Industry Overview 2012

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Industry Overview

Phillips McDougall AgriService

Industry Overview2012 Market

The AgriServices Overview Sectionpresents our most recent analysis of theperformance of the global crop protection and plant biotechnology markets in2012.

Within the report we include information on the recent performance andoutlook for the global market, detailed analysis of crop, product and marketsectors as well as key data regarding company performance.

All sales information is presented at the distributor level, with currency

conversions performed using average year exchange rates.


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Industry Overview

Contents Page No.

Industry Growth in 2012 4

Historical Industry Growth 7

Major Agrochemical Acquisitions and Mergers Since 2008 10

Crop Protection Industry Structure 2012 11

Key Product Acquisitions2009 to Present 13

Sales Growth of the Leading Companies2012

Leading Companies Ranked on Five Year Sales Growth

14

15

Leading Crop Protection and Seed & Trait Companies 16

Product Sector Analysis 17

GM Crop Areas 2002-2012 19

Crop Sector Analysis

Major Crop Global Planted Areas

22

23

Non Crop Agrochemical Market 24

Regional Market Analysis 25

NAFTA 27Latin America 28

Asia 29

Europe 30

Middle East Africa 31

World Market 32


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Industry Overview

Industry Growth in 2012

The global market for conventional crop protection products (excluding salesof herbicide tolerant and insect resistant seed) is estimated to have increasedby 6.4% to reach $47,360 million during 2012. This figure is based on theresults of our own market analysis of the crop protection sector and takes intoaccount the results of market research conducted in the majority of countrymarkets.

When the impact of trade-weighted inflation and currency factors are takeninto account then the change in the overall market in real terms equates to anincrease of 8.9% over 2011.

Conventional Crop Protection Market (Distributor Level)2007/2012

2007 2008 2009 2010 2011 2012

World Crop Protection Market($m.)

33,390 40,475 37,860 38,315 44,528 47,360

Nominal change on previousyear (%)

+9.7 +21.2 -6.5 +1.2 +16.2 +6.4

Real change on previous year(%)

+2.8 +10.2 -1.5 +0.2 +7.1 +8.9

The above table refers to the value of the market for chemical crop protectionproducts, based on the sales of agrochemical products for crop use, includingforestry and plantation crops. It does not, however, include agrochemical

product sales in non-crop situations and markets which comprise the followingsectors: turf, nursery and ornamentals, home & garden, PCO (pest controloperators), rodenticides, wood preservatives, materials preservation, storedgrains, public health, post-harvest protectants and industrial outlets. In 2012the overall value of the agrochemical market for the use of products in thenon-crop sector is estimated to have grown by 1.3% to $6,372 million.

Agrochemical Markets in 2012 (Distributor level - $m.)

Sales ($m.) 2011%Change

2012/20112012

Conventional crop protection 44,528 +6.4 47,360

Non-crop agrochemical market 6,290 +1.3 6,372

Total 50,818 +5.7 53,732

Sales of conventional agrochemical products used in crop protectionexperienced growth of 6.4% to $47,360 million, whilst sales of herbicidetolerant (HT) and insect resistant (IR) seed into the crop protection sectoragain increased significantly in 2012. Overall the value of the agriculturalbiotechnology market is estimated to have grown by 17.9% in 2012 to reach$18,495 million.


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Industry Overview

Growth within the crop protection sector is directly linked to support foragriculture, crop commodity prices and farm incomes, however the non-cropsector is influenced more by the economic position of the major markets withconsumer purchasing being a significant factor. Growth within the GM seedmarket is predominantly driven by the introduction of new technology with

competition within the sector now intensifying as the number of available traitofferings continues to grow.

Due to increases in the values of both the conventional crop protection marketand the input trait sector, the value of the overall crop protection sector in2012 is estimated to have increased by 9.4% to $65,855 million.

Crop Protection Market Value 2007-2012 (Distributor level- $m.)

Sales ($m.) 2007 2008 2009 2010 2011 2012

Conventional crop protection 33,390 40,475 37,860 38,315 44,528 47,360

GM Seed 7,062 9,150 10,570 12,870 15,685 18,495

Total 40,452 49,625 48,430 51,185 60,213 65,855

During the period from 1980 to 1998 the value of the agrochemical markethad been gradually increasing, however the advent of GM crops resulted inthe agrochemical market value declining from a peak in 1998 to a new low in2006. Since then the agrochemical market value has increased significantlyalbeit in a relatively volatile manner, reflecting improved crop prices.

During 2008 the agrochemical market experienced its most significantincrease since the mid-1970s to reach an all-time high. This spike wasfollowed by a number of negative factors, the most notable of which was amajor reduction in the price of glyphosate contributing to a market decline in2009. In 2010 the market recorded weak growth, followed by a much strongersituation in 2011 as the effects of greater stability in glyphosate prices, modestincreases in overall agrochemical prices and volume growth driven by highcrop prices were felt.

Key Factors Impacting Global Crop Protection Market Performance in2012:

Crop prices initially reduced from the 2011 levels but then improvedand sustained at high level

Rising demand for crop commodities

Biofuel demand maturing in USA

Improved glyphosate prices

Increased GM areas, however increased competition in trait supply

Strong farm economies in the Americas, Europe and Asia


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Key Regional Factors Affecting Crop Protection Market PerformanceDuring 2012

Latin America

o Weakening Brazilian Real

o Improved crop prices in Brazil

o 2012/13 drought in NE Brazil affecting sugarcane production

o GMO uptake throughout the region

o Increased soybean area in Brazil and Argentina

Europe

o Sustained cereal and rape prices

o Expansion of EU-15 grain area creating demand for rapeseed

o Hard winter results in winter kill of crops in Russia and Ukraine,followed by dry summer

o Wet summer in Northern Europe, dry in South and East

NAFTA

o High corn, soybean, and rice prices

o Drought affecting the central corn belt

o Improved water availability in Southern USA over 2011 situation

o Continuing stability in glyphosate prices

o End of ethanol subsidy

o Adverse 2011 weather results in shortage of premium maizeseed

o Canada affected by spring floods in 2011, recovery in 2012

o Better rainfall in Mexico than in 2011

Asia

o Strong rice price

o Sustained food demand in developing economies

o Increasing grain demand in China and South East Asia

o Recovery from adverse weather in Australia, China, Thailandand Japan in 2011

o India held back by another variable monsoon season


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Historical Industry Growth

The following figure outlines the relative change in real terms in the value ofthe conventional crop protection market in the period from 1980 to 2012

Conventional Crop Protection Market Value - Constant 2012 Dollars

In the period from 1980 until 1998 the value of the global crop protectionmarket essentially grew year on year, the main exemptions to this trend beingthe downturns in both 1983 and 1991-1993. These reductions arose fromchanges in governmental support for agriculture in one of the main markets,namely the implementation of the payment in kind scheme in the USA (1983)and the introduction of set-aside in the EU following CAP reform (1991-1993).

