Monheim, Germany
May 23, 2005
by Somporn Thapanachai,
Bangkok Post via
Checkbiotech
Bio-science with a focus on
production of hybrid seeds for cotton, canola and rice will
become an essential part of the research and development (R&D)
programme at
Bayer CropScience,
according to company executives.
Bernward Garthoff, a member of the
board of management supervising R&D, said the company had
shifted its R&D budget toward bio-science which includes the
development of both genetically modified (GM) and non-GM seeds
for agricultural crops and vegetables.
Last year, the company set up its Plant Biotechnology Innovation
Centre in Ghent, Belgium to enhance its capacity in handling
complex plant biotechnology projects.
Bayer CropScience already holds a 24% share of the hybrid cotton
market in the United States, a 28% share of the hybrid canola
market in Canada and a 30% share of the hybrid rice market in
India.
The hybrid rice varieties, which offer superior yields,
stability and taste quality, were introduced in India under the
Arize trademark in 2002 but the company's varieties have been
available in the South Asian country since the late 1990s. The
products were introduced in the Philippines in 2002 and are
slated to be offered in Indonesia and Brazil this year.
Dr Garthoff said the company planned to bring its non-GM hybrid
rice seeds to Thailand in 2009 as it needed a certain period of
time to test the products to make sure that they were suited to
the local environment.
''Normally, farmers would expect a 10-15% increase in yield so
we have to go beyond that,'' said Dr Garthoff, who anticipates
that hybrid rice will be successful, similar to hybrid cotton
and hybrid canola.
Bayer's hybrid rice seeds will face competition from the
Charoen
Pokphand Group. The
Thai company plans to introduce hybrid rice seeds that produced
very high yields of 1.5 to two tonnes per rai in experimental
fields, or more than double the yield of normally harvested rice
in irrigated cultivation areas in Thailand.
Besides biotechnology, Bayer CropScience also will focus on
developing new products of better quality in what is classified
as the crop protection group, which includes the creation of
active ingredients, new insecticides, herbicide and fungicide
formulations as well as seed treatments.
Overall, the company will be able to reduce its annual R&D
spending by reducing the duplication resulting from the
acquisition of Aventis CropScience in 2003.
Dr Garthoff said though the budget would be cut, Bayer
CropScience would continue to be the leader in R&D as it had set
aside a budget that was still over 10% of sales.
Researching a new product normally takes about eight to 10 years
and involves an investment of around 300 million euros for a
global product, or at least 150 million euros for a local
product, according to Dr Edward Hellpointner, laboratory leader
of Bayer's Institute of Metabolism and Environmental Fate.
The company has to screen around 70,000 substances to get some
active ingredients that could be developed into a formulation
for a crop protection product.
During the process, a developed formulation must be tested for
retention, penetration and translocation into the target. After
that, products must also be tested for toxicology toward animal
and the environment before being registered.
Bayer CropScience, a subsidiary of Bayer AG with annual sales of
about six billion euros, is represented in more than 120
countries and has a global workforce of 19,400 in 2004, down
from 22,000 in June 2002.
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