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Bayer CS has identified clusters in 10 states and will aim to assist smallholder farmers with business planning, identification of key enablers, creation of market linkages and knowledge transfer.

Small Farmers’ Agri-Business Consortium (SFAC) and Bayer CropScience Limited have signed a Memorandum of Understanding to form and promote 50 specialised Farmer Producer Organisations (FPOs). In collaboration with SFAC, Bayer CropScience Limited has identified clusters in 10 states and will aim to assist smallholder farmers with business planning, identification of key enablers, creation of market linkages and knowledge transfer, while working to establish 50 Farmer Producer Organizations.

SFAC’s partnership with Bayer CropScience Limited will help strengthen grower collectivisation and support farmer collectives to evolve as profitable and self-reliant business entities. Bayer CropScience Limited is one of the world’s leading innovative crop science companies providing sustainable farming solutions and has conceptualized an initiative with key value chain partners to build capacities of FPOs in India.

SFAC has emphasised the importance of collectivisation and FPOs important role in it. FPOs play a big role in building socio-economic resilience of the farmers, leveraging economies of scale in production and marketing. Value Chain organisations like Bayer has an important role to play in achieving the project’s objective. Its vast experience and outreach will certainly benefit the ultimate primary stakeholder.

Speaking on this milestone occasion, Simon-Thorsten Wiebusch, Country Divisional Head – Crop Science Division of Bayer for India, Bangladesh & Sri Lanka, said, “India is a nation of smallholder farmers. Collectivization in the form of a vibrant and strong network of Farmer Producer Organizations (FPOs) will not only improve farmers’ incomes but also supports the building up of a robust food value chain network to aid India’s food security, supporting food quality improvements and export potential. We as Bayer, are grateful to the Small Farmers’ Agri-Business Consortium (SFAC) for giving us this opportunity of forming 50 FPOs. It brings to life and makes tangible our global commitment of empowering 100 million smallholder farmers by 2030 and providing them necessary resources to enhance their productivity and livelihoods and at the same time also contribute to the development of the Indian agricultural ecosystem.”

The MoU is aligned towards achieving the goal of the Central Sector Scheme launched by the Department of Agriculture, Cooperation & Farmers’ Welfare, Ministry of Agriculture & Farmers’ Welfare, Government of India (“DA&FW”) of forming and promoting 10,000 Farmer Producer Organisations.

Bayer CS has identified clusters in 10

The divested business is set to operate as an independent company called Envu

Bayer has completed the sale of its Environmental Science Professional business to the international private equity firm Cinven, after the two companies had entered into a corresponding agreement in March. The conditions for closing the transaction – including the receipt of regulatory approval – have now been met. The purchase price for the business, which generated sales of approximately 600 million euros in 2021, amounts to 2.6 billion U.S. dollars (2.6 billion euros).

The divested business is set to operate as an independent company called Envu. The business is a global leader offering solutions to control pests, disease and weeds in non-agricultural areas such as vector control, professional pest management, vegetation management, forestry, and turf and ornamentals. It is headquartered in Cary, North Carolina, United States, and is active in over 100 countries. Nearly 900 employees in total will transfer from Bayer to Envu.

“In Cinven, we have found a strong new owner with a firm commitment to the long-term growth potential of the business and to its people,” said Rodrigo Santos, member of the Board of Management of Bayer AG and head of the Crop Science Division. “At the same time, we can concentrate on our core agricultural business and the successful implementation of our growth strategy in the Crop Science Division.” Bayer will use the net proceeds from the transaction to reduce its net financial debt.

“Envu is a global leader in a highly attractive and critical industry. We thank Bayer for the trust they have placed in Cinven and plan to build on the strong foundations established by Bayer by significantly investing in it,” said Pontus Pettersson, Partner at Cinven. “Cinven is excited to build an independent, focused company and is well positioned to continue to drive innovation and accelerate growth, including the delivery of digital and data-enabled solutions, and to extend the product portfolio further by creating innovative and sustainable solutions for its customers.”

The divested business is set to operate

Bayer CS registered an expansion of business in North America and Asia/Pacific.

The Bayer Group achieved substantial growth in the second quarter of 2022. “We delivered strong operational performance. In terms of sales, we posted significant gains at Crop Science and strong growth at Consumer Health, as well as a slight increase at Pharmaceuticals, too. And with EBITDA before special items, we even achieved growth of 30 percent,” said Werner Baumann, Chairman of the Board of Management, on Thursday while presenting the company’s half-year financial report. “In view of our good business performance and higher growth expectations, we have raised our full-year guidance,” he explained.

