Bayer CropScience Presents New Growth Strategy

Bayer CropScience flags

Bayer CropScience has revealed a new four pillar strategy for future growth at the company’s annual press conference in Monheim, Germany. Sandra E. Peterson, CEO of Bayer CropScience, outlined the company’s commitment to drive business growth by focusing on four key objectives, including:

  1. Rejuvenate its core Crop Protection business
  2. Reinvent customer-centricity along the entire value chain (seed-to-shelf),
  3. Refocus its innovation through increased R&D investment
  4. Extend the company’s BioScience business

“Our entire organization is relentlessly focused on meeting the rapidly changing needs of a planet hungry for agricultural resources,” said Peterson. “We will continue to meet these needs only through our increased focus, improved efficiencies and accelerated innovation. Already, our efforts on these fronts are driving positive business results and momentum.”

Rejuvenating the crop protection business. Bayer CropScience is currently restructuring its Crop Protection business – by phasing out older products, increasing its focus on key brand families, extending its geographic presence further into emerging markets and developing its supply chain operations to a position of industry leadership. As evidence, Peterson pointed to the introduction of the company’s new cutting-edge cereal fungicide Xpro family this year. “Xpro is a good example of how our chemical innovation and engineering expertise can be translated into improved efficacy and efficiency,” said Peterson. The Xpro family recorded over EUR 100 million in sales in Europe already in its first six months in the market in 2011.

Peterson also announced that the company is accelerating the phase-out of all remaining WHO class I insecticides.

“By the end of 2012, Bayer CropScience will no longer have products with this classification anywhere in its portfolio,” said Peterson. “This action, and others which we take on a daily basis, demonstrate our continuing commitment to sustainable agriculture.” Chemical products within this category will be replaced by modern, targeted and more environmentally friendly formulations.

Leveraging customer-centricity across the value chain. The company strives to leverage customer-centricity across the value chain to deliver solutions from seed-to-shelf. This involves increased grower orientation and improved channel management practices as well as state-of-the-art customer relationship tools, leveraging the trusted expertise of the Bayer brand and broadening its successful food chain partnership business model through cooperation with multinational food companies and retailers, Peterson explained.

“We are uniquely positioned to connect everyone along the value chain from seed-to-shelf to create sustainable programs that will make ongoing contributions that tackle the complexity in the industry and contribute towards feeding this hungry planet,” said Peterson.

Refocusing innovation. The third pillar of the strategy is refocusing innovation, with an increasing emphasis on the BioScience business unit and new growth areas in agrochemical research. To better fuel future growth from innovation, the company intends to double the annual investment for research and development at its BioScience unit by 2015 (2010: about EUR 200 million). Total R&D budgets at Bayer CropScience are planned to rise some 20 percent to more than EUR 850 million by 2015, Peterson announced.

“With our in-depth knowledge of biology, genetics, biochemistry and life science chemistry, Bayer CropScience is well placed to innovate at the interface where chemistry converges with biology”, she said. “We are pursuing holistic agronomy innovations”, Peterson stressed.

Extending the bioscience business. The fourth pillar is the extension of the BioScience footprint in focused crops. “Over the past 10 years, we have demonstrated that we can establish global BioScience leadership positions in those markets in which we choose to compete,” said Peterson. Going forward, Bayer CropScience plans to further build its leading positions in cotton, oilseeds and vegetable seeds, areas where the company has outpaced the growth of the global seeds & traits market in 2010, and continues to do so in 2011. In addition, Bayer CropScience intends to build significant positions in soybeans, rice and wheat, which represent 3 out of the 4 global broad acre crops.

In soybeans, Bayer CropScience will establish a broad germplasm base, develop best-in-class breeding operations and a unique soy trait pipeline, Peterson said. In rice, the world’s second largest staple crop, the company continues to drive hybrid rice adoption in Asia and supports farmers in the region to grow “Much More Rice” through an agronomic program under this name. Wheat has also been designated a major strategic crop for Bayer CropScience, and the company is putting significant resources into research and development of new wheat varieties and traits. “When our global customers turned to us to find new ways to raise productivity of wheat cropping, we listened to them and built a world-class research platform for wheat genetics”, Peterson said, referring to a series of alliances and cooperations the company has agreed on with the best partners in the industry. The first new wheat varieties resulting from this initiative are expected to reach the market by 2015.

