US seed and chemical giant Monsanto said it expects glyphosate prices to rise in 2018. The maker of Roundup said the price of the generic active ingredient glyphosate would increase in 2018 as Chinese chemical manufacturers cut production due to new environmental controls mandated by their government.

As a result of these higher prices, Monsanto said it expects profits from Roundup sales to rebound this coming year.

The EU’s renewal of the glyphosate licence will also help Roundup sales, which are projected to exceed $1bn this year for the first time since 2015.

Monsanto made the announcement as it revealed first quarter operating profits of $242m (€202m), a 2% decline year on year. First-quarter sales to the end of November were flat at $2.7bn (€2.2bn).

The St Louis-based company said it expects its $66bn takeover by German company Bayer to be completed in early 2018. The company said it has so far secured almost half of the regulatory approvals needed to complete the deal.