Syngenta To Merge Seeds, Crop Protection

Syngenta has unveiled a new strategy that includes plans to merge its two biggest divisions: crop protection and seeds. The announcement comes after the company reported a 6% rise in its 2010 revenues.

In a video interview, Syngenta CEO Mike Mack said the first stage of the integration would be complete by 2012. “This is the culmination of plans that have been under way for three years,” he said. “Integration doesn’t just mean people, it also means offers and I’m looking forward to being able to take two really strong businesses to a higher level of performance.”

In a Feb. 9 Syngenta news release, Mack said the merger of the seed and crop protection divisions will build “on the success of integration already introduced in countries such as Brazil and Italy.”

The release also said that commercial integration will result in cost savings of around $150 million by 2015. Additional savings from procurement and supply chain efficiency are expected to total around $500 million, giving total annualized cost savings of around $650 million in 2015.

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6 comments on “Syngenta To Merge Seeds, Crop Protection

  1. Already have a seed company we are supporting, I assume this means I will have to quit supporting the ag chem side of Syngenta.

  2. I’m not sure Syngenta is saying its a great idea rather one they are hoping to save them operating cash. IMO, they are trying to save their seed division until they generate some better products and technology revenues.

    Syngenta has done this once before and broke divisions apart, Monsanto has done the same twice and DuPont once.

  3. This will result in watered down service at the field level. These two businesses are completely different in the way they are offered at the dealer level. I have been in this business more than 30 years and have seen this story before. It has never worked. The problem is that these companies think that the end user is their customer. If that were the case, they might be able to make this work; but their real custmer is the retail dealer, not the farmer. They keep trying to re-invent the channel.
    I have a great Syngenta chem rep and I sell a lot of his products. If he as seed responsibility, he can’t sustain his efforts on chem. I predict it will be a hard lesson to be learned (or should I say re-learned)

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