Bayer CropScience and Janssen Pharmaceutica nv, Beerse, Belgium, have concluded a multi-year research agreement to develop new

BAYER LAUNCHES WEBSITE TO SUPPORT APHID CONTROL ON SOYBEANS

Bayer CropScience has launched a new website www.AphidAlert.com to support its insecticide Leverage 2.7 (imidacloprid + cyfluthrin) and its use on soybeans. In addition to controlling aphids, Leverage 2.7 helps protect soybean against the bean leaf beetle, Japanese beetle, stink bugs and whiteflies. "The Web site was created to give growers a one-stop shop for information on background, scouting and treatment for aphids," said Steve Olson, Bayer CropScience insecticide product manager. “They can also sign up to receive a free alert via text message, e-mail or voice alert when aphid populations are increasing in their area.”


Soybean aphids have rapid reproduction and colonisation rates that can cause them to multiply from one to 5,000 on a single plant in as little as five weeks. In favorable temperatures populations can double in as little as two days. With populations able to increase so rapidly, growers need to know when populations are nearing economic thresholds. “Leverage 2.7 protects against both sucking and chewing pests," Mr Olson explained. "Additionally, it delivers fast pest knockdown and residual control.”

VITERRA EXPANDS ITS CROP PROTECTION RANGE

Viterra Inc (www.viterra.ca) are the owners of Canada’s largest grain handling and agricultural products retailing operation and have operations in the US, Japan, Singapore and Switzerland.The company has recently expanded its branded crop protection product range with the launch of a number of new products. Shadow RTM (clethodim), a Group 1 herbicide, provides post emergence control of tough grassy weeds in several broadleaf crops, including field peas, flax, canola, lentils and soybeans. It protects against a wide range of common grass weeds such as wild oats, green and yellow foxtail, Persian darnel, barnyardgrass, and volunteer barley, oats, wheat and canaryseed. Marengo (tralkoxydim) is also a Group 1 herbicide and gives post emergence control of annual grasses in all varieties of spring wheat, winter wheat, 2 and 6-row barley, and spring and winter rye. It also protects crops against wild and volunteer oats, green and yellow foxtail, barnyardgrass and Persian darnel. Pulse Star (imazethapyr) controls grassy and broadleaf weeds, including green foxtail, redroot pigweed, hemp-nettle, chickweed and

cleavers in field peas, dry beans and alfalfa. “These latest herbicide offerings are all backed by our reliable network of customer service and agronomic expertise,” said Doug Wonnacott, senior vice president, Agri-products.

The company has also introduced its first branded seed treatment, Armour (triticonazole). The new seed treatment is designed to protect cereal crops, such as wheat, barley and oats, from true loose smut and diseases caused by Fusarium. “As a global food ingredients provider we are focused on offering our farm customers the right products at the right time to support the growth of healthy crops. We believe Armour can help establish a great cereal crop through superior seedling disease control,” said Mr Wonnacott.

FIRST QUARTER SALES 2009

Despite the difficult economic conditions most crop protection businesses have made significant gains in the first quarter of 2009. Market analysts expect to see growth of 3-5% in the market over the 12 month period.

Dow AgroSciences

Dow AgroSciences increased sales by 10% to $1,446 due to increased volumes in the first quarter of 2009. The company saw gains compared to the previous year for the 11^th consecutive quarter. New product sales almost doubled and EBIT was also at a record level driven by seeds and traits. In its first quarter earnings conference call, CEO Andrew Liveris discussed the options the company is considering in paying down the debt it had accumulated through the acquisition of Rohm & Haas and the poor performance of several of its divisions that have been affected by the worldwide recession. The company is looking at a divestment plan that has the potential to realise some $25 billion. Included is the Dow AgroScience business, which was the company's top performing unit in the first quarter. He said that Dow were no longer distressed sellers and were now able to position the business for the future. Although the unit is still strategic to the overall company, he says its value has grown substantially and he would be interested in capturing that value on behalf of Dow and its shareholders. He said the options that are being considered include full divestiture, joint venture and an initial public offering (IPO). The company is currently holding discussions with several serious bidders about a business that appears to have been valued at around $15 billion. Mr Liveris said that he expects that Dow will have lot more to say in “30 to 90 days” following final negotiations.

