Report: Crop Protection Industry Sales Remain Strong In 2013

Affected by prolonged rainfall, weed resistance issues and higher manufacturing costs, the U.S. crop protection industry remained strong in 2013, posting an 8.2% increase over the previous year. Net manufacturers’ sales within the crop protection industry total $9.2 billion, according to the recently published Crop Protection Manufacturers Report: A Strategic Market Analysis of the U.S. Crop Protection Industry by worldwide consulting and research firm Kline & Co.

In anticipation of a healthy planting season, corn growers purchased high inventories of herbicides but excessive spring wetness in the Corn Belt and throughout the country caused almost 2 million acres to remain fallow and deferred spring planting, forcing some corn growers to switch to short maturity soybean varieties. The wet conditions reduced insect pressure, causing the insecticide segment to decline at a double-digit percentage while promoting disease pressure and modestly increasing fungicide sales. However, many growers halted or did not start fungicide applications as the wet weather was soon replaced by the summer time droughts. The plant growth regulators segment declines slightly as it heavily targets the cotton markets where acres planted decrease almost 16% in 2013.

“The wet weather conditions were ideal for growers to utilize the value of seed treatments. The feedback from growers planting treated seed was that they saw very good control when faced with additional pressure from disease and insects,” comments Joseph Prochaska, Project Manager at Kline’s Agriculture and Specialty Pesticides Practice. “Both Bayer and Syngenta saw excellent market share gains as their recent product introductions performed very well during the year.”

“With high commodity grain prices still warranting maximum crop production, major crop acres planted during the year declined just 1.2% from the previous year. Despite the decline in planted acres, growth within the crop protection market came in part from factors outside of planted acres,” adds Prochaska. The major growth drivers included weed resistance issues, increased prices due to higher manufacturing costs and major research-based manufacturer leverage of integrated strategies within its seed business. As a result of weed resistance issues and higher manufacturing costs, the industry witnesses glyphosate prices climb from an average of $9.50 per gallon in 2012 to $11.50 per gallon in 2013.

While the growing biological market within crop protection remains a hot topic of discussion, it has been pushed aside by the weed resistance problems that continued to persist in 2013. Consequently, herbicide use rate applications grew 10-20% to combat resistant weeds. According to the report, growers are formulating their own mixtures and looking for new and innovative solutions from manufacturers to target resistant weeds. As a result, manufacturers are developing new formulations with multiple modes of action and products that combine with new herbicide-resistant traits that aim to combat this persistent problem. Strategic alliances and partnerships are being formed for development of these new formulations that can best solve the resistance issue.

Kline’s Crop Protection Manufacturers Report covers the 2013 marketing year for the U.S. crop protection industry. The study provides an extensive review of the sales and trends affecting the crop protection chemical industry along with extensive profiles, including individual product sales, of the leading 20 companies which supply over 97% of the total industry sales.

Kline will be hosting a complimentary Webinar on key findings from the Crop Protection Manufacturers Report: A Strategic Market Analysis of the U.S. Crop Protection Industry on Wednesday, June 4, 2014 at 9 a.m. ET. Register for the event here.

