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The crop protection industry: past-present-future.

Agri Marketing • March, 2008 • SALUTE TO CROPLIFE AMERICA!

That united voice also is achieved by the person-power provided by member companies. The effort provided by each member company's volunteers gives strength to the industry and also provides leadership enhancement for those individuals.

What a member gets out of CLA can be closely linked to the effort put into the association's work, and I encourage everyone to continue our commitment to advance the industry in a united fashion.

Why did several Crop Protection companies get in to the seed business?

by Mike Frank, Global Chemistry Leader, Monsanto, St. Louis, MO

As we reflect over the past 75 years of CropLife America, we can recall many changes. But few will rival the rapid evolution of farm practices the way that chemistry and seed systems have in the past decade.

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For years, farmers purchased seed and chemicals to grow the best crop possible. By the late '80s it was apparent that farmers were looking for the next wave of cropping innovations to control weeds, insects and diseases. Fertilizer and equipment had been leveraged to increase crop growth and yields, but more was needed to produce and protect crops than ever before. Crop protection companies were, at the same time, searching for new opportunities as post patent life was becoming a reality.

It has been said that "timing is everything" and that was the case as crop protection companies invested in the seed systems to deliver new tools and solutions to farmers. By the mid '90s farmers began to reap the benefits of these investments and crop protection companies could see a bright future that married quite nicely with their chemistry heritage. And now some 15- to 20- years after those initial investments, the seed-chemistry systems deliver solutions that would have never been imagined years before.

While it is difficult to predict what might have happened if crop protection companies had never invested in the seed industry, it is safe to say that there is a promising future for the ag industry that is responsible for feeding, fueling and clothing the U.S. and much of the world.

What is the current state of Research & Development in the Crop Protection industry?

by Bill Buckner, Pres/CEO, Bayer CropScience LP, Research Triangle Park, NC

Research and development in the crop science industry continues to be the primary source of solutions for the many challenges facing production agriculture.

Research-based companies in our industry have in place vigorous programs and strong scientific teams focused on the discovery and development of innovative technologies to overcome the barriers to a secure and reliable supply of food, feed, fiber and fuel for the world's ever-increasing population.

Today, research and development for science-based companies in the crop science industry is taking an unprecedented role center stage. Our industry's research efforts now are recognized as integral to helping provide sustainable solutions for some of our world's most pressing issues: population growth, greater energy demand, limited arable land, climate change. I could go on.

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The research-oriented companies in our industry are working at the intersection of biology, biotechnology and chemistry to provide sustainable technologies not only to fight damaging insects, weeds and diseases, but also to create possibilities for crops that resist drought, improve nutritional value and increase yield.

The challenges of sustainability call for continued commitment from these companies. Looking over the crop science landscape of creative solutions through advancing technologies, I see these challenges being capably addressed today; and I see us poised to continue capably addressing them in the future.

This commitment to sustainability requires significant investment in innovation. I believe our industry acknowledges and embraces our central role in addressing the global challenges before us. Spending for research and development, whether in chemistry, biotechnology or seed technology, continues among the top-tier crop science firms. A reliable source of food, feed, fiber and fuel that is secure, safe, adequate and affordable is critical to meeting the world's most fundamental needs. Sustainability is central to achieving that goal. Crop science research and development is, and will continue to be, essential to both--all of which points toward a dynamic and exciting future for our industry.

How does the future of North American agriculture compare to the rest of the world?

by Jim Collins, VP/GM, DuPont Crop Protection, Wilmington, DE

These are exciting times for the agricultural industry. There is growing global demand for food, for renewable products--both fuel and fiber--and a strong drive to meet those demands in a sustainable way. North American growers are uniquely positioned to take advantage of these opportunities.

North America has played, and will continue to play, a major role in increasing agricultural productivity to meet the needs of a growing population and more demanding consumers. We've added millions of "virtual crop acres" by improving crop genetics, refining planting and harvest technologies, and improving pest control.

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American growers supply food, fuel, feedstock and fiber, not just for U.S. consumption, but for export all over the world. And they've done this with increased efforts to enhance sustainability, making significant improvements in productivity, while reducing impact on the environment.

As the world continues to produce more discerning consumers, the demands on North American agriculture will continue to increase. Collaboration across private and public sectors will be critical to meeting these challenges and taking advantage of the opportunities that unfold.

I am confident we can work together to develop new technologies and applications that will advance agriculture.

What are the fastest emerging markets for Crop Protection products around the world?

by Marcus Heldt, Group Vice President (N.A.), BASF Crop Protection, Research Triangle Park, NC

Following years of relatively low global market growth and adverse impact from market devaluation--linked to generics expansion, GMO adoption, etc.--we began to see a marked global crop protection (CPC) improvement in 2007, driven by overall high commodity prices, strong global demand, and the biofuels boom.

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These underlying positive trends for the global CPC market are expected to last mid-term (2-3 years). All key agricultural markets are expected to benefit from this positive development.

Additionally, the phase out of older products offers good opportunities to replace legacy chemistry with innovative, higher value solutions.

Regionally, we see particularly strong growth in Eastern Europe, continued improvements in Brazil and Argentina, despite traditional volatility, and good growth potential in North America.

Regardless of the region, we continue to see growers searching for ways to get more return from every acre. This will continue to be driven by the dramatically increasing demand from limited production acreage.

Thankfully, growers here in the U.S. and in other regions have the ability to adopt new ideas and technologies to meet these formidable challenges.

This strong emphasis on yield and productivity improvements is offering excellent growth potential in corn, soybeans, wheat and canola. Farmers are increasingly realizing the value of investing in modern technology offered in fungicides, seed treatment, and other production tools.

What is the current state of the U.S. Crop Protection distribution channel and what changes do you see coming?

by John Rabby, Pres/CEO, Mahketshim Agan of North America, Raleigh, NC

The crop protection industry is maturing in terms of overall growth and innovation, but by no means is it stagnant.

As consolidation continues from top to bottom, the industry and its channel partners in distribution and retail sales are undergoing significant changes. We like to refer to this as the "post-patent" period.

Like the industry's initial stage when new molecules rolled out one after another, and the biotech stage was remarkable for the marriage of genetic traits and crop protection, this post-patent phase offered a new set of challenges and opportunities for channel partners.

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Post-patent products are capturing an increasingly larger share of the crop protection market. Initially this change exerted disconcerting pressure on price, even among products that were still on patent. But in the past few years significant new opportunities have opened for distribution channel members to get aboard the post-patent wave and move to improved positions of profitability, provide better value propositions to their customers and provide less restrictive trade practices. The value proposition has taken hold among farmers, who are viewing price as just one component of a purchase decision.

MANA, with over 60 years of manufacturing expertise, has shown the channel and end-users that post-patent products can be backed by dedicated and current field development testing, best-in-class formulations, full label parity, and highly professional and knowledgeable business management.

This approach to the market enables the channel to select products wisely, will help channel partners continue to be profitable and assure their role as the primary source of agronomics, services and sales for their customers.


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COPYRIGHT 2008 Doane Information Service Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
Copyright 2008 Gale, Cengage Learning. All rights reserved. Gale Group is a Thomson Corporation Company.
NOTE: All illustrations and photos have been removed from this article.


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