Agricultural Chemical Manufacturing
Companies in this industry manufacture fertilizers and pesticides. Major companies include BASF and Bayer (Germany), Corteva Agriscience (US), Nutrien (Canada), Sumitomo Chemical (Japan), Syngenta (Switzerland), and Yara (Norway). Many smaller companies are involved in mixing purchased raw materials to produce customized fertilizer compounds with special characteristics.
The global agricultural chemical manufacturing industry is driven by food production requirements, according to ADRM Software Industry Data Models. Large, fast-developing countries with major agricultural economies are increasingly being targeted for industry growth.
The US agricultural chemical manufacturing industry includes about 1,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $30 billion.
Demand for agricultural chemicals relies mainly on demand for various crops, which in turn depends on crop prices. The profitability of individual companies is linked to efficient operations and marketing. Big producers have large economies of scale in production. Smaller companies can compete effectively by making specialty chemicals or fertilizer mixtures for local markets. The US industry can be considered as highly concentrated with the 50 largest companies accounting for about 80% of the industry's revenue.
International trade in fertilizers is large, because phosphate rock and potash are available only in a few countries. The high product value makes bulk shipping costs relatively unimportant. The relative cost of natural gas (for nitrogen fertilizers) has a large effect on trade.
The US is usually a net importer of fertilizer, largely due to limited domestic supplies of nitrogen and potash, according to the US Department of Agriculture. The US imports most of its fertilizer supply from Canada, followed by Brazil with Russia as one of its key suppliers, according to Successful Farming.
Products, Operations & Technology
Major products include agricultural and commercial pesticides, which account for about 60% of the industry revenue followed by synthetic ammonia at about
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms