Agrochemical Collaboration

PCG: Presidio Consulting Group

S

Agrochemical Industry

Sustainable Seed Production Partnership:Regional Pilot Program Roadmap


Food Security: A Global Concern

2011

2050

To feed everyone, the world will need to

produce 70% more food by 2050

• 2 Billion Hectares of arable land degraded

• 1 Billion people

undernourished.


22%

28%15%

35%MonsantoBayerSyngentaBASF

Competitive Landscape

Market Cap & Revenue

$37B

$61B

$48B$26

B

Agribusiness17 % US GDP20 % US Jobs20 % US Energy Use

Global Commercial Seed Market$38 Billion 2012$196 Billion 2014US Share: 30%


Seed Industry Business Model

Increased R &

D

Increased Yields

Increased Soil

Degradation

Increased

Chemicals

• Unsustainable model of maximizing yield: classic growth model.

• Aggressive M & A: 2000 original producers grow to 5 majors.

• Complex network of regional R & D partners.

• Pre-competitive agreements to source and develop products.


Industry Risks

Climate Risks

Pesticide & Herbicide Resistance

IP Litigation & Anti-trust

Expiration of IP & Generics

Top Soil Degradation


ROI: Strategic Opportunities

Growing Profits While Reducing

Risks

Accelerating Innovation

Through Market Redesign

Enhancing Reputation

Through Product Stewardship

Crystalizing Growth Path With

Sustainability Vision

SUSTAINABLE VALUE


ROI: Tactical Examples

1) Growing profits while reducing risks.

2) Enhancing reputation through product stewardship.

3) Crystalizing growth path through sustainability vision.

4) Accelerating innovation through market redesign.

• Transfer of research and development.

• Regulatory hedging.

• Regain legitimacy through natural seed.

• Right to operate, increasing market share.

• Redesign business model.• Biodiversity and polyculture farming.

• Capture disruptive technologies.• Regional licensing agreements.


Best Practices

Norwegian Regional

Electronics Partnership

• R & D Innovation• Streamlines

Financing• Creates Shared

Value

Guangxi Maize

Research Institute

• Sustainable Farming

• Desirable Seed Traits

• R & D Licensing

Swedish Triple Helix Model

• Government Mandate

• Strategic Partnership

• Creative Demand


Turnkey Solution

Farm

ers—

Produ

cers

Producers—

Academia

Farmers—Academia


Partnership Functions

Academia -------------- ProducersResearch grants for shared licensing.Soil biology and polyculture focus.

Producers -------------- FarmersImproved product offerings targeting biodiversity.

Natural selection with regional knowledge.

Farmers -------------- AcademiaCommercialization of disruptive technologies and efficiencies.

New direction of academic research for public good.


Implementation Setup

EXPERT ADVISORY PANEL

Sustainable Silicon Valley, BayBiotech, International Institute for Sustainable Development

STEERING COMMITTEE

Comprised of Lead person per stakeholder group

Farmers

Ken Skarlett

CA Seed Association

NGO

Producers

Jerry Steiner

Monsanto, CSO

Academia

Tom Tomich

PhD, UC Davis

Other Stakeholders


Implementation Roadmap

•2 Months•Buy in•Planning•Financing

Phase I.

•2 Months•Feedback Mechanisms

•Monitoring Systems

•Securing Resources

Phase II.

•2 Months•Measure•Hotspots & Inefficiencies

Phase III.

•6 Months•Deliverables

•Evaluation•Verification

Phase IV.

Pilot Project 1 Year

Communicate

Fund

PlanSupport

MeasureMonitor

PerformEvaluate

Audit


Conclusions

• Pilot project: one time, low-cost, unregulated approach to explore a new pathway to sustainable business.

• Successful pilot lays groundwork for broader rollout.

• Innovative, cost effective, sustainable solution capable of scale and replication.

It is a model of “constructive capitalist’s stepping toward a worthier capitalism, navigating past the depleted affluence of the industrial age to reach

the fertile shores of a revitalized prosperity.”-Haque


Thank You. Questions?

Agrochemical Collaboration

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