BASF Raises Peak Sales Potential of Crop Protection R&D Pipeline, Enters Australian Market
28 Feb 2014 --- BASF now expects its crop protection R&D pipeline to achieve a peak sales potential of €2.1 billion, an increase of €400 million over the past year. The increase is driven by significant global demand for BASF’s most recent blockbusters, Xemium fungicide and Kixor herbicide.
BASF also plans to launch a host of new products across a wide range of crops and markets until the end of the decade. In 2013, BASF spent €469 million on research and development in the Crop Protection division as part of its commitment to investing for long-term growth and developing new active ingredients and solutions for agriculture. Supported by favorable market trends, the R&D pipeline and continued investments will contribute to the Crop Protection division reaching its previously-announced sales target of €8 billion by 2020.
“BASF is committed to discovering and delivering innovative solutions and services that meet the most pressing needs of our customers,” said Markus Heldt, President of BASF’s Crop Protection division. “Our ability to commercialize innovations has enabled us to grow our business significantly in every region over the past three years while, at the same time, also nearly doubling the value of our R&D pipeline to €2.1 billion in that time period.”
With additional launches of Xemium and Kixor in South America, BASF has raised the peak sales potential for these two blockbuster products. The company now expects Xemium to generate more than €600 million in peak sales and Kixor more than €300 million. Xemium was first launched in key European markets in 2011, where it continues to show impressive results. The new Xemium-based product in Brazil, commercialized as OrkestraTM, controls Asian soybean rust and other key diseases and, as part of the AgCelence brand of products, also provides additional benefits that increase overall plant health. The selective herbicide Kixor, first introduced in the U.S. in 2010 and last year in Brazil, has become BASF’s most successful herbicide launch in decades. Kixor provides highly effective control against difficult to control broadleaf weeds, including those that have become resistant to other herbicides.
BASF’s recently-established global unit, Functional Crop Care, expects to launch first solutions for soil management by mid-decade in key countries, including the U.S., Brazil and China. The unit’s portfolio, which was greatly expanded through the acquisition of Becker Underwood in 2012, includes products for chemical and biological crop protection, inoculants, polymers and colorants. Beyond these solutions, the company expects new innovations in the Functional Crop Care portfolio to generate incremental peak sales in excess of €100 million.
New active ingredient candidates and advanced formulations from insecticide and herbicide research also show strong commercial potential, particularly those resulting from in-licensing and collaborative projects with other partners. The company will launch a new, technologically-advanced dicamba formulation, EngeniaTM herbicide, for use in dicamba/glyphosate tolerant cropping systems first in North America with South America to follow. Engenia is a highly efficient tool for controlling resistant weeds in key row crops.
The news came as BASF celebrated its entry into the Australian crop protection market. A launch event featuring partners, farmers and BASF executives highlighted the importance of Australia as a key contributor to global agriculture and BASF’s plans for future growth in the region.
“As a major agricultural producer and exporter, Australia is one of the most important agriculture markets in the world,” said Markus Heldt, President of BASF’s Crop Protection division. “Our strategy is to develop solutions for sustainable farming together with customers, which for Australia means retail partners and farmers. We believe we can best achieve this when we work directly with our partners in local markets.”
Within the next ten years, the company expects to bring more than ten different active ingredients to the market in Australia. In addition to BASF’s current portfolio of fungicides, herbicides and insecticides, Australian farmers will also gain access to solutions for yield efficiency, water management and improved crop quality.
“We are making a significant investment in the agricultural business in Australia with a specialized team on the ground dedicated to tailored R&D and customized solutions for our partners and farmers,” stated Tony Moskal, Head of Agriculture, BASF Australia and New Zealand. “We are absolutely committed to ensuring that our customers will continue to have access to a superior and broad portfolio of products.”
Solutions in the company’s current portfolio for the Australian market include innovative fungicide products which offer excellent disease control and also lead to improved yield, stress tolerance and crop quality. F or tough-to-control weeds, BASF’s solutions include the innovative Clearfield Plus production system for wheat crops as well as Sharpen herbicide for broadleaf weed control.
The recently-established global unit, Functional Crop Care, will also make solutions available to Australian farmers. The unit’s portfolio includes conventional and biological seed solutions, products for better nutrient and water management, as well as technologies to increase plant health and vitality.
“We will also invest in additional product development and service initiatives. These include a dense network of localized trials as well as a dedicated expert field team and a BASF AgSolution farm to support that commitment,” said Moskal. The AgSolution farm will be located in the northeastern part of New South Wales and will showcase real-world applications of the company’s products to farmers and retailers. Furthermore, BASF will establish an expert field team to provide training and tailored product development for farmers and retailers. The field team will consult on all aspects of crop development and facilitate the exchange of experience and information among retailers, farmers and industry experts.
In addition to its solutions for agriculture, BASF will provide solutions for urban pest control, including Termidor termiticide as well as innovative products for resource efficiency and effective insect control.
“We see great opportunities for Australia’s dynamic farm sector and want to help farmers become more successful in their operations. That is why we are excited to step into the Australian market, to work with farmers and key retailers on their every-day needs and to deliver innovative solutions both in and beyond crop protection , ” said Heldt. BASF’s direct market activities for Australian agriculture will officially start on March 1, 2014.
