Agricultural Solutions

Transcription

1 Agricultural Solutions Sustainable growth through market-driven innovations Dr. Peter Eckes President BASF Plant Science BASF Roundtable Agricultural Solutions New York & Monmouth August 8,

2 2 Disclaimer This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. This presentation contains a number of forward-looking statements including, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. BASF has based these forward-looking statements on its views with respect to future events and financial performance. Actual financial performance of the entities described herein could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements. Forward-looking statements represent estimates and assumptions only as of the date that they were made. The information contained in this presentation is subject to change without notice and BASF does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations. BASF Roundtable Agricultural Solutions, August 8, 2011

3 3 1 2 Introduction BASF Crop Protection 3 BASF Plant Biotechnology 4 Update Monsanto BASF Collaboration BASF Roundtable Agricultural Solutions, August 8, 2011

4 4 Market development plant biotechnology Global GM crop area in million hectares; 1 ha = 2.47 acres CAGR 22%* 148 Key facts Global GM crop area continued to grow in 2010 Biotech crops cover about 10% of the cultivated land In 2010, 15.4 million farmers grew GM crops in 29 countries Market expected to grow to USD50 billion by * CAGR Source: ISAAA 2010 Continued strong growth Strategy

5 5 BASF Plant Science Key facts Hawaii Ames Iowa Midsouth DNA LandMarks RTP North Carolina Puerto Rico Crop Design Limburgerhof Plant Science Sweden Metanomics SunGene Tamil Nadu Founded in 1998 Leading platform for Plant Biotechnology 7 R&D and 13 field site centers 750+ employees worldwide Annual R&D spending ~ 150 million Ceara Sao Paulo St. Catarina R&D sites Field site center Global research network at biotech hotspots

6 6 BASF Plant Science strategy What? Increase crop yield through Plant Biotechnology How? Focus on yield traits for major crops Develop the leading technology platform to deliver the best traits for the best seed Access market through partnerships with leading seed companies Trait Technology Partner strategy

7 7 BASF Plant Science partnerships Global GM crop area in million hectares; 1 ha = 2.47 acres Wheat* Corn Rice Soybean Canola Cotton Sugar cane** Sugar beet Partner *** **** *** Rank market share * Total harvested crop area Source: USDA, ISAAA, BASF Plant Science GM crop area Strong partners for yield traits in major crops * ** Wheat: very fragmented global market Sugar cane: market data for Brazil only (main producing country) *** Monsanto: including licensing business **** Rice: hybrid rice market excluding China

8 8 Plant Biotechnology pipeline Expected gross trait sales 2020 before partner share + : 1.9 bn. Trait total development time: years Yield & Stress Feed Specialties Input traits New project Discovery gene identification & proof of concept Stage I proof of concept in target crops Stage II early product development Higher-yielding corn* Higher-yielding soybean* 2 Higher-yielding canola* Drought-tolerant corn* 2 Drought-tolerant cotton* Improved nitrogen utilization in corn* Higher-yielding wheat* Higher-yielding sugar cane** Higher-yielding sugar beet*** Higher-yielding rice**** Improved corn feed Healthy fatty acids in canola Amylopectin potatoes Herbicide-tolerant soybean***** Nematode resistant soybean* Fungal-resistant potato Fungal-resistant soybean Advancement =USD1.3 Innovation yields results 3 Stage III adv. product development 1 generation Stage IV pre-launch 2 1 : *Monsanto **CTC ***KWS ****Bayer *****Embrapa 1

9 EPA/DHA-omega-3 (Ω-3) fatty acid production in canola 9

10 10 EPA/DHA-omega-3 (Ω-3) fatty acid production in canola New EPA/DHA Ω-3 food product launches Key facts EPA/DHA Ω Fish 60% -3 source in food product launches Algae 18% Unknown/Other 22% Source: Frost and Sullivan 2009, BASF Growing consumer interest in products with EPA/DHA-Ω-3 fatty acids due to proven health effects: arteriosclerosis prevention, decreasing risk of cardiovascular diseases Current EPA/DHA-Ω-3 market is expected to double to about USD2.8 bn. by end of decade Innovative production of EPA/DHA-Ω-3 fatty acid in canola Opportunity for plant-produced EPA/DHA-Ω-3 fatty acids Strategy

11 11 EPA/DHA-omega-3 (Ω-3) fatty acid production in canola Elucidation of EPA/- DHA-Ω-3 biosynthesis Transfer into plants Product development in canola Scientific groundwork jointly established with academic partners Genes identified and candidates for expression in plants selected from algal and fungal genomes EPA/DHA-Ω-3 production of >500 different gene combinations tested in model and crop plants Identification of most promising gene combinations Concerted expression of 10 genes produce >20% EPA/DHA Ω-3 content in canola oil: sustainable production cost leadership position ease of incorporation into food products efficient scale-up World record in plant metabolic engineering

