With a nationwide crop input shortage impacting producers, ADAMA Canada 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 such as 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 such as 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.

“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 such as 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.

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.

Source:  ADAMA May 17, 2022 news release