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HomePosts Tagged "Bayer CropScience"
Agribusiness, Agro chems – Chemicals, Agro chems – Fertilizers, Agro chems – Pesticides, Company News, Finance, World

Company’s Crop Science division posts slight increase in sales and sharp fall in earnings.

The Bayer Group generated increased sales and lower earnings in the second quarter of 2024. Each business delivered a competitive performance in their respective industries, positioning the Group to confirm its 2024 outlook. “Our Crop Science business nearly offset headwinds in a challenging agricultural market environment,” CEO Bill Anderson said while presenting the company’s half-year financial report.

Group sales rose by 3.1 percent on a currency- and portfolio-adjusted basis (Fx & portfolio adj.) to 11.144 billion euros in the second quarter of 2024. There was a negative currency effect of 240 million euros (Q2 2023: 553 million euros). EBITDA before special items decreased by 16.5 per cent to 2.111 billion euros. This figure included a negative currency effect of 129 million euros (Q2 2023: 120 million euros). The decline in earnings was mainly due to an unfavourable product mix. In addition, the provisions for the Group-wide short-term incentive program were lower in the prior-year period. EBIT improved to 525 million euros (Q2 2023: minus 956 million euros) after net special charges of 490 million euros (Q2 2023: 2.490 billion euros). The special charges primarily related to expenses for ongoing restructuring measures and affected all divisions and functional areas. Net income amounted to minus 34 million euros (Q2 2023: minus 1.887 billion euros).

Business up slightly at Crop Science

In the agricultural business (Crop Science), sales increased by 1.1 percent (Fx & portfolio adj.) to 4.981 billion euros. Growth was mainly driven by higher sales of glyphosate-based herbicides, with a particularly strong performance in North America. Despite a decline in sales of non-glyphosate-based products, the Herbicides strategic business entity posted overall growth of 8.7 percent (Fx & portfolio adj.). Sales at Soybean Seed & Traits increased by a significant 12.4 percent (Fx & portfolio adj.), mainly thanks to substantially higher volumes in North America. Business was also up at Insecticides, with growth of 6.9 percent (Fx & portfolio adj.). By contrast, sales at Fungicides were down amid a soft market environment, falling 12.4 percent (Fx & portfolio adj.) as a result of lower volumes and prices in North and Latin America. Sales also decreased at Corn Seed & Traits, which saw a decline of 2.8 percent (Fx & portfolio adj.) that was mainly attributable to lower volumes in Latin and North America amid a decline in planted acreages.

EBITDA before special items at Crop Science decreased by 27.7 percent to 524 million euros, partly due to an unfavourable product mix. By contrast, there was a positive currency effect of 49 million euros (Q2 2023: negative currency effect of 96 million euros).

Group outlook confirmed

Bayer confirmed its Group outlook for full-year 2024. “We remain on track to deliver,” Anderson said. For the Crop Science Division, the company expects currency- and portfolio-adjusted sales growth and the EBITDA margin before special items to come in at the lower end of the projected ranges (between minus 1 and plus 3 percent, and between 20 and 22 percent, respectively). For the Pharmaceuticals Division, Bayer has upgraded its forecast for currency- and portfolio-adjusted sales growth to between 0 and 3 percent (previously: between minus 4 and 0 percent).

Company’s Crop Science division posts slight increase

Agribusiness, Agro chems – Chemicals, Company News, Finance, Inputs, World

Sales declined by 3.0 per cent to 7.907 billion euros, mainly due to lower volumes for non-glyphosate-based herbicides and the Fungicides business in Europe/Middle East/Africa.

The Bayer Group performed as expected in the opening months of the year. “First-quarter sales declined slightly versus the prior year. The Pharmaceuticals Division saw gains in growth and profitability, and the Crop Science Division outperformed in a difficult market. Consumer Health started slower, but is set to get back to growth over the course of the year,” CEO Bill Anderson said on Tuesday when presenting the company’s quarterly statement for the first quarter.

