Crop Protection And The CropLife 100: A Mixed Picture

In the grand scheme of 2011, crop protection products did just fine. According to data compiled in the 2011 CropLife 100 survey of ag retailers, overall sales for the category improved a respectable 8% for the year to $7.1 billion. “Sales of crop protection products for us were quite good,” says Wade Blowers, COO at Hamilton Farm Bureau, Hamilton, MI.

Despite this fact, however, the decade long market share losses for the category continued to pile up. By the end of 2011, crop protection products will represent only 29% of annual crop input and service sales at the nation’s top retailers. To put this into some historic perspective, the crop protection products category used to be the biggest yearly revenue generator for CropLife 100 retailers back during the beginning of the 2000s, with better than 40% market share. In recent years, the category has simply been outpaced year in and year out by faster growing input categories such as fertilizer and seed.

Still, from a sub-category standpoint, 2011 was one of the better years the crop protection products category has seen. During 2010, two of the three sub-categories that make up this group — herbicides, fungicides and insecticides — had difficult sales years. According to that year’s survey, herbicide sales increased 1% to more than 5% for only 36% of respondents. Likewise, insecticide sales increases of 1% to more than 5% were recorded by only 42% of CropLife 100 retailers. Only fungicides bucked this trend, up 1% to more than 5%  for 62% of respondents.

In this sense, 2011 was a banner year. According to this year’s CropLife 100 retailers, more than 50% of respondents had sales increases of 1% to more than 5% in all three sub-categories. As in 2010, fungicides led the pack, with 81% of CropLife 100 retailers growing their revenues in this area 1% to more than 5%. Meanwhile, herbicides sales of 1% of more than 5% were recorded by 66% of respondents and 54% had similar gains in their insecticide sales.

Generic Issues

In contrast to the performance of the sub-categories in 2011, post-patent products had something of a rough year. Back at the beginning of the 2000s, there are many market observers that thought so-called generic crop protection products would ultimately take over the lion’s share of ag retailer sales. At the time, overall sales for this group hovered around the 30% mark.

Since then, however, generic fortunes have shifted somewhat. During the 2009 CropLife 100 survey, generic products made up 24% of respondents cumulative crop protection product sales. In 2011, this figure has dropped to 21%.

According to CropLife 100 retailers, there are two main reasons why they carry generic products. The first is to meet the demand of grower-customers. Forty-four percent of respondents said this was their major reason for selling post-patent products.

The second reason is generics tend to offer a better profit profile than brand name crop protection products. When asked this question, 38% of CropLife 100 retailers wrote that higher profits motivated them to keep post-patent products in their warehouses.

If there’s a knock against the proliferation of generics among CropLife 100 retailers, it’s a matter of trusting their suppliers. When asked if they believed they could trust their generic suppliers, only 16% of respondents agreed with this statement. The majority, 61%, not did.

Leave a Reply

One comment on “Crop Protection And The CropLife 100: A Mixed Picture

  1. Eric, nice article! I think we will see crop protection swing back towards the previous share as the glyphosate resistance jugernaut gets traction.

