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.

The increase in technical is far ahead than that of previous years; furthermore, many technical products are facing tight supply situations, Siembo stated. However, it isn’t just technical suppliers that are affected: Formulation producers are also facing supply challenges, with some companies cancelling inventory plans for winter.

“Recently, some new formulation companies issued internal notices that required salespeople to restrain customers’ inventory purchasing, once their inventory volume exceeds the company’s supply. Salespeople would then suggest customers to switch to other products. The companies mentioned in the notices that if the total volume from different customers exceeds the available volume that the company can afford, the contract date would prevail, which means the earlier contracts enjoy the priority shipments,” according to Siembo.

Most companies chose payment policy by product type instead of quantity, influenced by the rising technical products’ supply challenges, Siembo said.

Long Yang, general manager from branch office of Beijing Yanhua Yongle Biotechnology Co., Ltd., said it is difficult for companies to price formulation products due to increasing fluctuation of technical products. Tight technical supplies and company relocations complicate the situation. Yanhua Yongle adjusted its policy to include no winter inventory this year.

Siembo noted that prices have been rising since the end of last year, with glyphosate and chlorpyrifos technical soaring 50% or more compared to last year. Supplies of technical have been short since early 2017 but with winter inventory approaching, orders are increasing.

“In September in previous years, companies got supplies prepared, while this year, upstream manufacturers’ operation rate stayed at a low position. Currently the operation rate of technical producers is only 20%, and even formulation companies can’t find supplies,” sales director Linghui Rui in Guangxi Huifeng Biotech Co., Ltd. said.

To prevent this from happening, Guangxi Huifeng remitted payment very early, while delivered goods were only 60%. Although the current inventory is adequate to deal with winter inventory orders, the company won’t accept selling on credit during the period, considering the unpredictable, changing market.

Xianfeng Zeng, vice president of Qingdao Hansen Biologic Science Co., Ltd., said technical companies will choose larger, more stable clients as a priority to maintain solid relationships with older customers. Meanwhile, they will receive some overseas orders to keep the market abroad.

“Nowadays, so many companies are facing the same trouble,” Yannan Gui, deputy general manager of Guangdong Zhenge Biotech Co., Ltd., said. “For now, we use the ‘guarantee on goods instead of pricing,’ meaning payment goes first, and the company delivers the goods according to the status of the payment, with the price going with the market.”

Topics: ,

Leave a Reply

Agrichemicals

Fungicides

STK’s REGEV Hybrid Fungicide now Available in Serbia for Apple Scab

STK bio-ag technologies, a leading company in the development and marketing of botanical-based food protection solutions, has announced that REGEV

India-farm-Photo-Hindustan-Times
Asia

Study: Weeds Cause Annual Crop Loss of $11 Billion in India

Weeds lead to India losing an average of $11 billion each year in 10 major crops, according to a study,

Chile-Wheat-Harvest
Agrichemicals

Chile Estimates More Expensive Agrochemicals in 2018

Andreas Kobrich has his eyes set on the current wheat harvest. As general secretary of the Wheat Growers’ Association in

Fungicides

BASF Protects Fungicide Intellectual Property Rights with Patent Infringement Lawsuit

BASF has filed a lawsuit against Willowood LLC to halt the ongoing infringement of certain BASF patents relating to the

Corn field Ohio
Herbicides

HELM Agro US Expands Portfolio with Four New Herbicides

HELM Agro US, Inc. has launched four new crop protection products in the first quarter of 2018. In total, HELM

Insecticides

Insecticides: Making the Most of Limited Chemistries

While no widespread, plague-like insect infestations hit growers in 2017, a number of traited Bt crops continued to struggle under

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

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

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

Latest News

Asia

China Pesticide Exporting Workshop Highlights Price Trends, Supply Strategies

China is a major pesticide producer and exporter. It provides abundant pesticides ranging from herbicides, insecticides, fungicides, plant growth regulators

Europe

EU’s Race to Zero Tolerance Risks Global Trade and Farmer Livelihoods

Whether it’s almonds from the United States, cocoa from Ghana, or rice from India, we enjoy eating good food from

Europe

Staphyt Opens New Regulatory Office and Trial Site in Austria

The regulatory division of the Staphyt Group (Staphyt Regulatory) specializes in regulatory consulting (agrochemicals, biocides, etc.) and supports manufacturers in

Africa/Middle East

Sub-Saharan Africa: Time for a Paradigm Shift to Sustainable Farming Practices

Farming in sub-Saharan Africa (SSA) has remained fairly conventional over the years and involves intensive use of synthetic chemicals and

Asia

India Aims to Deliver Groundbreaking Agricultural Blockchain

It’s become a joke in some circles. Just cash in by inventing a blockchain for something. A blockchain for dentists?