Propelling Future Growth

Peterson said that she sees many opportunities for Bayer CropScience to propel future growth. The fruits and vegetable segment offers particular good perspectives in this regard, she noted. The company plans to achieve sales of about EUR 3 billion with seeds, traits and crop protection solutions for fruits and vegetables by 2020, Peterson said.

Strong Business Development In H1, 2011

Commenting on the business development in the first six months of 2011, Peterson said she was pleased with the performance Bayer CropScience has shown. In the first half of the year, Bayer CropScience delivered record results with sales reaching EUR 4.2 billion. Adjusted for currency and portfolio effects, that is an 11 percent gain on last year. Despite adverse weather conditions in important growing regions, the Bayer subgroup has seen a strong performance in both its Crop Protection and BioScience segments in key markets, due to increased focus, improved efficiencies and innovation. In Crop Protection the company realized a currency and portfolio-adjusted growth of 10 percent to EUR 3.24 billion. The BioScience business delivered a 25 percent sales increase to EUR 598 million. Sales at Environmental Science came in at EUR 364 million. On the earnings side, Bayer CropScience delivered a 34 percent increase in EBITDA before special items from a relatively weak EUR 911 million in the first half of 2010 to EUR 1.22 billion this year.

Topics:

Leave a Reply

Insecticides Stories

Corn Field
InsecticidesArysta LifeScience, DuPont Collaborate On Rynaxpyr Premix Formulations
February 8, 2017
Arysta LifeScience recently announced that it has entered into a global collaboration with DuPont Crop Protection for the development of Read More
Young Corn Closeup
FungicidesArysta LifeScience Receives EPA Approval On New In-Furrow Products
February 2, 2017
Arysta LifeScience North America recently received EPA approval on two new products, both of which feature patented formulation technology that Read More
Scott Stewart, University of Tennessee
InsecticidesInsecticides: How To Win With A Smaller Arsenal
January 24, 2017
There’s no way around it: Loss is a central theme this year in dealing with insect pressure in the U.S. Read More
Soil Young Corn
InsecticidesAtticus Launches New Acetamiprid Alternative
January 3, 2017
Atticus recently announced the introduction of a line of products containing the active ingredient Acetamiprid, an insecticide that works quickly Read More
Trending Articles
AdjuvantsA New Weed-Control Era Begins: But First, One Last Obstacle
March 4, 2017
There is trepidation, there is reluctance, and there is excitement. Ag retailers feel it all about the new dicamba and Read More
LIFT Academy video screenshot
Crop InputsLIFT Agriculture Academy: A Q&A With West Central Distribution’s Dean Hendrickson
March 1, 2017
West Central Distribution recently launched its LIFT Agriculture Academy, a new, premiere training and professional development resource for West Central’s ag Read More
Farmer and aptop
Matt Hopkins10 Warning Signs Your Website Is Grossly Outdated
February 8, 2017
Your Website is often a visitor’s first impression of your ag retail business. A positive first impression can set the Read More
AgriSync
Matt Hopkins17 Agriculture Apps That Will Help You Farm Smarter In 2017
December 9, 2016
Ag professionals are working smarter, not harder, than ever before. Smart farming technologies have enabled them to reduce costs, maximize Read More
R4023 Sprayer, John Deere
CropLife 100Ag Retail Equipment Report: The Green Party Continues
December 7, 2016
In the annual race for sales in the ag retail equipment marketplace, the color schemes for participants are a little Read More
Mike Stern
Precision AgClimate Corp. CEO Talks Retailer Support For Digital Ag
December 1, 2016
CropLife Magazine’s sister publication, AgriBusiness Global, recently sat down with Mike Stern, CEO of The Climate Corp., following the Monsanto subsidiary’s Read More
Latest News
Pam Marrone
Crop InputsMarrone Bio Innovations Enters Biostimulants Market Wit…
March 23, 2017
