Food Chain Partnership in Table Grapes around the World

“Working together for Sustainable Agriculture”

Food Chain Partnership in Table Grapes around the World

Fruit Logistica │ February 6th, 2014 │ Berlin

Table grape

Pics

Forward-Looking Statements

• Fruit Logistica 2014 • Working together for Sustainable Agriculture Page 2

This presentation may contain forward-looking statements based on current

assumptions and forecasts made by Bayer Group or subgroup management.

Various known and unknown risks, uncertainties and other factors could lead to

material differences between the actual future results, financial situation,

development or performance of the company and the estimates given here.

These factors include those discussed in Bayer’s public reports which are

available on the Bayer website at www.bayer.com.

The company assumes no liability whatsoever to update these forward-looking

statements or to conform them to future events or developments.

Speakers Liam Condon Chief Executive Officer,

Bayer CropScience

Markos Legas President, Pegasus Coop

El Houssine Abbassi Production Manager, Les Vergers Du Soleil

Ben Horsbrugh Director Quality Management, UNIVEG

Marc Reichardt Head of Commercial Operations,

Bayer CropScience

Paul Williams Moderator


At Bayer CropScience, we serve agriculture

As of February 28, 2013

Full year sales: €8.4 bn (2012)

> 120 countries

4,000 in R&D

20,800 employees

7,400 agronomists

R&D spending commitment €5 bn 2011-2016


Our contribution to Sustainable Agriculture

Bayer CropScience is

recognized as

...our Vision:

Bayer‘s holistic approach: (Bayer AG, Sustainability Report 2012)

“Connecting economic success with environmental and social responsibility“

A complex Challenge demands our Dedication...

The Partner of Choice

for Sustainable Agriculture


We all face the same complex and

challenging market environment

Year-round demand for safe and “sustainably-sourced” food

Stronger focus on food quality, healthy nutrition and well-being

Increasing regulation and registration requirements for crop

protection products

Innovation needed to drive integrated crop solutions

Rising importance of partnerships along food value chain


Fruit & Vegetables are

of strategic importance for us

• We have an impressive product portfolio, pipeline & services

• Our professional teams are dedicated to F&V customer and food chain needs

Bayer CropScience – your partner of choice in Fruit & Vegetables

*Source: Philips McDougall

• Above-average growth rates expected due to increasing demand

• Bayer CropScience is a global leader in F&V crop protection

• No. 4 in global vegetable seeds with strong growth aspirations

F&V Crop Protection and Seeds market 2012: app. 22% of global market


Fruit & Vegetables account for

the largest share of our portfolio today

~23% 2012 sales in

F&V

Strengthening

position towards

F&V market

leadership

Rice

Cotton

Oilseeds

Soy

Corn

Cereals

Bayer CropScience

sales

2012*

Diverse crop spectrum:

• Fruits & nuts, grapes

& vines, plantations

• Vegetables &

ornamentals, potato

Fruit & Vegetables

* by major crop groups excluding industrial business and non-agricultural solutions

Other

Sugar crops


Integrated Crop Solutions

are the core of our offer

Seeds • Canola

• Cotton,

• Rice, soybean

• Vegetables

Chemical

Crop

Protection

• Herbicides

• Fungicides

• Insecticides

• Seed Treatment products

Biological

Crop

Protection

• Microbial fungicides

• Microbial insecticides

• Microbial nematicides

Services • Sharing know-how

• Optimizing yield & quality

• Improving farm

management

Providing Integrated Crop Solutions

for protecting crop yield & quality

Integrated

Crop

Solution


Proactive Stewardship and Partnerships

are crucial for Sustainable Agriculture

Proactive Stewardship to ensure:

• Product integrity

• Human protection and

• Environmental preservation

Partnerships

to enhance the quality of life of farmers,

communities & society:

• Public-Private Partnerships

• Private-Private Partnerships along

the food value chain

The Integrated Crop Solutions are backed by…

Integrated

Crop

Solution Their value is delivered through…


Long heritage of working together

for Sustainable Agriculture


Leading supplier

of fresh produce

Project:

Table Grapes in Brazil

3

Partners & projects

Leading supplier

of fresh produce

Project:


3

Pegasus producers

organization

Project:

Table Grapes in Greece

1

Morocco’s largest producers/

exporters of seedless/seeded

table grapes

Project:

Table Grapes in Morocco

2



table grapes

Project:


