R&D Special: Bayer reinforces commitment to R&D across China

Bayer CropScience AG's board of management: Friedrich Berschauer, chairman of the board of management (2nd from left).

One of the most worrying aspects of the current global climate change debate is concern over its likely impact on food supplies and the global agriculture industry.

With climate change set to result in more extreme weather, higher temperatures and water shortages, biotechnology research work is becoming ever more crucial, especially with the world's future food security likely to be at stake.

In China, industry insiders maintain that modern biotechnology research, especially in the seed and trait sector, remains the highest priority for China's agriculture industry.

Many scientists, research institutes and businesses are now engaged in establishing the best routes for the sustainable development of China's agriculture industry, especially under the current global run of adverse weather conditions.

As a globally-leading crop science company and one that is dedicated to innovation, as well as the development and promotion of crop protection technologies, Bayer CropScience has recently announced plans to enhance its biotechnology program. The company believes this is crucial in order that it meets the fast growing demands of the agriculture industry in both China and internationally.

During Bayer CropScience's annual press conference, held in Germany earlier this year, the company announced plans to invest some 3.5 billion euros in research and infrastructure development for its biotech and seed businesses.

The investment is expected to result in a three-fold increase in annual sales revenues by 2018. It will also provide an increasing number of state-of-the-art biotechnology resources to farmers across the world, according to the company.

Professor Friedrich Berschauer, chairman of the Board of Management of Bayer CropScience, said: "We are investing heavily in our BioScience business in order to strengthen our position in the global seeds market."

Among the 120 countries where Bayer CropScience currently has a presence, China is now becoming one of its most important markets. Bayer entered the Chinese market in 1989 and has seen a rapid growth of its scale of business in the country over the last 20 years.

Joachim Schneider, head of the Business Operations Unit of BioScience, part of Bayer CropScience, said: "The key strategy for supporting our business expansion here is to invest more in research and development (R&D) activities,"

According to Schneider, the unit currently uses over 27 percent of its sales revenue to strengthen its R&D work. Alongside this strategy, the company has recently signed two agreements with the China National Rice Research Institute (CNRRI), both focusing on the area of hybrid rice research and development. Collaboration in seed and trait development by the two parties will begin in the near future.

The agreements were built on a cooperation framework agreed between Bayer CropScience and the Chinese Academy of Agricultural Sciences (CAAS) in 2008.

Under the framework, Bayer CropScience will develop an ongoing dialogue with CAAS affiliated institutes, such as the CNRRI, in the rice, cotton, canola, soybean and safety assessment sectors.

Speaking at the signing ceremony in Beijing, Berschauer said: "We want to intensify our research and development activities in this country. By introducing high-yielding hybrids, we intend to make a contribution to securing the world's food supply in the future."

Zhai Huqu, president of the CAAS, said the academy attached great importance to its collaboration and cooperation with Bayer CropScience across many fields and in many different forms, especially as rice is the most important crop in China's agricultural production market.

In addition, the current situation of the Chinese agriculture industry shows that it has to feed 21 percent of the world's population with less than 9 percent of the world's arable land. The country also makes the considerable efforts to contribute to global agricultural development and food security, according to Zhang Taolin, vice minister of the Ministry of Agriculture.

In 2008, China's domestic grain production totaled 52.85 trillion kilos. This year's summer production has yielded another bumper harvest, making this year the sixth consecutive year of growth improvement, said Zhang.

Zhang said the Chinese government had been increasing support for agriculture to develop high yields, high efficiency, high quality and safe modern agriculture, whilst focusing on stronger R&D and cooperation with the world's leading crop science solution providers. The strategy is said to be the driving force for the CAAS to link-up with Bayer CropScience.

Zhang said: "Bayer CropScience's R&D results have been applied and promoted in China in recent years, resulting in great improvements and development for the country's agricultural industry."

Liao Xiyuan, deputy director general of CNRRI, said, during the signing ceremony: "Both parties have formed a strong partnership, based on joint participation and mutual benefits, which will enhance the development of rice science and its related technology."

As well as its focus on R&D for meeting the growing needs of China's agricultural industry, Bayer CropScience has also signed a five-year agreement with the Ministry of Agriculture, aimed at providing educational and training services to Chinese farmers.

Confirming the deal, a Bayer spokesman said: "Currently, an increasing number of Chinese farmers have woken up to the need to get access to high-tech planting techniques. This has inspired us to match our specialties in agricultural technology to their requirements."

The company also announced, during its annual global conference, that it had acquired Athenix Corp, a privately-help independent biotechnology company, headquartered in Research Triangle Park, North Carolina, America, one of the most significant seed technology markets in the world. The acquisition involved an investment of some $365 million.

The acquisition of Athenix and its innovative technology platform is said to have significantly boosted Bayer CropScience's ability to make novel technology and complete agricultural solutions available to growers worldwide.

(China Daily 11/30/2009 page8)