Crop Protection Market Sees 5% Growth in 2011

By Stefanie Toth|18 July 2011

The crop protection industry in 2010 was defined by a declining trend in glyphosate prices marked by an increase in crop prices the second half of the year, according to a report by Phillips McDougall.

This year, the industry has seen continued growth particularly in the Latin American market because of higher crop prices and growth in soybean area. The United States is expected to see an increase in maize, wheat and cotton areas and a decline in soybean area. Cereal and maize areas in the EU are estimated to rise, but the oilseed rape area is expected to decline, according to Phillips McDougall.

The outlook for the crop protection market in 2011 appears to be far more positive than 2010, according to the report. At the beginning of the year, low crop stocks and high commodity prices led to an optimistic outlook that has currently been reflected in companies’ Q42010 and Q1 2011 company sales analysis.

Glyphosate prices have stabilized in 2011. However, unfavorable weather in Canada and the United States led to delayed planting. Drought in northern China and Europe could negatively affect the crop protection industry as well, according to Phillips McDougall.

Full year growth is expected to reach 5% despite adverse weather conditions. However, it is unlikely that the remaining quarters will see as much growth as Q4 and Q1 company sales analysis.