Following the initial introduction of GM crops in 1996, the market experienceda period of decline in real terms between 1998 and 2006. This reflected theincrease in uptake of GM technology, particularly in North America and LatinAmerica where a rapid switch to crop varieties containing traits conferringglyphosate tolerance and insect resistance led to declines in selectiveherbicide and insecticide applications in cotton, canola, soybean and maize.In addition to the impact of GM technology, crop prices in the same period hadbeen relatively flat, which had a depressing effect on the overall demand foragrochemical products. However in 2007 crop prices began to grow, and in

2008 spiked at a very high level, subsequently creating a major improvementin the agriculture economy. In 2009, crop prices fell back from their peak asthe global economy experienced a severe down turn following the bankingcrisis in Europe and the Americas. This, coupled with a major reduction inglyphosate prices following increased supply from Chinese companies,resulted in the overall value of the global crop protection market declining.During 2010 glyphosate prices remained low, and with improving crop pricesthe agrochemical market was more or less unchanged in real terms. In theearly part of 2011 commodity prices increased, led by gains in wheat followingthe impacts of drought on the Russian harvest and flooding in Canada during2010. Although glyphosate prices remained stable, significantly higher crop

prices resulted in a buoyant agricultural economy and a significant rise inagrochemical demand in 2011.

US Payment inKind Programme

EU CAP reform

Demand for crop commodities

Biofuel demand

Latin American growth

Improving glyphosate prices

GM crops


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Industry Overview

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This trend of improved crop prices continued into 2012 creating a situation ofstrong growth during the year, resulting in an 8.9% increase in real terms overthe previous year.

The table below outlines the real and nominal growth rates for theconventional crop protection market value by decade.

Growth of the Conventional Crop Protection Market

During the period 1990 to 1999 the global agrochemical market, in real terms,grew only slightly however in the period from 2000-2006, real growth wasnegative resulting in a market decline. Much of this decline can be attributedto sustained low crop prices as well as the impact of GM crops onconventional agrochemical use. Since 2006, real growth of the crop protectionmarket, aided by significantly improved crop prices, has been more positive.Each year during this period, with the exception of 2009, has seen a rise inthe value of the crop protection market in real terms.

Real Growth of the Crop Protection Market 1990 to 2012

Real Growth (%)

% Per Annum

Period Real terms Nominal

1970-1979 +6.8 +14.2

1980-1989 +2.2 +5.3

1990-1999 +0.1 +1.9

2000-2012 +0.8 +5.5


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Industry Overview

Amongst the largest key factors influencing the global agrochemical markethas been increased crop commodity prices. The rise in crop prices hashowever taken place in a non-linear or volatile pattern reflecting the impact ofweather on crop production in some years, increased import demand for grainand use of crops for biofuel, all of which have impacted grain supply and

demand. This has led to grain and oilseed crop stocks remaining relativelystable against a background of higher production and increased demand. Inturn this has led to spikes in the price of many crop commodities.

Up until 2006, commodity prices had followed a relatively stable pattern,however during 2007 prices began to rise, with a spike in 2008 resulting inhigh market growth in that year. Although prices experienced declines in2009, they remained at a level above that of the prevailing levels prior to2007. In more recent years, between 2010 and up to the end of 2012 priceshave again begun to increase, resulting in higher volume demand foragrochemicals.

In addition to crop commodity price, another major contributory factor withinthe last three years has been the significant alteration in global glyphosateprices, beginning in 2009 when increased production and exports from Chinaled to a global oversupply and subsequent rapid drop in value. Glyphosateprice remained low throughout 2010 and 2011 and has only recently shownsigns of improvement within the last year.

Other contributing factors that have influenced the global agrochemical markethave included the strength of the farm economy in Latin America, particularlyin Brazil and to a lesser extent Argentina, as well as the increasing use ofcrops for biofuel. GM technology continues to have a growing influence on

the market, taking value out of the high value selective market into non-selective herbicides.


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Industry Overview

Mergers and Acquisitions Since 2008

The following table lists the key company transactions in the industry since2008.

Major Agrochemical Acquisitions and Mergers 2008-2012Acquirer Year Business Purchased or Merged

Nufarm 2008 AH Marks and Etigra

Sumitomo Chemical 2008 Outstanding 40% stake in Sumika-Takeda

United Phosphorus 2008 Evofarms, a Colombian company

Agrium 2008 UAP

Arysta 2008 Remaining 50% in Callietha Investments

Sipcam 2008 Advan, Maryland, USA

Sipcam 2008 Remaining 50% in Vischim (Italy)

MAI 2008 90% of Rokita Agro (Poland) and Magan Yu (Serbia)

BASF 2008 Sorex Holdings (UK)

Cheminova 2009 75% stake in StahlerSyngenta 2009 Circle One Global

Cheminova 2009 Remaining shares of Cheminova-Magyarorszag

MAI 2009 Bold Formulators

Agriphar 2010 Geopharm (Greece) and Terranalisi (Italy)

Arysta 2010 Assets of South African agribusiness Afgri

ChemChina 2010 Announced intention to acquire majority holding in MAI

MAI 2010 Mexican company Ingenieria Industrial (known as BravoAg)

MAI 2010 51% holding in Korean company JK Inc.

Sumitomo Chemical 2010 20% stake in Nufarm

Sumitomo Chemical 2010 Indian agrochemical company New Chemi

United Phosphorus 2010 U.S.-based rice agrochemical supplier RiceCoWillowood 2010 Indian agrochemical company Shreeji Pesticides

Arysta 2011 Majority holding in Russian agrochemical distributor FES Group

Arysta 2011 Majority holding in Indian company Devidayal Sales Limited

ChemChina 2011 60% stake in Makhteshim Agan.