DuPont

DuPont Agriculture & Nutrition (A&N) sales grew 6% to $3.1 billion, and earnings grew 8% to more than $850 million despite a negative currency effect of $150 million. Excluding currency, earnings from operations grew 27%. “Even with the downturn in the global economy, crop commodity prices, income per acre, and aggregated farm incomes are still at higher than historical levels,” said Jim Borel, DuPont group vice president. First quarter revenue for seeds increased 14% to a record $2.1 billion.  This was driven by global corn and soy price increases; volumes associated with expected market share gains, strong product performance and increased technology.
In Europe, volumes were largely driven by cereal herbicide and fungicide demand in the UK, the launch of new DuPont corn herbicides and the company’s continued strength in cereal fungicides across the continent.   Growth was particularly robust in Central Europe where market conditions were favourable to the company’s portfolio.  In Asia Pacific, record sales in the first quarter were primarily driven by strong sales of DuPont’s insecticide Rynaxypyr.  Chinese regulators have given strong support to Rynaxypyr and the new technology is quickly being adopted by Chinese fruit and vegetable growers.  In Latin America, the overall market was down due to drought conditions in Argentina and southern Brazil.  Prices were up despite significantly lower glyphosate prices from Chinese generics and higher channel inventories. In North America, prices were up across all product lines, and volumes were up due to the growth of Rynaxypyr and strong demand for soybean herbicides.  Two new herbicides Enlite and Envive, both containing chlorimuron ethyl + flumioxazin + thifensulfuron methyl, sold out because of strong grower demand to manage weed resistance to glyphosate and the increased soybean acreage.

Bayer CropScience

Bayer CropScience has reported a good first quarter to 2009. It increased sales by 7.2% to €2,120 due to higher selling prices coupled with an increase in volumes. In the Crop Protection business, sales climbed by 6.9% with stong increases for herbicides, up 13.1% and fungicides up 13.6%. Sales of seed treatment products improved 2.2% while the insecticide business was down 12% on the previous year mainly because of a prolonged drought and low levels of pest infestation in southern Brazil and Argentina. The Crop Protection business in North America, Western Europe and Asia/Pacific expanded significantly, while adverse weather patterns caused sales to decline in Latin America. The Environmental Science, BioScience segment increased sales by 8.4% to €386 million. The BioScience business unit achieved sales growth of 16.2%, due primarily to the successful performance of InVigor hybrid canola seed in North America. Sales of Environmental Science, however, dropped by 0.6% as business with consumer

products fell markedly in Europe, due in part to the long winter season. EBITDA before special items at Bayer CropScience grew by 3.4% in the first quarter to €737 million.

Syngenta

Syngenta has reported increased sales growth in the first quarter of 2009 following a record year in 2008. Sales increased by 7% at constant exchange rates (CER) but were 4% lower at $3.6 billion due the significant appreciation of the dollar. Crop Protection sales were 8% higher (CER) at $2.6 billion while seeds sales were 3% higher (CER) at $1.1 billion. Excluding Professional Products, affected by the impact of the economic environment on the lawn & garden and home care markets, sales rose by 10% with volumes up 2% and price realisation ahead of target at 8%.
Sales increased in Europe with a strong performance in Western Europe, notably France; in Eastern Europe growth was led by Russia and Poland. In NAFTA, Syngenta capitalised on its strong market position and saw good growth across all product lines. Sales in Latin America were lower owing to drought in Argentina and southern Brazil and to careful financial risk management. Growth in Asia-Pacific was particularly strong in the emerging markets demonstrating the resilience of the farm economy in these countries and the success of Syngenta’s product offer.
The herbicide segment performed particularly well in NAFTA and there was strong demand for Touchdown (glyphosate). Fungicide sales increased with the main season, however, still to come. Insecticides saw a slight decline owing to lower Latin American sales. Seed Care continued its record of double digit growth helped by the registration of Cruiser in France. Sales of new products Avicta, Axial, Durivo and Revus increased by more than 40% demonstrating the willingness of growers to adopt new technology. Corn & soybean seed sales increased by 7% despite delayed planting decisions in the US and corn acreage contraction in Europe; growth primarily reflected portfolio improvements in corn, and price increases.

