Transcript A leading global agribusiness

Meeting Background
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● Our objective:
- Build trust ; convey openness to dialogue
- Establish the foundation that: a.) we all have been adapting to meet the demands for
food production; b.) we all will need to continue to do so; c.) technology is essential to
meet the demands d.) new technology will require us working together and managing
things differently; e.) recognize that new technology will bring challenges. F.) How we
handle the challenges must be a collaborative process
● Presentation flow
- Short background on Syngenta
- The need for innovation; the opportunity it presents
- Biotechnology in the industry pipeline; our own products
- Cereal Focus
- Commitment to stewardship
- Wrap up, new challenges and ways to work together
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Canadian Grains Council Annual Meeting
Dave Sippell
President , Syngenta Seeds Canada
Our role in agriculture
● Syngenta is one of the world’s leading companies with
more than 24,000 employees in over 90 countries
dedicated to our purpose:
● Our Crop Protection and Seeds products help growers
increase crop yields and productivity
● We contribute to meeting the growing global demand
for food, feed, fuel and fiber
● We are committed to protecting the environment,
promoting health, and improving the quality of life
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We have a deep commitment to Research and Development
Approximately
4000 Syngenta employees
work in Research and Development
Syngenta spent around
$1 billion on
Research and Development in 2008
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Challenges for global agriculture
● Huge rise in demand
● Limited farmland
● Limited water supplies
● Need to continue raising yields
We must grow more
from less
Only sustainable approach is to
unlock the potential of plants
through innovation
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Increase in yield growth required to meet demand
Yield growth
3%
Annual required yield growth* to
return to a stock-to-use ratio of
20% by 2013
2%
1997 - 2007
1%
3.3 mha acreage
growth per
annum
3.3 mha acreage
growth per
annum
* Based on 2% demand growth scenario 2007 – 2013 (corn, soybeans, wheat, rice)
Source: Syngenta
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No acreage
growth
Productivity critical: historically and in the future
Index numbers 1961=100
250
● Productivity has played significant
role historically
225
Total agricultural production
Total arable and permanent cropland
200
● 40% of world’s food would not
175
exist without crop protection
150
● Technology advances in seeds:
hybridisation, enhanced breeding,
GM
125
100
1960
1965
1970
1975
1980
1985
1990
1995
Source: WBC for Sustainable Agriculture, Crop Losses to Pests (E-C Oerke); Journal of Agricultural Science (2006)
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Significant GM contribution to sustainable productivity
Productivity
GM penetration
million hectare
● Economic gains from GM crops
120
- $4.8bn in 2004; $19bn 19962004
80
Sustainability
● Reduction in environmental footprint
40
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
US
Argentina
India
Source: ISAAA
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China
Brazil
Canada
Others
- reduced soil tillage and fewer
chemical sprays
Biotechnology: demand for agronomic and quality traits
Agronomic Traits
Agribusiness
Grower
Quality Traits
Processor
Retailer
Consumer
● Lower production costs
● Food/feed/fuel processing benefits
● Increased yields
● Healthy, high quality foods
● Promote no / low-till practices
● Nutritionally enhanced feed
● Improved bioprocessing benefits
Making farmers
more efficient
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New sources
of value
Industry Corn Portfolio*
Agronomic Trait
A Steady Pipeline of Events
Improved Feed
(Pioneer/DuPont)
VT Triple Pro
(Monsanto)
Drought
Tolerance
(Monsanto/
BASF)
Broad Lep
- MIR 162
(Syngenta)
2009
Drought
Tolerance
(Syngenta)
Higher
Yield
(Monsanto/
BASF)
Nitrogen
Utilization
(Pioneer/DuPont)
RW dual
Mode of
action
(Syngenta)
Improved
Feed
(BASF)
2010
Corn
Amylase
(Syngenta)
Novel
Insect
Traits
(Syngenta)
201X
“Optimum”
Herb. Tol.
(Pioneer/
DuPont)
“SmartStax
(Monsanto/Dow)
Herbicide
Tol.
(Dow)
Increased
Yield
(Pioneer/
DuPont)
Increased
Ethanol
(Syngenta)
Triple-mode
Herb. Tol.