Coromandel 2011 Majority stake in Sabero Organics

Gowan 2011 Majority share in Chile crop protection company Agro Technology

Idemitsu Kosan 2011 69.67% of the Japanese company SDS Biotech

Isagro 2011 100% stake in the Colombian distribution company Barpen

Sipcam 2011Isagro Sipcam Internationals 75% holding in the Argentineancompany AgroMax

Sumitomo Chemical 2011 Isagro's 50% stake in the distribution company Isagro Italia

Sumitomo Corporation 2011 90% stake in the Romanian company Alcedo SRL

Syngenta 2011 Agricultural distribution company Agrosan, based in Paraguay

United Phosphorus 2011 Isagro's 50% share in Sipcam Isagro Brazil

United Phosphorus 2011 51% stake in DVA Group's Brazilian company DVA Agro Brazil

Agro Kanesho 2012 Bayers Yuki Research Centre

Albaugh 2012 The Canadian distribution business AgWest Group

Arysta LifeScience 2012 Indian company Devidayal Sales Limited (DSL)

IQV 2012 25% stake in IQV Agro Spain held by Sumitomo Corporation

Monsanto 2012 Planting technology developer Precision Planting

SDS Biotech 2012 65% stake in the Indian company Sree Ramcides

United Phosphorus 2012 The Dutch agrochemical company Agrichem


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Industry Overview

As a result of the various mergers and acquisitions that have taken placehistorically, the agrochemical sector is now relatively highly consolidated. Todate the two most significant M&A events that have occurred in the modernagrochemical market was the formation of Syngenta and the acquisition of theAventis Crop Protection business by Bayer which resulted in the formation of

the two industry leaders whose market share is in excess of 15% each.The second tier of the agrochemical market, with market shares between 4-15%, includes the other main R&D driven multinational companies, as well asboth Nufarm and MAI. Nufarm and MAI have significantly enhanced theirrelative position within the agrochemical industry through organic growthinvolving geographic expansion and new product development as well asthrough a relatively active acquisition program involving both companies andproducts.

The third tier (2 - 4% market share) has included FMC and SumitomoChemical for a number of years, however more recently a number of

companies have joined this tier, predominantly as a result of mergers andacquisitions. These companies include Arysta, formed in 2001 by the mergerof Tomen and Nichimen, and also Cheminova and United Phosphorus. Theselatter companies have in recent years also significantly enhanced theirproduct portfolios and distribution capability through a strategy of targetedacquisitions.

Agrochemical Industry Structure2012*

Market Share

>15% 15% - 4% 4% - 2.0% 2.0% - 0.8%


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Industry Overview

Consolidation has also occurred within the Japanese agrochemicals sector,with companies such as Shionogi, Takeda, Mitsubishi Chemical and Ube nolonger having independent agrochemical businesses and Sankyo Agro nowpart of Mitsui Chemicals. Even with this consolidation there are still asignificant number of domestically based companies that are active in the

Japanese agrochemical industry. Several other Asian countries such asKorea, Taiwan, and India also have a locally based industry, however in valueterms, companies in these countries are generally much smaller than theirJapanese counterparts. There are a large number of agrochemical companiesin China, although few of significant size, the largest being listed in theprevious table.

The ranking outlined in the table above is comprised of the mainmanufacturing organisations and does not include those that are primarilyfocussed on product distribution. However within this latter category there areseveral companies with significant sales revenues, notably companies such

as Agrium, Helena, Growmark, Wilbur-Ellis and Winfield in the USA and theleading Japanese trading companies, Mitsui & Co., Sumitomo Corporationand Marubeni Corporation.

Several of the medium sized agrochemical companies have strengthenedtheir position in the agrochemical industry through a series of strategicinitiatives. While many of these moves have involved the acquisition ofagrochemical companies, often with the aim of gaining additional distributioncapability or regional marketing exposure, an increasing number of M&Atransactions have been targeted at strengthening the respective productportfolios of the purchasing company through the acquisition of a particularagrochemical product or product range. Although product acquisition has

always been a feature of the agrochemical industry, the last ten years hasseen the overall level of this type of M&A activity increasing significantly.

The key reasons as to why product acquisitions are more common than theywere in the past include:

Consolidation amongst the industry majors has resulted in competitionregulators requiring that product lines be divested in order to satisfymarket share concerns. This is an increasingly important factor in whatis now a relatively consolidated industry.

Several companies have pursued a strategy of streamlining their

product portfolio and focussing only on those products considered tooffer market potential. As a result products considered non-core to theon-going business have been divested.

The re-registration system operating in both the EU and the USA hasled to some companies deciding that it is not viable to support aparticular product during the regulatory review. This has resulted in anumber of agrochemical companies deciding to divest certain products.

For several of the medium sized companies, notably Arysta, MAI, Nufarm,Cheminova and United Phosphorus, product and company acquisitions havebecome a key feature of their strategy to advance not only their relative

position within the agrochemical industry, but also to provide the companywith a proprietary product range.


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Industry Overview

The table below outlines the key product acquisitions within the globalagrochemical market since 2009.

Key Product Acquisitions in the Agrochemical Industry - 2009 to present

Acquirer Year Product Acquired

FMC 2009 Fungicide benalaxyl from Isagro

Tessenderlo Kerley 2009 DuPont's linuron business

Amvac 2010 The cotton defoliant Def (tribufos) from Bayer

Amvac 2010 Ethoprophos (Mocap) and fenamiphos (Nemacur) fromBayer

Amvac 2010 Global product rights to the insecticide tebupirimifos fromBayer CropScience

Bayer CropScience 2010 Biofungicide Shemer from AgroGreen

Bayer CropScience 2010 Varroa mite (varroa destructor) control product from

Exosect

Cheminova 2010 Rogor (dimethoate) business from Isagro

FMC 2010 Herbicide fluthiacet-methyl

Gowan 2010 Product rights for the insecticide / fungicide M-Pede andthe herbicide Scythe from Dow AgroSciences

MAI 2010 Plant growth regulator Talent (Carvone) from Formuchem

Nippon Soda 2010 Tebufenozide from Dow

Nissan Chemical 2010 Thifluzamide from Dow

Plant Health Care 2010 Intellectual property rights to Myconate from BayerCropScience

United Phosphorus 2010 Global non-mixture mancozeb assets from DuPont

Amvac 2011 Remaining global rights to the cotton defoliant tribufosfrom Bayer

FMC 2011 Fungicides Rovral (iprodione) and Sportak (prochloraz)from Bayer

Insecticides India 2011 Monocil (monocrotophos) from Nocil

MAI 2011 DuPonts global non-mixture diuron business

Otsuka AgriTechno 2011 Rice herbicide benfuresate from Bayer

Sumitomo Chemical 2011 Ethaboxam fungicide business from LG Life Sciences

Crystal Crop Protection 2012 Insecticide Luphos-36 (monocrotophos) from CheminovaIndia

Indofil 2012 Dow's European Dithane (mancozeb) business

Otsuka AgriTechno 2012 Rice herbicide benzofenap from Bayer

Tessenderlo Kerley 2012 Crop protection assets of carbaryl from Bayer

Belchim 2013 Rights and assets related to valifenalate from ISEM


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Industry Overview

Sales Growth of the Leading Agrochemical Companies - 2012

The following table details the ranking of the leading agrochemical companiesbased on their sales of conventional agrochemical products, excluding seedand trait revenues, together with their sales growth in 2012.

