As Bayer Warns of More Glyphosate Shortages, Here's How Severe the Situation Could Be this Spring

Based on a recent Farm Journal survey, 90% of the farmers who are having trouble sourcing inputs in 2022 report glyphosate is in the shortest supply.
Based on a recent Farm Journal survey, 90% of the farmers who are having trouble sourcing inputs in 2022 report glyphosate is in the shortest supply.
(Lori Hayes )

Glyphosate was already in short supply heading into the 2022 planting season, but another black swan event is putting an even tighter squeeze on supplies.

On Friday, Bayer sent a note to retailers saying due to production issues with a third-party ingredient supplier, the company won’t be able to fulfill some of its previously booked orders. Bayer declared a force majeure, which means due to the issue being out of Bayer’s control, the company will be able to escape contractual obligations. letter

In a statement to Farm Journal, Bayer says: “Recently a supplier of a raw ingredient needed to produce glyphosate suffered a mechanical failure, which may have some short-term impacts on our production of the active ingredient to manufacture glyphosate. Our supplier is on track to restore production, we’ve sourced additional materials and made other mitigation efforts to help best manage this situation. We expect any impact to be marginal in terms of our annual glyphosate production.”


Read more: Exclusive: How Did FBN Do The Impossible And Source Glyphosate for 2022? It Was Costly, But Paying Off Now


So, just how bad is it? One large ag retailer in the U.S. says it will have more of an impact on generic glyphosate supplies. The supplier told Farm Journal that as of Feb. 14, 2022, it has 80% of its branded Roundup in house. The generic market will be significantly impacted by the most recent supply chain issue, and their estimate is the generic market will see supplies cut in half.

Glyphosate Squeeze 

Bayer didn’t quantify just how much of an impact it will have on overall production, but says it’s continuing to work diligently with customers to address their needs.

fj survey

FJ

A newly released Farm Journal survey found even before the latest announcement, 57% of farmers say they had difficulty sourcing inputs for the 2022 season. Of those who had trouble booking inputs, 86% say herbicides were the issue.

Of those experiencing issues securing herbicides, 90% reported glyphosate is in the shortest supply for 2022.

 

 

Latest News

Gulke: The Grain Markets Need to Add Risk Premium
Gulke: The Grain Markets Need to Add Risk Premium

Despite being lower for the week, the grain markets all closed higher on Friday and might have been putting in risk premium says Jerry Gulke, president of the Gulke Group.

$3 Corn? That Could be the New Reality Without a Weather Problem This Year
$3 Corn? That Could be the New Reality Without a Weather Problem This Year

As drought deteriorates across the U.S., it's a positive signal for growing a big crop in 2024. And analysts say if weather continues to fuel this year's crop, December corn futures could fall into the $3 range by fall.

Grains See a Strong Rally Friday: Was it Just Short Covering?  Steady Southern Cash Supports Live Cattle
Grains See a Strong Rally Friday: Was it Just Short Covering? Steady Southern Cash Supports Live Cattle

Grains close higher on short covering and putting in some risk premium.  Live cattle ended higher with steady Southern cash. Hogs broke above chart resistance. Rich Nelson, Allendale, Inc. covers it all.  

Soybean Outlook: 5-30-90 Days (4/19/24)
Soybean Outlook: 5-30-90 Days (4/19/24)

Pro Farmer recaps the week's price action for soybeans and shares outlook broken down into the next 5, 30 and 90 day segments.

NEW: USDA Confirms Cow-to-Cow Transmission a Factor in Avian Flu Spread
NEW: USDA Confirms Cow-to-Cow Transmission a Factor in Avian Flu Spread

USDA said this week cow-to-cow transmission is a factor in the spread of avian flu in dairy herds, but it still does not know exactly how the virus is being moved around.

Drones: American Made Option Emerges Amid DJI Ban Saga
Drones: American Made Option Emerges Amid DJI Ban Saga

Anzu Robotics, an emerging U.S.-based commercial drone manufacturer, announces its entrance into the drone market with the launch of two enterprise aerial platforms.