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Home » Interest in Consolidation Continues to Grow in Farm Supplies Market

Interest in Consolidation Continues to Grow in Farm Supplies Market

September 2, 2015
The Economist

However, Syngenta played hard to get. It rebuffed a bid of $45bn in June. And another, made on August 18th, worth around $47bn. So, on August 26th, Monsanto walked away. But consolidation of the industry may be in prospect anyway. The takeover battle stimulated the interest of other big agricultural suppliers: BASF, another of the big six, had reportedly sought financing to make a rival offer for Syngenta. And Monsanto itself may not be done. Next year the firm may set its sights on another target.

Two decades ago the industry was far more fragmented. In 1994 the top four companies in the worldwide market for seeds and crop biotechnology had a combined share of 21 percent. By 2009 the top four’s share was 54 percent. Similarly, in agrochemicals, the top four's share rose from just over a quarter to more than half over that period. But the pressure for another round of consolidation remains.

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KEYWORDS agricultural supply chain agrochemicals market Business Strategy Alignment Chemicals & Energy crop yields fertilizers Food and Beverage Global Supply Chain Management Regulation & Compliance seeds production Supply Chain Analysis & Consulting Supply Chain Management: Business Strategy Alignment The Economist
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