* BASF aims for share of genetic plant trait market
* BASF spending 36 pct of R&D on plant biotech and crop
* Says dicamba herbicide safe, improved formulation to fight
By Carey Gillam
CHICAGO, June 7 Global conglomerate BASF is
rolling out a series of new plant science and plant protection
products for farmers in the United States as it aims to increase
its share of fast-growing markets, executives of the German
chemical giant said.
South America is also a target as BASF shifts its
agricultural emphasis -- and millions of dollars in research and
development --away from Europe to markets more accepting of the
genetically modified crop technology it says will be key to food
security as world population grows.
The plant science division is racing to identify new genetic
traits for crops and catch up with rivals that already have a
strong foothold in U.S. and Latin American agriculture. Though
essentially starting from zero, the unit is partnering with
others in the industry and projects it can capture "gross trait
sales before partner share" of $1.8 billion by 2020.
"(Plant science) is still a young industry," Peter Eckes,
president of BASF Plant Science Co, told Reuters this week.
"This is still a growth industry."
Eckes said the global market for genetic traits for crops
was pegged at $50 billion by 2025.
"Our responsibility is to grow this field," Eckes said. "If
we do, we'll make a very meaningful contribution to BASF's
BASF had 2011 sales of 74 billion euros. Roughly 6 percent
of that came from the agricultural solutions businesses, the
smallest contribution of the various BASF operations.
But BASF, whose chief businesses are in chemicals, plastics
and oil and gas, is spending about 36 percent of its research
and development budget on plant biotechnology and crop
And BASF executives said they were using the company's broad
scientific base in ways that should help increase gains from
both plant science and crop protection units.
As part of that effort, BASF is moving the headquarters for
its plant science unit from Limburgerhof, Germany, to Raleigh,
North Carolina. The unit will focus on the North American, South
American and Asian markets.
BASF has no plans to enter the seed market, focusing on
traits only. The company has tightly aligned itself with
U.S.-based Monsanto Co (MON.N), the world's largest seed
company. The two are developing genetic traits to improve the
yield ability and stress tolerance of key crops like corn and
soybeans. In the near term, the partners are focusing on a
drought-tolerant corn that is in field testing in the United
States this year and due for commercial release in 2013.
But Monsanto has a broad base of critics who oppose its
biotech crops and chemical products, and the "DroughtGard" corn
has not escaped that trend. On Tuesday, the Union for Concerned
Scientists issued a report challenging the effectiveness of the
new biotech corn, saying it is little better than conventionally
Eckes shrugged off the criticism, saying DroughtGard is
"This is an opportunity for the farmer to mitigate risk," he
said. "It is not to be used in a desert. But it is yield-loss
mitigation in extreme situations. We remain very optimistic this
One of the company's most high-profile partnerships with
Monsanto is the development of a new herbicide-tolerant cropping
system that features a dicamba-based herbicide that can be
sprayed over soybeans, corn, cotton and canola genetically
modified to tolerate the herbicide. Soybeans will be introduced
first, probably by 2014, company officials have said.
BASF made its application to the U.S. Environmental
Protection Agency in April for the "Engenia" herbicide it has
developed. The herbicide is effective on more than 100 annual
broadleaf weeds, the company said.
The project comes when Monsanto's Roundup Ready cropping
system is failing as millions of acres of farmland are overrun
with weeds that have grown resistant to Roundup.
Critics say the new dicamba cropping system will only make
weed-resistance worse in the long run by increasing the amounts
of dicamba used.
Dicamba has a history of volatile dispersement into the
environment, and has been known to drift onto neighboring farms
and unintentionally harm crops. Critics fear that damage will
rise as well.
But BASF has "high confidence" the new dicamba herbicide
formulation will be approved and will help farmers control
weeds, said Markus Heldt, president of the crop protection
division, which reported sales of 4.1 billion euros in 2011.
The newly formulated herbicide has minimized volatility,
Heldt said in an interview this week.
"We are a responsible company," said Heldt. "Dicamba is well
known. It has been on the market 50 years. We are not playing
with a chemistry that is dangerous."
The company said weed-resistance problems had helped lead to
rapid adoption of its Kixor herbicide. BASF introduced the
product in 2010 and projects it will be used on more than 20
million acres in the United States this year.
($1 = 1.2577 euros)
(Editing by Lisa Von Ahn)
Keywords: BASF GMO/FOOD
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