The market for farm machinery may be contracting right now, but farmers in the U.S. and Europe are continuing to invest in BASF's seed and crop protection offerings.
At BASF, a German company that also produces and markets chemical products in the U.S., agricultural solutions revenue rose 15% in the first quarter to 1.9 billion British pounds, or $2.9 billion at today’s exchange rates.
“In Europe, sales were considerably higher than in the same quarter of the previous year. We observed high demand earlier than expected, particularly for cereal fungicides in western Europe. Our business was very positive, especially in the United Kingdom and Germany. We were able to more than compensate for negative currency effects by increasing volume and prices,” BASF said in its quarterly filing. “Sales rose considerably in North America, as well, largely supported by the strong U.S. dollar. We increased volumes and prices for herbicides, especially in our Kixor and dicamba businesses.”
BASF Corp. offers fungicides, herbicides, insecticides, seed enhancements and more in the U.S. In 2014, its agricultural solutions business grew 4% and generated revenues of 5.4 billion pounds ($8.3 billion at today’s exchange rates).