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

Rice Closeup
Agrichemicals

Cambodian Government Recalls Fungicide to Conform to New EU Rules

The government has ordered a nationwide recall of the fungicide tricyclazole to keep its rice exports eligible for the important

Adjuvants

New Tank-Mixes Approved with Monsanto’s XtendiMax

Monsanto announced it has received approval for certain glyphosate tank-mixes with XtendiMax herbicide with VaporGrip Technology. The company recently listed

Agrichemicals

Reports: BASF Says No to Acquiring FMC (For Now)

It has been long held that FMC Corp., whose products include agricultural pesticides, biopolymers, nutritional products and lithium, was a

Agrichemicals

Gowan Names New Development Manager for UK, Ireland

Kuldip Mudhar has been appointed development manager UK and Ireland for Gowan Crop Protection Ltd. This is a new position

Agrichemicals

CAC 2017: 3 Key Takeaways

China International Agrochemical and Crop Protection Exhibition (CAC), held March 1-3, 2017 at the Shanghai New International Expo Centre (SNIEC)

Wheat field
Agrichemicals

INNVICTIS CROP CARE Launches STAVE Broadleaf Herbicide

INNVICTIS CROP CARE, LLC has announced STAVE as the newest addition to its expanding portfolio. STAVE will be a great

Agrichemicals

BASF Expands Dicamba Production Capacity at Beaumont Site

“With this expansion, we could increase our dicamba output by more than 50%,” Markus Heldt says.

Atanor sign
Agrichemicals

Atanor to Invest $70 Million in Crop Protection Business

Atanor, an Argentine company which is part of the Albaugh Group, will invest US$70 million in the next five years

Wheat
Agrichemicals

Syngenta Receives Further Expansion of SOLATENOL Fungicide in Europe

Syngenta has announced that the registration of its SDHI fungicide SOLATENOL has been further extended in Europe following approval by

Carrots Farming UK
Agrichemicals

AHDB: Herbicide Linuron Loss ‘Blow To Growers’

The loss of another important herbicide is feared UK growers could be left without an alternative chemical, according to an

Fungicides

Bayer Debuts Trilex EverGol Shield In Canada

Bayer CropScience has introduced new Trilex EverGol SHIELD fungicide and insecticide seed treatment, for complete disease and insect protection in

National Farmers union vice president Guy Smith
Herbicides

Two Sides Still Divided Over Glyphosate After Risk Assessment Report

A campaign group has called for “practical alternatives” to a controversial weed-killer to be developed, despite a European body concluding

Corn Field
Herbicides

ECHA: Glyphosate Not A Carcinogen

The European Chemical’s Agency (ECHA) has announced that it had found glyphosate not to be a carcinogen. ECHA’s review is

Agrichemicals

Bayer, Monsanto Explore Asset Sale

Bayer and Monsanto are exploring the sale of about $2.5 billion of assets as they seek regulatory approval for their $66 billion

Agrichemicals

BASF Agricultural Solutions Quarterly Sales Jump 10%

BASF’s Agricultural Solutions business posted a 10% in quarterly sales on higher volumes. In the Agricultural Solutions segment, sales in

Agrichemicals

Overview of the Indian Crop Protection Market

Agriculture is the backbone of Indian economy with 52% of the population engaged in agriculture and related activities. But the

Flag of China
Agrichemicals

Top 10 Glyphosate Exporters in China for 2016

Fuhua Tongda was the biggest exporter of glyphosate in China in 2016.

Agrichemicals

Syngenta’s Minecto Pro Insecticide Approved by EPA

Minecto Pro insecticide approved for use in specialty and vegetable crops to control lepidopteran pests as well as sucking/rasping/chewing pests.

Adjuvants

Before a New Weed-Control Era Begins, One Last Obstacle

Adjuvant companies anxious for tank-mixing approvals with D-traited technologies as application season closes in.

Latest News

Agrichemicals

Cambodian Government Recalls Fungicide to Conform to New EU Rules

The government has ordered a nationwide recall of the fungicide tricyclazole to keep its rice exports eligible for the important

Adjuvants

New Tank-Mixes Approved with Monsanto’s XtendiMax

Monsanto announced it has received approval for certain glyphosate tank-mixes with XtendiMax herbicide with VaporGrip Technology. The company recently listed

Agrichemicals

Reports: BASF Says No to Acquiring FMC (For Now)

It has been long held that FMC Corp., whose products include agricultural pesticides, biopolymers, nutritional products and lithium, was a

Americas

Case Study: How Atlas Correction Service is Positioning Agriculture for Success in Argentina

Plantium in Santa Fe, Argentina, is a full-service provider of precision agricultural guidance systems to some of Argentina’s largest farming

Industry News

Dow, DuPont Receive Conditional Approval from European Commission for Proposed Merger of Equals

DuPont and The Dow Chemical Co. announced that the European Commission (EC) has granted conditional regulatory clearance in Europe of