A Bright New Year

Avatar for Matt Hopkins By Scott C. Lucas|1 January 2008

Let me be one of the first to wish all of our readers around the industry our very sincere wishes for a happy and prosperous new year. With 2007 now behind us, we can look back on what turned out to be a year of change in agribusiness on many levels. Some of the most notable, of course, were shifts in crop patterns due largely to commodity demand from the fledgling biofuel industry, along with changes to the Chinese manufacturing sector — which have caused uncertainty and created some roadbumps, but which in the end should result in an improved, modernized industry. Beyond these, consolidation continued, particularly among “second-tier” ag-chem companies, which are closing the gap between themselves and the multinationals.

I think we will certainly see more transition in 2008, but also a re-stabilizing of the industry. The wrinkles are being ironed out, and companies are adjusting to the sweeping changes that came over the past year. The good news is, most crop prices are generally favorable for growers right now, and appear set to remain so. The indicators are positive, which means that 2008, while as uncertain as any year, should see a fair share of opportunities.