Making agriculture more productive around the world

Growers face challenges from pests, weeds and crop diseases. Syngenta develops new ways of solving these problems. The company's broad offer of products in crop protection, professional products, seeds and biotechnology make it a unique partner for modern agriculture in over 90 countries. Syngenta invests more than ten percent of sales in research and development. This delivers a stream of new chemical products, seeds and biotechnology solutions. These innovations help growers to further raise efficiency and improve the quantity and quality of their crops.

Crop Protection
More than three-quarters of the company's worldwide sales in 2005 came from Crop Protection, including Professional Products. Sales of new products reached $847 million, up 22 percent^1,2 from 2004.

Growers in the US cornbelt maximize yield and profitability by using the CALLISTO® range. These selective herbicides, including the combination products LUMAX® and LEXAR®, achieved a third consecutive year of sales growth. Overall, Syngenta Crop Protection sales in North America rose by nine percent^1,2.

CALLISTO® also continued its expansion in Western Europe, offering growers improved productivity through superior weed control.

In Latin America, new Syngenta products and services have helped tackle soybean rust. When this devastating fungal disease appeared in Brazil, Syngenta responded quickly. Fungicide introductions from the AMISTAR® family, such as PRIORI XTRA™, gave the company leadership in controlling soybean rust. In Brazil and Paraguay, Syngenta realized that the best way for growers to control the disease was accurate anticipation of its spread. The company developed an early warning system called SYNTINELA™. A contact center informs growers about spread of soybean rust, enabling them to optimize fungicide applications. Syngenta has extended this successful program across South America. It has also been adopted in the USA, where soybean rust has now been confirmed in several states.

Growers in Brazil have also been among those to benefit from further novel combination products in the ACTARA® range of insecticides. These provide outstanding convenience and safety. Insecticides helped to increase 2005 Syngenta Crop Protection sales in Latin America to more than $1 billion.

These are just some examples of how growers use innovative products and services to improve their harvests and profitability. Agriculture continues to benefit from Syngenta research and development as the company launches products with superior performance.

In 2005, Syngenta obtained more than 350 new product registrations worldwide. Particularly notable were first approvals for the cereal herbicide AXIAL™.

Helping Latin American agriculture succeed Jose Augusto de Freitas and fellow workers, Brazil Farming in Latin America and other regions depends on the hard work of manual laborers. Their contribution is essential to the development of modern agriculture. Jose Augusto and his colleagues harvest crops for renewable energy production, to which Brazil now devotes five million hectares of farmland. Syngenta provides the country's growers with new products to increase the quality and quantity of food and other crops.

Seeds
Certain pests and diseases are best controlled by applying crop protection products directly to seeds before sowing. Seed treatment provides targeted and preventive protection from the very start of the growing process. It is the fastestexpanding segment of chemical crop protection. The global market is estimated at about $1.4 billion. Syngenta already supplies more than 25 percent of this demand.

Access to technologies such as seed treatment has raised the productivity of farming considerably. Syngenta provides, for example, the innovative seed treatment CRUISER®. This protects seedlings from insect attack and thus increases crop yield.

To achieve the best results for growers, seed treatments require precise application. Syngenta provides training for users in many markets.

Seeds Advances in seeds are fundamental to increasing crop yield and quality. Growers look for a wide range of varieties specifically bred to suit local growing conditions. Syngenta introduces a large number of new seed products every year.

In the USA, Syngenta successfully completed integration of the GARST® and GOLDEN HARVEST® seed brands acquired in 2004. Their strong positioning alongside the company's established NK® brand strengthened Syngenta’s position in the US corn and soybean market. In 2005, total Syngenta Seeds sales increased in North America by 106 percent¹ to $903 million.

The application of gene technology offers opportunities for developing products with improved characteristics. These include genetic resistance to insect pests such as corn rootworm and the European corn borer. Another example is herbicide tolerance, which gives growers greater flexibility in weed control. In 2005 biotech crops grew on more than 90 million hectares in 21 countries. This figure was just 1.7 million hectares in six countries ten years ago. Syngenta plans to extend its range of biotechnology traits for US corn and soybean growers over the next years.

Syngenta has used its broad product and technology offer to introduce a program in the USA that is unique to the industry. AGRIEDGE™ provides tailored packages that enable US growers to choose from a wide range of crop protection products, conventional seeds and biotechnology traits. Following a successful pilot program in 2005, AGRIEDGE™ will be expanded across the US cornbelt in 2006.

The uptake of biotechnology has been faster in North America than in other markets, and this technology is now also well-accepted in Latin America. With over 17 million hectares of biotech crops planted in 2005, Argentina is the world's secondlargest market for these products. Like their US counterparts, Argentine growers want the best seed varieties and biotechnology traits that bring yield and efficiency benefits. In 2005, the country's regulatory authorities approved Syngenta herbicide tolerance technology. This will provide broader options in weed control. Argentina's growers made Syngenta high-yielding corn varieties a top choice in 2005. The company's market share in corn seed increased in Argentina from 14 to around 20 percent.