Crop Science outperforms peers in terms of sales trajectory in a challenging market environment

In the agricultural business (Crop Science), Bayer outperformed its peers in a difficult market. Sales declined by 3.0 percent (Fx & portfolio adj.) to 7.907 billion euros, mainly due to lower volumes for non-glyphosate-based herbicides and the Fungicides business in Europe/Middle East/Africa. With respect to glyphosate-based products, the division recorded significant market-driven price declines in all regions that were not fully offset by the strong volume recovery. The strategic business entities Herbicides and Fungicides saw sales fall by 13.3 percent and 8.5 percent (Fx & portfolio adj.), respectively. Sales at Soybean Seed & Traits were level with the prior-year period (Fx & portfolio adj.). Business at Corn Seed & Traits was up by 2.0 percent (Fx & portfolio adj.) thanks to higher prices in all regions, while sales at Insecticides advanced 2.3 percent (Fx & portfolio adj.), driven by increased volumes in Europe/Middle East/Africa and North America.

EBITDA before special items at Crop Science declined by 12.8 percent to 2.849 billion euros, mainly due to price declines for glyphosate-based products. There was also a negative currency effect of 92 million euros (Q1 2023: positive currency effect of 54 million euros).

Group sales came in at 13.765 billion euros in the first quarter of 2024 and were therefore slightly below the prior-year figure on a currency- and portfolio-adjusted basis (Fx & portfolio adj. minus 0.6 percent). There was a negative currency effect of 525 million euros (Q1 2023: positive currency effect of 102 million euros). EBITDA before special items decreased by 1.3 percent to 4.412 billion euros. EBIT advanced by 4.0 percent to 3.092 billion euros after net special charges of 207 million euros (Q1 2023: 431 million euros).

Sales declined by 3.0 per cent to

Agribusiness, Agrotech, Collaborations, Company News, Digital Technologies

Iktos’s de novo generative design software Makya will be deployed by Bayer scientists to facilitate the design of novel molecules according to pre-defined profiles.

Iktos, a company specialised in Artificial Intelligence (AI) for new drug design, and Bayer’s Crop Science division with its industry-leading R&D pipeline and portfolio of seeds & traits, crop protection and digital farming solutions, announced a collaboration to expand the use of AI in the discovery and development of new sustainable crop protection products.

Iktos’s de novo generative design software Makya will be deployed by Bayer scientists to facilitate the design of novel molecules according to pre-defined profiles and accelerate hit-to-lead/lead optimization, whereby potential molecular candidates are further optimized and developed into lead compounds.

Makya is based on deep learning generative models which design and optimize, in-silico, novel molecules that satisfy multiple parameters, such as efficacy, selectivity, safety, and sustainability. The technology brings new insights and directions into the molecular discovery process based on a comprehensive data-driven chemical structure generation technology. It also allows scientists to analyze billions of molecules in a virtual environment, enabling the exploration of new and larger chemical spaces than previously possible. The Makya Software as a Service (SaaS) platform enables researchers to benefit from the technology thanks to its user-friendly interface and a secure and scalable technical implementation in the cloud.

This approach to innovation, validated through multiple collaborations in pharmaceutical research and development, is now being used for the first time to help solve a key challenge in crop protection discovery: the rapid and efficient identification and optimization of successful and safe molecules and holds great potential to support Bayer’s sustainability objective to reduce the environmental impact of agriculture, via lower application rates and favorable safety profiles of its solutions.

“The world’s farmers need dependable and sustainable solutions to overcome current and future challenges including climate change, the increasing resistance of pests to existing solutions and the growing societal expectations about the food we eat and the health of our planet,” said Rachel Rama, Head of Small Molecules at Bayer’s Crop Science division.

“Bayer’s CropKey approach to crop protection innovation is made possible by data-driven breakthrough technologies such as those made accessible by Iktos. They will allow us to unlock a new way to protect crops, food security and the environment and, in doing so, set a new benchmark in the industry.”

