The Global Top 20 Agrochemical Companies ranking has been released, with eight companies based in China.

　Recently, the UK-based agrochemical information provider Agrow released its list of the top 20 global agrochemical companies for 2018. Syngenta retained the No. 1 spot with fiscal-year 2017 sales of $9.244 billion, followed by Bayer Crop Science at $8.713 billion, BASF at $6.704 billion, and DowDuPont in fourth place with $6.1 billion.

It is a source of pride that Syngenta, the world’s largest agrochemical giant, was acquired by China National Chemical Corporation last year. Adama, also among the top 20, is likewise part of the China National Chemical Corporation. Furthermore, six Chinese companies—Yingtai Bio, Weifang Runfeng, Nanjing Hongtaiyang, Fuhua Tongda, Jiangsu Yangnong, and Jiangsu Huifeng—have made the top‑20 list. Altogether, eight of the world’s top 20 agrochemical firms are either Chinese enterprises or affiliated with Chinese companies.

Following Syngenta’s acquisition by Sinochem:

Steady performance growth

Herbicides, fungicides, insecticides, and other agricultural chemicals have all risen across the board.

Syngenta is the world’s largest Pesticide , the third largest seed The technology company was acquired in 2017 by China National Chemical Corporation for US$49 billion. Since then, ChemChina has risen to the forefront of the global agrochemical industry, giving rise to a three‑way competitive landscape dominated by the United States, the European Union, and China.

The profound differences between Eastern and Western cultures pose significant challenges for Chinese companies during post‑merger integration. The primary difficulties lie in the divergences in national regulations and corporate governance frameworks; their long‑standing, deeply entrenched nature makes cultural alignment particularly daunting. Whether Syngenta can achieve a truly meaningful integration with ChemChina has long been a focal point of industry attention.

In the first half of 2018, Syngenta’s crop protection product sales increased by 6.5% year over year, reaching US$5.28 billion. Herbicides, fungicides, insecticides, seed All product categories, including treatment agents, posted broad-based gains, with insecticide sales surging 21.3% year over year. Markets across all regions also delivered strong growth, with Latin America posting an increase of more than 10%.

“Mr. Frédéric J. Brouillard, CEO of Syngenta, stated: ‘We are pleased to report growth across all regions—adjusted for divested assets, as noted below—and, in particular, strong performance in Brazil following several years of declining sales.’ Including the specialized crop protection business, which encompasses turf, ornamental, and specialty pest management products, Syngenta’s first-half sales totaled $5.532 billion, up 6.5% year over year.

Syngenta noted that the company still posted growth in its financial results, even though antitrust divestitures resulted in a 2% decline in sales. Syngenta—whose acquisition by ChemChina was completed on June 8, 2017—and another ChemChina subsidiary, Adama, were required to divest a crop protection business valued at US$490 million to Nufarm as part of the acquisition; of this amount, US$95 million represented proceeds from the divestiture of Syngenta products.

In the first half of 2018, Syngenta, including crop protection products, seed Total sales, including floriculture and specialized crop protection businesses, amounted to US$7.249 billion, up 4.8% year over year. EBITDA increased 1.5% year over year to US$1.700 billion; excluding divested assets, the growth rate reached 8%.

     Following Adama’s acquisition by Sinochem:

Entering a stable growth trajectory

Profits surged this year following the merger with Shalonda.

Also part of China National Chemical Corporation, Adama ranked sixth among global agrochemical companies with fiscal-year 2017 sales of US$3.259 billion.

It is important to emphasize that it is no longer accurate to describe Adama as an Israeli company. As early as October 2011, China National Chemical Corporation acquired a 60% stake in Adama, and by September 2016, the remaining 40% was also brought under CNCC’s ownership. Today, Adama has become a key wholly owned agrochemical subsidiary of CNCC and serves as the core enterprise of CNCC’s agricultural chemicals business segment. Since its acquisition by CNCC, Adama has embarked on a steady growth trajectory.

According to reports, since the Adama brand entered the Chinese market in 2016, the company has expanded its sales coverage to 28 provinces within just two years, launched 18 new products spanning four major product lines, and established direct business relationships with more than 700 customers.

Israel’s ADAMA Agricultural Solutions Ltd. is the world’s largest non‑patented Pesticide Since its merger with Hubei Salonda Co., Ltd. in August 2017, the company has emerged as a leading player in China’s agrochemical industry. Following the merger, net profit for the first three quarters of 2018 is expected to post a substantial year-on-year increase.

Compared with the post‑merger company’s reported net profit of US$233.9 million (RMB 1.5995 billion) for the first three quarters of 2017, the reported net profit for the first three quarters of 2018 is expected to range from US$393.5 million to US$403.5 million (RMB 2.5124 billion to RMB 2.5804 billion).

If adjustments are made primarily to exclude one-time asset disposal gains and related non-cash expenses, and if the impact of euro hedging in the first half of the year is also excluded, the combined company’s adjusted consolidated net profit for the first three quarters of 2018 is expected to be only slightly below last year’s record high for the same period.

Source: Nongcai.com Agrochemical Compendium