Bayer CropScience said buoyant demand for fungicides and a strong performance in Latin America, Africa and the Middle East drove a 5.1% increase in sales in the second quarter.
Continued strength in Latin America was also reported last week by Syngenta and BASF.
Sales of the agriculture business rose to $3.18 billion, compared with $3.02 billion a year earlier. Bayer, based in Monheim, Germany, said it benefited from positive development in Asia/Pacific and Europe, while sales in North America were hampered by the late start to the season and declining acreages. “Our business continued to be supported by the persistently high price levels for agricultural commodities,” said Chairman Dr. Marijn Dekkers.
By far the largest increase in percentage terms in the crop protection business was achieved for fungicides, sales of which rose by 20.7%, it said. This performance was driven mainly by sales growth in Latin America and Europe. Herbicide and insecticide sales also registered slight increases.
However, the seed treatment products business declined by 5%, largely because of sales in Europe that had already been realized in the first quarter and reduced canola acreages in Canada, according to the company.
Sales of seeds rose 1.7%, driven by vegetable and rice sales.
Bayer reaffirmed its forecast for CropScience, saying the business “continues to expect that business growth will outpace the market, with sales advancing by a high-single-digit percentage toward $11.96 billion.”