The volatility in the repellent market It has no brake. Historical peaks of dengue contagion in Argentina, lack of stock, breaks in production chains and sky-high prices: given this scenario, the Government announced yesterday a series of measures, in order to facilitate imports (even through the door-to-door system) and satisfy demand. However, according to sources consulted by LA NACION, purchases abroad face several bottlenecks, which make it difficult to think about buying a repellent today and receiving it at home before the mosquito invasion ends.
From the sector they assured that, in recent days, sales of repellents, tablets, insecticides and spirals have quadrupled and that the demand is not being covered by the manufacturers, who claim to be at the top of production for their installed capacity. The main player in this segment is the North American SC Johnson, owner of Off!, Fuyi and Raid, which accounts for 80% of the market.. Also included, among others, is the Queruclor group, with its Aktiol label; and Algabo, a national company that is gaining more and more ground with its Stop Vais brand and that manufactures its own brand repellents for the Dia and Farmacity chains.
Already in the month of January, when presentations were beginning to become scarce, the price of an Off! orange – the best-selling product in the category – was over $4,000 or $5,000. Today, and in front of the almost empty gondolas, Prices escalate and are subject to the law of supply and demand. Days after Easter, some small businesses aimed at a strategy of selling a combo of chocolate eggs along with repellent. Meanwhile, in Mercado Libre, the number of published products falls day by day and there are no reference values: the amount of an Off! in cream, for example, does not go below $17,999.
In this framework, the National Administration of Medicines, Food and Medical Technology (Anmat) reported yesterday that it will exempt repellents in aerosol, cream, spray and gel presentations when entering the country. starting April 8, and for a period of 30 calendar days. In addition, they will be exempt from the collection of Value Added Tax (20%) and the withholding of Income Tax (6%). In addition, repellents had already been included in the list of 2,900 products with the import regime for 120 days.
And all this applies “whether it is a company with a customs broker or oneself through the door-to-door service.” That is to say, based on this regulation, anyone could purchase repellents outside through sales platforms. e-commerce. However, in practice, the operation is not so simple.
According to a survey carried out today by LA NACION, in AmazonFor example, the missing stock of repellents are also notorious. And although there are items available, logistics and import costs multiply their prices by six. For example, an Off! The gel is listed at US$9.97, but to this we add US$32.91 for shipping and an estimated US$18.19 for import taxes: The final price rises to US$61.07, equivalent to $87,920.03 (based on the price of the card dollar at today’s close, which stands at $1,439.66). In addition, the date of receipt of the product at an address in the city of Buenos Aires would be scheduled for Monday, April 15.
At the same time, on eBay, the offer is amplified, but Shipping costs and times are consolidated as the main barrier. A x2 Off! pack, for example, is listed at US$10, but US$28.95 is added to this for shipping, in addition to the relevant local taxes, and a delivery time of more than 31 business days.
Manufacturing and imports: the view from the sector
It is not easy for businesses either. When analyzing the direct impact of these measures, the sector is cautious. “We are not considering the direct import of repellents, because this implies taking great risks. If you proceed with a purchase, We would only receive the products within 30 days, when the temperatures already drop“, they assured LA NACION from a pharmacy chain.
In tune, from another retail They also ruled out immediate importation, although they stated that They will advance in their own production of repellents and that they will analyze purchases abroad for the next season.
But there is another complication. In direct relation to the Government’s announcements, one of the main international logistics companies told LA NACION that They are “waiting for definitions”. The fact is that the measures have not yet been made official by publication in the Official Gazette and these are cargoes with special customs and security requirements.
In parallel, representatives of the main repellent manufacturers and authorities from the Ministry of Commerce met today at noon to put their cards on the table. “We are producing three times more than usual and approving the sale of different packaging formats to maximize production. Compared to the same period of the previous year, in February 2024 we recorded a growth of more than 300% in demand for our repellents,” SC Johnson indicated this week in a statement.
In turn, from Algabo, they also explained that They advanced in new networks to supply the main input necessary to prevent mosquito bites, DEET. “In the first 15 days of January, local distributors in Argentina sold the little they had. We are producing from direct contacts with suppliers from abroad,” they signed to LA NACION.