The crop protection industry: past-present-future.

How has the consumer benefited from the Crop Protection industry?

by Vern Hawkins, VP/Commercial Operations, Syngenta Crop Protection

How is it possible to feed a burgeoning population and grow delicious, pest- and disease-free crops in a sustainable way? It's possible with the aid of crop protection.

Modern pesticides give consumers food that is safe, nutritious and healthful. And because they increase yields while lowering production costs, consumers enjoy more abundant and affordable fruit, vegetables and other nutritious foods.

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Since pesticides were first used in this country more than 50 years ago, the amount of tedious hand labor has continually decreased--a benefit especially appreciated in developing nations.

Consumers who value the environment also value the fact that pesticides sharply reduce mechanical cultivation, decreasing soil runoff into lakes and streams. Plus, higher production on existing farmland has allowed us to preserve forests, parks, wildlife habitats and other open spaces.

Achieving optimal yields is becoming even more critical as our world population continues to grow. Agriculture has a clear challenge: to feed an estimated 8-billion people by 2030.

The crop protection industry is poised to further unlock yield potential. We are taking the performance of plants to new heights, making farming possible under stresses like drought, heat and poor soil.

Agriculture has never been more innovative than it is right now. And crop protection technology will continue to play a significant role in meeting the consumer's appetite for more and better food.

What were the major changes that you saw in the Crop Protection industry during your career?

by Charlie Fischer, CEO, DowAgroSciences (retired)

1999-2001 CropLife America Chmn

I'm honored to help celebrate CropLife's 75th year and reflect on the evolution of agriculture during my 40-year career. Consider this: during those decades we've gone from pounds to grams to genes--amazing changes that have helped our industry advance tremendously.

Thanks to scientific innovation, our industry continues to introduce increasingly effective lower-volume products that have a smaller footprint on the environment. We've gone from "pounds to grams" with better results for all involved.

While this revolution in chemical effectiveness was taking place, more great science was also taking us into the world of genes and biotechnology. We've witnessed the miracle of gene insertion and plant transformation technology which has dramatically changed our industry. It's all about providing new solutions to benefit our stakeholders, while building on our bedrock technology.

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While the science advanced, so has our business efficiency. Tremendous consolidation brought forth the most fit and capable companies, those being adept at change emerging as the survivors. This drive for productivity brought new players to the forefront, ones who challenged industry standards for servicing customers.

While most of us in the business in the 1960s were aware of global dynamics, western Europe and North America drove product supply and consumption back in that era. Today, solutions are emerging and being used in all parts of the world and global markets to drive success.

It all comes down to an industry that desires to continually deliver better solutions for our customers, and I don't think that ambition will ever change.

Why were there mergers/acquisitions within crop protection industry and how have they played out?

by Bob Woods, CEO, Syngenta (retired)

1995-1997 CropLife America Chmn

Mergers and/acquisitions happen in our industry when there are a number of factors in play.

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Most have happened either because the shift in research productivity versus cost has meant that the sustainable size for a company must change dramatically in order to maintain the needed research investment.

Some acquisitions have occurred when there has been a relatively quick technology shift putting one company in a vulnerable position.

Some occurred as the life science model of the '80s, Pharma and ag together, changed and the perceived benefits no longer existed or the stock market demanded Pharma performance as a pure play Pharma company.

A true merger is rare as one company or leadership tends to often dominate the culture of the new entity.

Have the mergers been successful?

In general I would say that they have been. Some more so than others, as the ability to gain synergy quickly and drive a new clear strategy is the key to success. The not so successful ones generally became part of a subsequent, further consolidating merger/acquisition.

An added benefit of these mergers and acquisitions has been the sell-off of older chemistries to many smaller generic or proprietary generic producers creating larger and stronger players in the next tier of players.

These players generally, also participate as off patent generic producers fueled by the sell-offs as well as the increase in patent fall of many major chemistries.

What is the present state of CropLife America and what are its major initiatives?

by Eric Wintemute, CEO, AMVAC

Chemical Corp., Newport Beach, CA

2007-2008 CropLife America Chmn

CropLife America has been reinvigorated in recent years with an emphasis on achieving a well-targeted agenda; improving management processes and establishing measurable project accountability.

CLA did some serious "soul-searching," which is helping us move forward as an association. This is leading to a much more focused approach, including the creation of a priority list of issues and a breakdown of the time and financial resources associated with each priority item.

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The organization's primary mission continues to involve:

* Advocating responsible legislation governing the agricultural sector.

* Assisting executive branch agencies in implementing regulatory policy.

* Educating the general public on the critical importance and far-reaching benefits of crop protection products in facilitating the production of food, feed, fiber and fuel.

* Promoting the principles of product stewardship, responsible care and environmental sustainability in the manufacture, distribution and application of our products.

Among the association's recent successes:

* Pesticide Registration Improvement Act renewal. Establishing the fees paid by manufacturers for registration and re-registration of crop protection products.

* Food Quality Protection Act implementation. Designed to promote reliable food quality.

* Endangered Species Act implementation. Helping to restore natural wildlife habitat by controlling invasive plant species.

In each case, CLA was capable of providing legislators and regulators with the expertise and practical insights to implement policy compliance ... while allowing critical crop protection objectives to be met.

Going forward, CLA's major initiatives are largely focused on three primary objectives:

* Promoting human health by achieving and maintaining high food quality.

* Increasing the quantity of food available by maximizing agricultural productivity.

* Facilitating biologically renewable energy alternatives to currently used fossil fuels.

CLA is helping to achieve these important societal objectives as it advocates the beneficial use of member organization products and services that minimize health hazards, maximize crop yields, and contribute to the development and efficient production of energy alternatives.

In a world characterized by increasing population and escalating demands for environmentally appropriate energy supplies, CropLife America is uniquely positioned to promote the importance of ensuring plentiful food supplies, establishing high standards for food quality, and ramping-up the availability of renewable, grain-based energy sources.

How has the Crop Protection Industry benefited from CropLife America's activities?

by Stan Howell, North America

Business Lead, Doze AgroSciences, Indianapolis, IN

2005-2006 CropLife America Chmn

The dictionary defines a "benefit" as that which is helpful; providing an advantage or profit. The work done by CropLife America certainly lines up with this description as it unifies action on top areas of industry concern with tangible results.

Through a process of prioritizing issues and strategically utilizing member resources to address those issues, CLA has effectively moved the needle more than individual efforts could have accomplished.

CLA has tirelessly done this work in a way that engages a larger network of agricultural stakeholders to be seen as the driving organization behind industries, associations and groups seeking to advance agriculture. Don't underestimate the importance of our association being the one that has taken the leadership position to unite many voices on issues that impact the bottom line.

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For concrete examples, one can look to progress being made on top-tier issues such as the Endangered Species Act, the Clean Water Act and Spray Drift. We're also making our collective voice known on other key concerns such as NAFTA harmonization, FIFRA preemption and Worker Safety. A united voice has allowed us to be heard better than any single voice could resonate.