BASF Agricultural Products peak sales potential of €1.9 bn
14 Mar '06
3 min read
“We want to grow profitably through innovation, especially with new fungicides and insecticides and with special applications such as seed treatment,” described Heinz. “We have strengthened our team of scientists, are managing our R&D activities highly effectively, and are continuing our efforts to reduce time-to-market.“
Strict management of assets and costs is another strategic objective of the division. Heinz: “With an emphasis on high-margin innovative products, we are continuing our cost and asset optimization measures in mature or non-core areas.”
In 2005, the division divested its triforine fungicide, its phorate insecticide, its non-European imazamethabenz herbicides business, all of which clearly have a better fit with more specialized companies. In addition, a manufacturing plant in Resende, Brazil, was divested in an employee buyout.
“We will continue to prune our product portfolio. We had more than 300 actives in 2000, and target about 100 actives for 2006, a further reduction of about 25 percent compared to the end of 2005. Ultimately we will focus on about 60 core active ingredients,” said Heinz. “This streamlining reduces complexity and allows us to direct all of our energy to bringing innovative products to the market.”
Sales of BASF Agricultural Products in 2005 were €3,298 million. Europe accounted for 43 percent, North America (NAFTA) for 29 percent, South America, Africa, Middle East for 20 percent and Asia Pacific for 8 percent by customer location. By product group, sales of fungicides were €1,310 million, herbicides €1,222 million, insecticides and other agrochemical products €766 million.
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