Biologics: why all the recent
excitement?
– a key element in integrated
crop solutions
Marcus Meadows-Smith
Head of Biologics – Strategy & Business Management
Global HQ, Davis, California
Page 1 • Introduction to Biologics at Bayer CropScience • May2013
Forward-Looking Statements
This presentation may contain forward-looking statements based on current
assumptions and forecasts made by Bayer Group or subgroup management.
Various known and unknown risks, uncertainties and other factors could lead to
material differences between the actual future results, financial situation,
development or performance of the company and the estimates given here.
These factors include those discussed in Bayer’s public reports which are
available on the Bayer website at www.bayer.com.
The company assumes no liability whatsoever to update these forward-looking
statements or to conform them to future events or developments.
Page 2 • Introduction to Biologics at Bayer CropScience • May2013
Agenda/
Content
Challenges & Mega Trends in Agriculture
What are Biologics?
The Bayer CropScience Strategy
Our Product Portfolio
Page 3 • Introduction to Biologics at Bayer CropScience • May2013
The agricultural industry is operating in
a challenging and changing environment
Population growth
• Rise in food demand
• Need to increase food
production by 70% till
20501 to feed 9bn
volatility
• Crops needed for food,
feed, fiber and renewable
raw materials
Wealth increase
Weather fluctuations
• Increasing calorie-
• Limited arable land
• Rise in yield losses
intake per capita
• Rise in Western-style
diets and need for feed
• Significant food waste
• New requirements along
food value chain
1Source:
Rising demand
• Increasing market
FAO (2009), How to Feed the World in 2050, Rome, Italy.
Page 4 • Introduction to Biologics at Bayer CropScience • May2013
through adverse weather
conditions
• Disease/insect migration
• Water scarcity
A need to increase sustainable agricultural
practice around the world
Resource efficiency
• Water
• Energy
• Soil
• Land
Biodiversity
• Stewardship
• Product selectivity
Weather fluctuations
• Adaptation
• Mitigation
Food security
• Yield
• Quality
• Good Agriculture
Rural development
Practice
• Crop loss and food waste
knowledge transfer
• Public private partnership
• Education and
These challenges also present opportunities for Bayer CropScience
Page 5 • Introduction to Biologics at Bayer CropScience • May2013
A trend towards sustainable food production,
particularly in Fruits & Vegetables
Consumers expect safe and sustainablyproduced food
Global retailers have more stringent quality
targets
Farmers need Integrated Crop Management
(ICM) programs
There is a higher demand for biological solutions
This has led to an emerging need for integrated crop solutions
Page 6 • Introduction to Biologics at Bayer CropScience • May2013
Agenda/
Content
Challenges & Mega Trends in Agriculture
What are Biologics?
The Bayer CropScience Strategy
Our Product Portfolio
Page 7 • Introduction to Biologics at Bayer CropScience • May2013
Biologics are a cornerstone
in sustainable agriculture
Benefits for Growers
• Enhanced integrated pest management (IPM)
• Improved resistance management
• Increased efficacy of spray programs
• Flexibility in use – short re-entry and pre-harvest intervals
• Additional option to improve quality and tradability
of fresh produce
Growers expect products that are
• Used alongside their small molecule tools in tankmixtures or alternation regimes
• Stored and applied using available equipment
• Tested for effects to applicators, the environment and non-target organisms
Page 8 • Biologics – JiangSu • May 2013
Agenda/
Content
Challenges & Mega Trends in Agriculture
What are Biologics?
