Prominent agrochemicals
companies are moving towards consolidation, driven by factors such as large
drop in commodity prices and the strategic benefits of collaboration between
various seeds and pesticides markets
Applications
of Fungicides an effective crop strategy
Fungicides are different types of pesticides used as protectants
or eradicates to prevent plants against getting infested with fungi. The fungi
cause mold, rot or diseases and impedes the proper development of saplings and
crops. Fungicides has formed an effective crop strategy used by
agriculturalists to augment the crop yield and a comprehensive solution to
control disease in plants. Fungicides as pesticides are gaining traction across
regions where the crop is likely to be infested by fungi, driven by need to
improve the storage shelf life and to enhance the quality of agricultural
produce; their applications help farmers to safeguard them against a
significant produce loss that occurs after occur post-harvest, which results in
huge money losses in agriculture.
Several ways of classifying fungicides exist: they are classified
on the basis of chemical group, modes of action, and by the alteration of
physical properties once inside the plant. Furthermore, on the basis of mode of
action fungicides can be specific or general; general ones have a wide range of
activity and are helpful for plant cultivators and plant growers to protect
several types of pathogenic fungi, examples are sulfur, captan, and mancozeb. Apart
from the preventing effects of fungicides they also exhibit curative properties;
that is, they are effective against a wide range of pathogens that may have
infected the plant, or is useful in those plants that tend to have a higher risk
of pathogens developing resistance to common fungicides. Recent developments
indicate fungicides to be potent pesticides in preventing stripe rust and other
foliar fungal diseases infesting the crop wheat.
Consolidations
between businesses of crop seeds and pesticides: Recent Developments
Witnessing the immense functionalities and applications of
fungicides have led key market players and stakeholders in farm businesses to
go for consolidations between businesses of crop seeds and makers of pesticides.
Various possible and speculative acquisitions are poised to stir up the
competitive landscape scenario of Fungicides Market and keep the investors and busy
contemplating the effect of the acquisitions on agrochemical businesses.
A German
pharmaceutical and crop chemicals major Bayer AG has offered $62 billion to buy
Monsanto, a U.S. based seeds company; the development would augment the stake
of German multinational chemical company to become a dominant player in the
seed and pesticide business across the player. As revealed by German major, it intends to pay Bayer $122 a share in cash, representing a 37 % premium to
Monsanto's closing price on May 9; however, the proposal is yet to be accepted.
According to Thomson Reuter’s data, the yet-to-be accepted proposal by Monsanto
will make for the largest all-cash takeover on record. The company reveals that the deal has already
been through the necessary approvals by supervisory and management boards and
the German major is optimistic about the impact of consolidation. The deal if
consummated would help the company to expand its product offering to include antibiotics,
genetically modified crops and pesticides, with an annual revenue of over than
$67 billion. As claimed by Bayer, buying Monsanto would enable Bayer to tap the
rapidly surging demand of food and will be helpful to farmers to boost their productivity
so that an estimated 10 billion people globally can be fed by 2050.
Fungicide Market
Overview & Prospects
World over, leading agrochemicals companies are moving towards
consolidation, driven by factors such as
large drop in commodity prices that has adversely farm incomes, and the
benefits of collaboration between various seeds and pesticides markets. China National
Chemical Corporation, a Chinese state-owned chemical company, announced in February
the acquisition of Syngenta AG, the Swiss agribusiness that produces
agrochemicals and seeds, for a sum of approximately $43 billion. In another of
the major takeover, DuPont Co. and Dow Chemical Co. have planned to enter into
collaboration and carve a niche space in agrochemical business. Witnessing the
ample growth prospects in the industry, Allied Market Research has published a
report titled “World Fungicides Market - Opportunities and Forecasts, 2013 –
2020”; the global fungicides market would reach$16.2 billion by 2020, growing
at a CAGR of 5.4% from 2014 to 2020. The analysis tracks the current market
dynamics, emerging trends, recent takeovers and mergers, and technological
innovations that shape up the competitive landscape in fungicides market.
