BASF Sees Challenging Rest of 2016, But Ag Market Remains Attractive

Markus Heldt, President, BASF Crop Protection
Markus Heldt, President, BASF Crop Protection

For the remainder of 2016, BASF expects the agricultural market to remain volatile and the business environment to be challenging, the company revealed at a press conference held at its Ludwigshafen, Germany headquarters on Sept. 6.

Based on current developments, the financial goal for the Crop Protection division in 2016 is to strive for the same profitability level it reached in 2015, BASF said.

“We are in a strong position to offer our customers solutions to meet their specific demands,” said Markus Heldt, President, BASF’s Crop Protection division, at the press conference. “Our portfolio, pipeline, ability to move fast and to understand farmers’ needs give us a solid competitive position. The agrichemical market is evolving and we are actively pursuing opportunities arising from ongoing merger efforts to increase our footprint and value offer,” stated Heldt. At the event, the company highlighted its latest innovations for farmers and its strategy for future growth while also discussing the current transformations and challenges in agriculture.

Despite current macroeconomic volatility, the agricultural market remains highly attractive, BASF said. The global trends that require food production and food quality to increase remain unchanged. “Farmers’ task to feed a growing, wealthier and more demanding population will not get easier – the need for new technologies, like ours, will continue to be high,” stated Heldt. To serve farmers best and grow in this market, BASF will continue to heavily invest in R&D, strengthen its pipeline of innovations and engage in partnerships to speed up the development of new technologies. “We will increase our global footprint while securing our business profitability and long-term success. We believe that customer focus and agility, not size alone, are key factors for future business growth, as farmers’ demands are rapidly changing,” concluded Heldt.

BASF’s current crop protection pipeline of innovations has new product candidates from all indications in advanced phases. The company estimates that peak sales from crop protection products launched between 2015 and 2025 will total €3 billion. One example is the company’s latest fungicide, Revysol, an urgently needed innovation set to play a vital role in disease and resistance management from the 2018/19 season onward. Currently under registration by European authorities, this compound has shown outstanding biological performance against a range of pathogens, as well as a favorable regulatory profile.

“Our crop protection business has been very successful in the past years and a great contributor to BASF’s earnings,” said Dr. Harald Schwager, Member of the Board of Executive Directors of BASF SE. “Over the past decade, the division’s sales grew from €3.3 billion to €5.8 billion, which represents an increase of 75%. This outstanding performance shows that we deliver on our promises.” The increase in sales was balanced across geographical regions and product indications. The division’s average EBITDA margin of 25% over this same period has been a leading performance indicator in the agrochemical industry. “This confirms the importance of the Crop Protection division and its contributions to the BASF Group,” added Schwager.

The company continuously strives to complement its traditional crop protection offerings to provide farmers with new technologies. Maglis, for example, is BASF’s most significant accomplishment in the area of digital farming. Launched at the beginning of 2016, the tools in this digital platform give fundamental new insights and precise information to support farmers in managing their operations. Maglis helps farmers to gather, interpret, and monitor a range of crop-related data that will result in better decision making on how to grow and market crops.

Developing solutions derived from the combination of chemical and biological expertise is another important focus of BASF’s growth strategy. The company is one of the few that can provide, for example, a seed treatment product with a mixture of both biological and chemical compounds. The investment in biological solutions, which consist of naturally occurring organisms or plant extracts, will yield a number of benefits for farmers including the availability of further modes of action that can lead to improved resistance management. The recent opening of a new R&D center for biologicals and seed solutions at the division’s headquarters in Limburgerhof will further accelerate the development of new products in these areas.

“Our sales force will be close to our customers. We will intensify our sales efforts, supported by the launch of new products and formulations,” said Schwager. “Changes lead to new opportunities for business growth and differentiation. We can look back with pride on BASF’s 100-year legacy of accomplishments in bringing breakthrough solutions for farmers to the market. Even more important is to look forward and to be part of an industry-leading team that helps shape and improve the future of modern agriculture,” concluded Schwager.

Topics:

Agrichemicals

Agrichemicals

Seed Firms’ Changes Bring Uncertainty, Promises

The months ahead will reveal what these altered players will look like and how they’ll work with dealers and growers. They’ll also show where companies are focusing efforts in trait development and crop systems.

Agrichemicals

AMVAC’s Trogele: ‘Entire Downstream Channel of Our Industry Will Be Challenged’

AMVAC Chief Operating Officer Bob Trogele offered his insight on the current agrichemical environment, and on how retailers can possibly engage with post-patent companies.

