Agrochemicals Bayer Sees Potential 100–Million–Euros–Market in Agrochemicals
Despite increasing volaties, the market for agricultural inputs could grow to € 100 million, Bayer's Crop Science division believes. These figures are especially encouraging as the parent company just decided to focus solely on agrochemicals and healthcare products and divest the remains of its materials and polymers business..
Leverkusen/Germany – An optimistic outlook for one of Bayer's remaining businesses: “We expect the worldwide market for agricultural inputs of crop protection products, seeds and traits to grow to around EUR 100 billion by 2020, up from EUR 50 billion in 2008”,states Liam Condon, CEO of Bayer's agrochemicals subsidiary Bayer Crop Science. Intensification and professionalization of agriculture are among the key drivers for mid- to longterm market development, Condon explained, citing a growing need for sustainable farming solutions.
Bayer Pumps Additional € 2.4 Billion into Crop Science in Two Years
“In light of the strong demand for our products we are expanding our facilities and our investments in research and development,” continued the Bayer CropScience CEO. The company has embarked on an investment program in 2013 that will see capital expenditures of € 2.4 billion EUR through 2016: Out of this, € 1.3 billion will be spent in Europe, with € 800 million being planned for Germany alone.
Between 2013 and 2016 Bayer Crop Science is also planning capital expenditures of some € 700 million in North America and approximately € 400 million in Latin America and Asia Pacific. The largest individual investments are planned for the Dormagen, Frankfurt and Knapsack sites in Germany, as well asMobile and Kansas City in the US.
One Billion Euro per Year for R&D
The demand for innovative products including chemical and biological crop protection products as well as as high-yielding seeds is driving Bayer Crop Science to invest further into its R&D capabilities. Over the next few years, the company will invest around one billion Euro in R&D annually, helping to fuel the company’s well-filled product pipeline.
Condon stressed the need for agricultural innovation: “Farmers constantly experience new challenges – threats to food security worldwide. Examples here are the devastating citrus greening in orange plantations in the US, dramatically reducing orange supplies, worsening soil salinity in some rice growing areas in South Asia or the growing global productivity gap in wheat.” Condon highlighted efforts at Bayer CropScience to help save orange trees through an integrated approach controlling the citrus greening vector and other harmful pests through novel chemical and biological solutions. Bayer CropScience is also looking to market a rice variety that is twice as tolerant to salinity as currently available varieties, which is scheduled for market launch in India in 2016, followed by Bangladesh and Vietnam.