U.S. Crop Protection Facing Unprecedented Challenges

U.S. Crop Protection Facing Unprecedented Challenges

The U.S. agricultural chemicals market has experienced significant issues in the wake of the pandemic, from supply chain disruptions and labor shortages to increased regulatory pressure and supplier and distributor consolidation. Agricultural distributors and retailers must be able to compete in a constantly and rapidly changing market, plus offer new solutions to current challenges, including:

  • Pesticide resistance
  • Increased prices of fertilizers
  • New technologies in agriculture such as artificial intelligence and satellite imagery
  • Intemperate weather patterns
  • The ability to offer a broad variety of products including traditional chemistry, biostimulants, biopesticides, or biotechnology seed varieties

All of these challenges and market realities have led to shifts in the industry that Agricultural chemical suppliers are assessing and reacting to. “It is crucial for suppliers of agricultural chemicals that business decisions be made with consideration of multiple facets of the industry,” says Laura Mahecha, Director of Agricultural Chemicals at Kline & Company.  Whether assessing leading distributors serving the industry or changes in supplier incentive programs, Kline’s Ag practice provides thorough, insightful reports to help our subscribers navigate the evolving market.

Kline’s recently published report “Leading Distributors in the U.S.  Crop Protection Industry: A Strategic Market Analysis” analyzes leading national and regional distributors, larger cooperatives, and buying groups that total 94% of crop protection manufacturer net sales. This study provides detailed profiles of the top 17 distributors, merger and acquisition activity among agricultural retailers, strategic partnerships with ag retailers among distributors, and the role ag retailers play among suppliers and growers.

The changes in the marketplace have also significantly impacted incentive programs that agricultural chemical suppliers have been able to offer distributors, retailers, and growers in 2021 and 2022.  While it can be overwhelming to stay abreast of the sheer volume of products and variety of incentive programs currently being offered, our report helps save our clients time by synthesizing important information on these programs. The “Effectiveness of U.S. Crop Protection Company Channel Incentives” report provides a ranking of the top 10 agricultural chemical suppliers based on client input, a full assessment of 2021 incentive programs offered, and highlights of select products in 2022 with significant changes in price, supply, or programs.    For more information on these reports and how Kline’s Agrochemicals practice can help inform your business decisions, contact us.

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