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

Fertilizer Tender close-up
MicronutrientsHow Micronutrients Fit Into 2017 Fertility Plans
January 10, 2017
Where do micronutrients stand going forward in fertility plans? For one thing, Tim Mundorf, Field Representative with Midwest Laboratories, says Read More
Fertilizer application
State of the IndustryCautious Optimism On Fertilizer In 2017
January 10, 2017
What kind of fertilizer rates are growers and retailers looking at in 2017 and beyond? According to stakeholders CropLife magazine Read More
Asmus Farm Supply crop protection products in storage
State of the IndustryCrop Protection Products Market: Complexity Begets Opportunity
January 10, 2017
While other key market segments in agriculture continue to see tumultuous shifts in sales volumes going forward (large equipment sales are Read More
Pioneer corn seed in storage
Special ReportsState Of The Seed Industry: Better Later Than Never
January 3, 2017
Traditionally, the majority of the nation’s grower-customers made their seed planting decisions in the late fall. Normally, when folks attended Read More
Trending Articles
Farmer and aptop
Matt Hopkins10 Warning Signs Your Website Is Grossly Outdated
February 8, 2017
Your Website is often a visitor’s first impression of your ag retail business. A positive first impression can set the Read More
AgriSync
Matt Hopkins17 Agriculture Apps That Will Help You Farm Smarter In 2017
December 9, 2016
Ag professionals are working smarter, not harder, than ever before. Smart farming technologies have enabled them to reduce costs, maximize Read More
R4023 Sprayer, John Deere
CropLife 100Ag Retail Equipment Report: The Green Party Continues
December 7, 2016
In the annual race for sales in the ag retail equipment marketplace, the color schemes for participants are a little Read More
Mike Stern
Precision AgClimate Corp. CEO Talks Retailer Support For Digital Ag
December 1, 2016
CropLife Magazine’s sister publication, AgriBusiness Global, recently sat down with Mike Stern, CEO of The Climate Corp., following the Monsanto subsidiary’s Read More
Precision AgTrimble Debuts End-to-End FMIS Platform
November 28, 2016
October’s inaugural PrecisionAg Vision Conference left this author with many thoughts and things to ponder in the coming months. Probably Read More
CHS Primeland
CropLife 100The 2016 CropLife 100 Report: Reviewing The Many Bulls And Bears Impacting This Year’s Marketplace
November 28, 2016
For virtually all of 2016, the nation was wholly focused on the big Presidential election. Some folks aligned themselves with Read More
Latest News
ManagementSouth Africa Update and the New New Leader G5
February 24, 2017
Editors Eric Sfiligoj and Dan Jacobs discuss the recent visit to South Africa by sister magazine AgriBusiness Global and the Read More
Fall Creek Watershed
StewardshipUpdate: Nutrient Stewardship In Indiana Requires Cool, …
February 24, 2017
Update: The application deadline for NCRS funding has been extended to March 17, 2017. Green leaves sparkle in the sunlight. Trees Read More
Greenleaf Technologies TADF03-D Dual Fan Nozzle
NozzlesSix Greenleaf Nozzles Approved For XtendiMax With Vapor…
February 22, 2017
Greenleaf Technologies has announced that six of its TurboDrop D Series nozzles have been approved for use with Monsanto’s XtendiMax Read More
Winter Wheat
Industry NewsTiger-Sul Hires Manitoba And Eastern Canada Account Man…
February 22, 2017
Tiger-Sul, a global leader in sulphur fertilizers and crop performance products, has announced that sales veteran Trevor Loewen has joined Read More
NFMS 17 Hagie Sprayer
Eric SfiligojThe Read From Louisville: Uncertain
February 22, 2017
By the time this column appears across the country, the annual Commodity Classic will be in full swing. This means Read More
SprayersApache 1000 Series Sprayer Earns 2017 EquipmentWatch Hi…
February 21, 2017
ET Works has been named a winner in the 2017 EquipmentWatch Highest Retained Value Awards program, the industry’s only award Read More
Measuring Bulk Tanks
StewardshipMeister Media Among 2017 Award Winners Presented By The…
February 21, 2017
The Pesticide Stewardship Alliance (TPSA) held its annual conference in San Diego, CA, earlier this month where three awards were Read More
John Reifsteck
CropLife 100GROWMARK’s Reifsteck Earns NCFC Director Of The Y…
February 21, 2017
GROWMARK Chairman of the Board and President John Reifsteck has earned the prestigious Director of the Year Award from the Read More
Roy Blunt
LegislationARA Recognizes Blunt, Heitkamp For Legislative Efforts …
February 17, 2017
Agricultural industry continues to face federal regulatory challenges. Thankfully, agriculture’s allies in the U.S. Senate stepped forward. The Agricultural Retailers Read More
LegislationThe Fertilizer Institute Commends Senate On Confirmatio…
February 17, 2017
The Fertilizer Institute (TFI) President Chris Jahn issued the following statement on the Senate confirmation of Oklahoma Attorney General Scott Read More
Trump, Senate, Cabinet
LegislationBREAKING: Trump EPA Nominee Scott Pruitt Confirmed by S…
February 17, 2017
Scott Pruitt, who as Oklahoma’s attorney general spent years suing the Environmental Protection Agency over its efforts to regulate various Read More
ManagementFebruary Road Trip Edition
February 17, 2017
Editors Paul Schrimpf and Eric Sfiligoj discuss their recent visits to Indiana and Kentucky. Read More
Heritage Cooperative Finished Building Aerial
ManagementHeritage Cooperative, Agland Co-op Approve Merger
February 17, 2017
Agland Co-op and Heritage Cooperative stockholders have both approved the merger agreement between Agland Co-op and Heritage Cooperative. Now begins Read More
LegislationARA Fly-In: Ag Retail Descends on Capitol Hill, Lawmake…
February 15, 2017
More than 100 agricultural retailers, distributors and suppliers headed to Capitol Hill Tuesday morning for the Agribusiness Congressional Fly-in, according to a Read More
Untreated soybean seed Heartland Coop
Seed/BiotechMarrone Bio Innovations, Groundwork BioAg Bio-stacked M…
February 13, 2017
Marrone Bio Innovations, Inc. and Groundwork BioAg, Ltd have announced successful seed treatment field trials of the world’s first all-biological Read More
NL5000 With G5 Technology
SpreadersNew Leader Introduces NL5000 Dry Nutrient Applicator Wi…
February 13, 2017
New Leader, a division of Highway Equipment Company (HECO), has announced the next generation of spreading technology with the NL5000 Read More
Fertilizer Storage
Crop InputsThe State Of The Fertilizer Industry
February 9, 2017
He’s all hat, no horse.” It’s a humorous way of describing a person who tells a good story, but is Read More
CropLife 100Pinnacle Agriculture Agrees To Credit Agreement Amendme…
February 9, 2017
Pinnacle Operating Corp. has entered into an amendment (the “Amendment”) to its First Lien Credit Agreement that will provide for, Read More