KYIV. April 16 (Interfax-Ukraine) – The Ukrainian crop protection agent market in 2014 fell by 15%, to EUR 600 million, according to BASF chemical concern.
BASF Crop Protection Manager in Ukraine, Moldova and the Caucasian countries Tom Wetjen told reporters that the reasons for the decline were the difficult economic conditions in the country, the devaluation of the hryvnia, and farmers experiencing a lack of funds.
He said that last year many farmers made savings by reducing their application of plant protection agents to crops or by switching to cheaper agents.
The concern said that the share of herbicides of the total Ukrainian market in money terms in 2014 was 50%, that for fungicides – 30%, insecticides – 10% and protectants, and phytohormones – 10%.
Wetjen said that 2015 holds prospects for the recovery of the market volume.
“According to our feelings and observations in the competitive environment, companies are satisfied with the level of sales this year, and the market remains at least stable and maybe, growth could be seen,” he said.
Wetjen said that due to fears of the further devaluation of the hryvnia and the increase in prices farmers are trying to form stocks of resources, including chemicals.
He said he regretted that the Ukrainian government is delaying the introduction of the agrarian receipt system, which would make cooperation with farmers more effective under the conditions of a lack of funds. The company expressed hope that the government will accelerate the realization of the project across Ukraine.
BASF does not sell products in Ukraine via direct channels. It sells its products only via distributors. He said that this year the company could resume barter transactions with crop protection agents who are suing the BASF-distributor-farmer-trader chain.
Crop Science Division of BASF saw EUR 5.4 billion in sales in 2014 across the world. Around 9% of the sum was allocated to further research in crop science.
