Exclusive extracts from this 70-page-long report:
- Who are the key players?
The agrochemical industry continued to consolidate in 2017 as leading companies conducted mergers and acquisitions to strengthen their market positions and combine their respective agrochemicals and seeds specialty units. Bayer acquired Monsanto, Dow merged with DuPont, and ChemChina took over Syngenta. Combined net sales of these groups accounted for almost 60% of global market value in 2017. Companies such as FMC, Adama, Sumitomo and Nufarm are smaller players that generally enjoy leading positions in a few markets (Nufarm in Australia and New Zealand, Sumitomo in Asia, etc.). [...]
Groups analysed in this report include: Monsanto, DowDuPont Agriculture (Corteva), Syngenta, Bayer, BASF, Nufarm, Sumitomo Chemical, UPL Limited, FMC Corporation, Vilmorin & Cie.
- What are the players' strategies?
At the end of 2017, Syngenta outlined its strategic goals following its merger with ChemChina. The group's organic growth initiatives in crop protection solutions will be strengthened by targeted acquisitions, in line with its goal to become the world's third-largest seed producer. Priority areas of investment are: digital agriculture; corn and soy seeds; and further geographical expansion of recently launched products (e.g. Saltro, Solatenol and Plenaris seed treatment fungicides). Syngenta will focus on emerging market growth. […]
- What are the players' key growth and profitability drivers?
A key driver of Monsanto's growth in recent years has been an increase in corn seed and traits sales thanks to a licensing agreement in Brazil. In the future, Monsanto aims to continue relying on licensees to boost sales. This has been highlighted in recent actions such as the extension of its licensing agreement with Corteva (DowDuPont's agrichemical arm) for soybean seeds featuring the “Roundup Ready 2 Xtend” trait (with dicamba and glyphosate herbicide tolerance). […]