Sales grow 6.2% for crop protection distributors

decrease font size  Resize text   increase font size       Printer-friendly version of this article Printer-friendly version of this article

With growth of 6.2%, the U.S. crop protection chemical industry is projected to become an $11 billion market at the distributor cost of goods sold (COGS) level during 2013, according to the recently published report Leading Distributors in the U.S. Crop Protection Industry: A Strategic Market Analysis by global consulting and research firm Kline & Company. By tracking the leading 17 distributors, the report covers over 96% of total crop protection chemicals sales within the United States. Sales reported include both private-label crop protection chemicals and adjuvants, which include surfactants, oils, water conditioners, and drift control agents.

Among the factors shaping the value of the 2013 industry are slight increases in corn, soybean, and wheat acres planted, growing biotechnology through seed and traits, as well as consolidation.

The 2013 season began cold and wet, delaying corn and soybean planting across many major corn-producing regions.  Major crop acres planted increased by just 436,000 acres, less than 1% of the total; consequently, crop protection growth was driven by pre-season demand for herbicides, reinforced by strong concern over glyphosate-resistant weeds. Wet conditions throughout much of the United States contributed to reduced insecticide usage, but created demand for fungicides.

Distributor consolidation/expansion activity continued throughout 2013 with multiple acquisitions from both Wilbur-Ellis and Pinnacle Agriculture Holdings. Wilbur-Ellis acquired several agribusiness retailers including S&S Ag Supply, Blue River Ag Supply, Orchard Fertilizer, in addition to building a new agronomy center in Mott, ND. Pinnacle Ag Holdings, through its subsidiary Jimmy Sanders, acquired the assets of the Mayfield Grain Company, Freeman & Son Seed Company, 3-D Chemicals and Fertilizer, Mathis Farm Supply and Acuff Farm Supply. The “Big Three” national distributors—Agrium, Helena, and Winfield—have continued to follow a somewhat similar growth strategy.

Leading Distributors in the U.S. Crop Protection Industry: A Strategic Market Analysis identifies the U.S. crop protection industry as mature yet dynamic on a year-to-year basis with plenty of business opportunities for companies willing to take educated risks. Growth within this segment is being further driven by newer formulations and technology that support the highest-value crops. Biopesticide use will continue to grow as new regulations and effective use combinations with traditional chemistry are adopted.

This perennial report is written and developed as a tool for marketing professionals and executives to accurately assess the performance of the 2013 crop protection chemical market. By providing distributor COGS, the report affords industry professionals an actionable perspective of industry sales at the manufacturers’ level.


Buyers Guide

Doyle Equipment Manufacturing Co.
Doyle Equipment Manufacturing prides themselves as being “The King of the Rotary’s” with their Direct Drive Rotary Blend Systems. With numerous setup possibilities and sizes, ranging from a  more...
A.J. Sackett Sons & Company
Sackett Blend Towers feature the H.I.M, High Intensity Mixer, the next generation of blending and coating technology which supports Precision Fertilizer Blending®. Its unique design allows  more...
R&R Manufacturing Inc.
The R&R Minuteman Blend System is the original proven performer. Fast, precise blending with a compact foot print. Significantly lower horsepower requirement. Low inload height with large  more...
Junge Control Inc.
Junge Control Inc. creates state-of-the-art product blending and measuring solutions that allow you to totally maximize operating efficiency with amazing accuracy and repeatability, superior  more...
Yargus Manufacturing
The flagship blending system for the Layco product line is the fully automated Layco DW System™. The advanced technology of the Layco DW (Declining Weight) system results in a blending  more...
Yargus Manufacturing
The LAYCOTE™ Automated Coating System provides a new level of coating accuracy for a stand-alone coating system or for coating (impregnating) in an automated blending system. The unique  more...
John Deere
The DN345 Drawn Dry Spreader can carry more than 12 tons of fertilizer and 17.5 tons of lime. Designed to operate at field speeds up to 20 MPH with full loads and the G4 spreader uniformly  more...
Force Unlimited
The Pro-Force is a multi-purpose spreader with a wider apron and steeper sides. Our Pro-Force has the most aggressive 30” spinner on the market, and is capable of spreading higher rates of  more...
BBI Spreaders
MagnaSpread 2 & MagnaSpread 3 — With BBI’s patented multi-bin technology, these spreaders operate multiple hoppers guided by independent, variable-rate technology. These models are built on  more...


Comments (0) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left


Elevator Legs

Adams Fertilizer Equipment offers an increasing line of fertilizer handling equipment to meet the needs of today’s industry. Whether it ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form