On November 6th, Syngenta and DSM announced an R&D partnership to develop microbial-based agricultural solutions such as bio-controls, bio-pesticides, and bio-stimulants. Rob van Leen, DSM’s chief innovation officer described the partnership as a combination of, “DSM’s bright science in the micro-organism field,” and Syngenta’s, “specialized know-how and market access.”
Applications for this research include crop protection from pests and diseases and enhancing plant productivity and fertility. It is estimated that the use of biological solutions will experience double-digit growth over the next decade, and may reach up to 10 percent of the global crop protection market by 2030. Trish Malarkey, Syngenta head of R&D, explained, “New microbial-based solutions will contribute to meeting the challenge of producing more food from fewer resources, benefiting farmers, consumers, the environment and society.”
Along with this partnership, deal talk in the crop protectionsector has been picking up since Syngenta’s rejection of Monsanto’s $46 billion purchase offer in August. The main drivers for industry consolidation include low farm income in the US over the past three years, along with rising consumer scrutiny of crop chemicals and biotech seeds. According to people familiar with the matter, preliminary discussions between Syngenta and DuPont regarding a potential merger with DuPont’s agriculture division are underway. DuPont is also discussing a separate deal with Dow Chemical Co., which is contemplating the sale of its seed and pesticide unit.