North American farmers are splurging out on pesticides even while cutting fertilizer use to the bone, with Bayer reporting a 28% surge in regional crop protection sales

The German chemicals giant said sales of crop treatments reached E378m during the first three months of the year, with growth far outpacing the 3.5% recorded in the group's core European markets.

"Our young corn herbicides in particular... turned in an outstanding performance," Bayer said, adding that weedkillers for use on cereal crops had also managed "strong growth".

North American seed sale were also strong, rising 24% to E130m, led by sales of hybrid canola seed.

'Spray with conviction'

The data follows a series of reports from fertilizer manufacturers of tumbling North American sales, with PotashCorp reporting US potash trade had had "ground to a virtual halt".

And it tallies with the findings of a UBS report last week which said that the crop chemicals market was relatively invulnerable to farm cutbacks.

"Farmers will try and protect investments made last year, and here seed and crop protection is critical," the report said.

"Where they plant they will spray, and with conviction."

Further growth

Bayer's crop protection unit overall reported a 6.9% rise to E1.73bn in sales for the quarter, helped by growth in both prices and volumes.

Nearly half the sales came from the fungicide portfolio, which includes brands such as Flint and Input, and where takings soared 11.3%.

Revenues at the group's seeds unit rose 8.4% to E386m.

And Bayer said that the businesses were set to maintain "positive development", albeit at growth rates lower than last year.

"Farmers in general should continue to benefit from attractive prices for plant-based raw materials compared with the long-term average, as well as from low energy and fertilizer costs," the group said.

Earnings slump

However, Bayer trimmed its outlook for group performance following a weak quarter at its coatings and plastics division, which dragged overall revenues 7.5% lower to E7.90bn.

Group earnings slumped 44% to E425m. 

Bayer shares closed 3.3% lower at E37.37 in Frankfurt.