July 29, 2009

Bayer CropScience is expanding its global research and development activities in seeds and traits to include a focus on cereals, and has formalised a long-term alliance with the Commonwealth Scientific and Industrial Research Organisation (CSIRO) in support for the expansion.

The agreement establishes a far-reaching joint research and development programme between CSIRO and Bayer CropScience, aimed at improving the productivity and sustainability of cereal production utilising modern techniques. The cooperation will broaden the strong research and development basis of Bayer CropScience's seeds and traits business, which is currently focused on cotton, canola, rice and vegetables. The company also offers innovative trait solutions for the soy and corn seed industry.

The company intends to further complete its portfolio by developing improved plant characteristics for wheat. With about 25 percent of the global agricultural land under wheat cultivation, it is the largest cereal crop in terms of acreage and one of the world's most important staple foods.

Both parties will set up a number of research and development projects in the area of traits and their introgression into cereal germplasm, the goal being to develop cereal varieties with higher yield, more efficient nutrient utilisation and tolerance against abiotic stress such as drought. One of the initial projects of this collaboration is dedicated to the development of wheat lines with improved yield potential and stress tolerance, while another focuses on wheat lines with improved utilisation of phosphorus. These and other research projects are expected to result in new varieties available to farmers from 2015 onwards.

Financial terms of the agreement were not disclosed.

The new programme follows on from an existing collaboration between the two organisations, which have led to a number of successful research discoveries including improved fibre quality in cotton, and CSIRO's pioneering gene silencing technology. The business with seeds and traits is of growing importance for Bayer CropScience. The company plans to invest some EUR750 million (US$1.06 billion) in the development of new solutions in its seeds and traits business from 2008 to 2012.

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.

CSIRO is Australia's national research organisation and is one of the world's leading institutions in the development of new wheat varieties, with scientific research at 57 sites worldwide.