12 Increased yield in rice 12

13 13 Increased yield in rice Crop Global Production (million MT/y) Global Crop Value* (billion USD) Gross Sales Value 10% Yield Increase** (billion USD) Corn ~4 Wheat ~4 Rice ~4 Soybean ~3 * Basis: corn USD144/MT, soybeans USD329/MT, wheat USD186/MT, rice USD224/MT ** Based upon a single 10% yield increase trait example, assuming 60-70% of value is kept by farmer, depending on product and crop Key facts Rice is the world s largest food crop. Half of the world s population consumes at least one meal of rice every day Besides insect resistance and herbicide tolerance, yield increase in rice offers an attractive value potential Hybrid rice seeds are gaining popularity and market share from traditional varieties due to their ability to produce higher yields Large market potential for increased yield in rice Strategy

14 14 Key hybrid rice markets North America Brazil India Total rice area (M ac): Hybrid market* 2010: 2020: 30% ~70% <1% ~20% 3% ~20% Hybrid market (M ac) Hybrid market (M ac) Hybrid market (M ac) * estimated percentage of total rice market (M ac): million acres Focus on future key hybrid rice markets Source: USDA, BASF Plant Science

15 15 Increased yield in rice Project goal Develop & commercialize hybrid rice seeds that offer yield advantages of 10% over conventional hybrid rice First partnership signed Global non-exclusive license agreement with Bayer CropScience (BCS) BASF Plant Science: trait development, de-regulation BCS: introgression of traits in its hybrids, commercialization First product launches expected by end of the decade Seed count Seed size Panicle size Target market India and selected countries in SE-Asia, USA, Brazil New partnership provides market access Control BASF

16 Discovery engine 16

17 17 BASF Plant Science Trait technology platform Select the best candidates Expertise Scouting Proprietary data Public data Academic partners Select the best genes Ghent Large capacity at high speed Yield in crops Acquired by BASF in 2006 Understand gene action Berlin Worlds largest industrial-scale metabolite profiling platform Investigates Mode of Action Founded by BASF in 1998 Deliver best trait genes Strategy

18 18 BASF Plant Science Trait technology platform Select the best candidates Evaluation agreement with a technology management company Timeline (months) 3-6

19 19 BASF Plant Science Trait technology platform Select the best candidates Select the best genes Yield increase in rice under standard and stress conditions: Up to 30% yield increase Up to 20% more filled seeds Mode of Action hypothesis: Reduced secondary stress effects Maintains growth under limited conditions Flowering Filled seeds Roots Leaves Panicle Timeline (months) Seed weight Total yield Seed number

20 20 BASF Plant Science Trait technology platform Select the best candidates Timeline (months) Select the best genes tbd 3-6 Understand gene action Re-programmed central metabolism shifting towards sugars and lipids Mode of Action confirmed: Reduced secondary stress effects Maintains growth under limited conditions sugars & lipids 2secondary metabolites s amino acids

21 21 BASF Plant Science Trait technology platform Select the best candidates Select the best genes Understand gene action Deliver best trait genes IP extended Definition of constructs and gene combinations Timeline (months)

22 22 BASF Plant Science Trait technology platform Select the best candidates Select the best genes Understand gene action Deliver best trait genes Field testing On fast-track in Monsanto collaboration Strongest gene in Phase I Promoted to Phase II in 2010 Successful results for 2 years in the field Field trial results Event1 Event2 Event3 Event4 Event1 Event2 Event3 Event4 Product concept Timeline (months) New promising events for collaboration years

23 23 Plant biotechnology pipeline Expected gross trait sales 2020 before partner share + : 1.9 bn. Trait total development time: years Yield & Stress Feed Specialties Input traits New project Discovery gene identification & proof of concept Stage I proof of concept in target crops Stage II early product development Higher-yielding corn* Higher-yielding soybean* 2 Higher-yielding canola* Drought-tolerant corn* 2 Drought-tolerant cotton* Improved nitrogen utilization in corn* Higher-yielding wheat* Higher-yielding sugar cane** Higher-yielding sugar beet*** Higher-yielding rice**** Improved corn feed Healthy fatty acids in canola Amylopectin potatoes Herbicide-tolerant soybean***** Nematode resistant soybean* Fungal-resistant potato Fungal-resistant soybean Advancement =USD1.3 Innovation yields results 3 Stage III adv. product development 1 generation Stage IV pre-launch : *Monsanto **CTC ***KWS **** Bayer ***** Embrapa

24 24 Plant biotechnology pipeline Expected gross trait sales 2020 before partner share + : 1.9 bn. Trait total development time: years Yield & Stress Feed Specialties Input traits New project Discovery gene identification & proof of concept Stage I proof of concept in target crops Stage II early product development Higher-yielding corn* Higher-yielding soybean* 2 Higher-yielding canola* Drought-tolerant corn* 2 Drought-tolerant cotton* Improved nitrogen utilization in corn* Higher-yielding wheat* Higher-yielding sugar cane** Higher-yielding sugar beet*** Higher-yielding rice**** Improved corn feed Healthy fatty acids in canola Amylopectin potatoes Herbicide-tolerant soybean***** Nematode resistant soybean* Fungal-resistant potato Fungal-resistant soybean Advancement =USD1.3 3 Stage III adv. product development 1 generation BASF / Monsanto collaboration leading in yield trait technology Stage IV pre-launch : *Monsanto **CTC ***KWS ****Bayer *****Embrapa

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