Global Crop Inputs 2019: A Look Back, A Look Ahead
10 December 2019 The end of the year is often a time of reflection — a chance to look back over the year to see what’s transpired, what’s changed, and consider where it all might lead. Looking over the pages (print and web) of AgriBusiness Global™ magazine from the past year, a few things stand out:
The Trade War
If the Trade War has done nothing else, it has shown how truly interconnected world trade is. It’s hard to find a story about the U.S.-China ordeal without reading how it’s influencing not only the GDP of those countries but also others in Asia, Europe, and just about every other part of the world.
There has been some discussion between the two countries, but any major breakthroughs seem unlikely.
In addition, the U.S. recently placed tariffs on $7.5 billion of European goods. The action was sanctioned by the World Trade Organization and is in retaliation for the EU offering subsidies to airplane manufacturer Airbus. The ag inputs industry doesn’t appear to be directly affected by these tariffs, but often the long-term effects aren’t played out until years later.
China
Speaking of China — the government’s continued crackdown on environmental regulation violators continues to concern anyone who imports product from China, which is just about everyone. Combined with the trade war, the closing of manufacturing plants has disrupted the supply chain and will likely continue to do so for the foreseeable future.
And like the unknown long-term effects of the trade war, we might not know how the ag input industry will be reshaped by what’s happening in China. Many companies have already found other sources for material. That trend will likely continue in the short term.
Environmental Respect Awards
Sustainability. Environmental stewardship. For 29 years Corteva Agrosciences (and DuPont before the merger with Dow) has recognized retailers and distributors for their commitment to those ideals.
Sponsored by Corteva and presented by AgriBusiness Global and sister publication CropLife® magazine, recipients of the of the Environmental Respect Awards were honored during Celebration Week in Washington, DC. There were 17 honorees this year from countries and continents around the world. We featured those companies in a special issue last month. You can read more about those companies and the events surrounding Celebration Week at environmentalrespect.com.
When the program was founded nearly three decades ago, it focused on North American businesses. ERA in 2007 started including international operations. The number of entries from around the globe continues to grow, a testament to how the principles of sustainability have been embraced and are being encouraged everywhere.
Precision Application
Digital farming has arrived, although the levels of sophistication and the degree to which concepts have been adopted and practiced around the world vary greatly. That said, the principles comprising precision agriculture have huge implications for the manufacturers and distributors of crop inputs.
The regulatory environment for traditional crop protection products has been squeezing the industry for years, and that’s not expected to change anytime soon. Precision application will likely disrupt the traditional application model. The companies at the forefront of this will be best prepared to survive any shakeup the industry might experience.
Looking to 2020
Many of the issues the industry struggled with this year will continue next year. The regulatory environment is unlikely to get any better. That’s one reason we’ve seen a rise in the biological inputs arm of the industry. That segment will continue to grow. Precision application and sustainability will continue to play a larger and larger role in the crop input market.
These issues create disruption and opportunities for the companies that are prepared. Even as the industry learns to deal with these concerns, we can be sure of one thing: There will be plenty of new issues to deal with in 2020.
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