Agricultural Chemical Manufacturing
Brief Excerpt from Industry Overview Chapter:
Companies in this industry manufacture fertilizers and pesticides. Major companies include Bayer and BASF (Germany), Corteva (US), Nutrien (Canada), Sumitomo Chemical (Japan), Syngenta (a Switzerland-based unit of ChemChina), and Yara International (Norway). Many smaller companies are involved in mixing purchased raw materials to produce customized fertilizer compounds with special characteristics.
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.
PRODUCTS, OPERATIONS & TECHNOLOGY
Fertilizers are a handful of commodity chemicals that contain nitrogen, phosphorous, or potassium. Pesticides are a broader group of chemicals, but many of the biggest sellers are also commodity products.
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