AgroPages-2013 Top 20 global agrochemical firms: rise of Chinese firms-Agricultural news

Grace Yuan

Global Marketing Director

AgroPages

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Highlights:

- Sales of top 20 global agrochemical firms approaching $60 billion, entry level on the list rising to $500 million

- Top 6 growing stably; seed having contributed significantly to the sales

- Generic company has a lack of continued growth; emerging market becoming main driving force to growth

- Chinese firms rising distinctively while Japanese firms declined

According to the list of top 20 global agrochemicals companies 2013 published by AgroPages, the 2013 top 20 companies achieved total sales of $59.27 billion, 10% up year on year; entry level on the list has risen to $500 million, which is $58 million more than that of 2012. The top 6 have maintained stable growth with total sales accounting for 70% of the total sales of the top 20.

By a comparison between the 2012 top 20 and 2013 top 20, there is no difference to the top 8. In 2013 FMC overtook Sumitomo Chemical ranking No.9 and Sumitomo Chemical dropped a place down to No.10; UPL, Arysta LifeScience and Cheminova continued to stay in No.11, 12 and 13. It is worthy of note that the several companies ranking after No.13 had a significant change, with the entry of 3 newcomers including the Italian Sipcam-Oxon and 2 Chinese companies. The several Japanese firms on the 2012 top 20 fell out of the top 20 for the first time.

Top 6 growing stably; seed having contributed significantly to the sales

Syngenta still stayed on the top of the list although growth rate dropped slightly; Bayer CropScience made a breakthrough in the achievement of its $10 billion sales for the first time. The 2 giants respectively achieved sales of $1.09 billion and $1.04 billion, far ahead of other companies.

BASF, followed by Dow AgroSciences, Monsanto and DuPont who have all achieved two-digit sales growth rate. BASF has achieved highest growth rate among the top 6, with the growth rate having reached 15.5% in 2013 from the 3.6% in 2012. BASF’s sales volume and sales price both rose in 2013, of which sales in North America grew significantly reaching 35.1%. Furthermore the acquisition of the bio-pesticide company Becker Underwood further increased the sales of BASF. Dow AgroSciences achieved a 10% growth in 2013, which is more or less the same as the 9.6% in 2012. The growth was mainly attributable to the increased herbicide sales in North America and Latin America, as well as the increased insecticide sales in Latin America.

Monsanto has had the highest sales growth among the top 6, its agrochemicals business in 2013 fiscal year grew by 21.7%, sales reached $4.521 billion and total profit reached dramatically to $1.57 at a growth rate of 59.2%. Monsanto’s product portfolio forms such a structure where GM seed drives the sales of agrochemicals, being the main reason for its sales growth. The acquisition of Climate Corporation in 2013 speeded up the performance of Monsanto’s comprehensive agricultural platform providing opportunities of growth. DuPont achieved a 12.1% sales growth in 2013 reaching $3.55 billion, mainly attributable to its insecticide sales in Latin America.

Generic company has a lack of continued growth; emerging market becoming main driving force to growth

Among the 7 companies ranking from No.7 to No.13, FMC achieved a robust growth which is 21.6% enabling it to reach No.9, a place up from the No.10 in 2012. The ranking of the rest is respectively: ADAMA, UPL, Cheminova and Sumitomo Chemical; the sales of Nufarm and Arysta LifeScience dropped slightly.

Adama (formerly Makhteshim-Agan Industries, renamed Adama in April 2014) ranked No.7, its agrochemicals business worldwide increased by 8.6% in 2013 including the two-digit growth in Latin America and Asia Pacific. Nufarm suffered a 3.4% decrease in the 2013 fiscal year ranking No.8, due to the decreased lawn of Australia and Brazil, BASF’s retrieved crop protection dealership in Australia and Monsanto’s termination of its glyphosate distribution agreement.

FMC maintained a growth in 2013 at a speed above average with sales of $2.14 billion, overtaking Sumitomo Chemical and ranking No.9. FMC recently announced an acquisition of Cheminova at a spending of $1.8 billion. Among the top 10, Sumitomo Chemical is the only ranking-dropped company, yet whose 2013 sales increased slightly by 4.8% and reached $2.05 billion ranking No.10.

UPL achieved 8.2% sales growth in 2013 reaching $1.71 billion, its much increased domestic sales contributed to the sales while sales in other regions also achieved two-digit growth. Arysta LifeScience encountered a 1.3% minor drop in 2013. Cheminova achieved sales of $1.1 billion retaining a stable ranking at No.13 on account of increased sales in all agrochemicals, especially the 25% growth in North America.

Chinese firms rising distinctively while Japanese firms declined

Chinese companies did a great performance in 2013, 4 companies entered the top 20, where Wynca Chemical and Huapont-Nutrichem stayed on the ranking No.14 and No.16 respectively while Zhejiang Jinfanda Biochemical and Sichuan Leshan Fuhua Tongda Agro-chemical Technology newly entered the list ranking No.15 and No.17 with respective sales of $576 million and $553 million. Among the 4 Chinese companies, 3 are glyphosate producers (Wynca Chemical, Jinfanda Biochemical and Fuhua Tongda Agro-chemical Technology). The price of glyphosate continued to go up and the sales increased significantly in 2013 due to increased demand, stimulated GM crop growth and more stringent environmental compliance regulation.

There were 3 Japanese companies dropping out of the top 20, being respectively Nippon Soda, Mitsui Chemicals Agro and Nissan Chemical. The sales of the other 2 Japanese companies - Kumiai Chemical and Ishihara Sangyo Kaisha decreased respectively by 8.2% and 6.9%, ranking dropped down to No.18 and No.19 from the No.14 and No.15 last year. The sales of Arysta LifeScience dropped a little bit. Sumitomo Chemical achieved slight increase but ranking dropped.