(Pioneer/
DuPont)
*Estimated commercialization pipeline of corn biotech events prepared by the U.S. Grains Council
Commercialization dependent on many factors, including successful conclusion of regulatory process
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Quality Trait
Nitrogen
Utilization
(Monsanto/BASF)
Increased
Ethanol
(Pioneer/DuPont)
Drought
Tolerance
(Pioneer/
DuPont)
Nitrogen
Utilization
(Syngenta)
Industry Soybean Portfolio*
□ Agronomic
□ Quality/Food
A Steady Pipeline of New Biotech Events Nearly Every Year
Omega-3
RR2Y
Omega-3
Bt/RR2Y
(Monsanto;
Steandonic Acid)
(EPA/DHA)
(Monsanto)
Pioneer/DuPont
Low Sat
(Monsanto)
High
Stearate
(Monsanto;
High BetaConglycinin
(Monsanto;
Pioneer/DuPont)
Pioneer/DuPont)
LowPhytate
Pioneer/DuPont)
Nematode
Resistance
Rust
(Monsanto)
(Monsanto;
(Syngenta)
Pioneer/DuPont
Dicamba Tolerant
(Monsanto)
Antibody containing
(against E.
coli
0157:H)
Yield
(Monsanto;
Feed: High Protein
Soybean
Pioneer/DuPont)
(Monsanto;
Pioneer/DuPont)
2009
201X
Modified 7S
Protein FF
(Pioneer/DuPont)
High Oleic
(Pioneer/DuPont)
GAT/Glyphosate-ALS
(Pioneer/DuPont)
Glyphosate &
isoxazole tol.
(Bayer)*
HPPD
Tolerant
(Syngenta)
Disease
(Monsanto;
Pioneer/DuPont)
Disease
Resistance
(Syngenta)
Soybean Cyst
Nematode
High Oleic, Stearate
(Pioneer/DuPont)
Monsanto;
Pioneer/DuPont
Liberty Link
Processing:
High Oil Soy
(Bayer)
(Monsanto)
Herbicide tol.: 2,4-D
(Dow) and aryloxyphenoxy
propionate herbicides
*Estimated
commercialization pipeline of soybean biotech events prepared by the American Soybean Association,
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November 2007. Updated March 2009.
Canadian Canola Production
35,000
30,000
25,000
20,000
Total Production (‘000 tonnes)
Total Acres Harvested ('000)
15,000
10,000
5,000
0
1995
12
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Canola Production
% of acres
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The Syngenta commitment to cereals!
● Largest private cereals breeding program in the world
- Only private company fully invested in wheat breeding in
Canada
● Focus on breeding improved varieties, with significant investment
in marker technology and biotechnology
● Development projects between Crop Protection, Seed Care and
Seeds is creating new value for the Value Chain
● Syngenta Foundation for Sustainable Agricyulture launches Syngenta
and CIMMYT wheat UG 99 stem rust resistance research partnership
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Our global focus in cereals - EU, Canada, U.S. and Australia
C.C. BENOIST
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In the News – the Wheat Value Chain is engaged
● Canada: May 14, 2009 – The Grain Growers of Canada, Western
Canadian Wheat Growers Association and the Alberta Winter Wheat
Producers Commission announce that they have reached an accord with
Australian and US wheat producers on the need for the synchronized
introduction of biotech wheat.
- “Prairie farmers and consumers around the globe have
benefitted tremendously from the development of biotech traits
in canola,” (Kevin Bender, President , WCWGA)
● North America: NAMA is fully engaged in the Wheat Working
Group and has also signed on to the accord.
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Where are we today?
● Is there support for biotech wheat from the wheat value chain?
- Syngenta is encouraged by strong grower support and the efforts
being made by the wheat industry.
● Are there potential wheat products that could have benefits for growers
and the entire wheat industry?
- Syngenta has a very effective product awaiting a change in market
dynamics.
● Is the entire wheat value chain engaged?
- Syngenta will continue work with the entire wheat value chain.
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Our business is part of the solution
● Corporate Responsibility is inherent in what
we do every day
● We concentrate on those areas where we
can be most effective:
- promoting sustainable agriculture
- researching and developing innovative
products
- helping rural communities to build
capacity
- motivating our people to give their best
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Product Stewardship is..
the responsible management of a product from its inception through to
its ultimate use and discontinuation.
Seed
Production
Seed
Marketing &
Distribution
Crop
Production
Plant
Development
Gene Discovery
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Crop
Utilization
Plant Product
Life Cycle
Product
Discontinuation
Looking to the future
● New technologies are required
● Creating new challenges / complexities
● Requiring ways of working together to bring new technologies to
growers without disrupting trade
Our common ground is to produce enough food, feed, fuel
and fiber to meet the increased global demand!
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