Bayer CropScience, part of German chemical and pharmaceutical company Bayer, will invest a staggering €7bn to expand its various research and development, crop protection and seed processing programmes, the company has announced.
Announcing the plans, group chief executive Sandra Peterson confirmed that, between 2011 and 2016, a total of €5bn would go into research and devlopment projects aimed at developing new types of seed – including vegetable varieties – as well as pushing forward innovation in its chemical and organic crop protection business.
A further €2bn of the planned investment funding will be channelled into the expansion of its crop protection product output and expanding seed processing facilities.
'These funds are intended to fortify Bayer CropScience's already promising pipeline of integrated agricultural solutions; the company anticipates that products launched during this period will have a combined peak sales potential of at least €4bn,' she added.
Underlining the importance of its seeds division to the company's overall future growth, Peterson revealed that the unit posted a 21 per cent increase in sales during the first half of this year.
She also predicted that, within four years, seeds would generate 'around 20 per cent' of the company's combined sales, which stood at €7.26bn in 2011.
David Nicholson, Bayer CropScience's head of R&D, insisted the company's strong expertise in seeds, chemistry and biological solutions put it in a unique position within the agricultural industry.
'Our goal is to develop integrated crop solutions that provide farmers with a full package of products and services for the entire growing cycle – from planting the seeds to helping their harvest arrive fresh and in perfect shape on the retail shelves,' he said.
In August, Bayer CropScience acquired US organic pest control company AgraQuest, giving it a foothold in the so-called biologics market, which is expected to triple in value to almost US$4bn (€3.12bn) by 2020.
Sandra Peterson recently announced she would beleaving Bayer CropScienceat the end of November.
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