Continued investment in technologies such as those introduced by Syngenta has transformed agricultural economies across Latin America in the past two decades. Productivity has increased significantly. Exports of major commodity crops like corn and soybean from Brazil and Argentina now rival those of the USA.

Offering performance and choice to US corn growers US growers plant over 80 million acres of corn, more than in any other country. Every grower aims to continue increasing yield and quality. To meet his targets, a farmer like Leon Corzine needs reliable high-yielding seed varieties, a broad range of efficient crop protection products and expert service. Syngenta provides a unique choice of all three.

"Agriculture sustains life. Global population continues to rise. It increases by more than the entire population of the UK every year. To feed and clothe the world, farmers must continue to grow more crops. But land and other resources are limited. Syngenta innovations help growers meet this challenge." Leon Corzine, farmer, USA

Eastern Europe and Asia: expanding modern agriculture
In 2005, many other countries also continued to rapidly take up modern products, making their agriculture more efficient.

Major progress is underway in Central and Eastern Europe, where the agricultural sector is investing in new technologies. This is particularly the case in those countries that joined the European Union (EU) in 2004. Agriculture is also making rapid progress in Eastern European countries outside the EU. On average, farms in this region have been less efficient than those in the West. However, the rate of agricultural intensification is accelerating. The conditions are now in place for highly efficient, largescale agriculture.

Syngenta has continued to build its presence there and has contributed to raising agricultural productivity. The company has the industry's most extensive sales and service infrastructure in the region and is increasing its investment to strengthen its leadership. Syngenta is focusing efforts on large farms with the greatest opportunities for growth. Investment in seed breeding and production, for example, enables the company to provide advanced seed varieties to customers in countries such as Hungary, Poland and the Czech Republic. Syngenta achieved doubledigit sales growth in the region as a whole.

Transforming Eastern Europe’s farms Aleksander Sokil and family, farmers, Ukraine Like many Eastern European farmers, Aleksander Sokil has increased his income substantially over the last five years. Syngenta runs extensive farmer training on the latest technology to improve farm profitability. The programs show farmers like Aleksander how to increase yield and quality while also farming sustainably. Training and field demonstrations in ten countries have attracted thousands of the region's producers who are keen to improve their output.

Demand for greater agricultural productivity also continues to increase in Asian markets. China has about one-fifth of the world's population, but less than a tenth of the global agricultural area. Its population of 1.3 billion is expected to grow to 1.5 billion over the next 20 years. Gross Domestic Product is increasing rapidly, which raises demand for higher quality meat and fresh vegetables. Chinese smallholder agriculture remains heavily fragmented, and some 20 million farmers leave the land every year for the cities.

Against these enormous challenges, Chinese agriculture must continue to modernize and raise its productivity. Syngenta plays an important role. The company's products increase farmers' efficiency by allowing them to cultivate larger units more economically. Products include the herbicide GRAMOXONE®, which Syngenta produces in China.

The company also runs demonstration trials and educational activities that reach an estimated 100,000 Chinese farmers each year. These often take place in collaboration with the Ministry of Agriculture's nationwide Technology Extension Service Center. Syngenta is also involved in joint projects such as introducing fungicides to boost rice yields and improve quality. Chinese farmers need a continued supply of innovative technologies manufactured to high standards, combined with comprehensive product stewardship programs.

The 2005 Syngenta Corporate Social Responsibility Report includes a profile of the company's activities in China.

Feeding the world’s largest population Chen Zhaohui and friends, primary school pupils, China Like millions of other Chinese children, Chen Zhaohui comes from a farming family. While his friends and he are at school, their parents are busy growing food for the largest population in the world. The Syngenta herbicide GRAMOXONE® helps raise crop yields. The product also frees farmers from laborious hand weeding, enabling them to spend time on more rewarding activities.

Agricultural expansion beyond food: Helping farmers grow fuel
Rising food consumption is one reason why growers need to step up productivity. Agriculture must also respond to new demands from industries that use farm products for other purposes.

The global energy sector is increasingly using plants as an alternative to fossil fuels. Last year, processors turned about 12 percent of US corn into ethanol for vehicle fuel. This figure has risen rapidly over recent years and is forecast to rise further. Fossil fuel prices have increased significantly, reserves are finite, and concern for the environment continues to grow. These factors are likely to make agriculture a much more important source of fuel energy in the future.

Syngenta researchers and breeders have developed high-yield corn varieties that enable growers to meet the needs of this expanding market. These varieties are easily fermentable and high in starch.

In the UK, Syngenta is working with a renewable energy company on Europe's first large-scale commercial project with oil seed rape. The scheme offers growers guaranteed prices to plant this crop for energy use. Syngenta and its partners expect the 2006 harvest to fuel a ten megawatt power station, providing enough energy for 20,000 homes per year.