“We are thrilled and proud to join forces with Bayer, a leading global life science company and to have Bayer scientists use our software in their small molecule active ingredient design,” said Yann Gaston-Mathé, Co-founder and CEO of Iktos. “It is our ultimate goal to facilitate our technology usage by expert discovery scientists, who have deep knowledge and understanding of their discovery programs. This way, the promise of AI to dramatically improve discovery will have a better chance to be realized and impact small molecule active ingredient development.”

Iktos’s de novo generative design software Makya

Agrotech, Australia, China, Climate, Company News, India, North America

The Farmer Voice is a survey among 800 farmers equally split between Australia, Brazil, China, Germany, India, Kenya, Ukraine, and the United States.

71 per cent of farmers say that climate change already has a large impact on their farm, and even more are worried about the impact this will have in the future. 73 per cent have experienced increasing pest and disease pressure. On average farmers estimate that their incomes had reduced by 15.7 per cent due to climate change in the past two years. One in six farmers even identifies income losses of over 25 per cent during this period.

These are some of the key findings from the “Farmer Voice” survey, published today, which reveals the challenges facing farmers around the world as they try to mitigate the impacts of climate change and adapt for the future. To conduct the “Farmer Voice”, life science company Bayer commissioned an agency to independently interview 800 farmers globally, representing farms large and small from Australia, Brazil, China, Germany, India, Kenya, Ukraine, and the United States in equal numbers.

Farmers expect the repercussions of climate change to continue. Three-quarters of them globally (76 per cent) are worried about the impact that climate change will have on their farm, with farmers in Kenya and India most concerned. Rodrigo Santos, Member of the Board of Management of Bayer AG and President of the Crop Science Division, commented: “Farmers are already experiencing the adverse effects of climate change on their fields and at the same time they play a key role in tackling this huge challenge. This is why it is so important to put their voice front and center. The losses reported in this survey make the direct threat climate change poses to global food security crystal clear. In the face of a growing world population, the results must be a catalyst for efforts to make agriculture regenerative.”

The Farmer Voice is a survey among 800 farmers equally split between Australia, Brazil, China, Germany, India, Kenya, Ukraine, and the United States. The survey was conducted independently by Kekst CNC. Farmers were selected randomly from each market. The respondents did not know that the survey was being conducted on behalf of Bayer until it was complete, and Bayer had no input on the sample selection. Interviews took place between April and July 2023. Additionally, 2,056 smallholder farmers in India were surveyed with a shortened questionnaire. These farmers were associated with the Better Life Farming ecosystem, farmers of Bayer-supported Farmer Producer Organizations, and farmers enrolled in Bayer’s Sustainable Rice Program. These interviews were conducted between May and June 2023.

Spotlight: Indian smallholder farmers are focused on mitigating risk

In addition to the global survey where farmers were interviewed independently, Bayer interviewed 2,056 Indian smallholder farmers from its customer base. It is a unique glimpse into the perspectives of smallholders who are key to securing the world’s food supply. Currently, their biggest challenges are high labor and fertilizer costs. Yet they are also impacted by climate change: Many of them expect reduced crop yields (42 per cent) and higher pest pressures because of changing weather (31per cent). Unlike commercial and large-scale growers, the smallholders interviewed in India are focused on mitigating risks, prioritizing financial security through insurance (26 per cent) and infrastructure (21 per cent).

When asked about the future, 60 per cent said they would benefit most from access to digital technologies and modern crop protection. Despite all the challenges, Indian smallholders remain optimistic: 8 in every 10 farmers feel positive about the future of farming.

The survey results are a valuable indicator of smallholder priorities and needs in India, contributing to Bayer’s smallholder farming strategy with the goal to support 100 million smallholders by 2030. In 2022, the company reached 52 million with its products and services.

