AgroPages-US crop protection market declined slightly in 2014-Agricultural news

US crop protection market declined slightly in 2014

Overall US crop protection chemical sales declined slightly in 2014, posting a decrease of 0.9% over the previous year. Net manufacturers' sales within the crop protection industry total $9.35 billion, according to the recently published "Crop Protection Manufacturers Report: A Strategic Market Analysis of the U.S. Crop Protection Industry" by Kline.

The U.S. crop protection chemicals industry experienced a challenging year for manufacturers as unfavorable weather conditions combined with low commodity prices forced manufacturers to make big decisions about their company's future direction throughout 2014.

Prolonged cold temperatures delayed the start to the U.S. season until late May, resulting in market conditions which reduced the need for sales of crop protection chemicals. The need for pre-emergent herbicides increased as concerns for glyphosate-resistant weeds continued. Insecticide and fungicide sales were affected by the cold temperatures while seed treatments gain a slight market share after experiencing a 25% increase the previous year.

Prices of agricultural commodities declined, further affecting the market in 2014, largely due to an increase in the scope of expected yields and a rise in stockpiles of key crops (corn, soybeans, and cotton). The lower prices of agricultural commodities contributed to a decline in grower profits effectively lowering sales of crop inputs, including crop protection chemicals.

The cold conditions reduced insect pressure, causing the insecticide segment to decline considerably. Similarly, disease pressure declined from the unseasonable weather resulting in less fungicide applications. A large percentage of growers did not apply fungicides because they planted late and by the time they got to August to spray it was dry.