Glyphosate prices expected to rise
Glyphosate prices could rise over the next 12 months, according to the incoming sole importer of Roundup products in Australia and New Zealand.
From next month, Sinochem Australia, owned by a Chinese State entity, will replace Nufarm in supplying glyphosate made from non-Chinese raw materials into the Australian market.
Sincohem Australia managing director Roger Angell said price pressures were influenced by the recent shift in parity against the US dollar and tight supply out of China for glyphosate technical, a major raw material for glyphosate finished products.
"Due to high demand in China, and the need for many Chinese plants to invest in capital upgrades to meet the government's environmental standards, it is possible the price for glyphosate will be similar or even higher over the next 12 months," he said.
Sinochem Australia's partnership with Monsanto and entry into the Australian market is the first major initiative for the company, according to international vice-president David Lee.
During his Australian visit last week for the official launch, Mr Lee said the company wanted to build on Australia and China's trading relationship.
"We want to build on that strong relationship by bringing our investment, our manufacturing strength, our R&D capacity, into the Australian market," he said.
"Our partnership with Monsanto to deliver Roundup products into Australia is our first major initiative and shows our commitment to quality products and strong brands."
Mr Lee said the next step would be for Sinochem Australia to import other crop protection products from its own manufacturing base in China.
The Sinochem Group spans energy, agriculture, chemicals, real estate and financial services including Sinofert.
Monsanto regional business and manufacturing director Luciano Nakashita said Roundup products supplied by Sinochem Australia would be manufactured by Monsanto in its plants.
Raw materials will be sourced from Monsanto's Louisiana plant and manufactured in Indonesia and Malaysia.
It will also pave the way for Sinochem's presence in Australia with up to 30 people employed in the Melbourne office and around Australia. A second salesperson will be in WA in six months.
Mr Angell said the company planned to work with all major distributors so Roundup was available to farmers.
Get the latest news from thewest.com.au in your inbox.
Sign up for our emails