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    Agricultural Chemical Manufacturing Industry Profile

    Report Page Length: 10-12
    Last Quarterly Update: 4/12/2021
    SIC Codes: 2873, 2879
    NAICS Codes: 3253
    Chapters Include:
    Industry Overview Trends & Challenges Industry Forecast
    Quarterly Industry Update Call Prep Questions Website & Media Links
    Business Challenges Financial Information Glossary & Acronyms
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    Excerpt from Agricultural Chemical Manufacturing Industry Profile

    Companies in this industry manufacture fertilizers and pesticides. Major companies include Bayer and BASF (Germany), Corteva Agriscience (US), Nutrien (Canada), Sumitomo Chemical (Japan), Syngenta (a Switzerland-based unit of ChemChina), 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 979 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $30 billion.

    COMPETITIVE LANDSCAPE

    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.

    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 ...

     
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