Agrochemicals Procurement Intelligence Report: Strategies for Cost-effective Procurement

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Agrochemicals Category Overview

The agrochemical category is expected to grow at a CAGR of 3.4% from 2023 to 2030. Increasing agricultural productivity on currently used agricultural land is crucial to feeding the world's population. Agrochemicals are therefore crucial to the agricultural sector and aid farmers in increasing the quantity and quality of their harvests. The primary factor driving the expansion of agrochemicals is the rising need for food as a result of population growth.

Agrochemicals harm the ecology when utilized in higher doses, which causes surface water pollution. As a result, the production of bio-based fertilizers and pesticides has created numerous new market opportunities for major agrochemical category participants. In an effort to boost their reputations and win over clients who are concerned about sustainability, Corteva, and BASF are making bio-based fertilizers. As the market for bio-based fertilizers expands globally, manufacturers are in a good position to profit from it and increase their market share. Marrone Bio Innovations is one of the leading player in the global bio-pesticides market. The company’s net sales increased by 45% driven by strong demand for bio-based pest management.

 

Order your copy of the Agrochemicals Procurement Intelligence Report, 2023 - 2030 , published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

 

The individual requirements of the client will determine whether agrochemicals can be used in the procurement process. The sorts of crops grown in the location, the soil conditions, and the pests and diseases common there are some variables that may affect the choice to purchase agrochemicals.

This category makes use of cutting-edge technologies like biotechnology and precision farming. Corteva is utilizing biotechnology to create genetically engineered crops that are less dependent on chemical pesticides and more resistant to pests. By monitoring data on soil, weather, and other factors to identify the best time for planting and harvesting crops, BASF uses precision technology to maximize agricultural yield. After applying precision farming, the average production grew by 8%, the cost of inputs was reduced by up to 20%, and the sale level increased by 7%.

 

Agrochemicals Procurement Intelligence Report Scope

The Agrochemicals category is expected to have pricing growth outlook of 11% – 13% (annual) from 2023 to 2030, with below pricing models.

  • Cost-plus pricing model
  • market-based pricing methods

 

Supplier Selection Scope of Report                               

  • Cost and pricing
  • Past engagements
  • Productivity
  • Geographical presence

 

Supplier selection criteria of Report

  • Ability to maintain the agricultural ecosystem
  • treatment (fungicide, growth regulators)
  • active ingredients (natural, bio stimulants)
  • formulation
  • precision farming
  • biotechnology
  • technical specifications
  • operational capabilities
  • regulatory standards and mandates
  • category innovations
  • others

 

Agrochemicals Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

  • Market Intelligence along with emerging technology and regulatory landscape
  • Market estimates and forecasts from 2023 to 2030
  • Growth opportunities, trends, and driver analysis
  • Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments
  • Porter’s 5 forces
  • Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis
  • Engagement and operating models, KPI, and SLA elements
  • LCC/BCC analysis and negotiation strategies
  • Peer benchmarking and product analysis
  • Market report in PDF, Excel, and PPT and online dashboard versions 

 

Agrochemicals Procurement Cost and Supplier Intelligence

Typically, businesses use cost-plus or market-based pricing methods. In the cost-plus pricing model, prices are set using the cost of production plus a markup to account for profit and overhead. The market-based pricing model, on the other hand, bases price determination on supply and demand factors. When the market is favourable, this method enables businesses to increase their profit margin while still keeping them competitive in unfavourable situations.

The total cost of manufacturing includes the price of labor, raw materials, and other costs. Raw materials such as phosphoric acid, nitrogen, and potassium are used in this category. In North America, the price of phosphoric acid fell from USD 1290/MT to 1190/MT in the first quarter of 2023. Price also declined in the Asia-Pacific region from USD 1495/MT to USD 1335/MT in the first quarter of 2023. The price of nitrogen was estimated to be around USD 785/MT in 2022 in North America. At the end of 2022, the price of nitrogen in the Indian market was USD 188/MT.

China exports of pesticides currently make up about 30% of the global market, with a 10% increase and USD 11.5 billion in value. India is the world's second-largest exporter, with USD 5.7 billion in exports. The nation has a sizable manufacturing sector and is renowned for creating goods of excellent quality at low costs.                                           

The agrochemicals category is highly fragmented and competitive since it is made up of so many small and medium-sized businesses. A persistent desire for innovation and cost-cutting has resulted in fierce rivalry. Additionally, this industry is heavily regulated, which makes it difficult for new businesses to enter. As a result, larger businesses are acquiring niche or regional players to gain access to new markets and goods. Farmers and other agrochemical users have benefited from the wide variety of products made possible by the market's fragmentation.

 

List of Key Suppliers

  • BASF
  • Corteva
  • Bayer
  • FMC
  • UPL
  • Syngenta
  • Adama Agricultural Solution
  • Nufarm
  • PI Industries

 

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.

 

Our services include (not limited to):

  • Market Intelligence involving – market size and forecast, growth factors, and driving trends
  • Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
  • Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing

Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

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