Putting sustainability into practice - BASF Crop Protection

Putting sustainability into practice
Klaus Welsch
Head of Business Unit Europe, CIS, Africa and Middle East
Press Information Day, 17 September 2009

Legislative & regulatory
Sustainable Use
Directive in EU
Import tolerances
Consumer attitudes
Healthy & affordable food
No residues in food
“Good old days”
Farming challenges today
Our job is to help the farmer
Sept. 17, 2009
Resources
Labor & Know-how
Water, Land, Energy
Global markets
Rate of yield
Commodity prices
Global competitiveness
Credit access
Nature & environment
Drought/ floods
Temperature
Disease pressure
Biodiversity
Soil Health
2

Effects in corn:
More kernel per cob
Increased cob length
10% better water use
>15% yield increase
particularly under drought
Launches in South
Africa and Romania 2010
AgCelence ® goes Europe & South Africa –
Helping farmers meet today’s challenges
Effects in cereals:
Higher nitrogen uptake
3% more marketable grain
Up to 7% better water use
Up to 10% yield increase,
even under drought
Launch in
Italy 2010
Effects in tomato:
Higher yield
4% higher sugar content
Results in premium
tomato and higher value
Launches in Italy and
Spain 2009
AgCelence ® products – good for farmers’ profits and environmental profile
Sept. 17, 2009
Standard
3

New cereal fungicide formulations:
“Stick and Stay” technology
Leaf retention depends on contact angle Formulation challenges
Water
poor
Standard
moderate
New formulation
excellent
Optimum leaf retention
Quick uptake of active ingredients
Favourable environmental profile
Our new formulations...
Enable the product to stick immediately
to the leaf
Lead to a better uptake of active
ingredients
Improve bioavailability
Show better environmental
characteristics: less substance losses,
less soil penetration
“Stick and Stay” – a benefit from BASF Science and Technology Verbund
Sept. 17, 2009
4

Leaf retention depends on contact angle
Sept. 17, 2009
Water
poor
New cereal fungicide formulations:
“Stick and Stay” technology
Standard
moderate
New formulation
excellent
active uptake
“Stick and Stay” – a benefit from BASF Science and Technology Verbund
Water
New formulation
5

Capalo ® farmer survey
Germany 2009
Sept. 17, 2009
New cereal fungicide formulations:
Technology can be used in new products
Fully in line with farmers expectations
doesn‘t apply fully applies
Efficacy /
Flexibility
Yield
Capalo ®
(metrafenone/ epoxiconazole/ fenpropimorph)
Broadband fungicide with new
suspoemulsion formulation for
optimum biological efficacy
Market introductions: 2007 UK /
Ireland, 2008 Germany / Poland,
2010 expected in France
Brutus ®
(epoxiconazole/ metconazole)
Powerful triazole co-formulation – broad
disease spectrum – ALL key foliar
diseases plus fusarium and mycotoxin
reduction
Market introductions: 2009 UK / Ireland,
2010 expected in France and Germany
Quality formulations, a real breakthrough for farmers and the environment
6

Sept. 17, 2009
Top quality fruit, vegetables and wine –
Meeting growers’ expectations
Farmers‘ challenges
Produce superior food quality
Assure compliance with residue standards
Do all that at lowest possible cost
Our contribution to help farmers
We develop farming systems to address growers’
challenges
Combining our premium fungicides with
complementary biological products enable farmers to
Apply maximum harvesting flexibility
Improve residue and resistance management
Achieve excellent quality and quantity of fruit,
vegetables and wine
We develop tailored farming systems to address farmers challenges
7