2

Best Practices from Food Chain Partnership



Bayer CropScience





Bayer CropScience



Pegasus Coop and the Importance

of Table Grapes in Greece

• Pegasus Coop, an organization of 14 farmers, grows,

packs and exports table grapes under the brand 7Grapes

• Table grape cultivation of 100 ha in the Corinthian

province of southern Greece

• Focused on high quality and sustainability

Importance of table grapes in Greece

• Table grapes are one of Greece’s most important

export crops, with long tradition in seedless varieties

• About half of the total production of table grapes is ex-

ported, mostly to Germany, the Netherlands and the UK

Pegasus Coop – Company facts


• High-quality at

affordable prices

• Specified size, color

and sugar content

• Legal and specific

residue requirements

• Sustainability

demands

Market requirements

regarding table grapes

• Improve the quality

and marketability

• Optimize crop

management and

the level of residues

• Monitor and improve

the sustainability of

table grape production

Shared objectives

Shared Objectives in accordance

with Market Requirements


Table Grape Project in Greece – Structure


Integrated Table Grape Solution

Services (excerpt) Products

Bayer Weather

Forecast

Bayer Disease

Prediction

Bayer Application

Technology Training

Bayer Safe

Use Training

Bayer On-Farm Trials Bayer Crop Advice

Bayer Product

Recommendations

Bayer Sustainable

Farming Advice

Bayer Residue

Analysis Support

Agronomic support Field demonstration

Prediction tools Application support Tracking & document.

• Safe use of crop protection

products

• Application technology

and advanced techniques

• Use of low-drift nozzles

• Sprayer calibration

• Installation of

meteorological stations

• Estimation of downy and

powdery mildew disease

pressure

• Adaptation of spraying

application program

• Deduction of resistance

management practices

Bayer Expert Trainings Bayer Disease Prediction

• Pilot trials with new biological

• Lower residue profile

in Botrytis control

• Integration in local

crop solution

• Evaluation of market

acceptance and post-harvest

effects

Serenade® Max

Table Grape Project in Greece – Highlights


Foundation for this success

Achievements

Overcoming downy mildew infestations with optimal crop protection

✓ Higher percentage of marketable grapes at lower production costs

✓ Adopting sustainable practices

• Common objective for all participants

• Ongoing and open communication

• Regular field visit and advise

• Dynamic and continuous improvement mentality

✓

Table Grape Project in Greece – Results


Leading supplier

of fresh produce

Project:


3

Partners & projects

Pegasus producers

organization

Project:


1

Morocco’s largest

producers/exporters

of seedless/seeded

table grapes

Project:


2



table grapes

Project:


2




Bayer CropScience





Bayer CropScience



Les Vergers Du Soleil and the Importance

of Table Grapes in Morocco

• One of Morocco’s largest producers/exporters

of table grapes to Northern Europe

• Customer-oriented and aware of the growing

and changing demands of the different markets

• Addresses the necessity of traceability

and transparency in the production process

Importance of table grapes in Morocco

• Table grapes are becoming an increasingly important

export crop

• Ideal climatic conditions allowing the cultivation

of high quality, great tasting grapes

Les Vergers Du Soleil – Company facts




• High customer expec-

tations for high quality

and delicious grapes

• Increasing public

demand for

responsible production

• Compliance with Maxi-

mum Residue Levels

• Ensured traceability

back to the field

Market requirements


• Produce healthy, high-

quality table grapes

for export to

Northern Europe

• Optimize the use of crop

protection in line with

Integrated Crop

Management principles

• Lower residue levels

without compromising

on the crop quality

Shared objectives


Table Grape Project in Morocco – Structure


Services (excerpt)


Products

Bayer Application

Advice

Bayer Field

Documentation

Bayer Sustainable

Farming Advisor

Bayer On-Farm Trials


Application support Tracking & document.

Bayer Crop

Quality Checks

Diagnostic tools

Bayer Crop Advice

Bayer Expert Training

Table Grape Project in Morocco – Highlights

• Trainings on various topics

such as stewardship, water

management, application

technology, resistance

management, etc.

• First-hand expertise and

supervised practice led by

Bayer experts

• Prioritization of

improvement areas

• Measurement and

evaluation of different

sustainability indicators

• Basis for continuous

communication

Bayer Expert Trainings Bayer Sustainability Radar

• Installation of a

demonstration trial

• Comparison of quality

indicators after treatment

with Movento

• Registration of Movento for

the control of mealy bugs

Movento


Foundation for this success

• Commitment of all partners

• Open communication

• Shared responsibility

• Transparency of the working relationship

Achievements (1st year in comparison to producers plot)

✓ Reduction in the number of active ingredients: from 15 to 11

✓ Enlargement of covered area from 5 to 100 ha

✓ Reduction in the number of treatments: from 21 to 11

✓ Average increase in berry size of 2 to 3 mm

Table Grape Project in Morocco – Results


Partners & projects

Pegasus producers

organization

Project:


1



table grapes

Project:


2

Leading supplier

of fresh produce

Project:


3




Bayer CropScience





Bayer CropScience



UNIVEG Group and the Importance

of Table Grapes in Brazil

Importance of table grapes in Brazil

• Most important regions being in the South- and Northeast

• Particularly the Pernambuco and Bahia States are nurtured

by good natural resources

• Significant expansion in cultivated acreage, giving viticulture

great economic and social importance

• 1.9 million tons fruit & vegetables and €2.8 bn turnover (2012)

