Cooperation agreements in the agrochemical industry in the 2000s

Abstract

Over the past twenty years, the agrochemical industry has experienced a restructuring process caused by the expansion strategy of the major companies through mergers, acquisitions and cooperative agreements. The objective of this text is to analyze the agreements made in the 2000s by the six largest companies in the industry (Syngenta, Bayer, BASF, Dow, DuPont and Monsanto), according to a typology able to identify the main causes of the adoption of strategic agreements. Five types of deals involving pesticides companies were identified: commercialization, research and development (R&D), access to products and/or active ingredients, manufacturing, and manufacturing and commercialization. These companies made partnerships with their competitors to overcome and establish barriers to entry or to mobility, reduce costs and risks, create economies of scale and scope, have access to new markets and increase their competitiveness by expanding its product portfolio. High market concentration (the six largest companies control 70% of global sales), intense segmentation due to high diversification and differentiation products are the main reasons for the creation of these agreements. Key words: Agrochemical industry; cooperation agreements; market structure. Artigo recebido em ago. 2010.