Price Hike Playbook: Global Crop Protection Leaders Share Strategies for Navigating China Supply and Cost Pressures
AgriBusiness Global tracked down seasoned crop protection executives to share strategies for advancing business through geopolitical unrest and China price hikes. From all around the globe, these seven experts give crucial points to consider when planning for the third and fourth quarters of 2026.
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Diego Taube
Director
Chempro SA
“A main strategy for hedging the Chinese risk is to register products from first class Indian producers, which, for certain chemistries, are competitive in price and quality. However, the effectiveness of this type of action is limited, since in some cases, the Indian industry depends on certain key intermediates and raw materials that are produced in China.”
Daniel Traverso
Vice President/Director
Anasac International & Anasac Colombia
“The first thing to do is to not overreact. There’s a lot of speculation, so don’t buy just because the prices have started to rise. You also need to understand why some products have increased in price. You will see that some raw materials (bromine, methanol, glycine, etc.) related to certain technical products (diquat, glyphosate, etc.) have increased in price. You should follow the price trend of these raw materials to understand or anticipate the trends because not all technical products have increased in price.
“Other good practices include extending your lead time at least 30 days and advancing your purchase by 90 days, only for those active or formulated products with an upward trend and high-profit margin for your company. Last, energy and oil are rising, so everything derived from oil will also rise in price (including packaging).”
Nicolas Potrie
Director
TAFIREL
“Watch freight prices. For companies that have a presence in more than three LATAM countries, it’s a good idea to have stock in free trade zones in hub countries, so you can move fast in case of more uncertainty in the global context.
“Regulatory affairs are still increasing the requirements in many countries of LATAM, and sometimes they are not seeing that some rules of international trade (WTO, MERCOSUR, APEC, RCEP, CPTPP) are changing too fast, and the crop protection industry needs to adapt to the international trade of goods. For example, if we still put high standards of residues in grains, meat, dairy products … and tariffs and taxes are not the issue, it is the nontariff barriers to trade that are affecting the commercial relation between countries.”
Bob Trogele
CEO
ProAgInvest
“This is not the first time that energy prices have gone up or disruption has happened. If you’re on the supply side of this, you will want to communicate and keep people informed. Companies really need to look at “how do I reengineer my business? How do I bring in new technology to make the business more efficient? How do I take cost out? How can I streamline my supply chain?
“(Then), you have to look at which segments are going to benefit from this. (For example), as energy prices go up, so does biofuel. The other important piece is the inputs on the chemical side. If, on the nutritional side, fertilizer is too expensive for the farmer and he’s starting to reduce his demand, maybe he can supplement with biological products. People also have to get better at precision application technology. In summary, not adjusting is not an option.”
David Li
Vice President
SPM Biosciences
“Companies should be monitoring geopolitical trends. From there, companies need to correct their sourcing strategies, focusing on the upstream raw material supply of methanol, ethylene, sulphur, bromine, etc. Production planning of suppliers is significantly important for supply chain management.
“Companies should also intensify price checking with all possible suppliers, while also reevaluating the demand and seeking alternative solutions of crop protection. Check the global inventory for in-time delivery and change the priority to cost savings according to the proper timing of geopolitical trends.”
Abhijit Bose
Executive President & COO
Tagros Chemicals
“The current price hike in China is structural, not temporary but driven by policy tightening, cost inflation, and controlled supply of certain raw materials. Strategies to face this challenge should include a robust procurement agility, portfolio shift, and supply chain diversification, rather than relying solely on price pass-through. Risk mitigation should include strategic partnerships with Indian manufacturing companies who are backward integrated with proven track records.”
CS Liew
Managing Director
Pacific Agriscience
“In this tumultuous world of climate change, geopolitical rivalry, tariffs, wars leading to an energy crisis, and disruptions in logistics, the old ways of a good buy-sell and “ganbei” relationship with the Chinese suppliers do not work that well anymore. There is a need for a more strategic relationship that entails a JV or toll manufacturing/formulation.
“Such a strategic relationship, be it established with a Chinese, Indonesian, or Indian manufacturer, not only results in a better pricing and cost outcomes but ensures better supply chain resilience as well. It also allows the international buyer to take more control in the raw material planning, which is also subjected to the same forces and factors of this tumultuous world.
“If this strategic tie up is done with a manufacturer that has good R&D formulation and manufacturing innovation that includes some backward integration, it is a big plus. The buyer is then able to tap into these more advanced capabilities, allowing the former to operate much more efficiently through an asset-light enterprise. It results in a much better competitive position for both the manufacturer and the international buyer.”