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Monsanto slashing Roundup prices

Agriculture.com Staff 09/21/2009 @ 10:53am

An "incredibly volatile" marketplace in the last 2 years is the main driver of action announced this week by Monsanto officials to slash prices for its Roundup glyphosate herbicide products.

"We anticipate farmers will see Roundup prices that are 50 percent of what they were last year," says North American crop protection lead Glenn Stith in a Monsanto report. "This new price is effective now as retailers and farmers begin planning for the 2010 planting season."

The last 2 years have been a wild ride in the glyphosate business, making it tough for farmers to "manage through" when it comes to pricing and managing crop protection products, and the glyphosate market has been one of the bellwethers of that volatility, Stith explains. That's why Monsanto is cutting Roundup prices by up to 50%, he says.

"The global glyphosate business was incredibly volatile in 2008 and 2009 resulting in a difficult situation for both suppliers and farmers to manage through," Stith says in a Monsanto report. "Retailers and farmers faced uncertain product supply, rapidly fluctuating prices, and some quality issues from Chinese suppliers that led to crop safety concerns and failures in weed control."

Part of what's making the new pricing possible is a growing supply coming online soon at Monsanto's Luling, Louisiana Roundup facility. Add to that company investments in new raw material development capacity, and Stith says will keep Roundup a viable option when the glyphosate marketplace is rapidly changing as more competition enters.

"Our investments in capacity show our commitment to providing farmers and retailers with a consistent supply of high-quality product with unsurpassed weed control when they make that decision," he says. "We believe we can offer farmers a competitively priced product that is superior to the Chinese generics in the market."

An "incredibly volatile" marketplace in the last 2 years is the main driver of action announced this week by Monsanto officials to slash prices for its Roundup glyphosate herbicide products.

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