Bayer CropScience announces major sales, investment goals

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Bayer CropScience announces major sales, investment goals

Bayer CropScience emphasized strong demand and an accelerated investment program as driving factors for the company's ambitious sales goals.130698_BCS_PK

The company announced at its annual conference in to Monheim, Germany that it expected to reach €9 billion (US$11.8 billion) in sales this year, and €10 billion (US$13.2 billion) by 2015.

CEO Liam Condon reflected positively on continued sales growth since 2007 but highlighted the production challenges facing agriculture in general.

"Many industries today are facing overproduction. At Bayer CropScience, we are in a completely different situation: A growing global population, changing diets and increasing weather volatility are affecting food supply and need to be addressed today," Condon said.

To meet farmer demand, he said the company would need to significantly step up its supply chain capacity.

"About 900 million people remain hungry today and the world population is growing strongly. We need to raise agricultural productivity and at the same time advance sustainability in farming and ensure protection of the environment," Condon said.

"We aim to achieve this by developing innovative solutions and services that can help agriculture to contribute to the healthy development of society."

Part of the company's plan to improve its capabilities includes an additional €1 billion (US$1.3 million) in its investment program for a total €2.4 billion (US$3.2 million) in capital expenditure between 2013 and 2016.

With a €380 million (US$500 million) investment, the company will begin its single largest construction project to date in 2015 - a new U.S. plant in Mobile, Alabama to produce herbicide glufosinate-ammonium, marketed in the U.S. as Liberty.

"The increased production of Liberty™ will help to fight weed resistance, a key challenge for modern agriculture. Liberty™ is the only non-selective herbicide that controls weeds resistant to the most used herbicide, glyphosate," the company said.

The company will also focus on growing its seed business for products such as vegetables, rice, oilseed rape, cotton, soybeans and wheat.

"We are continuing to invest in our soybean business, for example through strategic acquisitions in Latin America, contributing to a fast and focused development of distinctive traits," Condon said.

Soybean investment will include development of the cyst nematode trait and release of soybean brand Credenz in 2014.

New high-yielding varieties of wheat are also expected for release in 2015.

Photo: Liam Condon, by Bayer CropScience AG


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