March 6, 2013
Hot on the heels of losing the distribution rights for BASF chemicals, chemical business Nufarm has seen another deal annulled, with the news Monsanto will terminate its exclusive distribution deal with Nufarm for Australia’s most popular herbicide, the glyphosate-based product Roundup. Monsanto officials said the company was making the move to better serve its customers. Unlike the BASF deal, where BASF has pulled out of its distribution agreement to go it alone in the Australian market, it is believed Monsanto will look to find another distributor for Roundup products within Australia and New Zealand. Other contracts between the two companies are believed to still be in place. Nufarm has been the exclusive distributor of Roundup products in Australia and New Zealand since February 2002. Nufarm Australia general manager Lachlan McKinnon put a positive spin on the news, saying the rise of generic glyphosate products had seen the broad-spectrum herbicide market change dramatically in the past decade. “While we are disappointed that this agreement will come to an end, the dynamics of the glyphosate segment have changed considerably over the last 10 years. “The industry has seen a significant increase in the number of registrants for glyphosate products and this agreement affected Nufarm Australia’s ability to remain competitive in the market place.” Mr McKinnon said Nufarm had invested in research in value-added Roundup products and would retain the rights to these lines, such as Roundup DST, Roundup Biactive and Roundup Ready herbicide with Plantshield. He said the company already had a range of new glyphosate products in the pipeline, to be registered for use in coming months. “Glyphosate remains an important part of our business and we have a strong commitment to continue to lead this market. “The end of this agreement is a great opportunity for our business to improve our competitive position,” Mr McKinnon said.