Growing Yields, Commerce and Capacity in the Developing World Richard Dickmann Head of New Business Development Bayer CropScience Australia Crawford Fund Parliamentary Conference, August 11, 2015 Canberra. Australia Slide 1
Content Bayer CropScience Introduction Food Challenges and Sustainability Meeting the Product Challenges • Much More…Partnerships. Driving Grower Returns – Food Chain Partnerships • India • China Building Capacity • Youth Ag Summit Summary
At Bayer CropScience, we serve agriculture Full year sales: € 9,494m > 120 countries 23,100 employees 4,000 in R&D 7,400 agronomists R&D € 5 bn 2011-16 As of February 28, 2013 Page 3
Content Bayer CropScience Introduction Food Supply Challenges and Sustainability Meeting the Product Challenges • Much More…Partnerships. Driving Grower Returns – Food Chain Partnerships • India • China Building Capacity • Youth Ag Summit Summary
Challenges in agriculture to secure Food Security (and Food Quality) Global Challenges Infrastructure, population Food losses growth from interacting drivers will increase the need for Innovation and Sustainability Climate Changing in Agriculture change, consumption weather in order to secure patterns fluctuation affordable and healthy food for all. Limitation of farmland, Malnutrition Competition for key resources Page 5
Our commitment to Sustainable Agriculture We are committed to Sustainable Agriculture as the best approach to overcome the global challenges in agriculture to ensure food security and quality. Sustainable Agriculture means to us: Improving people’s Increasing quality of life farmer’s profitability Preserving the environment Page 6
Integrated Crop Solutions are the core of our offer Providing Integrated Crop Solutions for protecting crop yield & quality Oilseeds (Canola, Oilseed rape, Soybean) Seeds Cotton, Rice, Wheat Vegetables Integrated Herbicides Crop Chemical Solution Fungicides Insecticides & Biological Seed Treatment products Crop Protection Biologics Sharing know-how Optimizing yield & quality Services Improving farm management Page 7 Page 7
Proactive Stewardship and Partnerships are crucial for Sustainable Agriculture The Integrated Crop Solutions are backed by Proactive Stewardship to ensure: • Product integrity • Human protection and • Environmental preservation Integrated Crop Their value is delivered through Partnerships Solution to enhance the quality of life of farmers, communities & society: • Public-Private Partnerships • Private-Private Partnerships along the food value chain Page 8 Page 8
Much More Rice, Coffee… Collaborations to demonstrate Sustainable Intensification
Much More (better quality, profitable) Rice - Collaborations to boost output & sustainability Much More Rice, China NATESC, Min of Agriculture Much More Rice, Vietnam Can Tho Univ. Cuu Long RRI Basmati Rice Collab. India Better Rice Initiative, Philippines ++ LT Food Limited GIZ, Yara, GFP Hybrid Rice Leadership Agri-preneur Training IFC, World Bank PISAgro Initiative, Inonesia Multiple stakeholders
Content Bayer CropScience Introduction Food Challenges and Sustainability Meeting the Product Challenges • Much More…Partnerships. Driving Grower Returns – Food Chain Partnerships • India • China Building Capacity • Youth Ag Summit Summary
Serving the interconnected needs of the food value chain Processors Retailers Traders Growers Consumers • Proactive approach to the meet increasing demand for sustainably produced food • Connecting the partners across the value chain and facilitating mutually beneficial business relationships for all involved – creating win-win situations • More than 240 business initiatives in about 30 countries and 40 crops worldwide – proven concept since 2007 Bayer CropScience • Company Profile • June 2015 Page 12
India A Food Chain Passport to the Market
Our approach in India: The 5 P Process Business Model P rogram Monitoring P assport P rotection Productivity 5 P Improvement Farmer Process Healthy Produce Healthy Nutrition P ost P roduction Harvest Environment Our contribution to Sustainable Agriculture in India (2014): • Training of > 100,000 growers working on > 76,000 ha of vegetables and other crops • Partnering with > 33 food chain industry leaders • Promoting the safe use of crop protection products along with IPM practices • Improving the Productivity, Quality and Returns for the farmers Page 14
