News of an email to shareholders and clients of “Europe Ventures” comes amidst recent word from BASF SE, the world’s biggest chemical company, that they will give crop protection a bigger share of its research budget as agriculture withstands an economic slump that’s hurting demand for its other products.
The “Europe Ventures” newsletter was said to specifically mention BASF, who are clearly showing their commitment to the agrochemicals market; citing “Kixor,” a herbicide targeted for U.S. introduction in 2010, which “may well” exceed its predicted peak of 100 million euros ($136 million) in annual sales.
Analysis from the “Europe Ventures” team have deduced that last year, 35 percent of BASF’s research and development budget went into Agricultural Solutions and all indications are that the company plans to spend more again in 2009. Agricultural Solutions was BASF’s only unit to report a profit increase and double-digit sales growth in the first quarter, with a 21 percent gain.
The world’s 10 biggest agrochemical companies all had double-digit sales increases in 2008, with Sumitomo Chemical Co. growing the slowest at 10 percent and Monsanto Co. the fastest at 42 percent, according to data cited by “Europe Ventures”. They put full-year sales at BASF’s crop division at $5 billion, a 16 percent increase.
However, “Europe Ventures” were quick to clarify that this trend would not necessarily result in a slew of agro-acquisitions as the current climate was not the time for the key players to increase their debt positions.