• 5,700 employees worldwide, global customer base

• 32 distribution centers in Europe

• 156 ha of grape growing in its Expofruit farm in Petrolina,

additionally to 70 ha of partner farms

UNIVEG Group – Company facts




• High quality of produce

to cope with long

distance transport

and storage

• Constant quality (crop

health and brix level)

across own and partner

harvests

• Correct packaging

to guarantee longer

shelf life

Market requirements


• Increasing the quality

and safety of table

grapes

• Ensuring sustainable

production

• Strengthening the

partnership through

joint efforts

Shared objectives

UNIVEG- Expofruit

Farm & Partner Farms

under the guidance of UNIVEG


Table Grape Project in Brazil – Structure



Services (excerpt) Products

Bayer Application

Advice

Bayer Sustainable

Farming Advisor

Bayer On-Farm Trials Bayer Expert Training

Bayer Product

Recommendations

Bayer Market News


Application support Tracking & document. Market & trading

Bayer Crop

Quality Checks

Diagnostic tools

Table Grape Project in Brazil – Highlights


• Engagement of a crop

quality specialist

• Monitoring of different

quality criteria:

Level of BRIX

Grape health level

Size of grape berries

• Weekly field monitoring

of pest pressure

• Adaptation of application

program to avoid infestation

risks

Crop Quality Checks Pest Monitoring

• Good initial and excellent

residual efficacy against

cochineal pests

• Ideal product for

use in Integrated Pest

Management programs

Premier WG®

Achievements

✓ Training in best practices of crop protection, classification and packaging

✓ Monitored and improved grape quality

✓ Strengthened integrated crop management

Foundation of this success

✓ Support of sustainable table grape production

• Trustful relationship

• Professional cooperation from all partners

• Integration of sustainability aspects

• Open and constant communication

Table Grape Project in Brazil – Results



Bayer CropScience





Bayer CropScience



Our support

for the fruit & vegetables value chain

Bayer is a well-established & strong partner

We have an excellent reputation for helping growers to:

• Grow high-value crops

• Protect harvests by offering innovative solutions

to fight diseases, insects and weeds

• Achieve improved market access by connecting growers

to the value chain through Food Chain Partnership

Our expanding network of 7,400 agronomists helping

growers to meet the food industry’s needs on a daily basis

in more than 120 countries.

for key players along the F&V value chain


Each country has specific needs; With a diverse global

portfolio we are able to provide customized solutions

Our crop protection portfolio is well

established in table grapes

Tru

ste

d

To

p B

ran

ds

Fungicides Herbicides Insecticides

New

Intr

od

ucti

on

s


Our service portfolio in table grapes

is constantly innovated and expanded


• Core services for table grapes

Agronomic support

Sharing know-how Optimizing yield & quality Improving farm management

Field demonstration

Community management

Diagnostic tools

Prediction tools

Application support

Tracking & documentation

Financing & insurance

Market & trading

• Bayer Crop Advice

• Bayer Product Recommendations

• Bayer Expert Training

• Bayer Field Days

• Bayer Demo Farms

• Bayer On-Farm Trials

• Bayer Farmer Club

• Bayer Expert Forum

• Bayer Peer Exchange

• Bayer Application Advice

• Bayer Equipment Check

• Bayer Precision Appl. / Seeding

• Bayer Pest Identification

• Bayer Crop Quality Checks

• Bayer Soil Analytics

• Bayer Weather Forecast

• Bayer Disease Prediction

• Bayer Pest Prediction

• Bayer Risk Calculators

• Bayer Field Documentation

• Bayer Certification Support

• Bayer Sustainability Radar

• Bayer Yield Mapping

• Bayer Economics Evaluation

• Bayer Input Financing

• Bayer Yield Insurance

• Bayer Crop Price Insurance

• Bayer Market News

• Bayer Food

Chain Network

Our customers demand

more than only products


Specialized horticulture customer teams

Crop Protection Agro Services

Integrated

Crop

Solution

Our strategic commitment to

Fruit & Vegetables

Developing and enhancing

our innovative portfolio

Expanding expert teams

around the globe

Connecting partners

along the entire food chain

Building Integrated Crop Solutions

which combine seeds, chemical &

biological crop protection and services

Breeding and providing high value

vegetable seeds across the globe


Connecting partners

along the entire Food Chain

Farmer Processor Exporter/

importer Retailer Consumer

Key Relation Management

Food Chain Partnership project

Generating added value for all partners involved

by facilitating partnerships with a focus on key crops

Our Philosophy


Benefits derived from

Food Chain Partnership

Multiple benefits for all partners

Safe yield & supreme quality

Extended market access

Traceability and transparency

Optimized integrated crop solution

Practiced sustainable agriculture


Food Chain Partnership-

Our Commitment


Your reliable partner

for 8 years at the Fruit Logistica

and many more to come!

240 FOOD CHAIN PARTNERSHIP PROJECTS

IN ABOUT 40 CROPS

AND 30 COUNTRIES

Food Chain Partnership in Table Grapes around the World

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