Bayer CropScience gives new step to grow in seed

Bayer CropScience announced yesterday a further step in its strategy to grow in soy seeds in Brazil-a market in which is still incipient.
The German multi officiated the acquisition of genebank of Agropastoril, in Cascavel (State of Paraná), and an agreement to purchase the soybean seed unit Wehrmann and its Agricultural Division of genetic improvement (Wehrtec), based in crystal clear (GO). The multinational has not disclosed how much it had in the two businesses.
Bayer CropScience had already acquired two other companies of similar profile-the CVR, in 2010, and the Soytech, the following year. With this, the multi attempts to create a genebank which will accelerate the development of new varieties and their GM search.
Since I decided to enter the seed market, today dominated by Monsanto, DuPont and Syngenta, just four years ago, the giant of chemical sector elected as priorities the soy and wheat markets, which put Brazil in the center of its global strategy.
"The area planted with soybeans in Brazil should reach approximately 40 million hectares by 2020, up from 28 million cultivated in the last harvest," explained the President of Bayer CropScience for Latin America, Marc Reichardt, in an interview to the value.
"We have very ambitious plans to expand and be a leader in soy seeds in Brazil. We are very well positioned for that. " According to the Executive, the company has a broad portfolio of genetically modified products in the development process.
Among them, the Bayer study a variety of soybeans resistant to a gonad (worm that attacks the roots of plants) and tolerant planting new classes of herbicides. He did not reveal, however, when these products will be subject to registration in Brazil.
Just three months after taking over the Chair of global CEO of Bayer CropScience, the Irishman Liam Condon landed yesterday in Sao Paulo for his first visit to the country. "Brazil is one of the four ' target countries ' [priority markets from the point of view of investment] to Bayer. We believe that the market will double in the coming soybean 20 years and we want to participate in this growth, "he said. United States, India and China are the other target countries.
Last year, Bayer CropScience sales in Brazil grew by 38% in local currency to $ 3,085 billion (about € 1.2 billion). However, most of the revenue is still tied to the market of pesticides. In 2012, the segment accounted for almost 80% of global turnover of € 8.4 billion, while the participation of the seeds was less than 12%.
In 2012, Bayer CropScience has registered a nominal growth of 15% (12.4% whereas the Exchange and portfolio adjustments). The result was driven by sales to North America and Latin America (block that also includes the countries of Africa and the Middle East), which grew by 26.5% and 18.5%, respectively, in nominal terms, followed by Asia, with advancement of 11.4%, and Europe, with 8%.
Although grow less, Europe is still the company's main market in sales volume (€ 2.7 billion), followed by North America (€ 2.15 billion), Latin America (€ 2.13 billion) and Asia (€ 1.3 billion)
"We were very happy with this performance. It was a good year for the market, with commodity prices at levels still high, "says Condon. For 2013, ponders the Executive, the scenario is less favourable. According to him, the pesticide and seed markets tend to slow down over the year. "The expectation is that grow just one digit per year". "We're talking about a cyclical industry. We had two years of growth in the double digits, which is unheard of, so we thought that at some point the market will slow down, "says Condon.
According to him, the market should still stay heated in the first half, but can lose strength in the second, if the forecast of a record harvest in the United States is confirmed. "If that happens, commodity prices tend to fall, which could discourage investment by producers," he explained.
Condon believes, however, that sales of agrochemicals and seeds to North and South America (especially the United States) should continue to grow so fast, probably at the home of two digits-"If the market agrees". "It is too early to make any assessment of the American Harvest". "If we have any slowdown, will be on the sidelines," agrees Reichardt.