New Products, More Output Likely in 2014, FCI Finds
7 July 2014 
The industry’s outlook is optimistic and hopeful, with most expecting to profit significantly.
More companies are predicting stable or increased product output because there is greater demand, propelling more businesses than ever before to expand by opening new facilities, developing new products and consolidating. More products are being registered than in the past, but in fewer places, FCI’s State of the Industry Survey shows.
Product output forecasts for the rest of 2014 show a stable outlook. 2014 data shows that about 97% of respondents expect to maintain or increase their output. Half of respondents expect to increase production at least 6%. More people are predicting a more substantial increase, as well. In 2014, 6% more respondents than in 2013 are predicting increased output of at least 11%, the highest amount the survey measured.
Another bold brush stroke clearly delineating positive growth is the slowly shrinking number of survey respondents who have predicted decreased output year over year. With the exception of 2012, fewer respondents have predicted decreased output overall, and of those who have predicted a decrease, increasingly more have been predicting that decrease to be smaller and less significant.
Output is unlikely to decrease, but in the event that it does, the decrease will likely be minimal. Reasons behind higher production point to higher global demand for crop protection products. In addition, China’s environmental regulations that forced many small producers to close could be prompting industry mainstays to operate closer to capacity.
Roger Gilmore of Memphis, Tennessee-based Gilmore Marketing and Development says his business will be developing more glufosinate ammonium, mesotrione and s-metolachlor products in order to handle increased customer demand and address the growing issue with glyphosate-resistant weeds.
Like Gilmore, about three-quarters of respondents say they will develop new products in the coming year. That is an increase of 5% over 2013 and 15% over 2012, indicating greater demand for new products and companies’ strategic goals of diversifying their portfolios. Those new products are likely to be adjuvants, noncrop chemicals, seeds or intermediates/inerts in addition to herbicides, insecticides and fungicides.
Survey data shows that more people are expanding with fertilizers, plant growth regulators, adjuvants and noncrop chemical products more often in 2014 than they have in any other year, further indicating increased demand and a desire to differentiate product offerings.
“We are developing some new adjuvants, biostimulants and crop care products for the markets in Europe and Latin America. Our core product portfolio is still built up by pesticides. But we see that there is an increasing demand for products which help to get the best results when using them,” said Holger Fege of ASCM, based in Germany.
Also, the markets for non-chemicals [biologicals] is increasing, including products that can also be used for integrated [pest management] programs (chemicals, biologicals and others).”
There is also an increased demand for a wider range of products.
“Our new products will be mainly generic registrations and tailor-made herbicides for the IVM market,” said Derek Alexander, managing director of Remitto in South Africa. “The products are developed to suit the company’s strategy of backwards integration and to ensure that the supply chain is shortened.”
Combination products continue to rise in importance, too, as farmers look to manage resistance, provide better plant health and make fewer applications on their fields.
“I will be developing new combinations of products like plant nutrients, nano products and plant hormone combinations,” said M. Ishfaq Rashid, director of Alpha Agro Chemicals in Pakistan.
FCI administered the State of the Industry survey to crop protection professionals in 46 countries in May 2014 and awarded an iPad and certificates to select participants.
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