Agrochemical Company Sales (excluding seed & trait revenues)

Sales ($m.) 2012 2011 % Change 2012/2011

Syngenta 10,785 10,162 +6.1

Bayer CropScience 9,539 8,950 +6.6

BASF 6,014 5,793 +3.8

Dow AgroSciences 5,022 4,581 +9.6

Monsanto 3,994 3,472 +15.0

DuPont 3,173 2,905 +9.2

MAI 2,649 2,503 +5.8

Nufarm 2,201 2,111 +4.3

Sumitomo Chemical 1,905 1,723 +10.6

FMC 1,764 1,465 +20.4

Arysta 1,527 1,463 +4.4

UPL 1,448 1,400 +3.4

Cheminova 1,027 999 +2.8

ISK 541 498 +8.6

Kumiai 481 458 +5.0

Mitsui Chemical 478 460 +3.9

Nippon Soda 477 448 +6.5

Nihon Nohyaku 471 449 +4.9

Sipcam 459 455 +0.9

Nissan 444 424 +4.7

Since 2008 Syngenta has been the leading company in the agrochemicalindustry, with the company maintaining this position each year to date.

In terms of US dollar sales all of the above companies reported salesincreases in 2012 with the highest rise in sales within this group of companiesachieved by FMC, Monsanto, Sumitomo Chemical, Dow, DuPont and ISK.


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Industry Overview

Leading Companies Ranked on Five Years Sales Growth

The following table ranks the leading twenty companies on the basis of theiragrochemical sales growth (excluding any contribution from agriculturalbiotechnology) over the last five years.

Leading CompaniesAgrochemical Sales Growth 2007/2012

CompanySales ($m.) % p.a. Sales

2012 2007 Growth 2007/2012

FMC 1,764 890 +14.7

UPL 1,448 762 +13.7

Kumiai 481 294 +10.3

Nissan 444 273 +10.2

Nihon Nohyaku 471 295 +9.8

Sumitomo Chemical 1,905 1,248 +8.8

Nippon Soda 477 316 +8.6

Syngenta 10,785 7,285 +8.2

Arysta 1,527 1,036 +8.1

Dow AgroSciences 5,022 3,414 +8.0

Cheminova 1,027 721 +7.3

BASF 6,014 4291 +7.0

MAI 2,649 1895 +6.9

DuPont 3,173 2,337 +6.3

ISK 541 403 +6.1Mitsui Chemical 478 357 +6.0

Sipcam 459 356 +5.2

Bayer CropScience 9,539 7,447 +5.1

Nufarm 2,201 1,819 +3.9

Monsanto 3,994 3,753 +1.3

Within the above group of companies, the fastest growing on the basis ofsales growth over the last five-year period are FMC, United Phosphorus(UPL), Kumiai, Nissan, Nihon Nohyaku, Sumitomo Chemical, Nippon Soda,Syngenta, Arysta and Dow. All of these companies have achieved acompound annual growth rate (CAGR) in excess of 8% in the last five years.

Clearly not all of this sales growth has come from organic growth, particularlyas a number of these companies, notably UPL, Mitsui Chemical, Nufarm,Cheminova and MAI, have been involved in a significant level of M&A activity.In addition a number of companies will have benefited from currencyexchange effects.


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Industry Overview

Leading Crop Protection and Seed & Trait Companies

As discussed previously, the introduction of GM crops modified to possessherbicide tolerance (HT) and insect resistance (IR) has had a significantimpact on the makeup of the crop protection sector. Several agrochemicalcompanies have established sizeable operations based on this newtechnology. The following table ranks the leading agrochemical companies onthe basis of their overall sales in crop protection and seeds & traits.

Leading Crop Protection and Seed &Trait Companies in 2012

CompanySales ($m.)

RankAgrochemical Seeds & Traits Total

Syngenta 10,785 3,237 14,022 1

Monsanto 3,994 10,010 14,004 2

Bayer CropScience 9,539 1,237 10,776 3

DuPont 3,173 7,253 10,426 4

Dow AgroSciences 5,022 1,360 6,382 5

BASF 6,014 0 6,014 6

MAI 2,649 0 2,649 7

Nufarm 2,201 0 2,201 8

Sumitomo Chemical 1,905 0 1,905 9

FMC 1,764 0 1,764 10

Arysta 1,527 0 1,527 11UPL 1,448 0 1,448 12

Cheminova 1,027 0 1,027 13

ISK 541 0 541 14

Kumiai 481 0 481 15

Mitsui Chemical 478 0 478 16

Nippon Soda 477 0 477 17

Nihon Nohyaku 471 0 471 18

Sipcam 459 0 459 19

Nissan 444 0 444 20

In addition to their involvement in agrochemicals, five of the leadingcompanies have a direct presence in the seeds and trait sector, with the mostsignificant players being Syngenta, Monsanto and DuPont. As well as theseed and trait operations listed above, BASF has a sizeable stake in the plantbiotechnology sector through BASF Plant Science, which is predominantlyinvolved in trait development.


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Industry Overview

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GM seedFungicide

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Product Sector Analysis

During 2012, the market for conventional crop protection products was dividedby sector as shown below.

Conventional Crop Protection Market 2012

In addition to the above, a further $18,495 million is attributable to the sale ofseed of crops genetically manipulated to express input traits, herbicidetolerance or insect resistance, the uptake of which has a direct impact on themarket for conventional agrochemical products. The result of the introductionand acceptance of these crops on the market for conventional crop protectionproducts can clearly be seen in the graph below.

Crop Protection Product Sector Performance Since 1990

In 2012, the value of the herbicides sector rose (+6.4%) benefitting fromimproved glyphosate pricing and volume growth in developing markets, whilesales of both insecticides and fungicides recorded improved sales, by 7.5%and 5.2% respectively, driven by new product acceptance and growth in bothdeveloped and developing markets.

Sales of agrochemicals used in non-crop situations rose by 1.3% to $6,372million aided by more stable glyphosate prices in non-crop situations andimproved economies in developed markets. The GM seed market rose by17.9% to $18,495 million, driven by value enhancement due to the increasedadoption of stacked trait varieties as well as increased uptake in Latin Americaand Asia.

