Albaugh launches AD campaign to support its glyphosate anti-dumping petition

Albaugh, Inc., a privately held manufacturer of off-patent crop protection products headquartered in Ankey, IA, this past weekend launched an ad campaign in newspapers bringing attention to its anti-dumping petition against Chinese makers of Glyphosate.

The ad reads:

April 20, 2010

TO THE FARMERS OF AMERICA:

On March 31 Albaugh, Inc., a U.S. manufacturer of glyphosate, the worlds largest-selling herbicide, filed a petition to impose anti-dumping duties on glyphosate imported into the U.S. from China. I want to take this opportunity to explain to you the reasons for this action.

As a grower and a user of glyphosate-based herbicides, you are no doubt familiar with the dramatic volatility that the glyphosae markets have seen since late 2007. Faced with anticipated scarcity of the product, the Chinese producers increased glyphosate pricing by more than 400% between the fall of 2007 and the spring of 2008. Growers saw the cost of their glyphosate products skyrocket to as much as $30 gallon.

The rising prices inspired Chinese producers to increase manufacturing capacity, fueled by Chinese government export incentives and without the constraints of environmental controls with which U.S. businesses must comply. However, this capacity expansion proved to be overheated, and as a result the Chinese producers have dumped their product on our shores at prices that are below their costs of production.

Albaugh is a privately-owned company based in Ankeny, Iowa which for years has formulated glyphosate products for farmers. In 2006 Albaugh opened its glyphosate manufacturing plant in St. Joseph, Missouri, which has the ability to synthesize the glyphosate molecule and supply a substantial part of our countrys needs. We are the only other U.S. manufacturer of glyphosate besides Monsanto. However, due to these unfair trading practices, our company was forced to shut down our plant in 2009, and as a consequence has let go a significant number of our workers.

Our U.S. glyphosate manufacturing base is endangered. Imagine an environment where U.S. farmers who have purchased glyphosate resistant seeds are totally dependent on Chinese producers for glyphosate supply. The Chinese producers have already demonstrated how they will increase pricing if we are reliant on them to supply the market. We have also seen the real and harmful risks that can be posed by relying on China, with its lax environmental and product quality standards, to supply our needs for such products as pet food, drywall, and toys for our children. We cannot allow American agriculture to become as dependent on China for glyphosate as our country is dependent on foreign oil.

As an Iowa farmer and independent businessman, I ask all American farmers to support our anti-dumping petition so we can preserve our domestic glyphosate manufacturing base, restore jobs and economic growth in the heartland, and provide for the long-term security and stability of the glyphosate supply for the American farmer.

Thank you for your support and business.

Sincerely,
Dennis Albaugh