1. The development of the Agrochemical Market in Europe
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2. 2014

3. (Ex-manufacturer level – average exchange rates - Nominal US$)
Market Performance 2014
(Ex-manufacturer level – average exchange rates - Nominal US$)
Agrochemicals = $62, %
Seed= $40, %

4. Crop Protection Market Outlook 2014
NAFTA:
Lower crop prices
Maize area -3.9%
Soybean area +10.9%
Canada wheat area -7.4%
Continuing dryness in south and west USA
Modest decline in glyphosate prices
Hard winter affects citrus and autumn planted crops
US Registration review
Latin America:
Increased soybean and wheat area in Brazil and Argentina, but decline for maize
Dryness in Brazil in early 2014
Weaker Real affects Brazil crop exports
Increased GM uptake in Region
High inflation in Argentina
High interest rates in Brazil
Rising sugar and cotton price
Economic improvement drives developing markets
Asia:
Japan: modest improvement
Further GM uptake in China and India
Drive for grain production in China
Quest for rice self sufficiency in Malaysia and Indonesia
Lower palm oil and rice prices
Increasing food demand
Dry weather affects East Australia
Weak 2014 monsoon
Tax rise on agrochemicals in Japan
Europe:
Wheat price remains high
EU wheat area +3.2%
Oilseed area increased marginally
Re-registration under revised criteria
Mild winter promotes Autumn crop survival
Potential for high disease pressure
Good start to 2014 season
Wet summer in Central Europe
Africa / Middle East:
Modestly developing markets
Speciality crops for export
Improved political stability benefits North Africa
Political and infrastructure problems
Water availability
Growth Markets
Static to Slow Growth
Static to Decline
World
Rising demand for crop commodities
Static to declining glyphosate prices
Crop prices weakening
Farm economies strong, after good 2013
Lower maize and soybean prices

5. Regional Crop Protection Market Development

6. Crop Protection Market 2014 Analysis

7. Growth of European Crop Protection Market

8. Compound Annual Growth Rate of the European Crop Protection Market (% p.a.) € Terms

9. Top Twenty European Country Markets
Sales Growth in € Terms 2014/2009 (% p.a.) -5 5 10 15 20 25 30
Belgium
Netherlands
France
Austria
Slovakia
Greece
Denmark
Croatia
Czech
Germany
Portugal
Italy
Switzerland
Spain UK
Hungary
Poland
Ukraine
Russia
Bulgaria
Romania

10. Agrochemical Market Split by Product Category (2013)
World
Europe
Herbicide,
46.3%
Insecticide,
13.5%
Fungicide,
36.8%
Other, 3.4%
43.7%
27.5%
25.8%
Other, 3.0%

11. Agrochemical Market Split by Crop (2013)

12. European Agrochemical Market 2013 Key Crop Product Sectors
Red values are CAGR in % from

13. Crop Commodity Prices

14. Indicative Global Trade Commodity Prices 1998-2014
$/Tonne
Annual Average

15. GM Seed Market 2014

16. GM Trait Introductions Since 1995

17. Crops Planted with GM Varieties in 2014
NAFTA 46.4%
Canada
Canola – 91.5%
Soybean – 91.7%
USA
Soybean – 96.0%
Maize – 93.1%
Cotton – 99.5%
Canola – 91.0%
Sugar beet – 98.1%
Asia 11.4%
China
Cotton – 82.8%
Argentina
Soybean – 96.9%
Maize – 90.7%
India
Cotton – 97.2%
Brazil
Soybean – 91.2%
Maize – 85.4%
Rest of World 1.5%
Latin America 40.7%
Total = million acres (+3.5% over 2013)

18. Agrochemical Industry Structure and R&D Focus

19. Company Sales Increases 2014 (preliminary)
Note –results are for company fiscal year

20. Crop Protection Company Market Shares 2013

21. Company Sales and R&D Expenditure 2013

22. R&D expenditure of Leading Agrochemical Companies

23. Cost of Bringing a New Product to Market
Agrochemical
Plant biotechnology trait
Research
Development
Agrochemical costs based on 2009 Crop Life America/ECPA study
Plant biotechnology trait costs based on 2011 Crop Life International study

