The ripple effect of the Coronavirus in China is being reported in the supply of active ingredients and fertilizers. Exactly what amount of the supplies and for how long are the biggest questions left to be answered.
“First of all, this is very dynamic and is fairly unprecedented,” says Samuel Taylor, vice president of farm input analysis at Robobank. “What we do know is that the production of many the macronutrients and also the active ingredients for ag inputs is heavily concentrated to China. So what happens in China will have profound effects in the short term for sure.”
Its these dynamics that have the industry’s attention, according to National Corn Growers Association CEO Jon Doggett. He’s says the crop protection companies are starting to see disruption in the supply chain, and the biggest question he has is how long the disruption may last.
“If you can’t get the ingredients to put together to make your chemical, we’re gonna have a problem. Now we’re not there yet. But where are we with coronavirus–Are we in the beginning? Are we in the middle? Are we kind of tapering off towards the end? The days and weeks ahead will tell us.”