Pesticide profits belie mature market status

Abstract

Pesticide producers in the U.S. are expecting another good year in 1980. Production will be up a modest 3 to 5%, but prices are likely to climb at least 10%. Pesticides' important export poundage once again probably will increase. Thus dollar sales of pesticides produced in the U.S. will continue their steady, highly profitable gains. At. no time in the past decade have dollar sales of pesticides fallen. Oddly, the pesticide market is often described as mature. However, this market defies the usual definition of mature, which implies modest profitability as well as low growth. In terms of production and sales volume of pesticides in the U.S., the market does indeed appear to be mature. During the past decade, production has increased only about 44% (4% per year), and shipments have climbed only about 47%. Consumption within the U.S. has not regained the peak it reached in the mid-1970's. However, in terms of sales dollars, ...