SUPPORTING SUSTAINABLE AGRICULTURE IN AUSTRALIA

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1 SUPPORTING SUSTAINABLE AGRICULTURE IN AUSTRALIA Sustainable Australian agriculture helps Strengthen economic resilience for farmers and Australia. Prepare us to meet environmental and climate challenges. Boost food security in Australia and our neighbourhood. Sustainability is achieved when economy, environment and society are given equal rank of importance. Richard Dickmann, Head of New Business Development at Bayer CropScience The 3 Pillars of Sustainable Development 1 Economic Viability 2 Environmental Resilience 3 Social Equity

2 Economic Viability Bayer CropScience works to make Australian farms More efficient More sustainable This gives farmers Healthier crops Better yields Reliable profits Innovation is a key way to address sustainability and food supply challenges that exist at the beginning of the third millennium. Between 2009 and 2014, Bayer CropScience will have launched 9 new actives to help improve the efficiency and profitability of Australian farming. CURRENT ENVIRONMENT Australia is the 3rd largest exporter of wheat in the world. Share of global grain exports is dropping. Yields need to increase twothree fold by 2050 to meet demand. BAYER S INVESTMENT FOR THE FUTURE Innovation to ensure global competitiveness Bayer is a leading corporate investor in Australian agricultural research. For every $10 spent on Bayer products, we invest roughly $1 to develop new products. 50% of arable agricultural land in Australia is dedicated to wheat production. Climate and land use change may reduce total wheat yields significantly. More wheat from less inputs Bayer and CSIRO have entered a partnership to create wheat varieties adapted to the future climate. Together, the partners aim to develop varieties with improved yields, stress tolerance and nutrient efficiency. 30% of agricultural value is produced by 2% of growers. Farmers carry high rural debt and must manage significant cost pressure and low profitability. Greater return on investment Bayer has introduced five major products: Sakura, Velocity, Prosaro, EverGol Prime and K-Obiol ; as well as IH50RR canola which have demonstrated increased return on investment. Australia is 80% self-sufficient in vegetable production Low exports, and growing imports entrench oversupply, low prices and low profits. Creating food chain value Products such as Intense tomatoes from Bayer s vegetable seeds business, Nunhems, and IPM-compatible Belt and Movento are examples of customer-focused horticultural inputs which create value for growers and the food chain. We call this Science For A Better Life

3 Environmental ResiliencE Australia s variable climate and changing community expectations are impacting food production. Bayer s sustainable crop solutions help with community support for agriculture. Bayer CropScience is working with partners to develop new technologies to manage and mitigate a variable climate. Integrated Weed Management [IWM] increases cropping system resilience and preserves our productive environment. IWM studies have shown sustainable weed control over longer periods and larger areas. Integrated Pest Management [IPM]: A smart approach At Bayer, we believe that there is a fundamental relationship between science and nature. With the advent of truly selective products such as Belt and Movento, the integration of crop protection products with biological control systems can make IPM truly sustainable. Selective chemistry Beneficial insects Belt Movento Diadegma semiclausum Sustainable IPM IWM strengthened Sakura demonstrated up to 97% control of populations of annual ryegrass resistant to Group A, B and D herbicides. Less tillage, less diesel Effective weed control Minimum tillage Maximum yield Less soil erosion Biological control Management expertise Bacillus thurlagiensis Crop management decisions Velocity a unique mode of action which controls resistant broadleaf weeds and prolongs the useful life of existing chemistry. Better Soil moisture Soil health Crop vigour Higher trash and carbon storage Bayer is a strong vocal advocate for IWM and our approach includes our products, Sakura and Velocity, which are complementary to IWM programs. Sue Cross, Head of Development at Bayer CropScience Bayer collaborated with diverse industry players to create Australia s first sustainable IPM strategy for diamondback moth control in Broccoli & Cauliflowers. Under this strategy, farmers releasing of Diadegma wasps, may reduce their insecticides sprays by 5 or more per crop, compared to conventional growers Dr Paul Horne, Entomologist from IPM Technologies Pty Ltd The strategy has worked, there s a cost saving and there s also benefits in terms of management of resistant pests in the long run so I m happy with it. Anthony Agosta, AAA Farms, Werribee South, Victoria

4 Social Equity Australian universities currently graduate only 800 agricultural students per year. x100 However, the Australian agricultural industry needs more than 2200 graduates per year. x100 Primary and secondary school The CSIRO CarbonKids Program combines the latest in climate science with sustainability education. The agriculture module gives students an understanding of some of the likely implications of climate change on major agricultural industries in Australia. More than 250 schools across Australia are registered in the program, including in regional and rural areas. University The CSIRO Plant Industry Summer Student Program gives undergraduate students the opportunity to work alongside highly qualified scientists carrying out research projects in the field of plant science. Young adult The Future Farmers Network of Australia supports young adults who work in agriculture to build networks and skills. In 2013, Bayer and FFN sent six young adults to Canada to attend a global Youth Agricultural Summit on food security. As a research-based company, Bayer is investing in science and agricultural education to help fuel the motivation of students to pursue careers in ag sciences.

5 While we at Bayer have always been proud of the performance of our products, our greatest pride comes from working and learning with farmers and partners so that, together, we can boost the productivity and sustainability of Australian agriculture. 90 years Bayer CropScience has been investing in Australian agriculture for almost 90 years and will continue to support the development of sustainable agriculture expertise. Meeting the needs of the present without compromising the ability of future generations to meet their own needs. Brundtland Report, Our Common Future