Vigorous Growth Predicted for Dow AgriSciences Through New Chemistry

Credit Suisse Global Ag Productivity Conference Presentation Reveals Trends

March 9, 2010
By: Dave Rogers

The Dow Chemical Company expects strong growth in agrisciences and is planning to launch five new products by 2012.

That was the essence of a presentation this week by Antonio Galindez, president and CEO of Dow AgroSciences to the Credit Suisse Global Ag Productivity Conference at Canary Wharf, London.

Healthy oils, high value crops, new herbicides and insecticides and fertilizer formulations will lead the field in the next few years.

The ag chem pipeline is full with high-value solutions and proprietary formulations projected to continue over 10 years, predicted Mr. Galindez.

Sales are seen increasing 7-10 percent over the next couple of years, he said. At the same time, Dow's investment will more than double by 2012. R & D collaborations like the China National Rice Research Institute (CNRRI) and the Plant Biotech Institute of Canada are leading the growth curve, he said.

Problems the company will address include:

Aging population seeking improved health and wellness;

Concerns of decline in eye and brain health in an aging society;

Growing rates of obesity and diabetes;

Need to address food causes of heart disease, leading cause of mortality;

Growing need for better health through nutrition.

Responses to these trends by the food industry will include:

Product and menu innovation promoting greater health and wellness;

"Functional food," a $40 billion market growing 2-4 times faster than overall food industry;

Seeking innovative and more functional improvements; and

"Better for You" products are growth category for the food industry.

Vegetable oils are a $100 billion plus industry, said Mr. Galindez, supplying a third of our daily calories. Healthy oils actually reduce chronic disease risk. Canola and sunflower oils represent 25 percent of global vegetable oil sales and 38 percent of European food oil.

Dow is planning to market a new broadleaf weed herbicide for use on multiple crops. This product is an innovative resistance management tool from a novel area of chemistry, said Mr. Galindez. It is effective a low doses and has a favorable regulatory profile. Weed control is not temperature dependent. The product is expected to come on line mid-decade and is preducted to revolutionize herbicide technologies and address a $2 billion market.

Despite market challenges, new Dow products are on track to deliver value growth and have received wide acceptance by growers and ranchers.

These new formulations extend product life by meeting customeer needs for greener, easier-to-use formulations. ###