The Bayer CropScience Strategy
Our Product Portfolio
Page 9 • Introduction to Biologics at Bayer CropScience • May2013
Integrated Crop Solutions
Depending on specific market
conditions, individual solutions
for customer needs can be
made available through different
technology platforms
Molecular
Biology
Molecular Biology, Small
Molecules and Biologics* can
be efficient solution-providers
for unmet customer needs–each
requiring a different expertise
Customer Needs
Synthetic
Chemistry
Disease control
Weed control
Pest control
Plant health
Integrated Solution &
offering for growers
Page 10 • Townhall Meeting Monheim • November 2012
Biologics*
* Also known as Green Products;
Suitable for conventional and
organic agriculture
To enrich our portfolio and meet market demands,
Biologics is now our third R&D focus area
Seeds
Small
Molecules*
Biologics
Insect/Disease/Weed Control
Abiotic Stress Resistance
Plant Growth Promotion
Yield Increase
The combination empowers us to excel in differentiated integrated solutions
*Chemistry
Page 11 • Townhall Meeting Monheim • November 2012
Strategic acquisitions support our quest for
market leadership
2009 acquisition of certain assets and technology of the Israeli biopesticide
AgroGreen. The acquired assets include Bacillus firmus
2012 US-based AgraQuest
company,
against nematodes
Inc. with expertise in biological pest management,
and production based on bacterial microbes
R&D
2013 acquisition of German-based Prophyta
Biologischer Pflanzenschutz GmbH,
expertise in biological crop protection based on microbial fungi
These acquisitions further
strengthen our excellent portfolio in integrated
crop solutions spanning Seeds, chemical and biological Crop Protection,
and Services
Page 12 • Introduction to Biologics at Bayer CropScience • May2013
Historically, the Biologics industry
over-promised and under-delivered
Traditional biologic products were high-priced and had only niche uses
100%
100
90
% Control
80
SYNTHETIC conventional
crop protection product:
Low cost permits use rates
that deliver excellent control
and persistence
70
60
TRADITIONAL biologics:
Low concentration of active
compounds meant high use
rates, and thus high cost-inuse for equivalent control,
thus limited adoption
50
40
30
20
10
0
Cost-in-use
Page 13 • Townhall Meeting Monheim • November 2012
Next generation Biologics match the cost and
control of synthetics
Microbial genetics, chemistry & fermentation enhances yield and reduces COG
100%
100
SYNTHETIC conventional
crop protection product
Bayer CropScience Biologics:
90
Driving higher concentration of
active compounds and lower
COGs, thus matching
the cost-in-use and control
of synthetics
% Control
80
70
60
50
40
30
TRADITIONAL biologics
20
10
0
Cost-in-use
Page 14 • Townhall Meeting Monheim • November 2012
R&D capabilities have transformed
Leaders in R&D with largest team of scientists focused solely on biologic products.
Experienced team of 65+ scientists with 5 key areas of differentiation and superiority
Entomology
Plant Pathology
Genomics
Fermentation
Informatics
Natural Product Chemistry
Formulation
Regulatory
Field Biology
Microbiology
Superior new formulations (right) that avoid precipitation
associated with standard formulations
Page 15 • Overview of BCS, Biologics
A.I.=QST713
Better biologics by design
Unique beneficial microbes
Manufacturing Excellence
Natural metabolites
Quality & consistency built into products
•
•
Fengycin
Iturin
Surfactin
Macrolactin
•
Difficidin
Bacilysin
IAA
Cutting-edge Technology
Scientific understanding
of the modes of action
and active metabolites;
Leads to superior product
design
2,3-butanediol
Plant
Activating
SERENADE SOIL
Growth
Promoting
Anti
Fungal
Grower Standard
AntiBacterial
Elucidated Modes of Action
Page 16• Overview of BCS, Biologics
Superior Efficacy
The mode of action of Votivo™:
Building a natural protective wall
Root
Nematodes/
Threadworms
• Bacteria (Bacillus firmus)
Protective
bacterial film
form a thin film around a
young root before
voracious threadworms can
discover the new source of
nutrients.
Corn plant
• As a result, the
Bacteria
absorb plant sugar and releases
enzymes that attack the nematode eggs
.
Bacterial phytohormones
also stimulate plant
growth.
Page 17 • Introduction to Biologics at Bayer CropScience • May2013
nematodes have no
chance to suck up sugar
or amino acids. The bioprotector also forms
enzymes and produces
phytohormones.
We have identified two main focus areas for
Biologics across our business segments
Crop Protection
• Fruits & Vegetables:
Integrated Crop Solutions
with optimized pest and
disease control via chemistry
and Biologics – satisfies
global produce trade
requirements of our
customers
• Broadacre crops:
Integrated Crop Solutions that
increase yields through pest
and disease control
Page 18 • Introduction to Biologics at Bayer CropScience • May2013
Crop Efficiency
• Fruits & Vegetables:
Growing crops with consistent
high yield and superior quality
of produce
• Broadacre crops:
Yield enhancement, bio-fertility
and abiotic stress
management
• Cross-cutting benefits:
plant health, quality and
intrinsic yield enhancement
Agenda/
Content
Challenges & Mega Trends in Agriculture
What are Biologics?
