Live from the Trade Summit: Crop Protection Market Recovery Seen in 2017

Kleffmann Group’s Bob Fairclough, keynote speaker for the AgriBusiness Global Trade Summit, provides an update on the state of the crop protection market.

The AgriBusiness Global Trade Summit – Americas has a tradition of breaking attendance records, and 2017 is no exception.

More than 800 attendees from 45-plus countries packed the AgriBusiness Global Trade Summit Aug. 8 in Las Vegas, Nevada, while more than 130 exhibiting companies filled the Bally’s convention center.

Kicking off the Summit on Tuesday was a message of growth and optimism for the industry, from Dr. Bob Fairclough of Kleffmann Group. That optimism, of course, comes with a multitude of complex factors to consider, among them: the latest wave of M&A activity and the potential for more consolidation especially among Chinese and Indian companies, China’s shrinking competitive advantage in sourcing, global trade agreements, regulatory shifts, and the peaking of new active ingredients falling off patent in 2015.

Although 2016 marked a second-straight year of declining sales for the global crop protection market, recovery is anticipated in 2017. Most companies’ second-half results show a positive trend.

“We should start to see a 2.5% to 3% (annual) increase in the market over the next five years or so,” Fairclough said. “That the industry will return to growth is without question as all the fundamentals for growth are in place.”

In 2016, the global crop protection market dipped 2.6% to $53.1 billion, on an ex-manufacturer sales level using the average exchange rate for the year. It was a far smaller drop than the 9.8% decline seen in 2015.

The United States retained its No. 1 market position in 2016, slightly ahead of Brazil, which Fairclough noted still has much potential for future growth versus the mature American market.

The biggest change last year, however, was China. Following years of swift expansion, the market there is facing a re-balancing, suffering an almost double-digit decline in 2016, in part due to the weather, currency, glyphosate prices, and the loss of paraquat, he said.  Japan, in fact, was the only Asian market that experienced any growth last year.

The European crop protection market was flat, posting $12.9 billion in sales, yet still outperformed all other regions in 2016. Fairclough referred to it as the “game of two halves,” wherein northern EU countries such as Germany, the UK, and Denmark performed worst due to weather and cropping, and France was held back by its Ecophyto plan. The other half — the Southern zone — including Italy, Spain, Greece, and Bulgaria, is performing better, helped by sunflower and fruits, while cereals and sugarbeet power Russia and Ukraine ahead.

Standout markets in 2016 included Argentina, helped by removal and reduction of export taxes on some agricultural products, and positive selective herbicide and soybean insecticide sales; and India, which experienced good monsoon rains. Signs look positive there for 2017 as well. Fairclough also highlighted Russia — which is seeing sharp growth in soybeans, vine crops, sugarbeets, and cereals — as a strong opportunity.

By crop protection sector, herbicides declined the most last year in part due to glyphosate resistance and prices. Insecticides also came under pressure due to changing pest pressure and regulatory issues, while fungicides experienced a small increase.




Suphur Mills Ltd. to Expand in Newer Formulations, Biologicals

Bimal Shah, Director, describes ambitious plans for the company and his thoughts on distribution, the educational process, and Make in India.


The Top 10 Crop Protection Companies, Post Mega-Mergers

Everyone loves a good Top 10 list. In fact, some prominent celebrities such as David Letterman spent much of their careers cataloguing various Top 10 lists.


SLIDESHOW: AgriBusiness Global Trade Summit 2017

The 11th annual AgriBusiness Global Trade Summit — Americas attracted a record-breaking crowd of more than 800 delegates from 45-plus


Cutting Edge Conferences: Meister Media to Host Precision Agriculture and Biocontrols Events

Biological control products and precision agriculture are among the fastest growing and most promising areas of growth for the crop


Live from Vegas, Day 2: After the M&A Dust Settles

Jim DeLisi, owner of Fanwood Chemical, and agchem industry veteran and consultant Alex Polinsky, took a historical look at M&A activity in the agchem market and shared what the landscape will look like when the most recent round is over.

Africa/Middle East

Looking to Next Year: Announcing the 2018 AgriBusiness Global Trade Summit

The AgriBusiness Global Trade Summit is only one day old, but we’re already thinking about next year. For 11 years,


Disruptive Trends in Distribution: Survey Results from Around the Globe

We asked you in a recent survey how the mega-mergers in crop protection manufacturing will impact the industry and your


Biocontrols Revolutionize Grower’s Strategy

In preparation for the Biocontrols Africa Conference & Expo 2017, 12-13 July in Cape Town, AgriBusiness Global visited numerous key players in

Africa/Middle East

Biocontrols Africa: The Retailer’s Perspective

  Kobus Pienaar, Global Business Journey Manager for Woolworths Foods talks about the Farming for the Future program and the

Africa/Middle East

Biocontrols Africa Conference & Expo Answers Why Bioproducts are Gaining Traction in South Africa

AgriBusiness GlobalTM Media is pleased to announce the launch of its first Biocontrols Africa Conference & ExpoSM on 12-13 July, 2017 in

Africa/Middle East

An Invitation to Be Rewarded for Environmental Excellence

Dear Crop Protection Professional, As an AgriBusiness Global™ reader, you’re no doubt aware we organize the Environmental Respect Awards each


CAC Continues to Expand

Q How will this show compare to last year’s show in terms of exhibitors and attendees? 18th China International Agrochemical


ABIM Sets Attendance Record

The 11th Annual Biocontrol Industry Meeting was attended by nearly 900 delegates from 48 countries representing 426 companies. The event,

Africa/Middle East

Adoption of Biocontrol Products Around the Globe Continues to Grow

Biocontrols Around the Globe The biopesticide market was $1.9 billion in 2014, according to David Cary, IBMA’s Executive Director. That


Slideshow: ABIM 2016

The Annual Biocontrol Industry Meeting (ABIM) celebrated its 11th year setting a new record for attendance with nearly 900 delegates


Ag-Tech Startups Being Sought To Spark, Share Innovations

THRIVE AgTech, a business that specializes in connecting the expertise of tech companies to on-the-ground knowledge of agricultural operations, is looking for high


Slideshow: PMFAI Goa India

The Pesticide Manufacturers and Formulators Association of India (PMFAI) held its International Crop Science & Exhibition Nov. 10-11 in Goa,

Africa/Middle East

Notes from ABIM

The Annual Biocontrol Industry Meeting (ABIM) show in Basel, Switzerland, ended this week with nearly 900 attendees — the largest

Trade Summit

Sourcing Tradeshow Set for Jakarta

A key crop protection sourcing event will welcome hundreds of manufacturers and distributors to Jakarta December 6-7. The AgrochemBIZ Show

Latest News


Monsanto Sues Arkansas Regulator Over Dicamba Ban

Monsanto is challenging the restrictions as Arkansas edges closer to adopting a temporary ban on dicamba herbicides for next year.


Summit Agro USA Launches New Corn Herbicide

SHIELDEX 400SC controls a wide range of broadleaf and grass weeds, including troublesome weeds such as tall waterhemp, Palmer amaranth, giant ragweed and giant foxtail.


Precision Agriculture to Improve Nutrient Use Efficiency in Brazil

The IPNI Brazil Symposium on Precision Agriculture was held in early October in Goiânia, Goiás, in central western Brazil.

Africa/Middle East

Syngenta, USAID Renew Global Collaboration to Improve Food Security

Renewed MOU to develop agriculture in Africa, Asia and Latin America.


U.S. Remains the Leading Crop Protection Market — For Now

Exclusive article by Dr. Bob Fairclough of Kleffmann Group.