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Creating Value for the Seed Industry and its Customers

through Seed Applied Technologies

SAA – ST Working Group


Cancun, September 9th 2015

Ioana Tudor
Global Head of Seedcare
Syngenta. Basel Switzerland
The challenge we face – to grow more from less!

Population Growth Climate Change

4
World demand for grains
3 bn tonnes

2 Food

1
Feed

0
1970 1990 2010 2030 2050

Increased Demand for Food Reduction in Arable Land

G Grow More from Less


1 hectare 1 hectare needs
fed 2 people to feed 5 people

1950 2030

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Growers can maximize yield by integrating multiple technologies

Growers pain points


Weed Insect Disease Nematode Yield Nitrogen Quality Labor Post
Drought
Technology control control control control Potential Efficiency Traits Shortage Harvest

Breeding

Native Biological solutions


traits
GM traits

Seed
Treatment Chemical
s
Crop solutions
Protection
Nutrients,
water
Machinery

Services

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Proprietary seed market continued growth

70
Global Seed Industry Value 4%
Seed Industry Value by Crop
($bn) 5% (2014)
11 7 6%
60 Corn
11
6 Soy
9% 39%
13 5 Rice
50 5
12 Vegetables
18
5 9% Cereals
18
40 5 OSR, SF & SB

4 Cotton
13 12%
4 Other crops
30 11 16%
11 4 53
51
48
3
43
20 3 37  Proprietary seeds market growth of 9%
34
30 vs global industry growth of 3% over last
21
24 5 years.
10 18  Corn, Soybean, Vegetables and Rice
account for >75% of the market (soy
0 highest growth)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014  Hybrid crop adoption and the proprietary
Proprietary Public Farm Saved market channel held steady despite
downward price pressures in 2014.

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Seed treatment market outlook

2014 Product category


2020

11% 13%
5% Fungicide Insecticide Nematicide Abiotic Stress Management
33% 6% 30%

$3.3bn $5.1 bn
Market growth continues ~ 7-8%
51% New, differentiated products lead growth in key markets 51%

Strong growth in emerging markets


Growth in all crops, largest contributions from Corn, Soy and
Oilseeds

32% Treatment location 25%


Xx bn
$3.3bn 40%
$5.1bn 42%

Seed Company Multiplier / Retail On-Farm

28% 33%

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Seed treatments aid the adoption of high performance
seeds and unlock high yield potential for growers

Maximizing yield potential through protection


from pests, disease and abiotic stress

Abiotic Stress
Protection
Protecting grower’s investment:1 seed = 1 plant

Disease
Protection
Promoting high value seed through unique
colouring and marker technology

Nematode
Providing complementary modes of action Protection

enabling trait resistance management


Insect
Protection

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Europe: adoption of hybrids and high value seed
treatments generates value and grows more from less…

Conventional Hybrid
barley program barley program ● Barley feed market transformed
through adoption of hybrids

● 100% of Hyvido seeds treated with


Seedcare products: (Landor CT,
Vibrance, Vibrance Gold)

+£40/ha
● Value of seed/seed treatment market
Farmer
£750/ha £790/ha
~$75m today, reaching $700m by
pays: 2030

+1.5 t/ha
Barley
yields: 7.5 t/ha 9.0 t/ha ● Seed treatment between 12-16% of
value
+£132/ha
Farm
profit: £113/ha £245/ha

ROI = 3.3 : 1
ROI of 3.3 : 1
UK example: Feed barley price: £115/t. Variable and fixed costs included. No rent or finance charges included.

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Europe: hybrid adoption negatively impacted when seed
treatment protection no longer available…

Planted Area of Winter Oilseed rape


9.0 in Europe (mHa)
8.0

1.0
7.0 0.9 0.8
1.3
6.0 1.6 1.3 0.9
• Suspension of neonics in European
5.0 Union: major contributor to decrease in
2.6 WOSR planted hectares 2013 – 2014
4.0 (4%)
• Trend continuing into 2015
3.0
5.2 5.5
5.1
2.0 ● Significant slow down in hybrid adoption
3.3 (growth of 53% in 2013 and then only
1.0 4% in 2014!)
● Some farmers hesitant to buy hybrids as
0.0
they consider investment risky without
2012 2013 2014 2015
early insecticide protection
Hybrids Lines FSS
● Few switched back to lines (certified)

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China: Seedcare helped a multinational customer with a unique
anti-counterfeit solution through Cruiser Extra C
A leading hybrid had more than 5m hectares planted area over a decade in China. Market share
started to shrink due to copied seeds and new varieties from 2012. Seedcare tailored an
exclusive offer to fight against copied seeds and competition from 2013.

High Yield

Cruiser Extra C
Revolutionary 3-way mixture

Advertised as new premium offer

Insect & Disease Vigor


control & ASM
Check

Farmer meeting & In-store demo

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Seed treatments provide complimentary resistance
management tools to traits
Background: Breakdown of Bt efficacy against S. frugiperda is now common in Latin America

3 years later

No GM Bt 1st generation Bt 1st generation

2009 2012

A second non-Bt mode-of-action


dramatically eases selection pressure

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Brazil: benefits of seed treatments to soybean farmers

● Protects investment in high-quality


seeds

● Proven return on investment

● Best application for certain seed-borne


Untreated Cruiser
and early season pests and diseases

● Simple and convenient


On-farm treatment (low quality) Industrial treatment (high quality)

● Less exposure (worker, crop,


environment)

● Ultra-low use rates (e.g. 5% of crop


protection rates)

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Seed treatments enabling high value soybean market in Brazil

Differentiated portfolio of seed treatment


products (including chemicals, biologicals,
inoculants, nutrients) applied at industrial level:
● Performance:
- Protects own high-value products (germplasm,
traits)
- Maximizes yield potential through protection
against biotic & abiotic stresses

● Quality: complete „in-the-bag offer“, no re-opening


needed

● Margin opportunity for seed companies

High value seed market enables more R&D


investment to further improve yield

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The use of seed applied treatments reflects the adoption
of high value certified seeds across crops and territories

Key Seeds Drivers Implication for Seed Treatments


1. Hybridization: Wheat, Rice • Increased adoption in new crops / territories
2. Adoption of GM Technologies: Corn, Soybean • Intensification of treatment
3. Native Trait development: Vegetables (fungicide insecticide & nematicide combinations)
• Expansion in abiotic stress protection

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The Mexican agricultural industry can benefit from seed
applied technologies
OUTLOOK FOR MEXICO…
 GM trait adoption in Corn & Soybean
 Rapid Increase in use of Certified Seed

SEED APPLIED TECHNOLOGY ENABLES…


 Preparation for trait introduction (multi mode of action)
 Complementary to seed performance
 Differentiation & addition of value to the seed bag

BENEFITS!
 Revenue stream for seed companies
 Added value for growers through increased yield
 Promotion of certified seed your business in Mexico

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