Agricultural Chemicals Industry Trends

Consolidation

The agrochemical sector, which has undergone considerable consolidation in recent years, is now dominated by four global companies: Syngenta, Bayer, BASF, and Monsanto. A long downturn in farming has prompted mergers and acquisitions in the crop protection market. These large agrochemical producers are better able to withstand regional shocks such as bad weather, economic crisis, or tighter regulation.

Terrorism, Safety

Ammonium nitrate fertilizer can be a powerful explosive. Inexpensive and plentiful, the chemical has been used in terrorist attacks. The US government now requires better monitoring of ammonium nitrate stocks and sales.

Integrated Pest Management

The EPA encourages farmers to use a variety of methods to control pests, including crop rotation, knowledge of insect life cycles, pest-resistant plant varieties, and biological control measures, in addition to the targeted use of pesticides. Adopting such techniques will probably decrease demand for broad-spectrum pesticides, but increase the use of insect-specific chemicals.