What Factors Currently Influence Pesticide Prices

Crop protection through the use of agricultural chemicals, play a vital part in the integrated disease management strategy that many commercial farmers apply for sustainable crop production and food security. Earlier this year, news that tighter environmental regulations in China and the consolidation of chemical manufacturers would influence the pricing of pesticides, had many commercial South African farmers wondering how this would impact their bottom line. 

Pesticides are part of the necessary agricultural chemicals that are used to ensure a successful harvest for commercial farmers. Remitto is a trusted supplier of agricultural chemicals and works closely together with its suppliers and agricultural clients to offer the most up to date and effective technology for disease management.

Let’s take a closer look at the various factors that influence agricultural chemicals prices and what Remitto is doing to provide sustainable solutions to farmers: 

 

  1. China implements tighter regulations on pesticide production

China is a leader in the production of agricultural chemicals. Last year the Chinese government decided to improve its environmental responsibility as many of these manufacturing plants operated without following the correct environmental protocols. This has resulted into many manufacturing plants closing or being heavily fined. 

What is Remitto doing

Remitto has always partnered with manufacturers that follow the correct guidelines and are environmentally responsible. We are committed to providing our clients with sustainable and environmentally friendly products. That means that our products are not only safe to use as an end product for disease management, but that it has also been responsibly manufactured.

 

  1. Available active chemicals

Due to the tighter regulations, many manufacturers have decided to close down or consolidate their businesses. As reported by the Landbou Weekblad, only four of the six big manufacturing companies will be left by the end of the year. It’s evident that these tighter environmental regulations that are undoubtedly necessary, have created a chain reaction. A further result of the closure and consolidation of many manufacturing companies also affect the availability of active ingredients that are used to manufacture agricultural products.

What is Remitto doing

Innovation is a key component of what Remitto does and who we are. We believe that by constantly staying at the forefront of change and development we are able to provide our customers with sustainable and reliable disease management strategies. Because of this, we are able to produce in-house products via DNA Crop-Protection and by doing so we have a better control of the products that we are able to supply to our clients. This also has the added benefit of shortening the supply chain and keeping our profit margins affordable.

 

  1. The strength of the rand

In spite of all these factors, there is one more important component that needs to be considered in this big picture – the strength of the rand. A weak rand weakens our buying power and ultimately it’s more expensive for us to import agricultural chemicals. 

What is Remitto doing

The rand in itself is dependent on many internal and external factors that we are unable to control. Nonetheless as a company that is dedicated to supplying its customers with products of the highest quality at affordable profit margins, we believe that there are certain things that can be done to achieve a favourable outcome for everyone. Where possible, Remitto purchases high volumes of product from our suppliers in order to keep our product prices as stable as possible for our clients. This is further aided by working closely together with our clients and manufacturers in order to determine the estimated product that will be needed in the seasons to come. Remitto and its team chooses to operate against profit margins that make our products affordable to our clients.

 

  1. Weather

The climate is the biggest determinant of all of these factors. If we don’t receive sufficient rain, as has been the case for many farmers across South Africa, then our clients are unable to plant and have no need for agricultural chemicals. The climate and the effect of global warming cannot be underestimated.

What is Remitto doing

It is vital that we as a company offer our customers products that safe and sustainable to use. Products that contribute to pollution also contribute to climate change and we all need to play our part in creating sustainable solutions. This is why we choose to only supply environmentally friendly products.

 

Contact our head office today at +27 (0) 71 659 9217 or e-mail [email protected] and we’ll connect you with your closest consultant.