Jan 25, 2022

BASF working to combat supply chain issues, offers advice for growers

BASF is working toward making sure its crop protection protects remain available to growers amid the ongoing supply chain issues in the U.S.

The company also issued some advice for its customers on how to proactively act.

“BASF is experiencing record levels of demand for many solutions in our herbicide and fungicide portfolios, including but not limited to: Liberty herbicide, Rely herbicide and Veltyma, Priaxor, Revytek fungicides as well as other crop solutions. Increased levels of demand, coupled with pandemic-era supply chain issues, has compounded the challenges we are facing,” said Kate Greif, product manager, BASF Agricultural Solutions North America. 

Prepay season (December to February) is typically a high-pressure time for growers; overlapping with current supply chain challenges, transparency in availability has never been more crucial. 

“Price increases are also being experienced industry-wide and are needed to compensate for surging raw material, transportation and energy costs, as well as other rising costs, including labor, packaging and maintenance,” said Scott Kay, VP, U.S. Crop Protection, BASF Agricultural Solutions North America. “The pandemic challenges are not unique to one company and will likely impact the agriculture industry for some time to come. BASF’s goal is to continue to be fair and transparent in our pricing and availability today and in the future.”

Here’s what BASF is doing:

• Increasing production on high-demand solutions to address availability concerns.
• Adding a formulation production site coming online in the spring to improve glufosinate availability.
• Expediting air freight to alleviate seaport backlogs in the supply chain; using approximately 300 planes to transport goods faster for domestic formulation 
• Increasing our emphasis on forecasting accuracy and ordering raw materials earlier, sometimes months in advance of traditional lead times (6 to 8 weeks ahead of schedule), with the goal of securing chemistry availability in time for grower sourcing and planting.
• Prioritizing equitable allocation of our key active ingredients across the entire globe to help offset potential monopolization, so that no one region is unfairly supplied.
• Investing $260 million in North America to improve reliability and increase our production capacity. Of this total, $150 million is going to herbicides to expand production of our active ingredients base. 

Here’s what growers can do:

• Increase communication with trusted retail partners.
• Think diligently through plans for 2022 and identify where plan B options may need to take place. 
• Use effective pre-emergence and residual herbicides and follow proper timing on post applications to minimize the need for resprays. 
• Evaluate cultural practices like those we encourage through our Operation Weed Eradication initiative.

Here’s how everyone can help:

• Identify factual industry-wide challenges and share information on proven solutions.
• Follow BASF on social media LinkedIn, Facebook, Twitter, YouTube and share proven, innovative solutions that are helping the global community weather this unpredictable storm.
• Contact your local BASF representative for guidance on specific tactics for your needs using our sales rep tool here.