Annual Report 2004
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  • More than 800 million people go to bed hungry each night
  • Some 500,000 infants suffer blindness each year for want of vitamin A in their diets
  • Over one million people die of malaria each year

 

We live in a world of stark contrast. While Western societies are concerned with lifestyle and diet, people in the developing world are facing hunger, malnutrition, disease and degradation of precious agricultural land and water.

Syngenta contributes in many practical ways to help address these challenges around the world. Every day, hundreds of millions of farmers produce higher yields and healthier crops through the use of Syngenta products:

  • Herbicides make reduced tillage possible, thus preserving soils and their fauna
  • Insecticide-treated bednets save many lives in areas affected by malaria
  • In the future, Golden Rice technology promises to significantly alleviate the problems caused by vitamin A deficiency

In the developed world, Syngenta products are contributing to a healthier, tastier and more exciting diet. In response to a variety of differing challenges, Syngenta is at the forefront of providing solutions that enhance life in both worlds.

Syngenta has a strong position in all major agricultural markets of the world. The companys objective is to enhance leadership by developing new solutions for existing and emerging pests, maximizing the growth potential of new products. Syngenta is developing its business in the expanding markets of Latin America, East Europe and Asia, as well as reinforcing its position in the developed markets of North America and Western Europe.

Crop Protection
In 2004, sales increased across all product lines and in all regions, with Europe and Latin America generating the strongest growth. Increased disease pressure, notably from soybean rust in Latin America, and disease resistance in European cereals contributed to a double digit increase in fungicide sales, with AMISTAR exceeding $500 million. Total sales of new products grew by 32 per cent1 and are approaching $700 million. This has been driven by continued growth in the CALLISTO® range on corn, the high performance multi-crop insecticide, ACTARA/CRUISER, as well as the successful launch of ENVOKE on cotton in the USA. The range rationalization program has enabled focus on the most profitable products and efficiency improvements in the supply chain. This four-year program with a cumulative sales impact of some $300 million is now complete and has made a significant contribution to increasing profitability.

In corn herbicides, Syngentas leading position in the USA was reinforced by the continued success of the CALLISTO® range. Farmers are increasingly realizing that on glyphosate tolerant acres, they cannot rely on glyphosate alone; weed control using selective herbicides before and after the crop emerges is required to maximize yields.

In European cereals, Syngenta was first to provide a specific solution for the severe resistance problem of the important fungal disease, Septoria, to a leading class of chemistry, strobilurins. AMISTAR Opti, incorporating BRAVO, which has an effective and unique mode of action against this disease, was launched in the UK in 2004. As resistance spreads into France and Germany, Syngenta is well prepared to meet increasing customer demand in Europes two largest cereal markets.

In Latin American soybeans, a new disease, rust, has reached pandemic proportions in Brazil and is now impacting neighboring countries. In 2004, Syngenta launched a new high performance product, PRIORI Xtra, to combat this severe threat to farmers livelihoods. The use of this product is supported by the companys innovative web-based diagnostic system, SYNTINELA, whereby an early warning system alerts farmers and distributors to the presence of the disease in their area. Syngenta will be providing high quality products and services to farmers in the USA following the confirmation of the first cases of soybean rust by the US Department of Agriculture in late 2004.

In the $5.4 billion global fruit and vegetable market for insect and disease control, characterized by multiple crops in many parts of the world, increasingly tight quality protocols and rapidly expanding cross border trade, a comprehensive product offer is essential. Syngenta has built on its modern and broad portfolio of fungicides and insecticides for these crops and significantly increased sales of the insecticide ACTARA. With its rapid action and ability to be applied directly to the soil, this product controls a multitude of insect pests in a wide range of crops.

1 Growth at constant exchange rates (CER).

Field Crops Seeds:
Acquisitions strengthen position in corn and soybean


In 2004, Syngenta acquired the North American corn and soybean business of the seed company Advanta, whose GARST brand had 2003 sales of $158 million. Its market presence in the major growing regions of the USA was further strengthened by the purchase of GOLDEN HARVEST, which had 2003 sales of $167 million. Combined with the NK brand, these acquisitions take Syngentas market share to 15 per cent in corn and 13 per cent in soybean (pro forma 2003). In addition, the company acquired important corn-breeding material from CHS Research LLC. Last year’s purchase of GA21 glyphosate tolerance technology for corn will enable Syngenta to market a complete range of biotechnology input traits in corn and soybean from 2005.

With these acquisitions, Syngenta is uniquely placed to offer US corn and soybean growers a complete range of technologies including high-quality seeds, input traits and world-leading crop protection products.





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