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Aceto cuts glyphosate from business plan

The US company, Aceto (Port Washington, New York), has downgraded the importance of the herbicide, glyphosate, in its future strategy. “This is not a product or business activity that we have factored into our business plan,” the company says in a letter to shareholders. “Our future participation will only be on an opportunistic basis when our Asian sourcing offers us an opportunity to be profitable and competitive in the US domestic market.” The introduction of glyphosate has boosted the company’s agrochemical revenues, but margins have been lower than expected due to difficult market conditions. Agrochemical sales more than doubled in the year ended June 30th 2010, but gross profit fell by 5% ( Agrow No 601, p 2).



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