Friday, April 20, 2007
Prof. Dr. Friedrich Berschauer in São Paulo:
“The long-term growth trends for the Brazilian agro business remain firmly intact”
Bayer CropScience plans to launch 20 new crop protection products in Brazil until 2010
São Paulo – Bayer CropScience is committed to further strengthening its business in Brazil. “Brazil has strategic importance for our global business, and we have all intentions to further expand our position here”, said Professor Dr. Friedrich Berschauer, Chairman of the Board of Management of Bayer CropScience. Speaking at the Bayer CropScience Convention 2007 in Atibaia, São Paulo, to about 1,000 business partners and company representatives, Berschauer said that despite the market setback in the last two years the company sees good long-term perspectives for the Brazilian agricultural markets. Excellent agro climatic conditions and significant acreage reserves, coupled with rising prices for agricultural commodities and an increasing biofuel demand speak for an improved outlook for Brazil´s agro economy, Berschauer said. The Bayer CropScience Board Chairman said the company was aligning its business plans for the country accordingly, with a focus on the research and development of new agrochemicals as well as on a further enhancement of its production and distribution network in Brazil. As a key element of its Brazil strategy, Bayer CropScience plans to launch 20 new products, including 8 new active ingredients and 12 new mixtures and formulations, over the next four years.
Long-term growth trend in Brazil´s economy remain intact
“The long-term growth trend for the Brazilian agro business remain firmly intact”, asserted Berschauer at the Atibaia conference. Over the past 15 years, the Brazilian crop protection market has been expanding at a rate of 10 percent per year on average, thereby significantly outgrowing the international markets. Between 1992 and 2006 the local market has risen more than four-fold.
For the 2007/2008 season, first reports on planting intentions bode well for Brazil, Berschauer said. Market research indicates that the planted area of annual crops is forecast to rise by about 3.4 percent to more than 48 million hectares in 2007, with the area planted to corn and soybean expected to rise by about 3%. Rice cultivation is estimated to expand by 5% and the area planted to cotton should rise by more than 8%. Berschauer said that 2007 started on a positive note in Brazil and that the year ahead may very well see the market downturn in Brazil bottom out.
20 new products scheduled for market launch by 2010
Innovative active ingredients play an important role in consolidating Bayer CropScience´s leading market position in the agrochemicals industry. The current launch program for Brazil comprises 8 active ingredients, including the broad-spectrum insecticide Flubendiamide (brand name Belt®), the new corn herbicide Tembotrione (Soberan®), the fungicide Prothioconazole (Proline®) and the insecticidal ingredient Spirotetramat (Movento® ), scheduled to be launched between 2007 and 2010.
In addition, a further 12 innovative products based on new mixtures and formulations are currently under development to meet specific customer needs. The target is to expand the share of the innovative portfolio in Brazil to about 50 percent within the next few years. “Our business focus is firmly set on generating value through innovation, and we plan to continuously introduce product innovations adapted to the local market to meet the specific customer needs in Brazil”, Berschauer confirmed.
Atento®, a new solution to better cope with Asian soybean rust
A new product specifically developed by Bayer CropScience for Brazil to cater to the country’s soybean growing industry, is Atento®, a unique solution for the management of Asian rust. Atento® is the first-ever available seed treatment product against this devastating plant pest, and represents an important element for integrated disease management: the Fluquinconazole-based new seed treatment product protects the bottom leaves and delays the further evolution of rust. It is scheduled for market launch this year in Brazil.
Sugarcane production set to increase thanks to rising biofuels demand
Bayer CropScience also plans to increasingly participate in the Brazilian biofuel market. Because of the worldwide trend to substitute crude oil based fuels by renewable energies, the company expects an increasing demand for ethanol extracted from sugarcane. The area planted to sugarcane should thus increase by about one third to 9 million hectares by 2010, Berschauer said. “Sugarcane is one of our crop specialities at Bayer CropScience, where we offer a portfolio of well-proven products and innovative solutions to protect sugarcane effectively and efficiently”, he added.
Seed opportunities in Brazil
In Brazil, Bayer CropScience is also looking to exploit potential opportunities in the seeds market with a focus on its core crops cotton, rice and vegetables. As part of this, the company plans to enter the onion market with superior hybrids and strengthen its position as one of the leading companies in the growing market of melons for export. To become a leading provider in the hybrid rice business, Bayer CropScience also plans to enter this segment by the launch of Arize® for which we plan the full commercial launch this year in Brazil. Arize® hybrid rice seed has a proven high standard of quality, a high level of purity and has greater yield potential than classic rice varieties. With its FiberMax® line of high-yielding cotton varieties, Bayer CropScience is already well positioned in the Brazilian cotton market. FiberMax® varieties offer high performance in lint yield and fiber quality.
Bayer CropScience AG, a subsidiary of Bayer AG with annual sales of about EUR 5.7 billion (2006), 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. The company offers an outstanding range of products and extensive service backup for modern, sustainable agriculture and for non-agricultural applications. Bayer CropScience has a global workforce of about 17,900 and is represented in more than 120 countries. In Brazil, Bayer CropScience employs 900 staff and has achieved local sales of BRL$ 1.38 billion in 2006.
