‘Bayer Crop Science aims to grow in double digits’
PETER R MUELLER, head of the crop science division, Bayer South Asia, speaks to Rajesh Bhayani on the company’s plans in India. He also talks about the Bayer-Monsanto merger, which, he hopes, will be closed early next year.
The Bayer-Monsanto merger seems to be missing the deadline. By when do you think it could be closed?
We are cooperating with the regulators in several jurisdictions including India and Europe. On October 5, the European Commission’s anti-trust authority announced that it had “stopped the clock” in the approval process to provide the parties more time to furnish certain bits of information requested. We are making every effort to answer all questions as soon as possible. Bayer and Monsanto will continue to cooperate with the authorities in order to complete the transaction by early next year. Until closure, they will operate as two independent businesses.
In India, Monsanto has faced issues relating to protecting intellectual property (IP) rights regarding Bt Cotton seeds. After that, many MNCs in India’s agri segments stopped putting money in India. What is Bayer’s stand on that?
Bayer’s association with India is 120 years old. India is an important market and also plays a strategic role for our overall crop science business. We will continue to invest in India through launching products and solutions. However, as an innovationbased company that is investing billions in research and development, we are concerned about IP protection. IP protection is a key point for all our investments and will remain priority. I can’t comment on Monsanto, but Bayer’s crop science business in India has not faced any major IP-related issues in India. When Bayer faces an issue that concerns us or the industry, we try to resolve it through dialogue with the authorities concerned.
How do you see the Indian market’s growth prospects?
India, we are the market leader in the crop protection business. We are also the market leader in hybrid rice seeds and a significant player in cotton, mustard and millet seeds. Over the years we have been growing at a faster rate than the market. India is one of the markets in which our growth is in double digits and we would like to continue this momentum. India operates as a global production hub and is one of the strategic growth countries for Bayer globally. In the last three years alone, Bayer has invested approximately 200 million in production facilities and breeding stations in India. We are investing in agri-extension, educating farmers on good agronomic practices, and offering comprehensive solutions and digital farming/advisories.
Does that include investments in new products?
In 2016, Bayer had product launches. The year 2017 has been again an eventful year, full of new launches and innovations. In crop protection, we launched Sivanto Prime, an innovative insecticide for sucking pests such as jassids and whiteflies. Lined up for launch are our two new fungicide brands: Infinito and Emesto Prime, both of which will cater for the potato crop. In seeds, we launched three rice hybrids: Arize AZ 8433 DT, Arize AZ 6453, and Arize AZ 6508. In environmental science, we launched Maxforce Quantum, an innovative insecticide for professional pest management of ants.
What is Bayer doing to tackle the issue of spurious products?
Along with our industry association, CropLife India, we are talking to the authorities on fake and spurious products. It is of concern for us because these products are harming agriculture in India. The quality of the products is not only questionable but also dangerous to human health and environment. We have a “Product Defence” team to work with the authorities to help take legal action against counterfeit products. We also work closely with farmers and guide them on identifying spurious products and train them on responsible product stewardship.
Sowing this year has been good, which must have benefited your company. Would you like to give an FY18 guidance for Bayer in India?
The monsoon can be judged on many parameters. It is not only a question of the long-term average but also the timing and distribution of precipitation, its relationship with crop sowing, and so on. You have to go to micro geographies and match the conditions there with your portfolio of crops.
We can’t comment on the outcome of the financial year. The picture will be available in Q1 of 2018. As of now, we are focusing on the rabi season. India has enormous potential for growth in agriculture and with the Indian government talking about doubling farmers’ income in the next five years, increasing crop productivity will be crucial.