Total = $47,360 million

Others 2.8%

Insecticides 26.8%

Fungicides 26.2% Herbicides 44.2%


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Industry Overview

Growth of the Global Crop Protection Market by Sector

Herbicides Insecticides Fungicides Others Total CCP GM Seed

2012/2011 (%) +6.4 +7.5 +5.2 +5.9 +6.4 +17.9

2012/2007 (% p.a.) +5.4 +9.6 +8.9 +2.7 +7.2 +21.2

2012/2002 (% p.a.) +5.3 +7.1 +8.6 +4.2 +6.5 +19.4

Note: CCP = Conventional Crop Protection

Over the last five and ten years, market growth has been led by the fungicidessector, closely followed by insecticides. Generally the key factors affecting theperformance of the fungicide sector are weather related, affecting diseasepressure and hence product demand. During 2012 the cereal area in Europeincreased, with the fungicide sector benefitting from an early end to the winter,but subsequently held back by a wet summer in northern Europe and drynessin the South and East. Sustained disease pressure resulted in an improvedsoybean fungicide market in Brazil although Argentina suffered a decline.

Despite improving maize prices drought, in the US central corn belt held backthe market for fungicides on maize and soybeans.

During 2012, the greatest market improvement was recorded by insecticidesales, which rose by 7.5% to stand at $12,670 million, equivalent to 26.8% ofthe global crop protection market. Growth was recorded across most majorcrop sectors, but particularly on maize and sugarcane. The cotton sectorrecorded a decline, affected by lower crop prices, falling planted areas inmany markets and the further uptake of insect resistant seeds. The insecticidemarket also benefitted from significant growth for recent introductions, mostnotably chlorantraniliprole and spirotetramat, but also flubendiamide andmetaflumizone.

During 2012, fungicide sales rose by 5.2% to $12,420 million, with positiveperformances across most crops except cotton, potato, vine and pome fruit. Atthe product level, the sector continues to benefit from growth of the seedtreatment sector, whilst resistance issues continue to benefit products offeringnew modes of action. In 2012 further growth for the new phenyl pyrazolesuccinate dehydrogenase inhibiting products drove this strong performance,with further introductions from this class likely to result in further expansion ofthe fungicide sector in the immediate future.

In 2012 the market for herbicides continued to recover from a dip in 2009 and2010, with sales rising by 6.4% to $20,950 million, equating to a 44.2% market

share. A significant contribution to this was improvement in glyphosatemarkets. All major crop sectors recorded an increase in herbicide sales, led bymaize, soybean, cereals and rice in dollar terms, with glyphosate resistantweeds resulting in an improvement for selective herbicides in the USA.

Over the next five years it is expected that fungicides will continue to leadmarket growth, the products being key to delivering the crop yield and qualityimprovement that the market is demanding. In the herbicide sector a morestable pricing position in the glyphosate market is expected to result in asteady market improvement overall, with volume growth led by increasingusage in developing markets. Lesser growth is anticipated in the insecticidesector due to a further negative impact from GM seeds and less significantgrowth than for fungicides and herbicides in developing markets.


19/32

Industry Overview

GM Crops

The following table outlines the historical development of GM crops areasover the last ten years. Significantly more detail regarding the GM sector andthe seeds industry as a whole, including the companies, is available in thePhillips McDougall Seed Service.

GM Crop Areas 20022012

Acres million 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Herbicide Tolerant

LL Canola 2.4 2.7 4.1 4.9 6.0 5.8 7.5 7.1 7.7 8.7 10.8

LL Maize 1.5 1.4 1.5 0.5 0.5 0.6 0.5 0.5 0.5 0.5 0.5

LL Cotton 0.0 0.0 0.0 0.3 0.4 0.3 0.3 0.1 0.1 0.4 0.7

LL Soybean 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.4 0.6 0.8 1.0

RR Canola 4.9 6.2 6.3 6.8 5.6 7.4 7.8 8.3 9.2 9.6 10.4

RR Cotton 5.3 4.7 3.5 2.9 3.6 2.7 2.2 1.6 3.1 4.0 1.4

RR Maize 5.9 7.2 8.5 11.3 12.4 17.4 16.7 15.6 17 16.4 15.5

RR Soybean 89.1 98.1 108.9 119.1 133.9 133.7 147.5 160.2 172 183.1 191.6

RR Sugarbeet 0.0 0.0 0.0 0.0 0.0 0.0 0.545 0.8 1.1 1.1 1.2

Other HT Crops 0.4 0.3 0.2 0.0 0.0 0.0 1.0 0.9 1.0 0.5 1.0

HT Total 109.5 120.6 133.0 145.8 162.3 167.9 184.0 195.5 212.3 225.1 234.1

Insect Resistant Crops

B.t. Cotton 5.1 5.5 8.7 11.5 16.8 23.2 27.2 31.0 43.0 44.4 44.0

B.t. Maize 18.2 21.1 28.6 26.1 22.1 21.6 21.4 15.3 12.7 16.3 19.8CRW Maize 0.0 0.4 1.1 0.9 1.2 0.4 0.0 0.0 0.0 0.0 0.0

B.t Rice 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

IR Total 23.3 27.0 38.4 38.5 40.1 45.1 48.6 46.3 55.7 60.7 63.8

Stacked Gene Crops

Stacked Cotton 4.9 5.5 7.0 8.7 9.2 7.0 6.3 6.4 8.1 10.8 13.4

Stacked Maize 6.2 8.9 12.7 19.2 27.4 48.6 57.5 63.4 67.0 78.9 96.3

Stacked soybean 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Stack Total 11.1 14.4 19.7 27.9 36.6 55.6 63.8 69.8 75.1 89.7 109.7

Total 143.9 162.0 191.1 212.2 239.0 268.6 296.4 311.6 343.1 375.5 407.6

Note: LL=Liberty Link; RR= Roundup Ready; CRW=Corn rootworm resistant

In 2012 the overall planted area of herbicide tolerant and insect resistantcrops increased by 8.5% to reach 407.6 million acres (164.9 million hectares).As a result of this increase in area, the overall value of the agriculturalbiotechnology sector, based on the sale of seed of Genetically ManipulatedHT and IR crop varieties, increased by 17.9% to reach $18,495 m. in 2012.

The share of the total GM cultivated area planted with stacked gene varietiesof cotton and maize in 2012 was 26.9%, while herbicide tolerant trait varietiesof canola, soybean, sugarbeet, maize and cotton accounted for 57.4% with

the remaining 15.7% share attributable to insect resistant varieties of cottonand maize.


20/32

Industry Overview

Value ofGM Seed Market by Crop 2012

Maize is the most important sector of the GM seed market ahead of soybean,reflecting both the value of the overall maize seed market and the continuedtrend towards cultivation of premium priced stacked gene varieties of maize inthe USA. As a result of this market advance, the proportion of US maize

planted with transgenic herbicide tolerant and insect resistant crop varieties in2012 has reached around 92.1% of the total area. Overall, however, thehighest level of market penetration by GM crop varieties has been withglyphosate tolerant soybean in Argentina where over 98% of the crop in 2012was planted with these varieties. In Brazil, the share attributable to RoundupReady soybeans has been steadily increasing since their first adoption in2004/5, and during 2012 the overall proportion of soybean planted withRoundup Ready varieties reached 80.3% of the total soybean area.

