Page 17 - AWA Vol.42-No7 issue
P. 17

CROP PROTECTION

        ing 750 million euros sales potential   new modes of action and the design   beginning to deliver tangible results.
        in the mid-2030s. Collectively, the 10   of targeted molecules assessing effi-  Bayer has made significant progress
        blockbusters will address pressing   cacy, safety, and sustainability at the   on cost reductions, amounting to al-
        farmer challenges and are poised    very start of the R&D process. This   most  400  million euros to date,  con-
        to  contribute  significantly  to  Bayer's   has  helped  create  a  robust  pipeline   tributing to its EBITDA before special
        growth over the coming decade.      with more than 15 novel modes of ac-  items improvement goal of 1 billion
                                            tion currently in the pipeline research
         Bayer advances industry-leading                                        euros and supporting its ambition to
        innovation pipeline                 phase, driven by CropKey. One ex-   achieve an EBITDA margin before
                                            ample is a new broad-spectrum fun-  special items in the mid-20s percent-
         Alongside these launches, Bayer    gicide  for soy with blockbuster po-
        advances key projects across its Crop   tential. It is developed using CropKey   age range by the end of the decade.
                                                                                Actions  included  divesting  five  ac-
        Science R&D pipeline and brings in-  and now advanced to phase II in the
        novation to farmers continuously,   pipeline.                           tive ingredients and discontinuing
                                                                                more than 100 crop protection formu-
        introducing 400 to 500 new hybrids
                                             “Whether in seeds, traits or crop
        and varieties annually. This output is   protection innovation, AI is becoming   lations. In addition, cash-flow mea-
                                                                                sures are progressing, with invento-
        based on Bayer’s AI-enabled preci-
        sion breeding platform, which dou-  a core enabler of Bayer’s innovation   ry reductions of already 500 million
                                            model, helping us advance discov-
                                                                                euros, supporting Bayer’s ambition
        bles  the yield  improvement  rate  of
        every new generation (genetic gain)   ery, improve development efficiency   to reach a free operating cash flow of
                                                                                more than 3 billion euros by 2029.
                                            and translate biological insights into
        compared to historical breeding, and
        accelerates time to market threefold.  differentiated  products  for  growers   The Five-Year Framework’s goal of
                                            faster,” said Mike Graham, Head of
         The company’s researchers have     Crop Science R&D. “Our advantage is   above-market growth and deliver-
        further enhanced this breeding ap-  that our teams work from the same bi-  ing more than 3.5 billion euros of in-
        proach through genome editing,      ological insights, enabling us to com-  cremental sales at constant currency
        which they use at scale by integrating   bine expertise across disciplines and   through the end of the decade is sup-
        the technology early in breeding pro-  accelerate innovation.”          ported by Bayer’s ongoing innovation
        cesses. One example is genome-ed-                                       delivery as well as strategic busi-
        ited soy: Higher-yielding soybean    Bayer is also using its unique R&D   ness  decisions.  Key  growth  drivers
        varieties can become more suscepti-  capabilities to expand into adjacent   include excellent-yielding hybrids
        ble to leaning or falling over as plant   growth areas. With its emergent, but   launched every  year,  accelerated
        height increases. Through genome    leading portfolio of intermediate bio-  technology adoption, market share
        editing, Bayer is developing soy with   fuel  crops,  including  camelina,  win-  gains and geographic expansion of
        improved  plant architecture  to help   ter oilseed rape and CoverCress™,   proven technologies into Asian and
        address  this  challenge.  Innovations   the company contributes to meet-  EMEA markets. In the crop protec-
        like genome-edited standable soy    ing  growing  demand  for  biodiesel,   tion space, Bayer is pursuing growth
        and the advanced breeding pipeline   renewable diesel and sustainable   through locally focused go-to-market
        come together to create new product   aviation fuel markets, estimated to   initiatives, redeploying commercial
        concepts and value for growers that   increase almost threefold to 40 bil-  resources to  growth products and
        will come to the market early in the   lion gallons by 2040. Bayer is also ad-  regions, and lifecycle management
        next decade.                        vancing its plans to sell hybrid wheat   measures, like the introduction of
                                            in Europe and North America by the   Convintro™ in the United States, Bra-
         As another example of its connect-  early 2030s. This unlocks a large-  zil and Canada.
        ed R&D engine, Bayer is advancing   ly untapped opportunity by bring-
        new biotech traits in concert with its   ing the benefits of hybridization to a   Bayer’s progress is supported by
        novel crop protection innovation. In   crop grown on more than 500 million   its  Dynamic  Shared  Ownership  op-
        early-stage development, the com-   acres worldwide. With hybrid wheat,   erating model, which enables faster
        pany is working on its sixth-gener-  camelina, winter oilseed rape and   decisions and clearer accountability,
        ation herbicide tolerance, which is   CoverCress™, Bayer is entering four   strengthening the company’s ability
        expected to also include tolerance   new crops at the same time.        to lead in scaling AI-enabled oppor-
        against its blockbuster herbicide Ica-                                  tunities across the business. “Our in-
        folin. It is the first time the company   Bayer on track executing its Five-  novation strategy and our Five-Year
        simultaneously develops a new her-  Year Framework                      Framework are built on execution,”
        bicide molecule and plant trait for   Bayer’s innovation approach is en-  said Rodrigo Santos. “We are making
        tolerance, contributing to a holistic   abled by  execution  of  its Five-Year   progress against the commitments
        weed-control system that is unique in   Framework strategy, which the Crop   we have made, and are set to lead
        the industry.                       Science Division announced in 2025   the industry and bring value to our
                                            to drive growth, resilience and prof-  customers and shareholders by de-
         Bayer’s AI-powered R&D-CropKey                                         livering differentiating solutions that
        platform is a key differentiator in Crop   itability.  The  company continues  to   growers around the world need.”
                                            execute the strategy, and efforts are
        Protection, enabling the discovery of
                                                                                                    Circle 14 on enquiry card
                                                                                                    Vol. 42 No. 7   15
   12   13   14   15   16   17   18   19   20   21   22