AgroChemEx Conference Shanghai

Dear Growers

We recently travelled to Shanghai to attend the AgroChemEx conference where we had the chance to meet with some of the largest chemical manufactures in China. The conference was made up of hundreds of agro chemical manufacturers and traders exhibiting their products and also thousands of visitors from all over the world. As well as spending time building relationships with specific Chinese manufacturers, we spent time chatting with distributors from countries like Mexico, Brazil, Argentina, US, Canada, Russia and Pakistan which was very interesting.

Russian distributors have to pay cash prior to the product even leaving China. They only sell on cash also given the high level of non payment and default amongst Russian rural retailers. What we found most interesting about the Russian approach is all the product they import from China is loaded on ships and sails around South East Asia, India, through the Suez Canal to Crimea before being loaded onto trains to Moscow, instead of going overland via the trans Siberian railway. Apparently it is cheaper to ship half way around the world and there are significantly less product thefts by corrupt officials than it going via trans Siberian railway.

Glyphosate pricing

After spending time with 3 of the largest glyphosate tech manufacturers in China, it was pretty clear the price of glyphosate is going up over the coming months. The main reason being the cost of raw materials have increased (inline with the price of crude oil) and quite simply the manufacturers all want the price to rise as they haven't been hugely profitable in the last 12 months. Given this, we estimate the price of glyphosate 450 will rise 5-10% between now and Feb 2017.

If you would like a price on glyphosate or any crop chemical for immediate or future delivery, please send us an email on customercare@truecrop.com.au or give us a call on 1300 342 199.

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