Dialogue with Syngenta’s CEO: End-to-end traceability will shape the future of agriculture; frequent natural disasters are creating green business opportunities in the sector.

According to Syngenta Group’s first-quarter financial report, driven by strong performance in the Chinese market, sales surged 20% year over year to $7.1 billion, with China accounting for $2.2 billion of that total.

“China’s business posted a 41% year-on-year sales growth in the first quarter—the highest globally—a figure that is nothing short of ‘unbelievable,’” said Erik Fyrwald, CEO of Syngenta Group, in an exclusive interview with Sina Finance.

Fu Wende said, “I now hold video conferences with the Chinese team every day. Seeing that people no longer need to wear masks at work and that business operations are back to normal, I truly want to congratulate China on its efforts in tackling this crisis.”

Headquartered in Basel, Switzerland, Syngenta is a global leader in the crop protection market and the world’s third-largest seed company. Its business spans seeds, crop protection, crop nutrition, as well as modern agricultural technology services and digital agriculture. In 2017, China National Chemical Corporation completed its acquisition of Syngenta for US$43 billion.

——End-to-end traceability will be the future of agriculture.

Fu Wende told Sina Finance that, on the global stage, the company’s core businesses are growing rapidly, with crop protection, seeds, and crop nutrition all posting double-digit growth. Among these, the Modern Agriculture Platform (MAP) has been the fastest‑growing segment; in the first quarter alone, its revenue surged by 300%, reaching $286 million.

Regarding the MAP platform, Fu Wende emphasized that this business did not even exist four years ago, yet today there are already 360 MAP centers across China. Such rapid expansion would have been impossible without the support of local Chinese governments. This service platform collects soil samples and analyzes soil conditions, enabling farmers to select appropriate crop varieties, determine the right fertilizers, implement effective crop protection measures, and better prepare for natural disasters.

In China, the MAP model champions the value proposition of “earning trust from farm to table,” driving green agricultural development.

Fu Wende said that this business model has yielded “remarkable success,” as it improves soil quality, reduces the application rates of fertilizers and pesticides, and boosts yields. The net result is higher production and incomes, coupled with reduced environmental pollution.

To Fu Wende’s surprise, this initiative in the Chinese market drew significant attention from both retailers and consumers. Subsequently, Syngenta followed suit by introducing fresh fruits and vegetables into Hema Fresh’s product lineup. For instance, alongside a particular strawberry product, a “map” is displayed; scanning the QR code nearby reveals the product’s origin, the farm it comes from, and relevant sustainability data.

“We see this as the future of food—consumers know exactly what they’re buying, whether it’s sustainable, and that it tastes great.”

“Thanks to our tight control over data, these strawberries can be harvested just one day before they hit the shelves, ensuring optimal flavor without any added ingredients. Such products command a premium price, guaranteeing farmers the highest possible returns,” Fu Wende explained.

“This is a remarkable business model; end-to-end traceability and data control of this kind are unique to China,” Fu Wende emphasized. “At present, no other market has yet achieved the kind of fully integrated, end-to-end data‑sales model that exists in China.”

In Fu Wende’s view, this stems from Chinese consumers’ desire for more digital product information and their familiarity with digital technologies. Consequently, Chinese retailers are eager to deploy a wider array of front‑end digital tools to track the entire supply chain, ultimately connecting consumers directly with farmers.

— Green Business Opportunities in China’s Agriculture

Fu Wende believes that climate change will inevitably lead to an increasing number of natural disasters, and that agriculture must rely on more advanced technologies to meet these environmental challenges.

Just over the past year, climate change has already triggered a host of natural disasters: China has faced devastating floods, Australia endured a severe drought last year followed by successive flooding events, and Siberia recorded a scorching 38°C last summer, sparking massive wildfires—unprecedented heat for the Arctic Circle. This year, after years of alternating floods and droughts, Europe has been hit by a severe cold wave.

Fu Wende acknowledged that the increasing frequency of natural disasters worldwide has led to a sharp rise in seed prices, while higher prices for corn, wheat, and soybeans have driven an overall increase in food prices.

However, in Fu Wende’s view, all of this has created numerous opportunities for “green innovation.” For example, four years ago, the company launched a corn seed variety better suited to withstand droughts. As droughts became increasingly frequent, this niche‑market product went on to generate $1.2 billion in sales. Another similar agricultural biotech product—designed to help crops cope with extreme weather—also proved highly popular. In addition, products that enhance resistance to pests and diseases have been well received as well.

“Sinochem Group has consistently provided strong support for Syngenta’s research and innovation. As early as seven years ago, Syngenta began focusing on developing products for sustainable agriculture, recognizing then that sustainability would become increasingly vital to agricultural development. Today, the company is stepping up its R&D efforts, launching more seed varieties and crop‑nutrition solutions, and over the past two years, we’ve seen growing farmer acceptance of these types of products,” said Fu Wende.

— The global economy is returning to a normal trajectory.

“Although China brought the epidemic under control early on, it remains a major challenge for the rest of the world—take agricultural powerhouses like Brazil and Argentina, for instance. Many products are manufactured in China and then shipped to markets worldwide, which is why the Chinese government has been strongly supporting logistics and freight operations,” Fu Wende acknowledged, adding that the challenges posed by the pandemic to business operations have persisted.

From a supply-chain perspective, agricultural products are strategic commodities; every country must first ensure that its population has an adequate food supply. Consequently, even as global supply chains face immense pressure, both the Chinese government and governments worldwide will prioritize the smooth flow of agricultural goods.

According to Fu Wende’s assessment, China’s business operations have now returned to normal, and the United States, Israel, and the United Kingdom are also on the path to normalization. We’re seeing strong pent-up demand for in‑person consumption, so as these economies resume normal operations, their growth is rebounding rapidly. By contrast, Europe, Brazil, and Argentina are lagging behind, but I’m hopeful that over the coming months—particularly in the second half of this year—we’ll see these regions emerge from the public health crisis and post a robust economic recovery.

Source: Sina Finance