Agrichemicals

Albaugh Enters Collaboration on New Wheat Varietites

Colorado Wheat Research Foundation, Inc., Albaugh, LLC and Limagrain Cereal Seeds, LLC have announced the release of the first two new herbicide-tolerant CoAXium Wheat Production System varieties.

monsanto roundup
Agrichemicals

Monsanto, Farm Groups Sue California Over Glyphosate Warning Requirement

Monsanto Co. says it has joined a coalition of U.S. farm groups in a lawsuit against the state of California to stop a requirement for cancer warnings on products containing glyphosate.

Agrichemicals

Arysta, DuPont Sign Fungicidal Seed Treatment Deal

Arysta LifeScience will supply to DuPont Crop Protection an innovative fungicide technology with an initial focus on corn and soybean seed applied products.

Agrichemicals

The Dicamba Factor to Weigh Heavily in 2018 Decisions

Other newer herbicides, too, are poised to expand growers’ options as weed resistance struggles show no signs of abating.

Agrichemicals

FMC Third-Quarter Profit Jumps on Americas Volume Growth

Third quarter segment revenue grew 6% year-over-year, excluding India.

Agrichemicals

EU Hits Deadlock on Glyphosate Reauthorization

The EU license for glyphosate is set to expire on Dec. 15.

Agrichemicals

Is it 2008 All Over Again? Chinese Supply Crunch Hits Crop Protection Players

Post-patent players, retailers seek out options and opportunities as the unknowns of supply constraints and consolidation from the Big 6 to the Big 3 take hold.

Agrichemicals

Nufarm to Acquire Portion of FMC’s Herbicides

Nufarm will acquire FMC's SU-class herbicides and Florasulam.

Agrichemicals

Arkansas Plant Board Votes to Adopt Dicamba Cut-Off Date

Changes will prohibit dicamba use in Arkansas between April 16 and Oct. 31.

Bayer
Agrichemicals

EU Restarts Clock on Bayer-Monsanto Deal Review

The European Commission has resumed its antitrust review of Bayer’s planned takeover of U.S. seed maker Monsanto after the companies

Adjuvants

Aqua-Yield Introduces New Herbicide Adjuvant

At only 4 oz./acre application rate, Aqua-Yield has introduced the industry game-changer, Nano-Pro. In university and field testing, Nano-Pro was

Rice Field
Asia

India Asks Germany to Resolve Early Fungicide Issue in Rice

India today asked Germany to address at the earliest the issue related to the tolerance level of fungicide tricyclazole in

Fungicides

Adama New Zealand Removes Mancozeb Cover Spray from Sale

Adama New Zealand, a member of Adama Group, a global crop protection leader, has reported it had pre-emptively recalled Mancozeb

Agrichemicals

Weak Brazil Volumes, Prices Hit DowDuPont Results

Additionally, an expected reduction in corn area in Brazil, as well as a delayed start to its summer season, impacted sales in the region.

Agrichemicals

ADAMA, Ceradis in R&D Crop Protection Agreement

Cooperation aims to increase the performance of active ingredients while lowering dose rates by integrating Ceradis’ technology in ADAMA’s products.

Agrichemicals

Some Pesticide Prices Climb 30% in One Month

In just one month, the price of glyphosate technical shot up from $3,614/MT to $4,066/MT, while glufosinate-ammonium increased from $24,849/MT to $26,355-27,108U/MT, according to China-based firm Siembo Consulting Co. Ltd.

Agrichemicals

FMC Corp. Completes Transformative Transactions with DuPont

FMC has acquired the portion of DuPont's Crop Protection business it had to divest to comply with the European Commission ruling related to its merger with The Dow Chemical Company.

Latest News

Agrichemicals

Seed Firms’ Changes Bring Uncertainty, Promises

The months ahead will reveal what these altered players will look like and how they’ll work with dealers and growers. They’ll also show where companies are focusing efforts in trait development and crop systems.

Asia

Naidu: India Needs Multi-Pronged Approach to Agriculture

Indian Vice President M Venkaiah Naidu has called for a comprehensive, multi-pronged approach to agriculture with focus on crop diversification

Agrichemicals

AMVAC’s Trogele: ‘Entire Downstream Channel of Our Industry Will Be Challenged’

AMVAC Chief Operating Officer Bob Trogele offered his insight on the current agrichemical environment, and on how retailers can possibly engage with post-patent companies.

Agrichemicals

Albaugh Enters Collaboration on New Wheat Varietites

Colorado Wheat Research Foundation, Inc., Albaugh, LLC and Limagrain Cereal Seeds, LLC have announced the release of the first two new herbicide-tolerant CoAXium Wheat Production System varieties.

Agrichemicals

Monsanto, Farm Groups Sue California Over Glyphosate Warning Requirement

Monsanto Co. says it has joined a coalition of U.S. farm groups in a lawsuit against the state of California to stop a requirement for cancer warnings on products containing glyphosate.