BASF will increase its R&D budget and launch 30 new products, including eight active ingredients, as well as seeds in hybrid wheat, soyabean, canola, cotton and vegetables.
The German chemicals company announced on 27 September that it would be increasing its R&D budget to approximately €900M (US$988M) in 2019 to support its innovation pipeline.
“By 2028, BASF will launch over 30 new products with peak sales potential of more than €6bn (US$6.59bn),” BASF said.
BASF completed its €7.6bn acquisition of several Bayer businesses and assets in August 2018, as part of its German rival’s divestments to complete its acquisition of US agrochemicals firm Monsanto. The assets BASF bought included Bayer’s seeds businesses including traits, research and breeding capabilities; a range of seed treatment products; certain glyphosate-based herbicides in Europe and Bayer’s complete digital farming platform.
“Following the successful integration of these businesses, we can now serve farmers with a connected portfolio of agricultural solutions, from seeds, traits and crop protection to digital solutions,” BASF said.
The firm said its activities were focused on four major customer segments and their crop systems – soya, corn and cotton in the Americas; wheat, canola and sunflowers in North America and Europe; rice in Asia; and fruit and vegetables globally.
“In total, these crops represent approximately 70% of the global market.”
BASF said it planned to create new revenue streams from digital solutions in agriculture.
The company’s agricultural solutions division reported a 38% increase in sales to €4.4bn (US$4.83bn) and EBIT rising by 23% to €861M (US$946M) compared with the same period a year ago, mainly due to its Bayer acquisitions.