Topics: ,

Leave a Reply

Crop Inputs Stories

Crop InputsMonsanto, FMC Expand Roundup Ready PLUS Platform
August 31, 2015
FMC Corp. and Monsanto Co. announced today an expanded agreement to continue their participation in the Roundup Ready PLUS Crop Read More
FertilizerFall-Applied Phosphorus: A Rooted Investment
August 28, 2015
As commodity prices decrease and input prices continue to rise, farmers are seeking more efficient strategies for meeting a high Read More
Monsanto Sign
Crop InputsWhat’s Next For Monsanto, Syngenta?
August 28, 2015
After dropping its $47 billion bid to take over Swiss agribusiness firm Syngenta, Monsanto may be turning its focus to Read More
Golden Harvest Corn stalks
Crop InputsMonsanto: Syngenta Not The Only Horse In Crop Protection Acquisition Race
August 28, 2015
Monsanto Co, having ditched an audacious $46 billion (£30 billion) offer for Syngenta AG, may downshift to a humbler strategy Read More
Top 100 Articles
Crop InputsLand ‘O Lakes, United Suppliers Finalize Merger
August 24, 2015
According to a press release on August 24, owners of United Suppliers, Inc. and members of Land O’Lakes, Inc. “have Read More
West Central Cooperative, Jefferson, IA
CropLife 100Iowa Cooperatives To Explore Unification
August 19, 2015
The boards of directors at two of Iowa’s leading farmer-owned cooperatives yesterday signed a letter of intent to study the Read More
CropLife 100Southern States Coop Hosting Drone Flight This Friday
August 3, 2015
Southern States Cooperative — No. 9 on the CropLife 100 — is hosting an FAA-approved drone demonstration at Grandview Farms Read More
CropLife 100Aligned Ag Distributors Adds Four New Owners
July 30, 2015
Aligned Ag Distributors LLC has announced the addition of four new customer/owners to Franklin Holding Co. LLC. They are: The Read More
CropLife 100Pinnacle Purchases California-Based Specialty Crops Retailer
July 20, 2015
Pinnacle Agriculture Holdings has successfully acquired California-based NH3 Service Co.  Operating as part of Pinnacle’s Performance Agriculture brand, the new locations Read More
Asmus Farm Supply liquid fertilizer facility features 20,000 square feet
CropLife 100Slideshow: Asmus Farm Supply Shows Off Its New Liquid Fertilizer Facility
July 15, 2015
Asmus Farm Supply, Rake, IA, recently added a new liquid fertilizer facility to its company operations. The new liquid fertilizer Read More
Latest News
StewardshipBee Buffer Strip Initiative Seeks 100 Ohio Farmers
August 31, 2015
The U.S. Bee Buffer Project, an initiative of the Pollinator Partnership (P2), Burt’s Bees and The Burt’s Bees Greater Good Read More
2015 ShowStopper Award, MAGIE
EquipmentA ShowStopper From Case IH: The Patriot 2250
August 31, 2015
For nine years now, visitors to the yearly Midwest AG Industries Exposition (MAGIE) show have been tasked with not only Read More
Crop InputsMonsanto, FMC Expand Roundup Ready PLUS Platform
August 31, 2015
FMC Corp. and Monsanto Co. announced today an expanded agreement to continue their participation in the Roundup Ready PLUS Crop Read More
Deere Nutrient Applicator
Eric SfiligojThe Good & Bad News From MAGIE
August 31, 2015
As I write this column, I’ve just returned from the annual Midwest AG Industries (MAGIE) trade show in Bloomington, IL. Read More
CPS Morenci receiving its 4R certification
StewardshipCPS Morenci Becomes First Michigan Facility Certified I…
August 31, 2015
The 4R Nutrient Stewardship Certification Program has announced that Crop Production Services, Inc.’s facility located in Morenci, MI, has been Read More
EquipmentDeere Announces Soucy Track Distribution Alliance
August 28, 2015
John Deere announces an alliance with Soucy Track to sell and distribute products through the John Deere dealer channel. “This Read More
FertilizerFall-Applied Phosphorus: A Rooted Investment
August 28, 2015
As commodity prices decrease and input prices continue to rise, farmers are seeking more efficient strategies for meeting a high Read More
Monsanto Sign
Crop InputsWhat’s Next For Monsanto, Syngenta?
August 28, 2015
After dropping its $47 billion bid to take over Swiss agribusiness firm Syngenta, Monsanto may be turning its focus to Read More
Golden Harvest Corn stalks
Crop InputsMonsanto: Syngenta Not The Only Horse In Crop Protectio…
August 28, 2015
Monsanto Co, having ditched an audacious $46 billion (£30 billion) offer for Syngenta AG, may downshift to a humbler strategy Read More
ManagementConsolidation hits and a miss; And a look at China’s ch…
August 28, 2015
As Monsanto suspends its pursuit of Syngenta, consolidation news at the retail and distribution level heats up. CropLife magazine’s Executive Read More
Corn Field
MicronutrientsHuma Gro Introduces New Boron Liquid Nutrient Formulati…
August 28, 2015
BORO-MAX, a new boron (B) 10% liquid nutrient formulation, has been added to the Huma Gro product line. This new Read More
Crop InputsNFU: Monsanto Decision To Withdraw Syngenta Bid ‘…
August 26, 2015
National Farmers Union (NFU) President Roger Johnson said the organization was very pleased by the news that Monsanto has withdrawn Read More
Crop InputsMonsanto Withdraws Bid For Syngenta
August 26, 2015
Monsanto Co. abandoned its latest effort to acquire Syngenta AG, the world’s top maker of pesticides, after a sweetened bid Read More
Syngenta Sign
Crop InputsSyngenta Comments On Monsanto Announcement
August 26, 2015
The Board of Syngenta confirms that it received a verbal proposal from Monsanto to acquire the company at a price Read More
Case IH Patriot 2250 Sprayer
EquipmentHigh-powered Case IH Patriot 2250 Sprayer Pushes Throug…
August 26, 2015
Engineered with more muscle, the new 660-gallon-capacity Patriot 2250 sprayer features best-in-class horsepower, along with the fuel efficiency that comes Read More
Crop InputsLand ‘O Lakes, United Suppliers Finalize Merger
August 24, 2015
According to a press release on August 24, owners of United Suppliers, Inc. and members of Land O’Lakes, Inc. “have Read More
TMX-2050 In-Cab Display Launch Run Screen
Eric SfiligojPrecision Ag Could Shine In Increased Spotlight On Agri…
August 24, 2015
By any measure, 2015 is turning into one of the most challenging years agriculture has ever experienced. All throughout good Read More
ManagementCrop Conditions In Minnesota and Traveling Time
August 21, 2015
Editors Paul Schrimpf and Eric Sfiilgoj discuss the crop outlook from a field trip to Minnesota and upcoming travel plans. Read More