Cheminova

Cheminova’s parent company, Auriga, achieved growth of 3% in the first quarter 2009 at constant exchanges rates. In Danish kroner, revenue was up 1% at DKK 1.440 billion ($258 million), while operating profit was DKK 103 million, corresponding to an EBIT margin of 7%. The company says the global economic crisis has resulted in farmers in some regions having difficulties obtaining financing for their purchases of seeds, fertilisers and crop protection products. This has, in conjunction with a late spring in North America and the CIS countries (Russia, Ukraine etc) and drought in Argentina and southern Brazil, led to a slower start to the year than expected. Glyphosate prices are falling in several markets, but remain higher than for the same period last year. The most important currency, the US dollar, has settled at an exchange rate which is 10% higher than in 2008, but other currencies have fallen, so that the combined effect of changes in exchange rates on revenue was negative. Region Europe achieved an increase in revenue, both overall and organically. The acquisition of an additional 25% ownership share in Stähler, which means that Cheminova now owns 75%, has contributed revenue of DKK 57 million. Sales declined in Cheminova’s other sales regions.

 

Auriga generated revenue of DKK 1,440 million (DKK 1,430 million in 2008) and an EBITDA margin of 11% (12%). Operating profit was DKK 103 million (DKK 122 million), and after financial expenses of DKK 24 million, profit before tax was DKK 81 million (DKK 109 million).

 

Cheminova says that it still expects to see a strong demand for the remainder of the year and to gain an increased market share. The introduction of several new products during the season and the full consolidation of Stähler for ten months of the year and a higher US dollar settlement rate are expected to ensure a growth in revenue of approximately 10%. For 2009 as a whole, Auriga and Cheminova thus expect to achieve revenue of DKK 6,250 million and an EBIT margin of approximately 9%. Cheminova is currently pursuing an ambitious target of a doubling of its market share to 5% in 2015 through organic growth and acquisitions. While the fulfilment of the target is based on a number of important assumptions, the current global economic crisis is not expected to impact on the long-term market.

FMC

Revenue in Agricultural Products of $261.4 million was 6% lower than for the same quarter last year, as sales gains in North America and Europe were more than offset by lower sales in Latin America, primarily Brazil. Segment earnings of $92.5 million increased 12% as against last year, reflecting stronger performance in North America and Europe coupled with favourable product and geographic mix which was partially offset by lower performance in Brazil.

BASF

BASF reported that in an extremely difficult environment its business declined in the first quarter of 2009. At €12.2 billion, sales were 23% lower than in the first quarter of 2008, due primarily to a persistently weaker demand. The company has now tailored production to reflect this decline and has reduced inventories. Cost reduction and efficiency programmes are being implemented rapidly. However, in the Agricultural Solutions segment, higher volumes and price increases led to strong sales growth. There were additional increases due to positive currency effects and the non-agricultural pest control business of the Sorex Group which was acquired at the end of last year. Sales revenue increased by 21% to €1.145 billion compared to the same period in 2008. The company says the new growing season got off to a particularly successful start in Europe and North America, especially in fungicides and herbicides. In South America business with products for sugar cane cultivation was weaker and Argentina and southern Brazil were affected by drought. Nevertheless, even here, sales reached the same level as in the first quarter of 2008. EBIT increased by 33% compared with the same quarter of the previous year as a result of higher sales volumes, increased margins and positive currency effects.