24. Agrochemical Active Ingredients in Development

25. Future Developments in Agrochemical and Seeds
Input Traits - Maize, Soybean, Cotton, Canola
Additional herbicide tolerant traits – dicamba, 2,4-D (Enlist), HPPD
Insect resistant traits for soybean
Expansion of insect coverage from new insect resistant traits –
e.g.VIP
Output traits
Drought / Stress tolerance/ Abiotic stress
RNAi
Precision Agriculture

26. Patents for Abiotic Stress 2009-2013

27. Patents for Abiotic Stress 2009-2013

28. RNAi – Gene Silencing
Ribonucleic acid interference (RNAi) is a method of gene silencing in target organisms
Potential applications of RNAi in agriculture include:
In-plant insect protection – e.g. corn rootworm
Foliar spray / seed treatments
Weed Control

29. Precision Farming Applications
Management
Data Analysis
GPS Systems
Agronomic Advice
Wireless Connectivity
Irrigation
Singulation and Spacing
Variable Rate Application
Steering Guidance and Autosteer Systems
Display Screen
Variable Rate Application
Chemical/Nutrient Application
Steering Guidance and Autosteer Systems
Display Screen
Seed
Agchems
&
Fertiliser
Precision
Farming
Field
Monitoring
Harvest
Soil Analysis
Remote Sensing
Field Sensors
Mapping
Weather
Yield monitor
Display Screen
Steering Guidance and Autosteer Systems

30. Market Environment in 2015

31. Monthly Crop Prices
Corn
Soybean
Rapeseed
Wheat

32. Maize Prices
$8.4 bushel
$4.1 bushel
Futures
USDA

33. Wheat Prices
€ 274 /T
Futures
€183 / T

34. Crop Protection Market Outlook 2015
NAFTA:
Lower crop prices
Maize area expected to decline
Soybean area anticipated to rise
Record EtOH production in 2014
Continuing dryness in south and west USA
Modest decline in glyphosate prices
Hard 2014/15 winter
US Registration review
Latin America:
Increased soybean but decline for maize
and wheat area in Brazil and Argentina, Dryness in Brazil in early 2015
Weaker Real affects Brazil crop exports
Increased GM uptake in Region
High inflation in Argentina
High interest rates in Brazil
Weaker sugar and cotton price
Economic improvement drives developing markets
Asia:
Japan: modest improvement
Further GM uptake in China and India
Drive for grain production in China
Quest for rice self sufficiency in Malaysia and Indonesia
Low palm oil, but rising rice prices
Increasing food demand
Dry weather affects East Australia
Europe:
Wheat price weakening
CAP reformed to Basic Payment Scheme
Ecological Focus Areas – Non cultivated land
EU-15 wheat area expected to decline
Re-registration under revised criteria
Mild winter promotes Autumn crop survival
Potential for high disease pressure
Africa / Middle East:
Modestly developing markets
Speciality crops for export
Improved political stability benefits North Africa
Political and infrastructure problems
Water availability
Growth Markets
Static to Slow Growth
Static to Decline
World
Sustained demand for crop commodities
Weakening glyphosate prices
Crop prices depressed
Farm economies weakening

35. European Market Outlook
Short term:
Futures Crop prices reduced but potential for further volatility
Challenging economic environment
Agrochemical Prices
Changes in EU CAP
Longer term:
Increasing demand for grain and oilseed crops
Agrochemical product re-registration
Resistance and regulatory issues create opportunities for new products
New farming technologies

36. Disclaimers
The information contained in this presentation constitutes our best judgement at the time of publication, but is subject to change. Phillips McDougall do not accept any liability for any loss, damage or any other accident arising from the use of the information in this presentation.
The information given in this presentation has been drawn from analyses and reviews presented in the Phillips McDougall products AgriService, Seed Service, AMIS Global and AgreWorld.
Phillips McDougall maintain a wide range of databases covering the crop protection and seed industries, this presentation presents only headline information. Access to these databases can be gained through subscription or consultancy. Our market research databases track product sales from global market totals down to brand level sales by crop and country in both volume, value and area treated terms.
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