State of the Industry Stories

Liquid Fertilizer Storage tanks
State of the IndustryComplex Fertilizer Market Brings Mixed Feelings
January 5, 2016
Declining fertilizer prices and plentiful supplies should be good news for growers facing low crop prices. But they and their Read More
Asmus Farm Supply crop protection products in storage
State of the Industry2016 Crop Protection Outlook: The Guessing Game
January 4, 2016
One would naturally assume that retail sales of crop protection products in a contracted market would themselves be contracted, but Read More
Seed corn bags in storage
Special ReportsThe Outlook For Seed In 2016
January 3, 2016
Among all crop input categories going into 2016, the seed category has as many questions regarding which direction it will Read More
Wilbur-Ellis’ new fertilizer blending facility, located in Mott, ND, was designed by A.J. Sackett & Sons.
State of the IndustryBuying Intentions Survey: Retailers Taking A Prudent Approach In 2016
January 2, 2016
The CropLife® magazine Buying Intentions Survey made its debut last year to gauge current industry trends against the retailer’s plans Read More
Top 100 Articles
Elburn Cooperative
CropLife 100Elburn Cooperative Members Vote To Join CHS
December 28, 2015
With 81% of eligible producers voting, 94% cast an affirmative ballot for Elburn Cooperative, a diversified agricultural retailer based out Read More
West Central Cooperative, Jefferson, IA
CropLife 100Farmers Cooperative-West Central Merger Approved
December 21, 2015
The members of Farmers Cooperative Co. (FC), Ames, IA, and West Central Cooperative, Ralston, IA, have both approved the merger Read More
Wheat Growers Innovation Center, Bath, SD
CropLife 100Wheat Growers Opens Innovation Center
December 21, 2015
Wheat Growers’ commitment in providing its farmer-owners with the latest in technological advancements now has a one-of-a-kind focal point, as Read More
CropLife 100ARA Selects The Andersons As 2015 Retailer Of The Year
December 9, 2015
The Agricultural Retailers Association today named Maumee, OH-based The Andersons as its Retailer of the Year for 2015. The award Read More
CPS Washington Court House John Deere Sprayer
CropLife 100Application Equipment Report: It Is Easy Being Green For Top 100 Ag Retailers
December 5, 2015
On The Muppets television show, Kermit the Frog is famous for singing a song about the troubles he encounters in Read More
Fertilizer Bin
CropLife 100Fertilizer Sales: Another Down Year For Top 100 Ag Retailers
December 4, 2015
In pure number terms, the fertilizer category still dominates all crop inputs/services among CropLife 100 ag retailers. In 2015, for Read More
Latest News
Crop Protection Products in storage
Crop InputsNewsweek: World Is ‘Awash In Glyphosate’
February 11, 2016
The world is awash in glyphosate, the active ingredient in the herbicide Roundup, produced by Monsanto. It has now become Read More
Crop InputsEPA: Let’s Talk Imidacloprid, Bees On February 18
February 11, 2016
EPA will hold an online technical briefing on its preliminary pollinator risk assessment for imidacloprid, a neonicotinoid insecticide, on Feb. Read More
ManagementThe latest on Syngenta-ChemChina Deal
February 11, 2016
Executive Editor Paul Schrimpf invites Jackie Pucci and Dave Frabotta from sister publication AgriBusiness Global to discuss the latest developments Read More
AdjuvantsUniversity of Illinois Confirms Adjuvant’s Perfor…
February 11, 2016
An independent University of Illinois study has shown that WETCIT adjuvant, now with TransPhloem technology, provides greater herbicide uptake and Read More
Crop InputsSyngenta’s Acuron Flexi Receives EPA Approval
February 11, 2016
Growers looking to control their toughest weeds with flexibility will have access to Acuron Flexi corn herbicide from Syngenta, now Read More
EquipmentAGCO Showcases White Planters 9800VE Series Planters AT…
February 11, 2016
AGCO unveiled the new White Planters 9800VE Series planter during the 2016 National Farm Machinery Show in Louisville, KY. The Read More
EquipmentCase Unveils 2000 Series Early Riser Planter At NFMS
February 10, 2016
Case IH revealed the all-new 2000 Series Early Riser planter to media and attendees at the opening of the National Read More
Syngenta Sign
Crop InputsSyngenta: Keep Ag In Mind During Election Season
February 10, 2016
As presidential candidates stake out their 2016 election platforms and key priorities, growers and their business partners should seek opportunities Read More
Crop InputsMarrone Bio Innovations Submits New Bio-Fungicide For E…
February 9, 2016
Marrone Bio Innovations, Inc. (MBI) today announced that it has submitted a new biological fungicide (MBI-110) to EPA. The broad spectrum Read More
Crop InputsWeed Expert: Adding A Second Herbicide Not Always Easy
February 9, 2016
In my last post, I reviewed some recent research that suggests one of the best ways to delay the evolution Read More
Crop InputsGenetic Literacy Project: Farmers Need More Herbicide C…
February 9, 2016
There are two things that I think just about every weed scientist can agree on, writes Andrew Kniss for The Read More
HerbicidesWeed Expert Warns North Dakota Growers Of Coming Herbic…
February 9, 2016
Ford Baldwin painted a bleak picture of weed control at a recent workshop here exploring the future of ag production, Read More
HerbicidesWSSA Announces New, Updated Free Web Resources
February 9, 2016
Today the Weed Science Society of American (WSSA) announced that new and updated educational materials for both weed scientists and Read More
Soybean field
FungicidesFour Arysta Fungicide Formulations Given FIFRA Approval…
February 8, 2016
Arysta LifeScience North America recently announced the issuance of Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) Section 2(ee) Recommendations for Read More
FungicidesAgri-Fos Systemic Fungicide Plus Receives EPA Registrat…
February 8, 2016
Vivid Life Sciences has announced the EPA registration of Agri-Fos Systemic Fungicide Plus, a highly concentrated active ingredient phosphite fungicide, Read More
Crop InputsBayer Contests EPA’s Decision On Valuable Insecticide F…
February 5, 2016
Crop Science, a division of Bayer, has announced it has refused a request by the Environmental Protection Agency (EPA) to Read More
Wheat Field North Dakota
Seed/BiotechSyngenta Wins Seed Fraud Suit Against South Dakota Grow…
February 5, 2016
Syngenta has obtained a $25,000 settlement from Paul and John Mayclin, Mayclin Farms, Plankinton, SD, in response to their Plant Read More
ManagementOABA Annual Conference Wraps Up In Columbus
February 5, 2016
More than 300 Ohio AgriBusiness Association (OABA) members and industry professionals were on hand to engage in collaborative learning and Read More