Infection rate
in %
80
60
40
20
0
Sept. 17, 2009
Pure nature
80
Untreated
More sustainable: A farming system
combining chemistry and biologicals
Biological
fungicide
42
Chemical
fungicide
27
Cucumber Control of
Pseudoperonospora
cubensis,
Utrera 2008
Combining
best of both
19
Biological fungicides alone can not
control infection rate sufficiently
Modern chemical fungicides have
sufficient control even at high disease
pressure, but can not be applied shortly
before harvest
A combination of BASF premium
fungicide with SERENADE ® , a leading
bio-fungicide, provides yields at superior
quality level in wine, fruit, vegetables
Market launch 2009 in Turkey, 2010 in
Greece, 2012 in Germany, Austria,
Netherlands, Belgium and many other
European countries
Contribution to increase flexibility and efficiency of fruit & vegetable harvesting
8

Sept. 17, 2009
We help the food value chain provide top
quality – BASF partners with the REWE Group
Supermarkets’ challenges
Best quality at lowest price
Traceability and transparency
Fulfilment of sustainability consciousness
Our contribution to address supermarkets’ challenges
BASF works in partnership with the best players in the
food value chain
Application of state-of-the-art know-how on every step
of the production and supply process
Shift from spot purchasing of agricultural products to
integrated production management
In 2007, BASF started cooperation with the REWE
Group in the “Best Alliance” initiative
Best Alliance – alliance for sustainability in every stage
9

Sept. 17, 2009
Fruitful cooperation with REWE –
Good for REWE, BASF, farmers, consumers
Focus of REWE’s “Best Alliance” project in Spain
Increase quality and sustainable production
of strawberries
BASF recommends, coordinates and supervises
plant protection measures of selected REWE
growers
Strawberry project started in 2007 – now, in 2009
180 ha with about 10,000 tons
Sold in 10,000 REWE supermarkets in
Germany
Premium quality, residues not a topic at all –
far below any regulation
REWE involves BASF in sustainability issues
beyond “Best Alliance” strategy for sustainable
fruit & vegetable sourcing
Setting a benchmark – sustainability through alliance of the best
10

Sept. 17, 2009
Putting sustainability into practice –
BASF works to develop benchmark
The stressed farmer
Putting sustainability in agriculture into practice
is a complex task
Sustainable solutions can not be defined by
ideologies, but only through modern scientific
analyses using the best possible know-how
Only a comprehensive eco-efficiency analysis
gives guidance for sustainable solutions
We are establishing officially certified ecoefficiency
analyses for our orientation
considering all impacts in a multi-stakeholder
approach
Sustainability can be quantified by a comprehensive eco-efficiency analysis
11

Which is more sustainable?
Locally sourced? Imported?
Source: BASF SE, REWE Group
Sept. 17, 2009
Eco-efficiency analysis in apples –
Locally sourced vs. imported?
It depends on the timing!
Locally sourced apples sold in spring
and summer have to be cooled
The energy consumption for cooling
downgrades their eco-efficiency
After 3-4 months the environmental
impact of cooling exceeds the one of
transport from overseas
From April, imported apple
with better environmental profile
The claim “local is better”
depends on time of year
12

0,0
Environmental Impact
Eco-efficiency analysis in apple growing –
Organic vs. Conventional?
Which apple is more sustainable?
Low ecoefficiency
2,0
2,0
Source: BASF SE, REWE Group
Sept. 17, 2009
Costs
High ecoefficiency
0,0
Organic
apple growing
Germany, 2008
Conventional
apple growing
Germany, 2008
No surprise: cost of organic is higher
Surprise: conventional apple has a slightly
better ecological profile
Organic causes less waste water and
consumes less energy from fertilizer and
pesticide production
But overall energy consumption, CO 2
emission and land use is higher
The drivers are
Higher use of machinery (+70%)
Lower yield (-30%)
13

Sustainable agriculture – the way forward
Sustainability in agriculture means achieving higher yields from
less land with less water and energy...
…while ensuring
the profitability of farming,...
…caring for the
environment...
We make progress in sustainability through innovations at all levels!
Sept. 17, 2009
Economic
Balance
Ecological Social
…and meeting
the expectations
of society.
14

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