Bayer AG may not be able to fill some glyphosate contracts this spring due to a supplier’s manufacturing problem.
The agrichemical giant alerted retail partners that it had declared a “force majeure” event, which typically suspends a supplier’s contractual liabilities in the wake of disruptions beyond its control.
“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,” the company said in a statement.
This concerns some Texas farmers who are waiting for glyphosate deliveries.
In a letter last week announcing the force majeure event, Bayer stated an undisclosed supplier of a raw key material for glyphosate production experienced a “mechanical failure,” leading to a “substantial reduction in production rates.”
Bayer noted repairs of this production line are expected to take about three months.
“Our supplier is on track to restore production, (and) we’ve sourced additional materials and made other mitigation efforts to help best manage this situation,” according to Bayer. “We expect any impact to be marginal in terms of our annual glyphosate production.”
Glyphosate is a key ingredient in Bayer’s Roundup and RangerPro.
The news comes at a time when farmers are already experiencing tight supply and increasing costs for agricultural chemicals.