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Sustainability A challenge for dynamic growth markets

Sustainability A challenge for dynamic growth markets

Ansgar WilleHead of Pest Control SolutionsBASF Crop Protection

Grüne Woche, Lateinamerika Verein e.V.Berlin, January 21, 2011

Ansgar WilleHead of Pest Control SolutionsBASF Crop Protection

Grüne Woche, Lateinamerika Verein e.V.Berlin, January 21, 2011

An industry full of superlatives -key positions in the global market

� Latam is largest global soybean producer (Brazil and Argentina)

� Brazil is largest soybean exporter

� 57% of total global coffee production is from Latam and 36% from Brazil

� 83% of all orange juice consumed globallyis produced in Brazil

� Latam is the largest producer and exporter of sugar

� Brazil leads sugar cane business – sugar & ethanol

Latin America is an important and growing agricultural producer

Latin America will benefit most in the agricultural boom in the upcoming years

Growth in cultivated area

� Latin America agricultural area has grown 20% in the last 10 years

� 80% of cultivated land are in Brazil, Argentina and Mexico

� Potential for area expansion particularly in Brazil

� Agriculture is concentrated in a few large crops

� Fast technology adoption in all crops perceived

Cultivated area includes hectare planted with cereals, pulses, oilcrops, fruit, vegetables, sugarcrops and roots and tubers.Source: FAO, EIU, BCG analysis

80%

100%

120%

97 98 99 `00 `01 `02 `03 `04 `05 `06

LatAm

Europe

Africa

Asia

Oceania

North America

Brazil: Astonishing transformation from food importer to major global producer

Brazil's share of world agriculture 2009 (%)

� Third largest agricultural exporter in the world

� Number one in world production and exports of coffee, sugar, and frozen concentrate orange juice

� Number two in soybeans, tobacco, beef, and poultry

� Major producer and exporter of corn, pork, and cotton

Source: US Department of Agriculture

However, Brazil is still divided between productive giant operations and inefficient small farms

Global trends are impacting agriculture

MEGATRENDS and Consequences for Agriculture

� The fast growing agriculture industry in Latin Amer ica needs answers

9 billion peopleby 2050

Rising standardsof living

Limited land +water scarcity

2 billion new consumers

Fewer people in rural areas

Need forsustainability

Changing diet habits

Biofuels

Growing & agingworld population

Urbanization Energy demand &climate protection

Globalization &developing markets

Volatility

What sort of agricultural producer will be important in the next 40 years?

… one that has significantly boosted output and looks capable of continuing this

… one with land and water in reserve

… one that manages agricultural inputs (such as seed/ trait, fertilizer, crop protection) and scarce resources most efficiently

… one that contributes to biodiversity in the agricultural landscape

… one that helps to mitigate against and adapt to climate change

… one that is productive without massive state subsidies

The The The The ““““ideal agricultural producerideal agricultural producerideal agricultural producerideal agricultural producer””””

It is all about the sustainability of farming

Agricultural industry in Latin America must addressglobal trends and provide sustainable solutions

Sustainable Development

� Sustainable agriculture needs to balance three priorities� Economic� Ecological� Social

� Main challenges for Latin American agriculture � Food Safety & Quality� Worker Safety� Biodiversity� Waste Management

Crop Protection as a lever for sustainable farming

BASF is committed to contributing: Our vision is to become the leading agribusiness pl ayer in sustainable agriculture

Crop Protection Market Latin America:

� Market value ~ €8,060 million

� thereof ~ 70% Mercosur

BASF Crop Protection Global Sales 2009

€3,646 million

Mercosur

~ 18%

Our contribution –moving sustainability to the next level

� BASF’s Commitment

� BASF adheres to the responsible and ethical management of all its products throughout their entire life cycle, from discovery, through use and disposal

� BASF helps train farmers to handle products adequately and responsibly

� From the initial R+D process onwards, BASF strives for a balance between economic, ecological and societal needs

� “We define sustainable agriculture as achieving more yield with less land, water, and energy, while ensuring the profitability of farming, caring for the environment, and meeting the needs of the society.”Dr. Stefan MarcinowskiExecutive Director, BASF SE

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