November 9, 2012
Following the downward revision in US' corn output, Syngenta will focus on corn crop in Vietnam.
According to Andrew Guthrie, Regional Director, Syngenta Asia Pacific Pte Ltd., rice is the dominant crop in Vietnam, but the area under corn is expanding rapidly as it is a major animal feed crop.
With about 1.2 million hectares under corn cultivation and an average yield of about 4.3 million tonnes, Vietnam also imports over a million tonnes of corn annually. The Government is keen on expanding corn acreage and yield.
Guthrie was addressing a group of reporters from India and the Asia Pacific on a Syngenta-hosted tour to participate in a media workshop to familiarise the journalists on the company's programmes in the region and Vietnam, in particular. His remark comes in the backdrop of reports of a significant drop anticipated in US corn output.
The drop is attributed to droughts in the Mid-West which will see a 12% cut to about 330 million tonnes, say reports quoting USDA figures.
The region's gains in corn are an opportunity for Syngenta to expand its business. The company is present along the entire chain of crops from seeds and seed care to crop protection inputs to enhance yields.
In tandem with this growth Syngenta's sale is expected to grow to over US$22 billion post-2015 from about US$12 billion. Syngenta's share in the US$19-billion market in the Asia Pacific is about 9% and makes it a market leader in agriculture inputs, seeds and crop protection, Guthrie said.
But the growth will not be without its challenges. Apart from eight million large farmers with land holding more than 100 hectares each, the company has to reach out to over 450 million small farmers who farm on about a hectare each in the Asia Pacific who represent its major customer base.
Demand for corn is being driven by increasing meat consumption. It is expected to increase to about 68 kilogrammes a year in 2020 from the present 45 kilogrammes.
The company reaches over 200,000 farmers every year to disseminate its technology in seed care and crop protection that have contributed to increasing corn yield to more than four tonnes a hectare from three tonnes earlier.
