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.