The Farmer Voice is a survey among

Agro chems – Chemicals, Agro chems – Fertilizers, Agro chems – Pesticides, Company News, Finance, Inputs, World

The fall in sales is mainly driven by lower volumes and prices for glyphosate-based products in North and Latin America as well as in Europe/Middle East/Africa.

Bayer has published detailed results for the second quarter of 2023, after having already communicated key figures for the three-month period and lowering its outlook for full-year 2023 in a July 24 news release. The revised guidance was mainly due to a significant further decline in sales of glyphosate-based products at the Crop Science Division.

Sales in the agricultural business (Crop Science) fell by 18.5 percent (Fx & portfolio adj.) to 4.924 billion euros, mainly driven by lower volumes and prices for glyphosate-based products. This effect particularly impacted business in North and Latin America as well as in Europe/Middle East/Africa and resulted in a 45.6 percent decrease in sales (Fx & portfolio adj.) at Herbicides. Excluding the glyphosate business, Crop Science sales were level with the previous year (Fx & portfolio adj.), as higher prices were offset by lower volumes. Sales at Corn Seed & Traits rose by 10.6 percent (Fx & portfolio adj.), largely thanks to higher prices in all regions as well as increased acreages in North America. Business at Fungicides was level with the prior-year quarter (Fx & portfolio adj.). Sales at Soybean Seed & Traits were down 9.3 percent (Fx & portfolio adj.), mainly due to decreased acreages and a decline in license revenues in North America.

EBITDA before special items at Crop Science fell by 58.5 percent to 725 million euros, primarily due to the decline in sales of glyphosate-based products. Higher prices in the rest of the business and cost savings only partially compensated for this effect. Earnings were also diminished by a mainly inflation-related increase in the cost of goods sold and a negative currency effect of 96 million euros (Q2 2022: positive currency effect of 215 million euros).

The fall in sales is mainly driven

Agro chems – Chemicals, Agro chems – Pesticides, Agrotech, Company News, India

Under this partnership Bayer provided Crystal access to newer innovations and Crystal based on their manufacturing and development strength helped bring new solutions to the Indian market.

 Bayer CropScience and Crystal Crop Protection Limited came together in 2018 to embark on a collaborative project to enhance the productivity of Rice and Cotton farmers in India. Under this collaboration, Bayer provided Crystal access to newer innovations and Crystal based on their manufacturing and development strength helped bring new solutions to the Indian market. Today, Bayer CropScience and Crystal Crop Protection Limited have launched the product, Curbix Pro and Kollar respectively, to aid farmers in tackling plant hoppers, ensuring the best crop protection practices are implemented.

Through this partnership, Bayer and Crystal have provided Indian farmers with solutions to build effective crop protection programs and create strong resistance against pests. As India is the world’s second-largest producer, and the largest exporter of rice, farmer needs and crop dynamics in India differs from the large-scale agricultural operations in western countries. One of the main reasons for crop loss in paddy cultivation is pest attacks. Paddy fields essentially are infested by two types of paddy hoppers, Brown Plant Hopper, or White Backed Plant Hopper, which can lead to huge crop loss. To tackle this issue, Bayer and Crystal will provide farmers with an innovative product, having a unique combination of dual active ingredients against plant hoppers. With this dual action, farmers will be able to ensure lesser crop losses, leading to higher yields.

Speaking on the launch, Simon-Thorsten Wiebusch, Country Divisional Head, Crop Science Division of Bayer for India, Bangladesh, and Sri Lanka said, “The importance of rice to India and even the world’s food security needs cannot be overstated. What impacts rice, impacts the livelihoods of millions of smallholder farmers. Our expertise lies in creating innovative solutions and in building collaborative ecosystems that help deliver the best value to our growers. Curbix Pro will surely be a significant value addition to our vast portfolio targeted at enhancing farmer yields and income. 