Food Chain Partnership in Hot Pepper (Red Chilli) Key Partners Key Challenges Bayer Solutions Benefits • Growers: • Development of spray packages to Optimization of PPP usage to • Availability of genuine & quality CP meet the export requirement optimize usage of CPPs in controlling diseases & pests products • Countering pseudo Bio products • Premium / incentive for producing • Imparting trainings on pest and in Chilli export required produce disease identification, their • Greater fluctuations in demand • 10% increase in productivity and 27% management and safe use. & commodity prices increase in income • Implementation of good agricultural • Thrips management is becoming Food Chain Partners: practices at the farms difficult • High-quality, residue-compliant chilies • Supply of PP kits to the project from the desired source farmers • Compliance with the MRLs, meeting the customer’s sustainability requirement Food Chain Partners: About 10,000 ha with 8,188 farmers were covered during 2014 Page 15
Food Chain Partnership in Gherkins Key Partners Key Challenges Bayer Solutions Benefits • • Trainings for the growers on Growers: Small holder farmers with small • Effective crop management and landholdings. pest management and safe use of crop protection reduced risk • To Manage export requirements • 8 – 12% increase in productivity and • Field monitoring and audits of destination country income • Label claims on Gherkins through field experts • Labor intensive crops • Traceability through Bayer Food Chain Partners: • Fruit fly and Gummy stem • Procurement of quality gherkins as per “Passport” blight are becoming menace. requirement • Continuous evolvement and • Complete dependency on the • Product efficiency and required PPP as improvement of the spray export markets. per their import tolerances packages. • Efficient supply chain management Results: • 26,700 farmers on 7,160 ha linked to global markets. Page 16
India FC Alliances - 2014 Retailers Processors Exporters 5 8 20 Neo foods Unicorn Sahaj e-village Sevenstar Indo Spanish Bavanai Agri Established projects with 33 key partners in all 3 segment.
China Food Chain examples
Our approached in China to meet new 2015 MoA policy and increasing Food Chain requirements 2020 Targets • Sustainable Agriculture , considering natural resources & environment • Achieve B est- M anagement- P ractices ( BMP ) for agrochemicals • Roll-out I ntegrated P est M anagement ( IPM ), considering non- chemicals Safe Use • Cap the application of agrochemicals to current level: “ Zero Growth ” D ecision S upport Key Actions S ystems - • Set-up demo & pilot zones for Sustainable Farming Prevention • Develop the capabilities of Extension Services tools Adoption of • Improve Safe Use : Education, Training and Stewardship IPM • Promote the adoption of modern, application >30% technology • Adoption of Improve professional use of modern spray applicators • Develop & promote Integrated Pest Management BMP • Increase subsidies for low- tox & low-residue CP >40% pilots
Food Chain Partnership in Apple Key Partners Key Challenges Bayer Solutions Benefits • Growers: • Spray Program with registered Residue of PPP usage for • Yield increase by adopting Best- PPP in controlling diseases & pests domestic and export requirement Management-Practice • Introduction of BMP(Best- • Free from Residue issue / no Management-Practice) by internal • Efficient Orchard as well as external experts for Pest & concerns management for quality disease and orchard management • Stable income by being Preferred production • Stewardship program for safe use by buyer as trusted supplier • Use of off-label PPP and of PPP with training as well as Food Chain Partners: lack of safety control supplying PPE(Personal Protective • Compliance with the MRLs, no food Equipment) for growers safety issue • Better Food Chain Partners: About 800 ha with 500 growers were covered during 2014-2015 season Page 20
Food Chain Partnership in Tomato Key Partners Key Challenges Bayer Solutions Benefits • Growers: • Technical supports for CPP as well Selection of tomato variety • Better seed variety to meet Unilever’s suitable for Unilever from China as Seed variety need (Biscosity & Brix & Soluble • • Supply of PPE (Personal Protective Crop Protection Solution for contents) BroomRape (Weed) in tomato Equipment) • Yield increase field • Food Chain Partners: Integrated Crop Protection • Compliance with the MRLs, meeting the Solution customer’s sustainability requirement And quality requirment Food Chain Partners: About 3 ha trial with 3 processors are on-going during 2015 Expect to expend 500ha with 500 growers in 2017 season Page 21
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