Manufacturing News

Sinochem to distribute Roundup after Nufarm loses Monsanto deal

The Australian subsidiary of China’s Sinochem has emerged as the new local distributor of Monsanto’s Roundup weedkiller product.

After Nufarm announced that it would make its own glyphosate products, Sinochem Australia – whose managing director, commercial manager and operations manager are former Monsanto employees – was announced as the new Australian distributor of Roundup, the market-leading and original glyphosate herbicide.

As reported in Manufacturers' Monthly and elsewhere yesterday, the weedkiller brought in sales of approximately $100 million a year for Nufarm, which has been distributing the product since 2002.

“We're not losing a product, we're losing a brand,” Nufarm’s Robert Reiss told Fairfax Media.

“We will still have the ability to continue marketing glyphosate – the chemistry – with our own brands''

Sinochem Australia is a wholly-owned local subsidiary of the Chinese government, and already distributes Roundup in China and the Philippines. It also made an aborted takeover attempt on Nufarm in 2009.

Nufarm has enjoyed half of all glyphosate sales in Australia, with 60 per cent of these from Roundup, reports The Australian.

Monsanto explained that it terminated its agreement with Nufarm due to increased competition from China and  "erratic and unpredictable pricing".

Sinochem Australia will commence distributing Roundup in September.

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