“It is another momentous occasion for us to successfully launch Kollar co-developed with Bayer Crop Science. This new offering is a milestone for Crystal’s enhancing R&D capabilities, which will support paddy farmers to enhance their profitability. With this, Crystal now has a very strong and value-driven portfolio for the full crop cycle of paddy crop.” said Ankur Aggarwal, Managing Director, Crystal Crop Protection Limited.

Under this partnership Bayer provided Crystal access

Agrotech, R&D

After receiving a nod from the Ministry of Civil Aviation (MoCA) and the Directorate General of Civil Aviation (DGCA) for conducting drone trials in agriculture, many agri companies are raring to go and make Drones a mainstay for farmers, with big and small land holdings, alike. Currently Bayer CropScience, Mahindra & Mahindra and Coromandel International have already begun drone trials for crops such as paddy, corn, sugarcane, wheat, vegetables, fruits and hot peppers in Telangana and Andhra Pradesh. Realtime agronomic advisory to farmers, enhancing farm productivity and fostering sustainability are but a few promising deliverables of the versatile drones.

In August 2021, the MoCA and regulator DGCA allowed 10 organisations, including state governments and private companies, to use drones for a year. Those given permission include – Karnataka, National Health Mission (Mumbai), Gangtok Smart City Development project, Steel Authority of India’s (SAIL) plant at West Bengal’s Burnpur, Hyderabad’s Asia Pacific Flight Training Academy, Gujarat’s Blue Ray Aviation, Tractors and Farm Equipment Limited, Mahindra & Mahindra, Bayer Crop Science, and Indian Institute of Tropical Meteorology, Pune. In December 2021, the Government had
released SOPs (Standard Operating Procedures) for drone regulation for pesticide application. It covered important aspects like statutory provisions, flying permissions, area distance restrictions, weight classification, overcrowded areas restriction, drone registration, safety insurance, piloting certification, operation plan, air flight zones and weather conditions. Traditionally it has been the farmer who
sprays his crops physically. Even with hired manual labour, this is a costly and timeconsuming affair. In the manual spraying method, a farmer generally spends a considerable amount on labour charges, more water and a higher quantity of chemicals. With drones, it takes only a few minutes to spray fertilisers and permitted pesticides on one acre as opposed to 5- 6 hours earlier. Also crops at any height can be effectively reached, as drones ensure comprehensive and equal distribution of fertilisers and pesticides. Drones can support more targeted applications of insect, weed and disease-control products. This ensures correct dosage and also limits the risk of accidental exposure to chemicals. Besides,drones also offer real-time agronomic advisory to farmers, enhancing farm productivity and fostering sustainability.

Bayer conducted its first drone trial at its multi-crop breeding centre in Chandipa, near Hyderabad. The on-ground event, showcasing a field demonstration on the use of drones in agricultural operations. Bayer has partnered with innovative drone startup, General Aeronautics Pvt Ltd and conducted several in-house and external R&D trials with universities and central research institutions to generate data to make drone-based services available to farmers. Based on the initial achievements of drone farming, growers may be able to explore the technology’s capabilities in aiding paddy, corn, sugarcane, wheat, vegetables, fruits and plantation crops and harvests in the future. Bayer has been working closely with the Government of India, Ministry of Agriculture and Ministry of Civil Aviation,
industry bodies, regulators, policymakers and drone manufacturers over the last few years to introduce a conducive policy framework for the implementation of drone technology in Indian agriculture.

Based on the initial achievements of drone farming, growers may be able to explore the technology’s capabilities in aiding paddy, corn, sugarcane, wheat, vegetables, fruits and plantation crops and harvests in the future. Suchinnovations can shape the roadmap of sustainable farming in India, while spurring smallholder support and food security.D Narain, CEO and Managing Director, Bayer CropScience Ltd said, “Drone applications are operating in other small farmer countries in Asia and have the potential to deliver significant value to smallholders in India, as well as for the
economy and the planet.”