Marrone Bio Innovations, Inc. is expanding beyond biopesticides and crop protection and into the biostimulant market by commercially launching Haven Read More
Nutrients for Life Foundation Teacher
FertilizerNutrients For Life Foundation Celebrates 10 Years Teach…
March 23, 2017
Those in agriculture know fertilizer is a vital ingredient to grow strong, productive crops. In fact, fertilizer is responsible for Read More
ManagementThink You Know Water? Take WinField United’s R…
March 22, 2017
Water is among our most precious resources, and arguably the hardest working, with just one percent available for human use, Read More
Corn Field
LegislationTFI Hopes Court Dismissal Is ‘Final Chapter’…
March 20, 2017
The Fertilizer Institute (TFI) released the following statement from President, Chris Jahn on the March 17, 2017, federal court dismissal Read More
Wheat Growers
Industry NewsWheat Growers CEO Dale Locken To Retire
March 20, 2017
CEO Dale Locken has announced that he plans to retire from Wheat Growers. Locken has served almost 15 years as Read More
Bayer Monsanto
Eric SfiligojBayer-Monsanto: Life, LibertyLink, And The Pursuit Of R…
March 20, 2017
As the calendar officially turns to spring, life is in full renewal mode. Flowers are blooming, birds are singing, and Read More
Corn Field
Crop InputsUltra Yield Micronutrients Acquires Kronos Micronutrien…
March 16, 2017
Ultra Yield Micronutrients, Inc. ”Ultra”, an affiliate of Cameron Chemicals, Inc., is pleased to announce that it has acquired the Read More
ManagementSnowstorms, Asset Sales, and Soybeans Prices
March 16, 2017
Editors Paul Schrimpf and Eric Sfiligoj discuss the weather, precision ag, crop protection company mergers, and commodity prices in this Read More
Soybean Field
Seed/BiotechBayer Invests $8.1 million In Soybean Advancement In Th…
March 16, 2017
Growers in Illinois and across the Midwest now have the added benefit of a state-of-the-art soybean research facility, increasing accessibility Read More
CHS
CropLife 100CHS Acquires Western Co-op Transport Association
March 16, 2017
CHS Inc., North America’s leading farmer-owned cooperative and a global energy, grains and foods company, has purchased Western Co-op Transport Read More
Young corn plants in soil
HerbicidesBest Management Practices To Control PPO-Resistant Weed…
March 14, 2017
Weeds resistant to the class of herbicides called protoporphyrinogen oxidase (PPO) inhibitors are spreading at a faster rate than weed Read More
Photo credit: The United Soybean Board/The Soybean Checkoff.
Eric SfiligojFungicide Resistance On The Horizon
March 13, 2017
For many years now, the agricultural market has struggled to keep ahead of an ever-growing number of herbicide-resistant weeds. According Read More
Management2017 Commodity Classic Review
March 10, 2017
Editors Paul Schrimpf and Eric Sfiligoj discuss what happened at the recent Commodity Classic in San Antonio. Read More
Farmer using AgriSync
ManagementMajor AgriSync Update Aims To Extend Ag Experts’ Power …
March 10, 2017
AgriSync announced a major update to its leading collaboration and service management tool for professional ag advisors and their farmer Read More
Agrible Pocket Spray Smart App
EquipmentNew Agrible Pocket Spray Smart App Alleviates Spraying …
March 10, 2017
There’s a new app to help farmers decide when to spray their fields. Pocket Spray Smart is a free iOS Read More
BPIA logo
Crop InputsBiological Products Trade Association Changes Name, Exp…
March 9, 2017
The Biological Products Industry Alliance (BPIA), formerly the BioPesticide Industry Alliance, is the new name of the rapidly growing U.S.-based Read More
BBI MagnaSpread Salford BBI
Equipment14 Fertilizer Spreaders For 2017
March 9, 2017
Application equipment manufacturers stressed flexibility and accuracy with this year’s crop of fertilizer spreaders. From AGCO’s TerraGator TG9300B and Case IH’s 810 Read More
Sonny Perdue
LegislationARA: Sonny Perdue Confirmation Delay Simply A Paperwork…
March 9, 2017
It’s been seven weeks since the White House named former Gov. Sonny Perdue (R-Ga.) as the nominee for the next Read More