The following chart outlines the planted area of transgenic crop varieties(excluding non-transgenic varieties such as Clearfield) split by geographicregion in 2012.

Area of GM Seed by Region 2012

At the country level, 43.8% of the global area planted with GM HT and IR cropvarieties is in the USA, with a further 36.9% in Latin America, 6.3% in Canadaand 13.0% in the rest of the world, led by cotton in India and China.

Over the last few years the relative share of the global GM crop planted areaattributable to the USA has been slowly declining from an estimated 59.3% in2005 to last years figure of 43.8%, mainly as a result increased adoption ofGM crop technology outside the USA. In addition the range of crops utilisingGM technology has increased recently from maize, soybean, canola and

cotton to include sugarbeet and alfalfa with further GM crop speciesscheduled be commercialised over the next ten years.


Maize 55.4%

Canola 3.9%

Cotton 9.5%Others 0.4%

Soybeans 30.8%

Rest of LatinAmerica 3.1%

Argentina14.2%

Canada 6.3%

Brazil 19.6%

USA 43.8%

Asia11.5%

Rest 1.5%

Total Planted Area = 407.6 million acres


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Industry Overview

GM Seed Market by Trait 2012

Over the next few years, the GM crop sector is also expected to continue tomove increasingly toward multiple trait stacked gene varieties, with reducedrefuge and refuge in the bag (RIB) products becoming dominant in the maizesector. Further multiple trait crop varieties are also expected to be developed

over the next few years incorporating not only newly developed input traits butalso output traits such as drought tolerance. In addition to stacked trait crops,new herbicide tolerant traits varieties, including 2,4-D and dicamba tolerance,are likely to be commercialised in the next few years. Roundup Ready alfalfaand sugarbeet has also been introduced and there is the prospect of theintroduction of B.t rice in India and China within the next five-year period.

Market Forecast for Crop Protection Market to 2017 ($m)

Herbicides Insecticides Fungicides Others ConventionalMarket

GMSeed

TOTAL

2012 20,950 12,670 12,420 1,320 47,360 18,495 65,855

2017 23,473 13,804 14,378 1,441 53,096 21,550 74,646

Growth % pa +2.3 +1.7 +3.0 +1.8 +2.3 +3.1 +2.5

Conventional Market 2017F GM Seed Market 2017F

Key Points

GM sector focussed on maize, soybean, cotton and canola

RR sugarbeet and alfalfa recently introduced

Market led by the Americas, but geographic exposure increasing

Introduction of insect resistant soybean in Latin America

Introduction of 2,4-D and dicamba tolerant traits in next few years

Adoption of RIB and reduced refuge technology

Stacked gene varieties driving grower acceptance and value increase

Total = $21,550 millionTotal = $53,096 million

Maize58.5%

Soybean27.9%

Rape 3.7%

Cotton 8.6%

Others1.3%

Herbicides44.2%

Others2.7%Fungicides

27.1%

Insecticides26.0%

HerbicideTolerant 41.3% Stacked Gene

47.3%

Insect Resistant11.4%



22/32

Industry Overview

Crop Sector Analysis

During 2012, the market for conventional crop protection products was dividedby crop sector as shown below.

Conventional Crop Protection Market Divided by Crop 2012

The table below shows the crop sectors that recorded the greatest growth in2012 against the previous year, as well as those that recorded the weakestperformances. The table is led by growth in the value of cotton fungicides,sugarcane insecticides, followed by soybean and oilseed rape insecticides.

Crop Sectors by Growth Performance 2012

Rank Crop Sector Sales 2011($m)

Sales 2012($m)

Growth2012/2011

(%)

Strongest Market Sectors

1 Rape Insecticides 246 348 +41.5

2 Sunflower Fungicides 24 31 +29.2

3 Rape Fungicides 388 478 +23.2

4 Rape GM Seed 587 719 +22.6

5 Maize GM Seed 8,455 10,251 +21.2

6 Soybean Insecticides 1,461 1,762 +20.6

7 Sunflower Insecticides 35 42 +20.0

8 Cereals Others 259 308 +18.9

9 Maize Insecticides 959 1,134 +18.2

10 Pome fruit Others 45 53 +17.8

Weakest Market Sectors

1 Pome fruit Insecticides 453 448 -1.1

2 Potato Herbicides 324 315 -2.8

3 Potato Fungicides 773 746 -3.5

4 Cotton Insecticides 1,443 1,390 -3.7

5 Vine Herbicides 258 248 -3.9

6 Vine Fungicides 1,072 1,029 -4.0

7 Cotton Others 323 309 -4.3

8 Pome fruit Fungicides 549 523 -4.7

9 Vine Insecticides 271 251 -7.4

10 Cotton Fungicides 110 100 -9.1


Fruit and Vegetables24.2%

Cereals 17.7%

Others 8.7%

Maize 11.9%

Soybean 12.6%

Rice 10.2%

Rape 3.7%

Cotton 5.2%

Sugarbeet 1.7%

Sugarcane 2.9%

Sunflower 1.2%


23/32

Industry Overview

Major Crop Global Planted Areas

Wheat Maize Rice Soybeans Cotton Rape

Planted Area 2012 (ha. m.) 215.9 174.4 158.2 108.5 34.3 35.0

Growth 2012/2011 (%) -2.4 +2.8 -0.7 +5.6 -3.9 +4.7

Growth 2012/2007 (% p.a.) -0.2 +1.8 +0.4 +3.6 +0.8 +4.5

During 2012 crop planting benefitted from sustained crop commodity prices,aided by increased global demand for grain and oilseed crops. In the EU, thecereal planted area rose led by gains in wheat and barley but the overall areaof oilseed crops declined. Grain production in the EU was however impactedby a wet summer in Northern Europe. In Latin America in the 2011/12 seasonthe maize and soybean planted areas in Brazil increased aided by highcommodity prices and while the maize area in Argentina was also up, thesoybean panted area in the country fell back slightly.Crop production in theregion was negatively impacted by very dry weather and drought in Brazil andArgentina.

In the NAFTA region, the maize and to a lesser extent the soybean sectorbenefitted from higher planted areas and while panting progressed relativelysmoothly, crop development was adversely affected by very dry and hotweather later in the season in the main corn belt. Against a background oflower prices, the cotton planted area in the USA declined. In Canada therewas recovery after the flood affected previous year with a significant increasein the planted area of canola and wheat.

