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Bayer: Supplier's production shortfall may slow glyphosate deliveries

A “substantial reduction in production rates” at a manufacturing plant that supplies one of the raw ingredients needed to make glyphosate will affect Bayer’s ability to deliver products containing the chemical, the company says.

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Bayer says mechanical failure at an unidentified supplier’s plant “may have some short-term impacts on our production of the active ingredient to manufacture glyphosate.”
Courtesy / Agri-Pulse Communications

A “substantial reduction in production rates” at a manufacturing plant that supplies one of the raw ingredients needed to make glyphosate will affect Bayer’s ability to deliver products containing the chemical, the company says.

Udo Schneider, global head of active ingredient manufacturing, said in a Force Majeure announcement for customers Friday , “Bayer’s ability to supply its customers with glyphosate or glyphosate-containing products as agreed upon in certain agreements or under accepted purchase orders has been impacted.”

Force majeure is used to shield companies from liability when an event occurs that is unforeseeable.

In a statement Monday, the company said the mechanical failure at the unidentified supplier’s plant “may have some short-term impacts on our production of the active ingredient to manufacture glyphosate.”

“Our supplier is on track to restore production, we’ve sourced additional materials and made other mitigation efforts to help best manage this situation,” the company said.

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“We expect any impact to be marginal in terms of our annual glyphosate production,” Bayer added. Schneider said Bayer expects it will take three months to fix the problem.

Bayer noted that “the crop chemistry market worldwide is experiencing historically tight supply due to challenging global trade flows, effects of the global pandemic and other forces which have continued to put pressure on already tight supplies. Throughout these situations, Bayer has been working with our customers to help manage supplies and best meet their needs around the world.”

Glyphosate is the active ingredient in the herbicide Roundup.

For more news, go to www.Agri-Pulse.com.

Related Topics: AGRICULTUREAGRIBUSINESS
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