Bayer CropScience accelerates expansion of biotech and seed business with investments of around EUR 3.5 billion through 2018

21-Sep-2009 - Germany

Bayer CropScience is accelerating the extension of its biotech and seed business. Following a record year in 2008, the company is continuing its strategy of expansion, aiming systematically to expand its fast-growing business in seed and plant traits in the coming years. The intention is to more than tripple sales in the BioScience segment to around EUR 1.4 billion by 2018. “In this context the company is planning to invest some EUR 3.5 billion in research and infrastructure for its biotech and seed business between now and 2018. This figure does not include possible acquisitions,” said Professor Dr. Dr. h.c. Friedrich Berschauer, Chairman of Bayer CropScience AG’s Board of Management, at the company’s annual press conference.

According to Berschauer, the company’s objective is to become the farmers' first choice as a partner worldwide and to offer “innovative and sustainable solutions all the way from sowing to harvesting.” With this in mind, Bayer CropScience is seeking to further strengthen its role as supplier of technologies in all business segments, to grow its portfolio strategically, and to expand its business sustainably in rapidly growing emerging markets. The growth strategy revolves around three elements: chemical crop protection, plant traits, and high-quality seed. “We are developing from a classical supplier of crop protection products into a supplier of integrated solutions for farmers which comprise not only products but technologies and services as well,” Berschauer explained.

Bayer CropScience believes that it is extremely well-positioned as a global innovation leader in the classical crop protection business. In this segment the company has set itself the goal of bringing to market between 2008 and 2012 ten new crop protection active substances with a combined peak sales potential in excess of EUR 1.25 billion – previously the target sales figure was above EUR 1 billion. Following the successful launch of the insecticide spirotetramat and the herbicide pyrasulfotole in 2008, the company has achieved a further milestone this year with the grant of regulatory approval for the new herbicide thiencarbazone-methyl in combination with the safener cyprosulfamide in first countries. Three fungicides – fluopyram, bixafen and isotianil – are scheduled for launch in 2010 and 2011. In addition, three further candidates, among them a biological pest-control product, are at an advanced stage of development.

Plant biotechnology helps to boost productivity

Bayer CropScience has gained a strong position worldwide in the BioScience segment with its four core crops canola, rice, cotton and vegetables. The intention is to expand the portfolio on a regional basis in the coming years and to include further crops. The company has begun research into improved cereal varieties. The objective here, as with other crops, is to increase yields and to make plants more resistant to adverse weather conditions. The company's research activities are also focusing increasingly on soybeans.

Bayer CropScience is currently investing the equivalent of roughly 27 percent of sales in the development of new BioScience products – a figure that puts it among the leaders in the industry in terms of research intensity. Almost 1,000 BioScience researchers and breeders are working on over 50 projects.

The company’s own research is being rounded out by a number of cooperation agreements. This year, more than ten alliances with public and private-sector research bodies have been agreed so far. For example, Bayer CropScience has been working with one of the world’s leading agricultural research institutes since July to develop new varieties of wheat. The company is also expanding successively its global network of research locations.

https://www.bionity.com/en/news/106486/bayer-cropscience-accelerates-expansion-of-biotech-and-seed-business-with-investments-of-around-eur-3-5-billion-through-2018.html