At the Chemicals America
conference last week in Wilmington, NC, Craig Hirschey
(Senior Account Executive, Zepol) and Don Hennenfent (Consultant, at Sentinel Imports
) used Zepol's trade intelligence data to present on U.S. import trends of agrochemicals.
What are Agrochemicals and Who Cares?
To start, agrochemicals, or chemicals used for agricultural purposes, are big business in the United States. They are used in an array of products including pesticides, fungicides, fertilizers and more, and greatly assist in the United States’ mass production of crops.
Because these chemicals are used to treat such a broad industry like food, the import trends of agrochemicals, including import volume and price per kilogram, are very relevant and impactful. Agrochemical imports can have a trickle-down effect on multiple types of business, even down to your local grocer.
What Kinds of Agrochemicals?
Craig and Don pulled 46 HS Codes
data which included the following words: Pesticide, Herbicide, Insecticide or Fungicide. This does not include ALL agrochemicals, but all codes included are most likely to be solely agricultural chemicals.
Conclusions from the Data
- Since 2007, the price per kilogram of agrochemicals has gone up from $10.18 to $12.41, or 22%.
- Europe consistently exports a higher dollar value of agrochemicals than Asia.
- Asian imports are consistently of higher volume yet lower value than European.
- Imports from Non-European/Asian countries are consistently of lower volume and value.
- The first half of 2012 appears to indicate that the full year of imports will increase to $2.98 billion.
- The projected price per kilogram in the first six months of 2012 has averaged $14.00.
The majority of agrochemicals come from Asia and Europe, and more specifically from the countries of Germany, Switzerland, and China. The quantity of U.S. imports and the value have been increasing in the past five years, yet the volume in imports for 2012 may be declining. As the volume declines, the cost per kilogram is rising, especially from Europe.