Aligning itself with the Government of India’s intent to promote drone use in agriculture, Coromandel International Limited, the country’s second largest phosphatic fertiliser player and part of Murugappa Group, conducted its first drone trials in Hyderabad. Commenting on the trials, Sameer Goel, Managing Director, Coromandel International Limited said, “The guidelines issued by the UnionMinistry of Agriculture and Farmers Welfare to make drone technology affordable to the stakeholders in the agricultural sector is indeed a major boost towards promoting precision farming in the country. Drones are especially suited for a country like India with small landholding farmers, since other modes of aerial application aren’t viable here. While bringing in an element of precision, drone spraying will also help farmers mitigate the issue of labour unavailability during peak season and decrease the time to spray. These trials are our first steps towards embracing this next-gen technology.”

The drone industry has gone through a paradigm shift in the last few months and the agri industry is one of the few industries to have received approvals to operate drones for farming operations, with new government regulations making deployment, design, development and manufacturing of drone technology easier. For drone technology to flourish, the government’s emphasis on drones for farming
operations can greatly benefit farmers, with promotion of drone usage from crop assessment to agrochemical/fertiliser spraying. Drones can be flown easily in green zones with almost all agricultural areas falling in the green zone.

New business opportunity
Also the AgTech sector is abuzz with increasing flow of growth capital into startups that play across the value chain from market linkage to financing to precision farming to mechanisation services. A fast-growing startup ecosystem is bringing new business models that seek to address several legacy challenges in the industry. Mahindra & Mahindra has started conducting drone-based agricultural trials, precision spraying on paddy, hot pepper crop in Telangana and Andhra Pradesh. While informing about drone trials Hemant Sikka, President, Farm Equipment Sector, Mahindra & Mahindra said, “Mahindra & Mahindra is already making drone services accessible and affordable through Krish-e, our Farming-as-a-Service business. New business models like drone rentals are providing drone services in India, opening many possibilities for the future.”

Sikka also added that a new business vertical, Krish-e provides digitally enabled services, across the complete crop cycle affordably and accessibly to farmers and includes advisory, access to equipment rentals and precision farming solutions. These are all focused on bringing down the overall cost of farming, improving crop output and consequently the farmer’s income.Drone tech adoption
Promotion of drone design, development, and manufacturing in India, specifically for Indian farming conditions will further help develop andboost adoption of the technology in the rural and agri sector. Apart from releasing new regulations, the Government has also announced the PLI (Production Linked Incentive) scheme for drone manufacturers to promote India as a drone hub. The government has also allocated Rs 120 croreover next three financial years under PLI scheme, banning import of drones (component import is allowed) to promote the domestic production of drones, also making licences to operate drones easily available across the country.

To promote drone applications in agriculture, the Government has included drones under the SMAM (Sub Mission on Agriculture Mechanisation) scheme. Under the scheme, CHCs, village level entrepreneurs, FPOs will get the subsidy of 40 per cent up to Rs 4 lakh. Also CIB&RC (Central Insecticides Board & Registration Committee) has rolled out guidelines for registration of agrochemicals for drone spraying. The Ministry of Agriculture and Farmers Welfare has also released the SOPs for spraying of agrochemicals and fertilisers.

After receiving approval from the Ministry of Civil Aviation (MoCA) and regulator Directorate General of Civil Aviation (DGCA) for conducting drone trials in agriculture, agriculture companies
are hoping for an increase in penetration of drone technology in the agriculture sector. Companies are trying to promote drone technology by making drone services accessible and affordable
through providing access to equipment rentals and precision farming solutions to small-scale farmers. Currently Bayer CropScience, Mahindra & Mahindra and Coromandel International
Limited have started drone trials for crops such as paddy, corn, sugarcane, wheat, vegetables, fruits and hot pepper in Telangana and Andhra Pradesh. Since drones offer real-time agronomic
advisory to farmers, enhancing farm productivity and fostering sustainability, it has paved a way to new business opportunities in the agri industry in India.

Dipti Barve
dipti.barve@mmactiv.com

After receiving a nod from the Ministry