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.

Leave a Reply

Insecticides Stories

InsecticidesHow To Scout For Corn Earworms In Corn
July 28, 2014
In her weekly report, University of Missouri Agronomy Specialist Jill Scheidt discusses what to look for when scouting for corn earworm. Read More
InsecticidesEPA Grants Besiege Insecticide Additional Approvals
June 18, 2014
EPA has granted additional registration approvals for the use of Syngenta's Besiege insecticide on sorghum, cereal grains and peanuts. Read More
InsecticidesPrevathon Insect Control Approved For Cereal Crops
January 13, 2014
DuPont's Prevathon insect control powered by Rynaxypyr has received U.S. EPA registration for use on cereal crops, including wheat, most other small grains and sorghum. Read More
InsecticidesInsecticides 2014: Insect Pressure, Solutions On The Rise
January 2, 2014
Bt resistance, weather concerns and myriad other issues have led to an increase in both traditional pest pressures as well as new pests. Read More

Trending Articles

Matt Hopkins15 Best New Agriculture Apps Worth Downloading In 2014
December 16, 2013
These latest agriculture apps are sure to help ag professionals do their jobs more efficiently in 2014 and beyond. Read More
Seed/BiotechMonsanto Offers New Support For Ferguson, Area Communities
October 8, 2014
Monsanto Co. has committed $1 million in new support for several collaborative efforts in Ferguson, MO, and surrounding communities in North St. Louis County. Read More
Seed/BiotechUnapproved Genetically Modified Wheat Found In Montana
October 3, 2014
USDA reports that one year after discovery of Monsanto's unapproved wheat in a single Oregon field disrupted U.S. wheat export sales, the GMO wheat has again been found in Montana. Read More
Equipment2014 Product Of The Year Voting
September 19, 2014
Many new products were introduced to the ag retail marketplace this year. From this group, CropLife IRON and its consulting partners have selected five finalists for the Product of the Year award. Please cast your vote today to help us determine the winner. Read More
FertilizerFall Fertility 2014: Forecasting Fertilizer Use
September 7, 2014
Great crops this year have tapped the soil, and fall work is definitely called for, but how challenging will that get? Read More
CropLife 100CHS To Build $3 Billion Fertilizer Plant In North Dakota
September 5, 2014
The fertilizer plant in Spiritwood will be the single largest investment in CHS history, as well as the single largest private investment project ever undertaken in North Dakota. Read More

Latest News

Seed/BiotechEPA Approves Dow’s Enlist Duo Herbicide
October 15, 2014
The Enlist Weed Control System, breakthrough technology to fight resistant and tough weeds, has received the long-awaited green light from federal regulatory authorities. Read More
MicronutrientsGypsum On Farms Could Help Keep Water Clean, Not Green
October 14, 2014
Gypsum, which has roots in the past as a farm soil treatment, also may have a bright future, and not just as a booster of crops but also as a protector of water. Read More
Photo credit: The United Soybean Board/The Soybean Checkoff.
Crop InputsVerdesian Grows Sales Staff
October 14, 2014
The new account managers will drive sales growth and support relationships with key customers in the plant nutrition and seed treatment and inoculants product categories. Read More
WebinarsUpcoming Webinars
October 14, 2014
Register for one of our upcoming Webinars or access our archive of past Webinars to view recordings of presentations that may be of interest to you. Read More
CropLife 100The Andersons Purchases Six Grain Elevators, Four Agron…
October 14, 2014
The Andersons has acquired Auburn Bean and Grain of Auburn, MI, which will increase the storage capacity of its Grain Group by about 13%. Read More
StewardshipThree Ohio Ag Retailers Honored With 4R Certification
October 13, 2014
The 4R Nutrient Stewardship Certification Program has announced its first three agriculture nutrient service providers to achieve certified status. Read More
Eric SfiligojEntering Agriculture’s New Phase
October 13, 2014
The market’s giddy ride the past few years might be coming to an end in 2015, warns one industry insider. Read More
Eric SfiligojWar And Green Peace
October 11, 2014
A one-time member of Green Peace recently explained why he left the organization after 15 years. Read More
StewardshipCover Crops Add To Farm Sustainability
October 10, 2014
Farmers nationwide find cover crops to be a tool that helps groundwater, prevents erosion, builds soil quality and complements existing best management practices. Read More
EquipmentMeeting Changing Liquid Storage Needs
October 10, 2014
Tank and containment choices are expanding with shifts in farming practices and the economy. Read More
StewardshipEDF Launches Initiative To Reduce Fertilizer Pollution …
October 9, 2014
The effort will engage farmers and businesses throughout the supply chain to transform the way fertilizer-dependent grain crops are grown and sourced. Read More
ManagementMACA 2014: The State Of The Agricultural Industry, And …
October 9, 2014
The trade association’s annual gathering featured speakers from across agriculture and beyond. Read More
FertilizerASA: Drainage Tiles A Big Part Of Phosphorus Problem
October 8, 2014
A pair of studies published in the Journal of Environmental Quality today indicate that the buried network of drainage pipes known as the tile system can carry away as much phosphorus as surface runoff. Read More
FertilizerCompass Minerals Debuts Phosphorus Blend For 2015
October 8, 2014
The makers of Wolf Trax DDP Nutrients designed Nu-Trax P+ with the CropStart Nutrient Package, a blend of phosphorus (25%), zinc (20%), manganese (5%) and nitrogen (4%). Read More
ManagementIndiana Certified Crop Advisor Of The Year Nominations …
October 8, 2014
Indiana Farm Bureau and the Indiana Certified Crop Adviser Program are seeking nominations for the Indiana Certified Crop Adviser of the Year Award. Read More
Seed/BiotechMonsanto Offers New Support For Ferguson, Area Communit…
October 8, 2014
Monsanto Co. has committed $1 million in new support for several collaborative efforts in Ferguson, MO, and surrounding communities in North St. Louis County. Read More
Precision AgGoogle Glass: New Tool For Ag
October 8, 2014
New wearable smart technologies such as Google Glass show potential to greatly impact how we accomplish the business of feeding the world. Read More
FertilizerJ. R. Simplot To Build New Ammonia Plant In Rock Spring…
October 7, 2014
The new plant will supply both the Rock Springs, WY, and Pocatello, ID, phosphate fertilizer production locations while having the capacity to meet the company’s next phase of anticipated phosphate expansion plans at Rock Springs. Read More