DVA invests USD 100 million in the Argentinean crop protection market

German multinational DVA has announced a $100 million investment to expand its crop protection business in the Argentinean market. With this new investment, DVA is ready to further strengthen its position as a leading supplier in the crop protection segment and offer further innovations to the agricultural industry.

Dardo Lizárraga, Managing Director DVA Argentina, on the company’s future growth plan in the crop protection segment:

“After an initial investment of more than $25 million, a new phase of expansion is beginning in Argentina. The main objective is to expand local production and marketing of a wide range of products for crop protection, fallow land and all traditional crops such as soybeans, corn, wheat and sunflowers, as well as specialties such as citrus, legumes, fruits and vegetables.

With this investment, DVA Argentina will be active in both industrial distribution and direct sales to customers and will expand its growth channels through strategic partners throughout the country.

For more than 15 years, active ingredients for agriculture in Argentina have been supplied through the country’s industrial distribution channel. DVA is one of the world’s pioneering companies in this field and has established close relationships with international partners since the 1960s, long before the commercial opening of the Asian region. Today DVA offers a broad portfolio of more than 700 crop protection products.

The most important investments to date have been in human capital, product development and registration, and the acquisition and establishment of our production unit in Pilar, Argentina. Further major investments in infrastructure, the commercial and development team and brand positioning will follow. The investment will triple over the next five years and will far exceed the $100 million limit for fixed and working capital.

DVA’s strategy will focus on microemulsion mixtures. This powerful technology with its efficient processing and low environmental impact gives the market a high added value. During the last launch, DVA’s microemulsions with 30% 2.4D were introduced to the market. According to recorded studies by the Universities of La Plata and Litoral, these microemulsions have the lowest volatility and phytotoxicity on the Argentinean market. Further development of the crop nutrition line will also begin in 2020.

The traditional and innovative product portfolio will be complemented by a digital agricultural platform for crop setting and monitoring. Accurate and digital farming is revolutionizing the way we work in the field and should be available to as many farmers as possible in a simple, agile and dynamic way. That’s why this service is offered to DVA’s partners and strategic customers and supported with training on a premium platform that already monitors more than 4 million hectares in the country.

It is not the amount of investment that is important, but the way in which the investment is made in the face of volatility and uncertainty. Even though the industry is currently under strain in terms of tax burdens, withholding taxes and wealth taxes, people are aware of and sensitive to this reality. As good compatriots, the employees of DVA Argentina know very well that the best way to make progress is to work hard and with dedication and to invest prudently and wisely. Every step should be a confident step forward.”