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

Syngenta Reports 2017 Half-Year Results

Innovation and productivity savings have partially offset weak market conditions for Syngenta in the first half of 2017. The company

Agrichemicals

Bayer-Monsanto Merger Will Grow, Not Stifle, Innovation in Agriculture

Bayer’s acquisition of Monsanto has some critics concerned that the merger would deter innovation in the agricultural sector and impact

Agrichemicals

DuPont Gets Boost From Farmers With Dow Merger Set to Close

DuPont Co. got a boost from U.S. farmers as it closes in on the historic $75 billion merger with Dow

Agrichemicals

Dow Executive Named New CEO at Lindsay Corp.

Lindsay Corp. has  announced the appointment of Timothy Hassinger as president and CEO and a member of its board of

Agrichemicals

Complexity in Agriculture: The Rise (and Fall?) of Monsanto

Sometimes it seems as if the ag world is changing so fast that we can barely keep up with it

Agrichemicals

ChemChina Participation in Syngenta Exceeds 98% Threshold

Following the purchase of additional Syngenta shares, ChemChina’s participation in Syngenta has exceeded 98% of Syngenta’s share capital. As a

Agrichemicals

As Drift Complaints Snowball, Tennessee Sets New Dicamba Rules

While stopping short of a ban, Tennessee sets stricter application parameters for the herbicide.

Agrichemicals

BASF Responds to Dicamba Restrictions in Arkansas, Missouri

"Recent actions taken in Arkansas and Missouri to ban or restrict the use of dicamba herbicides, including BASF’s Engenia, deprive farmers of the one option that has proven effective in controlling this worrisome, yield-robbing issue."

Agrichemicals

China Launches Anti-Dumping Probe on India Imports

China's Weifang Runnong Chemical claims that India exported MPB at a lower price than the normal value, which has led to continuous price decreases in China’s domestic market.

Agrichemicals

Dow to Sell Part of Corn Seed Business to CITIC Agri Fund

Transaction marks continued progress in proposed Dow and DuPont transaction.

Agrichemicals

Bayer, Netafirm Develop New Smart Irrigation Approach

Market launch is planned in Mexico by the end of 2017.

Africa/Middle East

South Africa Conditionally Approves Dow, DuPont Merger

The decision follows recent conditional approvals from global antitrust authorities in Canada and Mexico and from the U.S. Department of Justice on June 15.

Agrichemicals

Insecticide Seed Treatment Market to Grow to $5.04 Billion by 2022

Neonicotinoids are projected to be the fastest-growing chemical sub-type between 2017 and 2022.

Agrichemicals

CropLife America: States’ Decisions on Dicamba Premature

CropLife America issued the following statement on July 10: Over the last couple weeks, both Missouri and Arkansas state governments

Agrichemicals

China’s Exports Drop in 2016

The U.S. and Brazil remain major markets for China’s crop protection exports.

Agrichemicals

Monsanto Responds to Arkansas, Missouri Dicamba Bans

"We sympathize with any farmers experiencing crop injury, but the decision to ban dicamba in Arkansas was premature since the causes of any crop injury have not been fully investigated."

Agrichemicals

Missouri Becomes Second U.S. State to Ban Dicamba

Missouri, Arkansas take action to stop sale and use of dicamba following hundreds of drift complaints.

Agrichemicals

Heads of R&D, Global Operations to Leave Syngenta

Trish Malarkey, Head of R&D and Mark Peacock, Head of Global Operations will leave Syngenta at the end of September 2017.

Agrichemicals

Arkansas Governor Moves to Ban Dicamba

Arkansas Governor Asa Hutchinson on Friday said he has decided to back the Arkansas State Plant Board’s proposal to ban dicamba in the state, as the “volume of complaints justify emergency action.”

Latest News

Asia

India’s ‘Protectionist Bent’ for Agricultural Products Delaying FTA with Australia

Australian trade minister Steve Ciobo has said India has adopted a “reasonably protectionist bent” for its agricultural products, delaying any

Asia

How The Internet Of Things Is Digitizing Agriculture, Speeding Up Rural Development in India

The Internet of Things (IoT) revolution in India is catching on with increasing government and venture capital investments pouring into

Biostimulants

DuPont Pioneer, Evogene Form Research Collaboration for Development of Corn Biostimulant Products

DuPont Pioneer and Evogene Ltd., a leading company for the improvement of crop productivity and economics for the food, feed

Americas

Gowan Crop Protection Completes Acquisition of Agrotechnology in Chile

Gowan Crop Protection Ltd., an affiliate of Gowan Co., L.L.C., has announced the completion of its acquisition of Agrotechnology S.A.

Agrichemicals

Syngenta Reports 2017 Half-Year Results

Innovation and productivity savings have partially offset weak market conditions for Syngenta in the first half of 2017. The company