Producers need to adapt quickly in crucial crop year
With a nationwide crop input shortage impacting producers, ADAMA Canada announced today that it has secured additional MCPA to fulfill its market obligations for the 2022 crop year. Even with the additional supply, the company expects it will only be able to close a portion of the market gap this year.
MCPA is used in a number of combinations with other active ingredients to control broadleaf weeds on cereal crops like barley, durum wheat, fall rye, flax, oats, non-crop land and, pastures, spring rye, as well as spring and winter wheat. In 2021, ADAMA heavily invested in globally diversified manufacturing, as the company proactively used backward integration to secure its supply chain.
“The market is quite short on cereal crop solutions, with MCPA and 2,4-D shortages being a key driver,” said Cornie Thiessen, ADAMA Canada’s general manager, noting products like Outshine®, Forcefighter M® and Esteem® were critical to be made with so many other competitors not being able to deliver important broadleaf weed solutions for cereals. ADAMA Canada pivoted in recent months to mitigate supply chain challenges by importing additional crop inputs from its plants in Israel and Colombia to ensure access for Canadian producers. “We’re addressing the gap by producing our own MCPA at our Israel plant while increasing 2,4-D production at our Colombia plant. Before this year we purchased much of our supply of these products from competitors, but ADAMA is continually adding capabilities to become self-sufficient.”
Unfortunately, external factors like the COVID-19 pandemic and the Russian invasion of Ukraine will dramatically impact the supply chain and availability of many consumer goods including crop protection products, meaning Canadian producers will still face product shortages. Along with shortages, the inputs producers will have access to will also be more expensive as a result of shipping costs, supply chain challenges and inflation, meaning 2022 will likely be the most expensive crop ever planted.
The Russian invasion of Ukraine adds pressure on Canadian farmers to fill the gap expected due to seeding and harvesting disruptions in the war torn region this year. With surging commodity prices, the market looks good, however when you factor in the impact of unprecedented fertilizer and fuel prices, farmers will still have to manage their input costs.
“Not only are Canadian producers facing worldwide demand to help reduce food security concerns, they are being asked to produce a bumper crop while needing to plant their most expensive crop ever. Compounding the challenge is uncertain supply of key crop inputs,” said Thiessen, adding that ADAMA Canada’s proactive approach to securing supply this year was an attempt to keep costs as low as possible for Canadian producers. “Proactive planning and nimble adaption is the only way to ensure crop protection product access and improved odds of having a productive crop.”
Start off strong
Ag retailers are a very important piece to this puzzle and Thiessen suggests the relationship between farmers and their local dealers will be more important this year as they will help producers find products and product combinations to meet agronomic needs.
“You won’t be guaranteed the same product you always use,” said Thiessen. “And when it comes to insects or disease, best to secure your product early and to scout early and often. With prices as high as they are and the need for extra production to fill the gap, producers won’t want to leave anything on the table.”
Unfortunately, Thiessen doesn’t see the supply chain issues going away in the near future and suggests proactive planning for 2023.
For more information, visit https://www.adama.com/west-canada/en.