Input bottlenecks will last into 2022

The global crisis in the supply of agricultural inputs is a concern for the German company Bayer that is expected to continue for months. The seed and pesticide technology giant foresees supply bottlenecks into 2022 and says it will be a challenge for all companies in the sector to guarantee these products to farmers around the world.

“We have supply concerns; some agricultural products are in short supply. Crop protection products are not as widely available as we would like. We have seen supply bottlenecks,” said Liam Condon, global president of Bayer Crop Science, which had revenues of 11.7 billion euros in the first half of this year.

The executive points out difficulties faced by the company at its Luling plant, in the US state of Louisiana, which was paralyzed for five weeks due to the damage caused by Hurricane Ida. “Events of this type are being faced by several companies around the world. We expect a scenario of high demand and challenging supply,” said Condon.

This case caught the attention of producers in Brazil. The reason is that the affected unit is Bayer’s main supplier of the herbicide glyphosate, the most popular herbicide in the country. At the beginning of the stoppage, between the end of August and the beginning of September, the company warned Brazilian farmers that the delivery of the product could take a long time due to the problem.

Condon recalls, however, that despite the accident having “taken away” five weeks of production of the input for the company, most of the supply of glyphosate comes from China, which is experiencing difficulties in making it. “Half of the global supply of glyphosate comes from China, and we know they face challenges in having enough energy to produce.

Source:  Valor Econômico

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https://valor.globo.com/agronegocios/noticia/2021/11/04/gargalos-afetarao-insumos-tambem-em-2022.ghtml

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