BASF plans to launch over 30 biotechnology and crop protection products in Brazil by 2030. Apart from crops such as soybean, corn and cotton, the German multinational also intends to expand its portfolio to products related to fruits and vegetables.
This statement was announced by the company’s executives on 5th November, during a meeting with journalists in Trindade (GO).
The company is currently developing 28 pesticides and one of its main future products is a fungicide with a formulation suitable for application on various cultures. The company expects to obtain product release approval from the Ministry of Agriculture (Mapa) within four years.
“Talking about our number of releases is very important, but what makes us more optimistic is the fact that we are creating more modern solutions. We want to make a significant contribution to the sustainable development of Brazilian agriculture,” said José Munhoz Filippe, Vice President of Agricultural Solutions in Brazil.
In the area of seeds, four traits (biotechnologies) are being developed for cotton, with one featuring TLP technology, which is only tolerant to ammonium glufosinate and not to glyphosate
, a new concept used in weed resistance management. In soybean, two other traits are being developed, with one being tolerant to rust and the other to cyst nematode.
“From a genetic point of view, BASF will annually launch new varieties in the Brazilian market. Over the next ten years, there will be almost 30 varieties of cotton and more than 80 varieties of soy,” said Hugo Borsari, BASF Seed Director in Brazil.
The launches are part of the company's new agricultural strategy, whose overall goal is to increase sales by 50% by 2030. Considering its 2018 revenue of 6.2 billion euros, the goal is to reach 9.3 billion euros, as well as achieve a market growth of one percentage point above the market average.
The company announced its plans a little over a year after the purchase of Bayer’s assets, driven by the business-related issues between its rival and Monsanto. The deal, the largest acquisition in BASF's history, is estimated to cost 7.4 billion euros and will reposition the company in market sectors such as seeds, fruits and vegetables, as well as pesticides and digital agriculture.
In its first year of operation with these new assets, the company launched over ten products. The effects of this aggregate portfolio were reported in the results of its third quarter balance sheet. Sales grew by 26% in 2018, with revenues of 1.551 billion euros. From January to September, the revenue of the company’s agricultural division was 4,472 billion euros, 34% more than last year.
“The acquisition of Bayer's business represents a key phase in the long history of agriculture. This acquisition not only expands our portfolio and our capacity, but it is also shaping the way we are doing business,” Filippe said, expressing his satisfaction with the early results of this integration.
According to the company's projections, its acquired businesses should contribute 30% to its global agricultural division's revenues by 2028, and 70% of its new projects will be launched by 2023.