How is BASF’s agricultural solutions business developing to date?
During the first half of the year there was a clearly positive development. We have grown, but, above all, the growth was remarkable in the first quarter. After this, the drought had an important impact on us.
Our business is very predominant in fungicides and a drought obviously slows the business down a great deal. We saw a reduction in the second quarter, although this has been consolidated as a positive semester, albeit lower with respect to the demand forecasts that we had. Regarding the second half of the year, we have not seen any relevant impacts. Therefore, we are expecting a normal year close, without any surprises, as it were. In short, with a positive result.
What importance does Horticultural Seed have in BASF’s Agricultural Solutions Business Unit?
BASF|Nunhems is very important within BASF’s agricultural business. We are very aware that we are addressing a client, a producer, who looks at the total result. And what we are seeing is that there is a rise in contextual challenges, but not only environmental or climate ones, but also in human resources. This means that we really need solutions that start in the seed, which is the reason for the importance of this business: the capacity of a fast genetic adaptability for solving these basic problems from the seed.
Do you think that the European regulations should change regarding genetic edition to streamline the responses to future challenges?
Indeed. The risk we are facing is that if we do not adapt fast and adopt these technologies, which are the next step in the technologies that are used in breeding, we will not have the capacity to respond to the challenges. We know that the changes are speeding up, for example, in the incidence of viruses and insects. And all of this is speeding up the different incidence patterns. If you continue at your normal pace in order to try to adapt, it won’t work. The consequences will occur on many levels, also with respect to the producer’s economic profitability. Because they may continue to produce, but perhaps not in the amounts necessary to make their activity profitable, or with inputs that allow them to be so.
We need a methodology that can follow these very fast changes with the same speed. This is essential. In addition, specifically in Europe, in the seed sector, we have the risk of losing our position. In other countries they are presenting solutions that may be potentially adapted faster.
The typical double equation, of urgency and importance, is occurring. We are seeing it all around us. And not allowing the technology to adapt at the necessary speed will create a gap, and we will pay dearly for it. There is a financial risk for the sector.
It is predicted that the weather events and the drought will become more and more recurrent. How are you getting ready at BASF for these changes of scenery?
That is right. In fact, it is also one of the reasons why it is so important to have our eggs in different input baskets. I am convinced that genetics is going to give a very clear response to all these climate changes that are occurring ever faster.
It is what the entire business, the entire market, is talking about. The capacity that we will have to respond to situations that are not favourable and to maximize productions, we will have to solve them from the point of view of genetic adaptations.
After the Fashion Watermelon milestone, what will BASF’s next star product be?
At present it is Galkia®. Galia melons have a very interesting aroma and flavour, but their quality dropped somewhat over time. There was great irregularity in the production. We have developed a very good line, both in aroma and in flavour, and to a certain extent it reproduces this same model exactly. Under the Galkia® brand there is safety, a guarantee of quality in terms of flavour, aroma and of course, productivity for farmers.
Within this specific case, we have an agreement with very important Spanish producers who have an international impact for producing Galkia®: JimboFresh, Fruca and Gregal.
In tomatoes, Vitalion follows this same line, with great flavour and commitment to quality. We also have the Green Queen artichoke and the Sunions® sweet onion, which already allows production virtually 12 months of the year with productions in Australia to cover the cycles where there are gaps, as the supermarkets required.
We work with varieties with which not only the quality of the genetics and the result as output of the quality that you offer are guaranteed, but also offer a guarantee regarding how they are produced.
Perhaps the most sensitive exercise or the most complicated one involves squaring the circle. Because it is not worth anything having a variety with flavour and resistance if the producer has problems or there is not enough supply for the supermarket. A variety must be profitable and sustainable not only on an environmental level, but also socially and economically.
I think that people always talk about environmental sustainability, but this is only possible if a project is economically profitable, because it will give continuity to the business.