The Bayer CropScience Strategy
Our Product Portfolio
Page 19 • Introduction to Biologics at Bayer CropScience • May2013
Managing MRLs with Serenade® fungicide
Programs with Biologics manage residues and improve grower profitability
Residue limits
Highest yields and ROI
20
US
1800
18
Codex
14
12
10
8
6
EU
grocers
4
Crates/acre (8 harvests)
16
Captan mg/kg
$$
1600
1400
1200
1000
800
600
ROI =
12.5
ROI =
9.8
ROI =
13.3
Serenade, 4
qts
Captan, 4 lbs
Ser ->Cap >Ser ->Cap
400
200
2
0
0
Serenade, 4 qts
Captan, 4 lbs
Page 20 • Townhall Meeting Monheim • November 2012
Ser ->Cap ->Ser
->Cap
OPTIMUM®: Performance equivalent
to market-leading fungicides
OPTIVA® performs as well as Triflumizole for control of mildew on grapes
1st OPTIVA App.
2nd OPTIVA App.
a
90
80
% Leaf severity
70
60
50
untreated
A Flint
B Quintec
C Flint
D Quintec
E Procure or Optimum or Nothing
F Flint
G Procure or Optimum or Nothing
b
5 chemical sprays
40
30
c
20
7 chemical sprays
10
cd
0
15 DA-A
13 DA-B
7 DA-C
14 DA-C
Skipped Applications
14 DA-D
7 DA-E
Standard Program
5 DA-F
13 DA-F
OPTIVA Program
6 DA-G
13 DA-G
5 chemical + 2
biologic sprays
UTC
V. Fischer, Columbia Ag Research, Hood River, OR – 2010. Materials were applied using a CO2 handgun sprayer equipped with one D6 hollow cone nozzle per row delivering 70-180 GPA at 100 psi. Standard Program: Flint 1.5oz (ACF) Quintec 5floz (BD) Procure 6floz (EG). Optiva
Program: Flint 1.5oz (ACF) Quintec 5floz (BD) Optiva 1lb (EG). Skipped Applications: no app at timings E & G. A = 5/19, B = 6/3, C = 6/16, D = 6/30, E = 7/15, F = 7/29 and G = 8/12. *Erysiphe necator.(10-06-509)
Page 21 • Townhall Meeting Monheim • November 2012
Serenade SOIL®: Improved Productivity
Using Serenade SOIL biopesticide results in growth and yield
improvement over the leading synthetic standards
70
60
cwt/A over Quadris
SERENADE SOIL
Health, vigor = yield
50
40
30
Grower standard
Rizolex (tolclofos-methyl) 5kg + Tecto
(thiabendazole)1kg.
© AgraQuest
AQ potato trial, Northern Sinaloa, MX – 2009.
20
10
0
-10
-20
Page 22 • Overview of BCS, Biologics
Average improvement over the
grower standard, Quadris
= 16.5 cwt/A
Biologicals in growing practice:
A fully integrated portfolio for potatoes
Fungicides
Insecticides
Herbicides
Seed
treatments
In-furrow
Newly introduced
products
Benefits of integrated crop solutions for the potato grower: A strong and modern
portfolio including novel products, enhanced by an excellent innovation pipeline.
Page 23 • Introduction to Biologics at Bayer CropScience • May2013
We now have all competencies
to lead in integrated crop solutions
Chemicals
•
•
•
•
Herbicides
Fungicides
Insecticides
SeedGrowth
Products
• microbial
Biologics
rice, soy, wheat,
vegetables
Grower
benefits:
disease control
• Resistance
management
fungicides
• microbial
insecticides
• Canola, cotton,
Seeds
• Weed, pest &
•
•
•
•
• Conventional
Higher yield
Higher quality
Convenience
Risk
management
seeds
• GMO seeds
• Traits
Integrated Crop Solutions allows us to offer differentiated solutions:
Superior customer value (convenience) by combining products and technologies
with services, decision support systems for targeted disease and pest control.
Page 24 • Introduction to Biologics at Bayer CropScience • May2013
Thank you!
Page 25 • Introduction to Biologics at Bayer CropScience • May2013