In Asia improved weather conditions aided the Australian and Thailandmarkets, however a variable monsoon in India affected weed and pestpressure. Russian wheat sector was affected by a cold winter followed by adry summer while China benefitted form more normal water availability.

Forecast Value Growth by Crop Sector2012 to 2017 (% p.a.)

Herbicides Insecticides Fungicides Others ConventionalMarket

GMSeed

Total

Cereals +1.2 +2.9 +2.2 +1.5 +1.7 +1.7

Maize +1.1 +1.8 +3.9 +3.1 +1.5 +4.2 +3.3

Rice +2.7 +1.6 +3.0 +2.3 +2.4 +3.1

Soybean +1.7 -0.7 +2.5 +9.9 +1.3 +1.1 +1.2

Rape +3.4 +2.0 +2.0 +1.8 +2.8 +1.8 +2.5

Sunflower +5.4 +7.0 +8.2 +14.9 +5.7 +5.7Cotton +0.7 +0.6 +3.4 +0.1 +0.7 +1.1 +0.9

Sugarbeet +4.3 +3.3 +4.4 0.0 +4.2 +0.5 +3.8

Sugarcane +5.6 +4.9 +11.4 +2.7 +5.3 +5.3

Fruit and Veg. +3.3 +2.0 +3.1 +2.6 +2.7 +2.7

Other crops +3.0 +3.2 +5.1 +2.6 +3.5 +3.5

Total +2.3 +1.7 +3.0 +1.8 +2.3 +3.1 +2.5

The main factors behind the forecasts for market performance are strongercrop prices driven by increasing demand in developing markets. The keyfactors taken into account are the impact of GM crop adoption, growth indeveloping markets due to economic and population growth as well as dietary

change, expected movements in crop prices and legislation affectingagriculture.


24/32

Industry Overview

Non Crop Agrochemical Market

In addition to a market of $47,360 million for crop protection products, afurther $6,372 million in sales of agrochemicals is made in non-crop markets.These market sectors are estimated to have recorded growth of 1.3% in 2012in comparison with the previous year. The non-crop market is not subject tothe same factors that affect agriculture and has grown at a rate of 3.5% p.a.over the last five years. The non-crop sector is driven more by economicdevelopment, product price and volume, with technical advance having lessimpact than in crop sectors, although newer chemistry has made inroads intothe termiticides and turf sectors. During 2012 the non-crop market gainedfrom a favorable economic environment in developing markets notably in LatinAmerica and Asia. In addition to this, prices, particularly for glyphosate, weremore stable. Turnover in Japan was enhanced on currency translation, whilstgrowth was driven by the advanced developing countries, Brazil, India, Chinaand Russia.

Non-Crop Agrochemical Market 2012 by Region

Non-Crop Agrochemical Market 2012 by Sector

Middle East / Africa 5.2%

NAFTA 33.1%

Latin America 7.6%

Europe 14.9%

Asia 39.2%


Fungicides 26.6%

Insecticides 37.3%

Others 1.9%Herbicides

34.2%



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Industry Overview

0

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2012

$m

NAFTA

Europe

Asia

Latin America

Africa / Middle East

Regional Market Analysis

The market for conventional crop protection products in 2012 was divided byregion as shown below.

In 2012 market conditions were again better than in the previous year as cropprices were sustained and better weather conditions in some regions thatwere affected in 2011, although other areas suffered adverse weather in2012. Growth of the crop protection market was led by Latin America(+12.6%) with strong gains in Brazil, Uruguay and Argentina followed byNAFTA (+ 7.9%) with Canada recovering from 2011 flooding, and Mexico andSouthern USA benefitting from better water availability, although the USCentral corn-belt suffered severe drought. The Asian market rose by 4.8%, ledby China, India, Indonesia and South East Asian countries. The Japanesemarket rose by almost 2%, continuing the recent trend of recovery.

The 2011/12 Latin America market benefitted from significantly higher cropprices, although dry weather and economic factors in Argentina and Brazilheld back overall growth. In Europe (+1.9%), the market gained from an early

start to the season however growth was held back by a wet summer inNorthern Europe, but dryness in the East and South. In Eastern Europeeconomic conditions were far more positive however a long cold winterfollowed by a hot dry summer held back crop production and agrochemicalmarket development. Growth in Asia was led by India and China, although themarket in India was affected by another variable monsoon season. Thailandwas affected by product de-stocking prior to re-registration, whilst improvedglyphosate prices benefitted the plantation crop sector. Good growth was alsoevident in the more developing markets in Indonesia and Vietnam.

Regional Market Performance Since 1990


Asia 26.4%

Middle East / Africa 3.7%

Europe26.2%

NAFTA 19.5%

Latin America24.2%


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Industry Overview

Conventional Agrochemical Market Performance 200720122017F

Rank Country Sales Sales Sales Growth Growth Forecast Growth

2007 2011 2012 2012/11 2012/07 2017 2017/12

($m) ($m) ($m) (%) (% p.a.) (2012 $m) (% p.a.)

1 Brazil 4141 7002 7956 13.6 14.0 8885 2.2

2 USA 6077 6700 7035 5.0 3.0 7400 1.0

3 Japan 2712 3996 4067 1.8 8.4 4266 1.0

4 China 1656 2306 2717 17.8 10.4 3420 4.7

5 France 2659 2664 2651 -0.5 -0.1 2740 0.7

6 Germany 1673 1927 1928 0.1 2.9 2022 1.0

7 Canada 1063 1340 1623 21.1 8.8 1712 1.1

8 Argentina 801 1262 1450 14.9 12.6 1640 2.5

9 Australia 827 1281 1350 5.4 10.3 1387 0.5

10 Italy 952 1193 1213 1.7 5.0 1290 1.2

11 India 836 1154 1129 -2.2 6.2 1376 4.0

12 Spain 789 878 838 -4.6 1.2 870 0.8

13 UK 729 650 783 20.5 1.4 808 0.6

14 Russia 371 758 782 3.2 16.1 1125 7.5

15 Ukraine 158 467 614 31.5 31.2 800 5.4

16 Mexico 367 520 580 11.5 9.6 650 2.3

17 Indonesia 375 558 564 1.1 8.5 695 4.3

18 Korea 593 547 546 -0.2 -1.6 568 0.8

19 Poland 467 548 519 -5.3 2.1 629 3.9

20 Thailand 380 439 440 0.2 3.0 553 4.7

WORLD 33,390 44,528 47,360 6.4 7.2 53,096 2.3

During 2012, all of the top twenty crop protection country markets recordedgrowth in local currency terms. The most significant gains were in Ukraine,Argentina, Canada, the UK, Mexico, China, Brazil, India and Italy.

