Bayer says it “works to minimize as much as possible” problems in glyphosate production

Bayer CropScience sent a response to the request of AgroPages to clarify the information that it could have problems supplying glyphosate in the next three months to Brazil. According to a statement sent to customers on February 11, Bayer's global head of active ingredient production, Dr. Udo Schneider, said that due to a mechanical failure in the manufacturing plant of a supplier of key raw material, production “would drop drastically”. See the official statement for Brazil:

BAYER POSITIONING 

The agrochemicals market around the world is experiencing a historically challenging scenario due to the complexity in global trade flows, the pandemic, and extreme weather events – including Hurricane Ida in the US in October 2021 – that continue to put pressure on the economy and product offer.

In all of these situations, Bayer has been working with its customers around the world to help manage supplies and better meet their needs.

Recently, a supplier of a raw material needed to produce glyphosate experienced a mechanical failure that could impact our global production of the active ingredient for the manufacture of glyphosate. For the Brazilian market, Bayer is working to minimize possible impacts on the supply of Roundup branded products.

We reiterate that we will continue to work diligently with our customers to meet their needs and help them have a successful season.

APROSOJA

The Association of Soybean and Corn Producers of the State of Mato Grosso (APROSOJA-MT) expressed “concern and perplexity at the announcement made by Bayer”, describing the company's response as “too superficial and not very enlightening”.

“We are convinced that Bayer is fully aware of the impacts of any restriction on the supply of the product Glyphosate for the agricultural model we practice in Brazil – no-till farming – as well as for the performance of its main biotechnology – Intacta. In this way, it would be unnecessary [to remember Bayer the importance of] detailing the repercussion of the announcement for the Soy market in Brazil”, says the entity.

Therefore, say Brazilian soy producers, “we would like more details about the problem and whether or not there is a contingency plan. It is also unclear what the impact of this mechanical failure will be on the availability of the product in Brazil or from when rural producers will have their activities affected by the alleged occurrence”.

“In line with these inquiries, we would like to know if the commitments assumed with our rural producers will be fulfilled and, if not, how the company intends to mitigate the impacts on its customers. […] It is worth remembering that the Brazilian judiciary does not recognize adverse situations inherent to the core activity as a valid argument for invoking force majeure in contractual relationships”, concludes APROSOJA.

(Editing by Leonardo Gottems, reporter for AgroPages)