Global Crop Protection Market: Overcoming Challenges and Finding Opportunity in 2018

The end of the old year and start of the new is a natural time to reflect on where we’ve been and where we’re going. We make resolutions — plans and goals for the future.

Companies do the same thing, only they call them business plans. Developing three-year, five-year, and long-term plans are regular business activities for those in the corner offices. And then once created, reviewing, and revising business plans are regular activities.

So let’s take moment and take a look at the year ahead. We spoke with some industry experts to get some insight into 2018. We asked four questions that need to be a part of any analysis.

First let’s take a look at what might create difficulties:

What are the biggest challenges facing the industry in 2018?
“From today’s point of view, the biggest problem, and challenge, is the production situation in the Peoples Republic of China, with many factories for raw material, AI and formulation products which are closed, or running at small capacity,” says Diego Taube, Managing Director for Argentina’s Chempro S.A.

Taube’s thoughts were echoed by Bob Trogele, COO and Executive Vice President for AMVAC and Dr. Bipul Saha, Chief R&D Officer for NACL Industries Limited (formerly Nagarjuna Agrichem Limited).

“In India, the government is promoting the Make in India policy. This will further impact import of active ingredients. The industry has to meet this challenge by enhancing production capacity,” Saha says.

In South America the challenge will be “reconfiguration of the distribution network and the side effects of consolidation,” says Guido Azzari, Executive Director for Guatemala-based Central America Toll-Manufacture & Logistics (CTL).

What are the biggest opportunities facing the industry in 2018?
It seems smart companies find opportunities where others find challenges.

According to Trogele and Azzari, China’s supply disruption, price increases, corporate tax relief (if you’re US-based) could all be positives.

Taube suggests the Chinese regulatory concerns could mean some “factories from other countries could take advantage and export their products.”

“Until now, Indian crop protection chemical companies were depending heavily on Chinese imports,” Saha says “They are now forced to think of manufacturing in India. This will prove beneficial to Indian companies in the long run.”

What technology will have the biggest impact on the industry?
“We believe that delivery technology such as use of drones and precision farming will have a major impact,” Saha says.

Trogele agreed that precision agriculture will have a positive impact but added non-GMO demand could be a negative for trait companies.

“The biggest change will come in the types of formulations and mixtures,” Taube says.

What else does the industry need to know?
AMVAC’s Trogele’s advice to the industry is simple, direct,returns to business basics. The industry needs to know: “How to add value!”

 

Topics: , , ,

Agrichemicals

Signs-Agriculture
Agrichemicals

Opinion: Why the Crop Protection Industry Needs Strategic Vision

The crop protection industry faces a dilemma. In the uncertain and globally competitive world of crop protection, focus has primarily

Agrichemicals

CAC Crop Protection Show Continues to Expand

China’s agrichemical industry continues to deal with strict environmental regulations, which have impacted sourcing around the world. CAC 2018 gives

Agrichemicals

ADAMA’s Global R&D Center Launches Operations in Nanjing

Global crop protection group ADAMA, the combination of Adama Agricultural Solutions Ltd. and Hubei Sanonda Co., Ltd., has inaugurated its

Insecticides

Bayer Inaugurates New Greenhouse for Insecticide Research

Bayer is aiming to consolidate its leading position in the global pest control market. To this end, the company has

Agrichemicals

Cropchem Doubles Portfolio with Seven New Formulations in 2017

After obtaining the registration of Meson 480 SC (Mesotrione 480 SC) in December 2017, Cropchem closed the year with seven

Agrichemicals

Update Your Listing: The AgriBusiness Global Sourcing Network

We are beginning to update our database for the 2018 AgriBusiness Global® Sourcing Directory. Last year’s directory included more than

Herbicides

EPA: Monsanto’s Glyphosate Likely Not Carcinogenic to People

The U.S. Environmental Protection Agency has said that glyphosate, the key ingredient in Monsanto Co.’s top-selling weedkiller Roundup, is not

Rice
Agrichemicals

Agrichemicals: India Has Room to Grow

India is growing and it is growing at a fast pace. The growth has been seen on every front —

Agrichemicals

Court Cancels Publicly Held Syngenta Shares

Syngenta has announced that the Appellate Court Basel-City (Appellationsgericht Basel-Stadt) has cancelled all publicly held registered shares of Syngenta AG.

Agrichemicals

ADAMA Opens New Global Formulation Center in Jiangsu Province

Global crop protection group ADAMA, the combination of Adama Agricultural Solutions Ltd. and Hubei Sanonda Co., Ltd., has announced that

Agrichemicals

Eurofins Finalizes Acquisition of EAG Laboratories

Eurofins Scientific, parent company to Eurofins Agroscience Services Group, has announced the successful closing of the transaction to acquire EAG

Agrichemicals

Syngenta May Start Local Production of Crop Protection in Russia

Switzerland’s Syngenta is considering setting up local production facilities of crop protection products in Russia rather than relying on importing

Herbicides

Another U.S. State Announces Restrictions on Using Herbicide Dicamba

MINNEAPOLIS (AP) — Minnesota announced restrictions Tuesday on how farmers can use the herbicide dicamba in 2018, responding to complaints

Agrichemicals

Slideshow: AgriBusiness Global Hosts Trade Summit Southeast Asia

AgriBusiness Global hosted its Trade Summit Southeast Asia from Dec. 5-6 in Jakarta, Indonesia at the J S Luwansa Hotel.

Agrichemicals

PMFAI Hosts 12th Annual Conference & Exhibition

The 12th International Crop Science Conference & Exhibition (ICSCE) organized by the Pesticides Manufacturers & Formulators Association of India (PMFAI)

Herbicides

Dicamba: Monsanto Moves to Stop Arkansas Ban

Little Rock, AR (AP) — Monsanto asked a judge Tuesday to prevent Arkansas from enforcing a proposal going before lawmakers

Herbicides

L-Glufosinate Process Patent Issued to AgriMetis

AgriMetis, LLC has announced that its patent application, drawn to methods of making its broad-spectrum herbicide product, L-Glufosinate (Glu-L), has

Bayer-Website
Agrichemicals

New Bayer Transparency Website Launched

Bayer has launched its new transparency website (https://cropscience-transparency.bayer.com), designed to enable access to scientific data needed for the evaluation of

Vineyard weeding Robot-Naio-Technologies
Agrichemicals

Robots Are Coming for Your Crop Protection (and Other Inputs …)

The market for agricultural robotics market is small but burgeoning, and their impact is likely to be quite a bit

Latest News

Biostimulants

Sigma Agriscience Acquires Agricultural Solutions Company AM-AG

Sigma Agriscience, a manufacturer of granular biofertilizers and biostimulants, has acquired a controlling interest in AM-AG, an international marketer and

Africa/Middle East

Kenya Dairy Industry Sheds Light on Market Challenges, Opportunities

In December, I had the privilege to serve as a volunteer consultant with the USAID Farmer-to-Farmer (F2F) program in Kenya.

Agrichemicals

Opinion: Why the Crop Protection Industry Needs Strategic Vision

The crop protection industry faces a dilemma. In the uncertain and globally competitive world of crop protection, focus has primarily

NPK

Sustainability at The Mosaic Company: Former CEO Shares Insight into How They Did It

Leading an organization today requires navigating the pushes and pulls of multiple stakeholders: generating shareholder returns, delivering value to customers,

Africa/Middle East

Eastern African Nations Move to Harmonize Fertilizer Regulations

Eastern Africa countries are working to harmonize the region’s fertilizer market, a move that could improve not only demand for