Contact:
Brazil:
Claudia David, phone: + 55-11-2165-7798
E-mail: Claudia.David@bayercropscience.com
Germany:
Utz Klages, phone: +49 2173 38-3125
E-mail: utz.klages@bayercropscience.com
www.bayercropscience.com
Forward-Looking Statements
This news release contains forward-looking statements based on current assumptions and forecasts made by Bayer CropScience AG management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of Bayer CropScience AG or our holding company Bayer AG and the estimates given here. These factors include those discussed in public reports filed by Bayer AG with the Frankfurt Stock Exchange and with the U.S. Securities and Exchange Commission (including Form 20-F). Neither Bayer AG nor Bayer CropScience AG assumes any liability whatsoever to update these forward-looking statements or to confirm them to future events or developments.
Long-term growth trend in Brazil´s economy remain intact
“The long-term growth trend for the Brazilian agro business remain firmly intact”, asserted Berschauer at the Atibaia conference. Over the past 15 years, the Brazilian crop protection market has been expanding at a rate of 10 percent per year on average, thereby significantly outgrowing the international markets. Between 1992 and 2006 the local market has risen more than four-fold.
For the 2007/2008 season, first reports on planting intentions bode well for Brazil, Berschauer said. Market research indicates that the planted area of annual crops is forecast to rise by about 3.4 percent to more than 48 million hectares in 2007, with the area planted to corn and soybean expected to rise by about 3%. Rice cultivation is estimated to expand by 5% and the area planted to cotton should rise by more than 8%. Berschauer said that 2007 started on a positive note in Brazil and that the year ahead may very well see the market downturn in Brazil bottom out.
20 new products scheduled for market launch by 2010
Innovative active ingredients play an important role in consolidating Bayer CropScience´s leading market position in the agrochemicals industry. The current launch program for Brazil comprises 8 active ingredients, including the broad-spectrum insecticide Flubendiamide (brand name Belt®), the new corn herbicide Tembotrione (Soberan®), the fungicide Prothioconazole (Proline®) and the insecticidal ingredient Spirotetramat (Movento® ), scheduled to be launched between 2007 and 2010.
In addition, a further 12 innovative products based on new mixtures and formulations are currently under development to meet specific customer needs. The target is to expand the share of the innovative portfolio in Brazil to about 50 percent within the next few years. “Our business focus is firmly set on generating value through innovation, and we plan to continuously introduce product innovations adapted to the local market to meet the specific customer needs in Brazil”, Berschauer confirmed.
Atento®, a new solution to better cope with Asian soybean rust
A new product specifically developed by Bayer CropScience for Brazil to cater to the country’s soybean growing industry, is Atento®, a unique solution for the management of Asian rust. Atento® is the first-ever available seed treatment product against this devastating plant pest, and represents an important element for integrated disease management: the Fluquinconazole-based new seed treatment product protects the bottom leaves and delays the further evolution of rust. It is scheduled for market launch this year in Brazil.
Sugarcane production set to increase thanks to rising biofuels demand
Bayer CropScience also plans to increasingly participate in the Brazilian biofuel market. Because of the worldwide trend to substitute crude oil based fuels by renewable energies, the company expects an increasing demand for ethanol extracted from sugarcane. The area planted to sugarcane should thus increase by about one third to 9 million hectares by 2010, Berschauer said. “Sugarcane is one of our crop specialities at Bayer CropScience, where we offer a portfolio of well-proven products and innovative solutions to protect sugarcane effectively and efficiently”, he added.
Seed opportunities in Brazil
In Brazil, Bayer CropScience is also looking to exploit potential opportunities in the seeds market with a focus on its core crops cotton, rice and vegetables. As part of this, the company plans to enter the onion market with superior hybrids and strengthen its position as one of the leading companies in the growing market of melons for export. To become a leading provider in the hybrid rice business, Bayer CropScience also plans to enter this segment by the launch of Arize® for which we plan the full commercial launch this year in Brazil. Arize® hybrid rice seed has a proven high standard of quality, a high level of purity and has greater yield potential than classic rice varieties. With its FiberMax® line of high-yielding cotton varieties, Bayer CropScience is already well positioned in the Brazilian cotton market. FiberMax® varieties offer high performance in lint yield and fiber quality.
Bayer CropScience AG, a subsidiary of Bayer AG with annual sales of about EUR 5.7 billion (2006), 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. The company offers an outstanding range of products and extensive service backup for modern, sustainable agriculture and for non-agricultural applications. Bayer CropScience has a global workforce of about 17,900 and is represented in more than 120 countries. In Brazil, Bayer CropScience employs 900 staff and has achieved local sales of BRL$ 1.38 billion in 2006.
Contact:
Brazil:
Claudia David, phone: + 55-11-2165-7798
E-mail: Claudia.David@bayercropscience.com
Germany:
Utz Klages, phone: +49 2173 38-3125
E-mail: utz.klages@bayercropscience.com
www.bayercropscience.com
Forward-Looking Statements
This news release contains forward-looking statements based on current assumptions and forecasts made by Bayer CropScience AG management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of Bayer CropScience AG or our holding company Bayer AG and the estimates given here. These factors include those discussed in public reports filed by Bayer AG with the Frankfurt Stock Exchange and with the U.S. Securities and Exchange Commission (including Form 20-F). Neither Bayer AG nor Bayer CropScience AG assumes any liability whatsoever to update these forward-looking statements or to confirm them to future events or developments.
[ last update: Sunday, April 27, 2008 ]
