Glyphosate is a non-selective herbicide, meaning an application will kill most plants. It does this by preventing the plants from making three amino acids (components of proteins and vitamins) that are required for growth.
Over the last 18 months the product has been well priced but more recently the cost per pack has begun to climb.
Major players in the Glyphosate market are companies such as Monsanto (now part of Bayer) Zhejiang Jinfanda Biochemical, Tongda Agro-Chemical, Wynca, Jiangshan Agrochemical, Good Harvest-Weien and 8 others. You would not be incorrect in perceiving that many are based around the Pacific.
So why is the price creeping up?
a) Production in China is running at 75% of normal capacity;
b) Cost of raw materials is at a record high;
c) Currency. The Renminbi “V” Dollar has created another 10% increase (1.)
d) Freight costs continue to escalate, up 7.5% in February alone that is international and national.
e) Bayer’s production in Louisiana is still affected by the storms in February.
f) Significantly reduced competition as some key players have gone out of selling glyphosate
It is worth remembering that this is the single largest selling herbicide in the world and use in places like South America in genetically modified crops dwarfs that of England.
Therefore with Global stocks at a record low, if we don’t pay a higher price England won't see much in the way of product!
(1) I had to look this one up! Chinese money comes by two names: the Yuan (CNY) and the people's renminbi (RMB). The distinction is subtle: while renminbi is the official currency of China where it acts as a medium for exchange the Yuan is the unit of account of the country's economic and financial system.
Photo Shoot 1) Stubble Cultivation following application of glyphosate
2) Only the headland received autumn glyphosate
3) Blackgrass. Now why will it no die on its own in my wheat fields
4) Vetch and cereal cover crop grazed by sheep now a target for glyphosate application
5) Beet volunteers re-growing. A pity the frost did not do more damage.
6) Maize stubbles. Protection against erosion with the use of Ryegrass. Now destined for a spring crop.