Bayer CropScience plans to accelerate the extension of its biotech and seed business by investing EUR3.5 billion (US$5 billion) in research and infrastructure between now and 2018.

 

The figure does not include possible acquisitions, said Professor Dr. Dr. h.c. Friedrich Berschauer, Chairman of Bayer CropScience AG's Board of Management.

 

The intention is to more than triple sales in the BioScience segment to around EUR1.4 billion by 2018, with the objective of becoming farmers' first choice as a partner worldwide and to offer innovative and sustainable solutions from sowing to harvesting.

 

This 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 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 soy.

 

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, and the company is also expanding successively its global network of research locations.

 

''We are currently active in about one quarter of the seed and plant trait market,'' said Dr. Joachim Schneider, Head of the Business Operations Unit BioScience. ''In the future we want to offer an expanded portfolio of products that will serve around one half of the total market. Our goal is for the BioScience business unit to grow roughly twice as fast as the market in the next few years.''

 

Sales are planned to increase from EUR452 million in 2008 to around EUR1.4 billion by 2018. Bayer CropScience is seeking to offer its solutions to as many farmers as possible worldwide by out-licensing its technologies to other companies. The four agreements that have been concluded to date represent a cumulative potential for license fees in excess of EUR500 million.

 

Bayer CropScience AG, a subsidiary of Bayer AG, is one of the world's leading innovative crop science companies in the areas of crop protection, non-agricultural pest control, seeds and plant biotechnology.

 

US$1 = EUR0.679747 (Sep 18)