AgroPages-Bayer Crop-science plan to boost Thai production-Agricultural news

To tackle the world food crisis, German-based Bayer Group has expanded its "CropScience" business into Thailand, investing Bt100 million during 2008-2012 on hybrid-rice development.

The company said it was time for a "second green revolution in Southeast Asia" to increase crop production yield to serve increasing world food demand. The company plans to penetrate more of the Asia-Pacific region by introducing innovative crops and crop protection through non-agrochemical solutions. It is focusing on expanding its seed business, especially in vegetables and rice.

The company foresees a business opportunity in high farm prices until next year, although the peak has passed. The most important factor that could pull down commodity prices , it says, is the global financial crisis.

However, the company foresees a continuing demand for food crops.

Dr Friedrich Berschauer, chairman of the Board of Management of Bayer Crop Science, said the companys rice-development centre in Suphan Buri would encourage hybrid breeding in different climatic conditions suitable for the needs of consumers.

The company is set to begin commercialising the hybrid rice in Thailand in 2011, taking at least eight to 10 years for breeding seed to mature.

"The introduction of an innovative rice crop of high-yielding, disease-resistant varieties is also intended to make a contribution to securing the worlds food supply in the 21st century," he said.

The companys hybrid seed, traded under the Arize brand, is already marketed in six Asian countries including India, the Philippines, Indonesia, Vietnam, Bangladesh and Pakistan. Thailand will be its next target in 2011.

According to the companys study, Thailand is the worlds sixth largest rice-producer. Sixty percent of this production is exported, making it the biggest rice-exporter with about one-third of the worlds total.

However, the report said average yield in Thailand was about 35 per cent below Asias average. The lower yield results from a wide variation between intensive and extensive growing.

The Thai Rice Exporters Association recently reported the Kingdoms average rice yield as only 419 kilograms per rai.

Other rice-exporting countries such as Vietnam, China and India yield more than 1,000kg per rai.

Ed Roumen, the companys rice-breeding and hybrid-development manager, said hybrids in Thailand resulted from imported germ plasm [in seed collections] from many countries such as India, Vietnam and Indonesia. This imported germ plasm will now be bred with local rice to serve market demand.

"We will take at least eight years to make sure the crossbred seeds generate 100 per cent mature quality," he said.

Roumen said the company planned to generate income of 10 million (Bt440 million) from commercialising hybrid rice in Thailand in 2011 and will capture 3-4 per cent of the total hybrid-rice market value in 2015-6.

"At the moment, we hope Thai farmers will undertake more advanced technology and more innovative hybrid seed," Roumen said.

He said it had taken 30 years to convince farmers in China to accept hybrid rice and transfer technology. He expects it will be 15-20 years for Thailand to implement it extensively.

For its next step, the company plans to expand plantation areas of hybrid rice to provinces such as Pathum Thani to increase seed volume.