In the agricultural business (Crop Science), Bayer increased sales by 17.2 percent (Fx & portfolio adj.) to 6.461 billion euros, driven by a substantial improvement in the market environment. The division recorded double-digit percentage growth in Latin America and Europe/Middle East/Africa, and also registered an expansion of business in North America and Asia/Pacific. Herbicides posted the strongest growth, at 51.3 percent (Fx & portfolio adj.), with sales rising particularly in Latin and North America, as well as in Europe/Middle East/Africa as a result of prices for glyphosate-based products remaining high. Sales at Corn Seed & Traits advanced by 9.5 percent (Fx & portfolio adj.), mainly due to price increases in North America, Europe/Middle East/Africa and Latin America. In addition, volumes expanded in all regions except North America. Sales at Fungicides rose by 4.3 percent (Fx & portfolio adj.), with growth in all regions except North America, where volumes declined as a result of unfavorable weather conditions. Soybean Seed & Traits saw sales decline by 16.1 percent (Fx & portfolio adj.), largely due to the significant reduction in sales from overproduction in North America and the unit’s withdrawal from the Argentinian market.

EBITDA before special items at Crop Science climbed by 71.8 percent to 1.749 billion euros. The growth in earnings was mainly driven by the substantial improvement in business performance, as well as contributions from ongoing efficiency programs. There was also a positive currency effect of 215 million euros (Q2 2021: minus 111 million euros). By contrast, earnings were diminished by an increase in costs, particularly in the cost of goods sold, which was mainly due to high inflation. The EBITDA margin before special items rose by 6.8 percentage points to 27.1 percent.

Bayer CS registered an expansion of business

Due to strong farmer interest, AOS expanded the opportunity to participate in phase two of the program to 100 percent of its Brazilian grower base.

Alliance One International, LLC has announced the phase two results of the partnership of its Brazilian subsidiary (“Alliance Once Brazil”) with Bayer Crop Science, which was formed with the goal of providing quality maize seeds and agronomic support to smallholder tobacco farmers in Brazil. Following the completion of the 2021 growing season, participating farmers reported a 15 per cent average increase in maize yield compared to the 2020 growing season.

“Due to strong farmer interest, we expanded the opportunity to participate in phase two of the program to 100 percent of our Brazilian grower base,” said Helio Moura global agronomy director for AOI. “We distributed 5,700 bags of Bayer maize seed to our contracted farmers as well as provided fertilizer and additional agronomic guidance related to maize production. As a result, farmers reported that they experienced improved crop quality and yield, in turn, increasing the farmers’ bottom lines.”

Through the partnership, Alliance One Brazil’s goal is to help its contracted farmers diversify their income by strengthening the quality and yield of a crop that is complementary to tobacco. Farmers that participated in phase two of the program earned an average of $270 more per hectare of maize when compared to the prior crop.

“Alliance One Brazil’s contracted farmers produced an additional 5.150 metric tons of maize this past crop year, which is primarily sold for use in animal feed,” said Moura. “Given the threat of a global food crisis, it is increasingly important to help our farmers scale production in order to help offset shortages and high costs.”

In response to the positive results of the program’s second phase, Alliance One Brazil is evaluating the inclusion of additional crops as part of the program and AOI is assessing the potential to expand the program to other countries within its footprint. 

“We are very excited about the future of this program and its potential to improve farmer livelihoods not only in Brazil but around the globe,” said Alex Strohschoen, president of AOI. “As we enter the 2022 growing season, we plan to introduce the program to our contracted farmers in Argentina, where a significant portion of our grower base could benefit from improving the quality and yield of their maize crops.”

Due to strong farmer interest, AOS expanded

Bayer’s sales grew by double-digit percentages in all regions and achieved particularly strong growth at Herbicides (Fx & portfolio adj. 59.8 per cent) and Fungicides (Fx & portfolio adj. 18.6 per cent)

The Bayer Group had a very successful start to 2022. “We achieved outstanding sales and earnings growth, with particularly substantial gains for our agriculture business,” said Werner Baumann, Chairman of the Board of Management, on Tuesday as he presented the quarterly statement for the first quarter of 2022.

In the agricultural business (Crop Science), sales rose by 21.6 per cent (Fx & portfolio adj.) to 8.447 billion euros thanks to substantial price and volume growth. Bayer’s sales grew by double-digit percentages in all regions and achieved particularly strong growth at Herbicides (Fx & portfolio adj. 59.8 per cent) and Fungicides (Fx & portfolio adj. 18.6 per cent). While there was particularly strong growth for Herbicides in North America, Fungicides generated double-digit percentage sales growth in all regions. Corn Seed & Traits posted sales gains, primarily due to price increases in all regions. Here, Bayer also benefited from volume gains in the Europe/Middle East/Africa, Latin America, and Asia/Pacific regions. Sales at Soybean Seed & Traits were level with the prior-year period (Fx & portfolio adj. up 0.8 percent), and were higher in North America due to price increases but lower in Latin America due to lower volumes.

EBITDA before special items at Crop Science advanced by 49.9 per cent to 3.669 billion euros, driven mainly by higher prices. Bayer also benefited from higher volumes and ongoing efficiency programs. By contrast, earnings were diminished by an increase in costs, particularly in the cost of goods sold, that was mainly due to high inflation. There was a positive currency effect of 98 million euros (Q1 2021: minus 252 million euros). The EBITDA margin before special items increased significantly by 6.6 per cent points to an all-time high of 43.4 percent; currency effects had a dilutive effect of 0.8 percentage points.

Bayer’s sales grew by double-digit percentages in