Question

Provide a macroeconomic analysis of customers with explanation and analysis of forecast for the agrochemical industry and Syngenta specifically.

Variable include, capital, labor and inputs.

Answer 1

Syngenta is a major agricultural company which helps to boost food security with the process of allowing lots of farmers to utilize the resources which are available effectively. It is a global company which is based on Switzerland formed in the year of 2000. This company is created by merging Novartis Agri business and Zeneca Agro chemicals. The major products of Syngenta are fungicides, herbicides, insecticides and seed care.

Syngenta helps to provide labor to the farms of agriculture where sufficient labor does not exist. A country where lots of people engaged in the section of agriculture is Argentina. Here the main issue on their agricultural farms was inadequate labor. After that they hold hands with Fair Labor Association (FLA). FLA was interested in agricultural development and they started a program for providing sufficient labor to work in the agricultural field as well as the seed supply farms. Proper training was given to the new workers as well as existing workers in the supervision of FLA. With in 2-3 years Argentina's agricultural field attained around 100% acceptance of the code of conduct of FLA. After all this was a step taken by Syngenta in the case of labor. A fair labor code of conduct was follow by Syngenta, allowing each and every worker to improve.

Syngenta helps to make innovative products which wipe out the issues faced by farmers by technological advancement. The products of Syngenta take care of issue such as attack of insects, diseases cost to the plant, weed controlling, and at the same time helps the farmers to manage the environmental conditions such as cold, hot, as well as drought.

Syngenta keeps credit rating of investments from 2/3 credit rating agencies that provides a proper balance between financial flexibility as well as cost of capital. As on 31.12.2018, credit ratings of Syngenta are mentioned below:

• Standard and poor rating services- BBB-\A-3
• Fitch ratings Limited- BBB\F3
• Moody investor services ltd- Ba2\Np

Syngenta monitors debt level and controls capital. It also maintain an equity towards target. The debt of Syngenta does not include finance-related derivatives as well as collateral's. Dividends are paid to the shareholders as a return of capital.

Agro-chemical industries deals with chemical products which have to be utilized in the field of agriculture. These products includes fungicides, herbicides,insecticides, fertilizers, chemical growth agents etc. Most of the agro-chemicals are harmful and causes health issues. Permit of Government should be needed to store such agro-chemicals. The global leader in the agro-chemical industry was Syngenta which have the turnover of approximately $ 10.9 billion as on the year 2013.