BASF says 40% price increase necessary to support supply plan for 2022

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Farmers in Canada continue to face challenges of supply disruption related to fertilizer, parts, and crop protection products.

After a 25% price increase in fall of 2021, BASF Canada has increased the price of its glufosinate-ammonium containing products which includes Liberty 150 SN by another 40%. According to the company, this price increase is a necessity to support the supply plan for these products in 2022.

According to a BASF spokesperson, “This price increase is due to compounding global challenges that have led to a substantial increase in the cost of goods such as high global demand for finite raw materials, a significant increase in fuel and energy costs; and increased transportation and logistics challenges.”

The company is partially covering some of the price increase pushed on it by suppliers, but not the entirety of it. The amount of the price hike being covered by BASF was not disclosed to RealAgriculture.

It is unusual for crop protection products to be repriced in a sales season, so this is not something farmers typically face. Some farmers have taken to social media upset about a second price hike in one season and the severity of the increase.

In an interview with RealAgriculture on February 10th, Mark Shillingford, director of marketing at BASF Canada, stated that BASF would be “producing more Liberty than ever before,” and described the inventories available for 2022 as “tight” but adequate.

Shillingford stated that the first pass of Liberty is being prioritized, and BASF has asked retail partners to do the same.

“With Liberty production ongoing, continuing through June, we expect a steady supply of Liberty 150 and will continue to work with our retail partners to identify supply gaps, and, when possible, we’ll do our best to help meet the needs of Canadian farmers this season,” he says.

Liberty supplies for Canada is produced beginning in the spring, using a just-in-time supply model, as the product cannot withstand freezing temperatures, and most ag retailers are not equipped with sufficient heated storage.

BASF is not alone in price hikes as many of its competitors have been dealing with similar challenges of ingredient supplies and costs, on top of manufacturing and supply chain issues. Farmers are encouraged to check with their ag retailers regarding both price and availability of products for the 2022 growing season.

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