Agrochemical Companies Diversify In Coronavirus Era
June 23, 2020
Chemical companies seek to lessen dependence on China.
Major agrochemical manufacturers are lessening their exposure to Chinese supply chain disruptions caused by the coronavirus pandemic through diversification, according to an article from Successful Farming. Companies including Bayer, Corteva Agriscience and BASF have reportedly taken steps to source chemical supplies from multiple locations. China, where COVID-19 is reported to have originated, is a major supplier of chemicals and chemical components used by U.S. farmers.
The industry as a whole has been moving away from a single-source country, according to Jeff Cecil, head of crop protection marketing at Syngenta, who says in the article that much of his company’s production is U.S.-based. Eric Wintemute, chairman and CEO of AMVAC, notes that some disruption in agricultural supplies from China had already occurred prior to COVID-19 due to increased environmental standards for chemical manufacturing mandated by the Chinese government. Tim Glenn, executive vice president and chief commercial officer of Corteva Agriscience, says that Corteva is sourcing chemicals from multiple locations to reduce its dependence on China and will assess its long-term diversification strategy “to help ensure it has resiliency and reliability in its supply chain.”
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