Generally weaker performances were recorded by the more mature markets,notably Japan and Korea. In dollar terms results were less positive, with 5 ofthe top 20 countries recording crop protection market declines followingcurrency translation.

Global Market by Region and Product Sector 2012 ($m)

Herbicides Insecticides Fungicides Others Total CCP GM Seed TOTAL

NAFTA 5107 2045 1748 338 9238 13051 22289

Latin America 4251 3820 3139 257 11467 4140 15607

Europe 5801 1678 4529 418 12426 10 12436

Asia 5013 4450 2734 281 12478 1054 13532

MEA 778 677 270 26 1751 240 1991

Total 20950 12670 12420 1320 47360 18495 65855


27/32

Industry Overview

Mexico$580 m.

Herbicides 55.3%Insecticides22.1%

Fungicides18.9%

Others3.7%

0

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2000

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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$m

NAFTA

Crop Protection Non-Crop GM Seed

2012 ($m) 9,238 2,108 13,051

Growth 2012/2011 (%) +7.9 +0.3 +12.6

Forecast 2017 ($m) 9,762 2,280 14,585

Forecast 2017/2012 (% p.a.) +1.1 +1.6 +2.2

Crop Protection

Key Points

US maize and soybean areas rose; the cotton area declined.

Canada recovered from the flooding that affected 2011

US maize production affected by drought in the Central corn belt

GM share of key crop areas very high and reaching maturity

Maize usage for ethanol decreased

Crop commodity prices sustained at a high level

Improvement in glyphosate prices

Southern USA and Mexico benefit from better water availability

Key Crops Market Share

Maize 25.5%

Fruit & Vegetables 20.5%

Cereals 15.4%

Soybean 12.6%

Cotton 5.7%

USA$7035 m.

Canada$1623 m.


28/32

Industry Overview

Herbicides 37.1%

Insecticides33.3%

Fungicides27.4%

Others2.2%

0

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12000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$m

Latin America


2012 ($m) 11,467 487 4,140

Growth 2012/2011 (%) +12.6 -2.8 +39.1

Forecast 2017 ($m) 13,003 664 5,283

Forecast 2017/2012 (% p.a.) +2.5 +6.4 +5.0

Crop Protection

Key Points

High commodity prices prevailing during season.

Brazilian Real weakened against US $.

Dry weather affects crop production, notably sugarcane.

Glyphosate prices low but improving.

GM maize and soybean areas increased especially in Brazil.

Maize and soybean area in Brazil and Argentina increased.

High interest rates in Brazil and inflation in Argentina


Soybean 38.3%

Fruit & Vegetables 15.4%Maize 10.4%

Sugarcane 9.7%

Cotton 7.4%

Cereals 4.6%

Rice 3.3%

Colombia

$377 m.

Chile$210 m.

Argentina$1450 m.

Brazil$7956 m.

Paraguay$250 m.


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Industry Overview


Rice 32.9%


Cereals 13.6%

Cotton 5.0%India$1129 m.

Australia$1350 m.

Insecticides35.7%

Fungicides21.9%

Herbicides 40.2%

Others2.3%

0

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$m

Asia


2012 ($m) 12,478 2,498 1,054

Growth 2012/2011 (%) +4.8 +5.0 +15.4

Forecast 2017 ($m) 14,228 2,762 1,374

Forecast 2017/2012 (% p.a.) +2.7 +2.0 +5.4

Crop Protection

Key Points

Improved weather conditions in Australia.

Increase in Chinese grain imports.

Competitive agrochemical pricing affects China.

Improved internal crop prices allow India farmers to use more advancedproducts.

Variable monsoon season holds back market growth in India.

Steady growth in the Japanese market.

High palm oil price and improving glyphosate prices benefit theplantation crop sector

South Korea $546 m.

China $2717 m.Japan $4067 m.

Thailand $440 m.


30/32

Industry Overview

UK$783 m.

France$2651 m.

Spain$838 m.

Insecticides 13.5%

Herbicides46.7%

Others3.4%Fungicides

36.4%

0

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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$m

Europe


2012 ($m) 12,426 951 10

Growth 2012/2011 (%) +1.9 -5.0 +11.1

Forecast 2017 ($m) 14,019 1,064 10

Forecast 2017/2012 (% p.a.) +2.4 +2.3 0.0

Crop Protection

Key Points

Increase in cereal area, but decline for oilseed rape.

High commodity prices during year.

Cold winter and a dry summer affect Eastern Europe.

Early start to spring in the EU, but:-

Wet summer and autumn in the north

Dry summer in the south

Improving economic environment in Eastern Europe.

2012 autumn planting held back in Northern Europe due to wet fields.


Cereals 35.6%

Maize 11.9%

Vine 8.7%

Oilseed Rape 8.5%

Sugarbeet 5.1%

Potato 4.7%

Pome fruit 4.5%

Poland$519 m.

Germany$1928 m.

Italy$1213 m.

Ukraine$614 m.

Russia

$782 m.


31/32

Industry Overview

Herbicides 44.4%

Insecticides38.7%

Fungicides15.4%

Others1.5%

0

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$m

Middle East & Africa


2012 ($m) 1,751 328 240

Growth 2012/2011 (%) +4.2 +6.1 +23.7

Forecast 2017 ($m) 2,084 382 298

Forecast 2017/2012 (% p.a.) +3.5 +3.3 +4.4

Crop Protection

Key Points

Political upheaval disrupts trade in North Africa.

Growth driven by year round specialty crop production in North Africa.

Growth in Namibia and Zambia driven by crop exports to SouthernAfrica.

Strong increase in crop planting in South Africa

Drought affects areas of both East and West Africa.

Farmers from Zimbabwe and South Africa relocating in Zambia.



Cotton 23.4%

Cereals 17.9%

Maize 9.8%

Rice 6.0%

Morocco$165 m.

Turkey$258 m.

Kazakhstan$143 m.

South

Africa$204m.


32/32

Industry Overview

Herbicides44.2%

Insecticides26.8%

Fungicides26.2%

Others2.8%

0

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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$m

Asia:

26.4%

NAFTA:

19.5%

Latin America:

24.2%

Europe:

26.2%

Africa / Middle East:

3.7%

WORLD


2012 ($m) 47,360 6,372 18,495

Growth 2012/2011 (%) +6.4 +1.3 +17.9

Forecast 2017 ($m) 53,096 7,155 21,550

Forecast 2017/2012 (% p.a.) +2.3 +2.3 +3.1

Crop Protection



Cereals 17.7%

Maize 11.3%

Soybean 12.1%

Rice 10.5%

Cotton 5.7%

Documents

Industry Overview 2012