Bancella News

The Unknown Impact of a SinoChem / ChemChina Merger

If Chemchina and Sinochem merge it would create a $100-billion company, by far the largest crop protection company in the world. This comes on top of the ChemChina’s $43 billion acquisition of Syngenta. According to the AgriBusiness Global Advisory Board, the only way that new entity could make money “is to play monopolist.”

With a substantial portion of chemistry coming out of China, a ChemChina/Sinochem could control a significant portion of product.

One challenge of such a merger, is to figure out how to detangle the companies’ product lines.


GMO and Genome Editing Science Continue to Advance Despite Continued Skepticism

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China is Still a Wildcard

China continues its efforts to crackdown on manufacturers. The government’s efforts will reduce the number of chemical parks in Jiangsu Province from 50 to 20 in two years, and chemical factories from 7,000 to 2,000 during that same time and then to 1,000 by 2022. Currently Jiangsu province accounts for 40% of the synthesized AIs. Across the country there are 600 chemical parks. 

The full implications of these changes have yet to be seen or felt. India might be able to pick up some of the slack, but it’s unlikely and unexpected to be able to make up any shortfalls caused by China. 

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Agrochemical Trade Update: What to Expect Between the U.S. and Asia in the Coming Weeks

General Observation

The agrochemical industry continues to be suffering a very significant downturn. In many instances, the drop off in market value for some active ingredients is in excess of 50%. It appears as if there are at least two main factors:

  • Inventory levels in the field appear to be very high. If they are as high as some believe, then the industry will be in a tough slog for a prolonged period of time.

  • China tariffs/plant interruptions. Both of these issues are having an impact on the price and availability of imports from China.


Duty Suspension Update

The United States International Trade Commission opened the window to accept new requests as well as renewals of existing suspensions/reductions on Friday, October 11, for a period of 60 days. The window closed on Tuesday, December 10.

Bio Huma Netics Earns the 2019 Biostimulant  Industry Impact Award

This prestigious recognition is presented to the company in the biostimulant sector that has leveraged product innovation that addressed the global biostimulant industry challenges and unique growth opportunities; successfully implemented a distribution strategy based on strategic partnerships, downstream value chain education, and key market identification and penetration; and executed a change-making marketing and communication campaign that took an emerging trend from a virtual unknown to a standard in the agribusiness marketplace. 



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