Bayer CropScience is committing EUR 5 billion (approximately $6.5 billion) for its R&D operations to develop new solutions in seeds, chemical and biological crop protection. The company anticipates that products launched during this period will have a combined peak sales potential of at least EUR 4 billion ($5.1 billion).
The company also plans to invest in new production capacities and seed processing facilities to meet rising global demand for agricultural raw materials, by allocating a total of EUR 2 billion ($2.5 billion) for such investments within the same time frame.
"Bayer CropScience aims to lead the way in sustainable crop solutions, and we are heavily investing in R&D, as well as production capacities, to respond to global demand for differentiated crop solutions," notes Peterson.
In August, Bayer CropScience completed its close to $500 million acquisition of US biological pest control company AgraQuest, securing its foothold in the biologics market, which is expected to triple to almost $4 billion by 2020.
Four pillar strategy
Peterson says the company has made strong progress since it launched its new four pillar strategy in 2011. The four pillar strategy is based on: 1) Rejuvenating its core crop protection business; 2) Reinventing customer-centricity along the entire value chain; 3) Refocusing innovation, and 4) Extending the company's seeds business.
"Our four pillar strategy is working and we will maintain that growth," she says.