What are Bayer Crop Science’s main activities in Mexico, and how important is the Mexican market?

Bayer Crop Science Mexico is in three business lines: seeds, agrochemicals, and digital agriculture. We have seed research centers in Mexico, seed production for Mexico and the north of Latin-America, and agrochemicals, for which we import most products but also have a local assembly plant. Bayer Crop Science Mexico represents about a 15% of Latin-America’s sales and it is the region with the most growth in Bayer Crop Science, with Mexico growing at the same rate.

Can you explain how Bayer's crop care solutions combat weeds, pests and crop disease?

It depends on the crop, but for corn, for example, we have post-emergence herbicides, which control weeds that have germinated, like Faena, applied before the crop is born. We also have post-emergence herbicides like Laudis, which controls weeds that have emerged, but can be applied after the corn is born. We have a combination of pre-emergence products like Harness and Adengo, which prevent weeds from germinating and competing with corn. As for perennial crops, like citruses and sugar cane, we have pre-emergence products like Merlin, and others like Alion, a new molecule for protection before weeds are born, as well as other traditional products like Faena that can be applied after the weeds are born.

For pest and disease protection we have a concept we call the root of success, in which, based on the specific needs of the product and region, we advise farmers on the fungicides and insecticides they should apply at the time of sowing crops like tomatoes and chilis to protect them from the moment they germinate and the root begins forming. For vegetables it is important to handle sucking pests, and for that we have Movento and Sivanto, two of our most successful products. We have a range of about 60 different products to control very specific pests in specific crops depending on the needs of the farmer.

How does the company use innovation to increase the yield of crops?

First, global level seed research is made on parental lines looking for tolerance or resistance to some pests and diseases. When those are identified, we cross them with local mother seeds so they can settle with the hybrids sold in our country. Notably, a great deal of the research generated in Mexico is exported to other countries; an example is Short Stature Corn, known in Mexico as Vitala System. It is a hybrid with a specialized architecture that provides more lodging resistance and higher optimization of ground and water use. That is a little of how our global research on seeds creates applications based on each country’s needs. This contributes to sustainability by producing more tons per hectare, while other technologies provide more efficient water use. Our agrochemical solutions and biological products also look to reduce their chemical load, that is, less chemicals per hectare, which makes a more sustainable production.

What would you say are the biggest challenges facing Mexico’s agrochemical industry?

The two biggest challenges for the agrochemical industry are, first, regulatory: making sure there is legal certainty for permits, registrations and renewals. The second challenge is that over 15% of the agrochemicals used in Mexico are estimated to be illegal, representing over US$200 million per year. This seriously harms the farmers’ productivity, the whole industry chain, the environment and the consumer.

Another challenge is the cost of financing. While in Mexico farmers get financing in the range of 13% to 18%, farmers from other countries like the US can get financing at 2% or 3% rates.

How would you describe the growth of Mexico’s agriculture industry in recent years?

The food industry is the sector with the highest growth in recent years in Mexico. The country has specialized in export crops like vegetables, avocadoes and berries for which we have favorable weather conditions, and the technology the farmers have adopted in the last years is world-class. This has created a surplus for Mexico: in 2020 we exported almost US$40 billion in the food industry, and imported US$27 billion, equaling a US$12.3 billion surplus.