The Biggest Chemical Companies
Embrace Barter
The world’s largest manufacturers of
agricultural chemicals are increasing their barter business. Here’s
a quick look at what is taking place.
Syngenta AG, a Swiss company, is the world’s
largest manufacturer of agricultural fertilizers. Then there are the
two German giants—Bayer AG and BASF SE. (BASF is the world’s biggest
overall chemical company.)
They are increasingly turning to barter —
accepting crops instead of cash — in various parts of the world
because it generates more business. By assisting credit-starved
farmers, particularly in emerging markets that possess growth
potential but not necessarily the required liquidity, new sales are
accomplished.
The manufacturers don’t store the acquired
crops/grain. Rather they agree on a specific part (percentage) of a
harvest as payment for the chemicals. They then sell the harvest on
the futures market.
