The top pesticide companies all recorded increases in dollar sales in 1995, according to Agrow: World Crop Protection News.
Global agrochemical sales rose by 11.9% to almost US$29 billion. Discounting inflation and currency factors, growth in real terms is estimated to be 4.3%. Industry experts predict that the global agrochemical market will increase an average of 1.9% per year over the next five years.
Ciba, a Swiss multinational, was the leading agrochemical company with over US$3.2 billion in 1995 sales, an 11.2% increase over 1994. Ciba recently announced plans to merge with the Swiss multinational Sandoz to form a new corporation, Novartis.
The two companies' agrochemical sales, which totalled more than US$4.4 billion in 1995, would be almost double those of their nearest rivals. According to Agrow, North America and Europe will account for approximately 60% of Novartis' sales, but the company plans to target Latin America and Asia as areas of future growth.
In addition to becoming a dominating force in the agrochemical market, Novartis will also be the world's second largest seed company and plans to play a leading role in the introduction of genetically engineered seeds, including maize, oilseeds, sugar beet, vegetables and flowers.
Monsanto, a US-based multinational, ranked second with over US$2.4 billion in sales, an 11% increase over 1994. Monsanto's herbicide Roundup (glyphosate) posted double-digit volume growth and was largely responsible for the total increase in sales.
The company is nearing completion of a herbicide formulation and packaging plant in India which, according to Monsanto, is necessary to meet the rising demand for herbicides, including glyphosate, in India.
Monsanto has also announced plans to acquire Agracetus, W.R. Grace's US plant biotechnology business. Agracetus, a pioneering biotechnology company, produced the first transgenic varieties of cotton, soybeans, peanuts and certain other crops. Monsanto currently has licensing agreements for some of this technology; however, the acquisition will give Monsanto unlimited access to the technology and will eliminate the possibility of future disputes over intellectual property rights.
Of the top agrochemical companies, Bayer showed the largest growth in dollar sales, with a 21.7% increase. The company rose from sixth to third place in Agrow's ranking, with sales of over US$2.37 billion, and exceeded sales and profit targets set for its crop protection business in 1995. Bayer's sales greatly increased in the US, Asia and Latin America in the past year.
Zeneca ranked fourth, with sales valued at over US$2.36 billion. The company saw increases in both volume and value in all geographical regions and product categories, including a 10% growth in the US market. Sales grew by more than 7% in China and Thailand, with a 50% increase in sales of Gramoxone (paraquat) in China.
Zeneca has announced plans to merge its international seed business with Suiker Unie, a private Dutch agricultural cooperative. The new company, Zeneca-VanderHave, will rank among the world's top five seed companies.
The German multinational AgrEvo had 1995 sales of over US$2.34 billion, ranking fifth with a 9% share of the global agrochemical market. Over 43% of AgrEvo's sales were in Europe in 1995; however, the company expects to expand sales in the US and Asia in 1996.
Within the next two years, AgrEvo sees its US market share expanding with introduction of the herbicide glufosinate on herbicide-tolerant crops.
Agrochemical sales of the leading companies Company Sales in US$ millions % change 1. Ciba 3284 +11.2 2. Monsanto 2472 +11.1 3. Bayer 2373 +21.7 4. Zeneca 2363 +12.3 5. AgrEvo 2344 +14.6 6. DuPont 2322 +8.9 7. Rhone-Poulenc 2068 +14.6 8. DowElanco 1962 +13.1 9. Amer. Cyanamid 1910 +19.4 10. BASF 1450 +15.3 11. Sandoz 1125 +12.4 Sources: Agrow, March 1, March 15, March 29, April 19, 1996.
[From Pesticide Action Network North America Updates Service.]