Syngenta knows that all winning ideas need the best brains to make them fly. That's why the company invested over $700 million in 2003 in research and development to benefit farmers and consumers through innovative products and services. From discovering new product applications to taking advantage of the latest knowledge in genetics, Syngenta scientists give the company an unparalleled advantage in a market where innovation is a prerequisite for future growth. Growth in sales of new products in 2003 was $177 million1, with total sales of new products passing the half billion dollar mark. And that's just the start. With new herbicide and fungicide compounds due to hit the market within the next four years, Syngenta's inspirational research is paying off handsomely. It's scientific evidence that Syngenta has the best high fliers for innovation. 1 Constant exchange rates.

There's no innovation without inspiration

The need to deliver more effective crop protection, the ability of pests to overcome existing control methods, changing regulatory requirements and anticipating consumer demands are the main drivers of innovation in the agribusiness industry.

• Basel and Stein (Switzerland):
  Crop protection research
• Jealott's Hill and Alderley Edge (UK):
  Discovery and bio-performance research; Crop genetics research; Environmental science and toxicology
• Research Triangle Park, NC (USA):
  Crop genetics research and genomics

Resources and scientific expertise are geared to: discovering new chemical active ingredients; improving existing products, processes and formulations; and creating new uses and technologies that will benefit farmers and consumers.

In 2003, Syngenta Jealott's Hill International Research Centre, the UK's largest agricultural research site, celebrated 75 years as a leading center for the creation of new ideas and products in crop protection and plant biotechnology.

Inventing new active ingredients

Chemical crop protection remains a mainstay of sustainable agricultural production. Herbicides are crucial to profitable and efficient farming, and new strains of pests and diseases mean that novel ways of control will continue to be in demand. To meet these needs, Syngenta's research pipeline has advanced well in the past year, with several new chemical compounds moving closer to market, including a novel cereal herbicide (407) recently filed for regulatory approval in the USA. Modern research techniques have provided a better understanding of genomics. The knowledge of how a plant's or a pest's genetics affects their behavior facilitates greater precision in the discovery of new chemical ingredients. Potential new chemical compounds can then be rapidly tested in their thousands and the search for promising leads optimized through faster selection techniques.

Extending product uses

Opportunities for active ingredients in crop protection are not always restricted to a particular pest or disease in a specific crop. Identifying ways to extend and improve the use of a product broadens its value to the grower and its commercial potential.

In 2003 for example, Syngenta introduced the IMPASSE system in the US, which gives homeowners long-term protection against termite attack. By taking the active ingredient of the successful Syngenta insecticide KARATE and placing it inside an ingenious plastic film, the company has created an effective method of preventing an estimated $2 billion a year of termite damage to US property.

Advanced technologies in product formulation have enabled Syngenta to further exploit its active ingredients for more conventional markets too. 2003 saw the first successful season for the corn herbicide LUMAX, a complex product that combines three active ingredients by using innovative formulation techniques. Farmers are seeing the benefits of enhanced weed control with fewer sprays, and Syngenta is able to gain market share. In December, the first fungicide designed to overcome resistant disease in cereal crops was registered in Europe. AMISTAR Opti is the combination of AMISTAR, the broadest spectrum cereal fungicide, with another well-established fungicide BRAVO.

Syngenta Development scientists have helped introduce a new method of dispensing crop protection products to further improve safe use and reduce environmental impact. Piloted in China in 2003, the PortA Pac Delivery System enables farmers to buy small quantities using a refillable shuttle pack. It helps cash flow for smallholders, ensures secure dispensing and cuts packaging waste by half.

Increasing business value through new technologies

By harnessing the latest technologies in plant science and chemistry, Syngenta has been able to accelerate the development of new products, particularly in identifying novel biotechnology traits.

Highlights of 2003 include Building on results emerging from the company's pioneering rice genome work, important data is now linking the information to related commercial crops such as corn (maize) helping to accelerate breeding programs using techniques such as marker assisted breeding. Developing proprietary methods of activating useful genes in crops such as wheat and tomato. This made it possible to identify over 200 genes that may be important for improving grain and helping crops to grow in drought conditions. Discovering an efficient way of transferring genes of interest into corn varieties used in hybrid production. This method accelerates the testing of new traits in commercial crops and reduces the time needed to provide growers with improved crop varieties.