva, Limin Chemical, Coromandel International, and Indofil Industries.

UPL responded to our questions sent to them in an email seeking more understanding of the planned acquisition. The company shared details on the future of mancozeb and importance of the molecule, and how will this acquisition help UPL.

Q1. UPL is the world’s largest manufacturer of Mancozeb. What is the global market size and how will this acquisition help UPL to cover it?

The global market size of Mancozeb is about $1 Billion. This acquisition will help UPL strengthen its portfolio of solutions and leadership in the multisite fungicide market. The acquisition will give UPL ownership of Dithane®, the original global mancozeb brand which has provided farmers with a reliable disease management solution, as well as access to Rainshield™ technology which enables crop protection in wet weather conditions.

The acquisition is limited to Corteva’s solo formulations of mancozeb, with Corteva retaining ownership of premix formulations. The transaction is subject to customary approvals and is expected to conclude Q1 of FY24-25. This acquisition includes all data, registrations, trademarks for Corteva’s solo mancozeb products, and a license to the Rainshield™ technology but excludes manufacturing and formulation facilities.

Q2. What is the future of Mancozeb as a molecule in the next 3-5 year range? What are the new formulations and label extensions UPL plans to bring in with Mancozeb?

Mancozeb is a highly effective protective fungicide used to prevent plant diseases across a range of crops, including rice, soybean, wheat, onions, potatoes, and other vegetables and fruits. Across the crop protection industry, Mancozeb is also an increasingly important tool in managing fungicide resistance. UPL, the market leader in this technology, was instrumental in introducing Mancozeb for soybean production in 2014, where it proved effective in controlling fungal diseases and boosting growth and yield.

Mancozeb is a highly effective protective fungicide used to prevent plant diseases across a range of crops, including rice, soybean, wheat, onions, potatoes, and other vegetables and fruits. Across the crop protection industry, mancozeb is also an increasingly important tool in managing fungicide resistance.

Q4. Why is Mancozeb important to UPL?

Mancozeb has a market size of about $1 Billion. The acquisition enables UPL to improve its market access in LATAM. It is estimated that more than 40% of Mancozeb demand comes from LATAM. This will also increase cross-selling opportunities and will improve our profitability.

Also Read: Rallis India Limited reports 3% volume growth

(For Latest Agriculture News & Updates, follow Krishak Jagat on Google News)

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