Inventory Pressure and Procurement Outlook: Findings of 2023 Global Major Agrochemical Market Inventory Survey

Highlights of the content

• Inventory remains relatively high in global major agrochemical market

• The overall inventory of multinational companies is relatively high

• Smaller and medium-sized markets are mostly replenishing inventories in 2023, mainly in formulations

• The inventory of retailer and farmer is relatively manageable

• Procurement will develop gradually in the first quarter of 2024

Soaring or falling prices of bulk agri-inputs in the short term is not conducive to ensuring the stability of agricultural production. "Inventory" is undoubtedly one of the key factors affecting the market trend price fluctuations this year, and the speed of inventory reduction will also affect the market trend in the rest of this year and next year. 

So AgroPages launched a "inventory survey", investigating the global major agrochemical markets’ inventory status in 2023, with the purpose of make a clearer situation judgment in the critical period of recent months, through the inventory levels, stocked products, procurement plans and supply shortages in the major agrochemical markets. 

The samples are distributed in different countries from Europe, North America, Latin America, Asia to Africa, covering upstream and downstream enterprises such as manufacturers, trading companies, wholesalers, distributors, retailers and large growers. The product categories cover herbicides, fungicides, Insecticides, fertilizers and other types. 

Moving forward to interpret the key inventory survey findings and connect the points behind the data. For example, higher inventory levels directly pressing on trading companies and wholesalers reflect market dynamics. Such contextual analysis intends to reveal the cause-effect relations and empower agribusinesses to navigate effectively, especially trading companies and manufacturers of overstocked herbicides facing current acute pressures. By logically considering through survey quantification, this report aims for readers to obtain an understanding of the global agrochemical market for critical decision-making.

Briefing of survey results

The comparation of inventory rate in different regions

The data shows that Latin America and Asia (excluding China & India) facing greater inventory pressure with higher average inventory rates of 40-50% , while Southeast Asia, India, and Africa are around 30-40% on average currently. US and European respondents reported lower average inventory rates under 30%.