of a new product Impact Duo (thiophanate methyl + flutriafol). Flutriafol also achieved good sales in Russia, however, Australian sales were disappointing. Sales of Cheminova’s other new generic products, including the insecticide gamma-cyhalothrin, grew in 2005 to levels slightly higher than expected. Third-party products which complement Cheminova’s own product range accounted for 16% of total revenue in 2005, unchanged compared to 2004.
During 2005, Cheminova increased its country sales organisations by four. A total of DKK 112 million was invested in the acquisition of subsidiaries in the UK, Colombia and Australia. In Colombia, Cheminova acquired a majority stake in CropTech, and in Australia a majority stake in Ospray. At the same time, sales companies were established in Poland and Bulgaria. The company is now represented in 16 of the most important agricultural countries. In Brazil and the US, the world’s two largest agricultural countries where Cheminova generates its highest revenues, sales in local currencies were slightly up on the year before. Mexico and Russia also had a good year with increasing sales. Cheminova’s Western European companies generally saw stagnating sales due to poor climatic conditions, with the exception of France, which saw a satisfactory increase. Hardest hit was Spain where the market for plant protection products declined by more than 13%. Cheminova’s company in Spain, Agrodan, however, gained market share again in 2005.
In the coming years, Cheminova expects to introduce an average of three new products per year. The addition of new products will, however, require a significant increase in resources by the development department in support of both production and marketing to ensure that target growth can be achieved. Cheminova has recently entered into a cooperation agreement with Bayer CropScience concerning the insecticide imidacloprid. Under the agreement, Cheminova has acquired global rights to sell its own formulations based on Bayer’s active substance. Imidacloprid is the world’s leading insecticide with annual sales of approximately €650 million. Cheminova is forecasting a further decrease in the global market in 2006 but expects to see an increase of 7% in its revenue compared to 2005 with an EBIT margin of around 9%.
31 March 2006 © Market Scope Europe Ltd www.crop-protection-monthly.co.uk