BASF is fighting industry-wide supply challenges with proactive planning
27 January 2022, US: For decades, BASF products and solutions have remained a consistent, dependable, mainstay for growers. During an ongoing and unpredictable pandemic, BASF, like the entire agriculture industry, has not been immune to challenges.
“BASF is experiencing record levels of demand for many solutions in our herbicide and fungicide portfolios, including but not limited to: Liberty® herbicide, Rely® herbicide and Veltyma™, Priaxor®, Revytek™ fungicides as well as other crop solutions. Increased levels of demand, coupled with pandemic-era supply chain issues, has compounded the challenges we are facing,” said Kate Greif, Product Manager, BASF Agricultural Solutions North America.
Prepay season (December – February) is typically a high-pressure time for growers; overlapping with current supply chain challenges, transparency in availability has never been more crucial.
“Price increases are also being experienced industry-wide and are needed to compensate for surging raw material, transportation, and energy costs, as well as other rising costs, including labor, packaging, and maintenance,” said Scott Kay, Vice President, US Crop Protection, BASF Agricultural Solutions North America. “The pandemic challenges are not unique to one company and will likely impact the agriculture industry for some time to come. BASF’s goal is to continue to be fair and transparent in our pricing and availability today and in the future.”
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“Supply chains that support agriculture and our Professional & Specialty Solutions (P&SS) businesses have been stressed for nearly two years due to a variety of factors, including labor shortages, transportation availability and delays, natural disasters affecting raw material supplies and COVID-19,” said Robbie Upton, Director, Marketing-U.S. Crop, BASF Agricultural Solutions North America. “While no one can predict the end to these challenges, BASF has been and will continue to deliver on its promise to bring to market as much of our top-performing products and solutions as possible.”
Here’s what BASF is doing:
- Increasing production on high-demand solutions to address availability concerns.
- Adding a formulation production site coming online in the spring to improve glufosinate availability.
- Expediting air freight to alleviate seaport backlogs in the supply chain; using approximately 300 planes to transport goods faster for domestic formulation.
- Increasing our emphasis on forecasting accuracy and ordering raw materials earlier, sometimes months in advance of traditional lead times (about 6-8 weeks ahead of schedule), with the goal of securing chemistry availability in time for grower sourcing and planting.
- Prioritizing equitable allocation of our key active ingredients across the entire globe to help offset potential monopolization, so that no one region is unfairly supplied.
- Investing $260 million in North America to improve reliability and increase our production capacity. Of this total, $150 million is going to herbicides to expand production of our active ingredients base.
Here’s what growers can do:
- Increase communication with trusted retail partners.
- Think diligently through plans for 2022 and identify where plan B options may need to take place.
- Use effective pre-emergence and residual herbicides and follow proper timing on post applications to minimize the need for resprays.
- Evaluate cultural practices like those we encourage through our Operation Weed Eradication initiative.
- Here’s how everyone can help:
- Identify factual industry-wide challenges and share information on proven solutions.
- Follow BASF on social media LinkedIn, Facebook, Twitter, YouTube and share proven, innovative solutions that are helping the global community weather this unpredictable storm.
- Contact your local BASF representative for guidance on specific tactics for your needs using our sales rep tool here.