FEATURE
of the rising value of the Brazilian real and the be able to meet strict regulatory requirements;
ensuing liquidity squeeze among exported- this is an increasingly difficult task as regulatory
oriented Brazilian growers. authorities raise the bar and measurement
methods become more precise.
The impact of exogenous factors such as the
weather, resistance and exchange rates is one of Overall, the crop protection business is expected
the things that makes this business so exciting. to grow at an annual rate of 1–2% a year.
In this sort of environment, however, it’s critical However, certain product segments, such as
to have a business plan that is based on long- specialty products, plant health and seed
term analysis but is also flexible enough to adapt treatment, are expected to grow at higher rates.
to these short-term market developments. High-growth geographic regions such as India,
China and Eastern Europe are also driving the
Customers often ask me if I expect the market market.
introduction of genetically modified (GM) crops
with fungal-resistant traits to have a major
negative impact on the market, especially
when I tell them that we’re working on two
fungal-resistance projects. My answer is always
a clear “no”. Technology is a vehicle, so we are
of course very excited about the possibilities
inherent in plant biotechnology. Our field trials
with fungal-resistant potatoes, for example, are
a powerful demonstration of how traits can help
Customers often ask me if I
growers to minimize risk and maximize yield.
expect the market introduction
of genetically modified (GM)
But we also don’t foresee a drop in the demand
for fungicides when the first fungicide -resistance
crops with fungal-resistant
traits come to market in 10-15 years. First of all, traits to have a major negative
growers will continue to rely on broad-spectrum
impact on the market
fungicides, in addition to traits that make crops
resistant to one or two fungal diseases. Then
there’s resistance, which is an issue in chemical
crop protection and will also be an issue with
fungal-resistant GM crops.
More importantly, when the next generation of
value-adding traits comes to market, growers
will be more eager than ever to protect their BASF expects the global fungicide market to
seed investment. That’s one reason why BASF grow by an average of 2% a year through to
spends more than 10% of its sales on R&D and 2015. This estimate is in line with independent
has earmarked a growing share of this spend for analysts, who forecast global sales of US$8.2
research into fungicides and seed treatments. billion in five years, up from US$7.2 billion in
2006. The main growth regions will continue to
Another important topic in the fungicide market be South America and the US, as well as Korea
is resistance management. Through the process and Japan in Asia. Growth rates in India and
of natural selection, fungal pathogens rapidly China will also be high, although progress in the
develop resistance to fungicides. In addition high-value fruit and vegetable segment will be
to trying to prevent this resistance from slower. We also expect momentum in the young
developing, it is important for manufacturers market for fungicidal seed treatments. Last year,
to bring fungicides to market with new modes BASF launched seed treatment products for two
of action. The market is currently dominated by of its pipeline active ingredients – boscalid and
only two fungicide classes – the azoles and the F 500. We plan to expand this effort to other
strobilurines – with two modes of action. regions, most notably South America.
But finding a novel fungicide mode of action is
not enough. It takes a mode of action that can
beat the current standard in terms of biology Niels Poerksen is head of fungicides
and ease of use. This novel compound must also marketing at BASF
8 November 2007  •  www.agrow.com
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