Steve Hawkins on the challenges and opportunities for Crop Protection

Date:10-08-2024

After four years with the off-patent manufacturer ADAMA, finishing as CEO and President, Steve Hawkins is back at Syngenta, taking over from Jeff Rowe as President of the Crop Protection (CP) business.

During a challenging moment for the global CP market, he shares his insights about how he sees the future, the importance of innovation, and how we can best find a way through the current market conditions.

Steve Hawkins, President, Syngenta Crop Protection

In his office at the company headquarters in Basel, Hawkins seems excited about stepping into this role. Having previously worked as Regional Director for Syngenta (CP and Seeds) in Europe, Africa, Middle East (EAME), as well as in Asia Pacific, the role of CP President is something of a homecoming.

As Hawkins says: ″Syngenta Crop Protection has a very strong innovation focus and mindset with super capable people around the world. This is a huge competitive advantage for us.″

Innovation isn’t just a guiding ethos for research but essential for all aspects of how the business operates. Hawkins says: ″Innovation is not just products, it's also how people work. It's how we do key account management with customers.

″We’re the global leader in crop protection and we must stay ahead of the pack in all areas. Syngenta has the most valuable pipeline across the whole industry, so we’re well positioned for innovative product growth in the next decade.″

Having awareness of just how fast things can move is something that Hawkins brings to the role from his time at ADAMA.

He says: ″The off-patent segment moves much faster and is even more competitive. Every single day prices can change so it's very dynamic. As this part of the market continues to grow, we have to improve our ways of competing. What this requires is an ability to move quickly– to be nimble – in understanding what the market is doing and responding in a systematic way.″

This challenge to respond quickly to market dynamics has become more important over the last years as market volatility has increased. Explaining the challenges facing Syngenta, he says: ″There is a price-volume dynamic which we saw during COVID – there was a shortage of supply and so prices went up, then there was oversupply and prices went down. This is, in itself, not unusual or unprecedented. But there are two major disruptions that are here to stay, and we have to adapt.″

Syngenta Crop Protection HQ and Syngenta Group HQ in Basel, Switzerland

These two factors are an increase in production capacity, particularly in China, and much shorter product life cycles for new active ingredients. A massive expansion of manufacturing capacity in China means there is huge capability to make products as soon as they are off patent. This is wat Hawkins calls ″the big squeeze″.

That means ″as soon as an active ingredient becomes generic, we have real competition, just like in pharma. Previously, the agricultural chemicals market was much slower to develop generic offerings. So, when we launch a product, our ability to maximize the business is going to be a shorter cycle because we will have real competition far earlier.″

It is easy to see the market struggles as somewhat unprecedented, but Hawkins argues that these aren’t all new disruptions.

″There are three big factors that Syngenta will have to take on. One, the supply and demand dynamic, which is not so unusual. The second one is the product life cycle or patent cliff. That's very different. Third: the industry structure is different; most agriculture companies have undergone major mergers and acquisitions over the past ten years. So, we need to adapt to the future market. This is why we’ve started our own program of transformations within the company.″

Syngenta prioritizes innovation – even in the midst of challenging conditions for companies and farmers alike. But for Hawkins, innovation isn’t something to compromise on. As he says: ″Innovation will always stand the test of time. Things are challenging for farmers right now, so they are rightly concerned about getting a good return on their investment. With our leading technologies, digital services and our teams on the ground supporting farmers to address their crop protection challenges, we offer farmers the tools that will make a noticeable positive impact on their bottom line.″

Despite the challenges facing the industry, Hawkins thinks the future is full of potential. ″As the leading CP player, we have a responsibility to help shape the industry, not simply react to these factors that are new and disruptive. That gives me energy and I know well enough the leadership mindset of this team to take on future challenges.″

In the short term the challenges for Hawkins involve relearning the global Syngenta Crop Protection business and getting to know a team that covers everything from research to the logistics of getting their products in farmers' hands.

Hawkins explains that for him, dynamic teamwork will make the difference as the organization seeks to move more quickly.

He says: ″We have to work in ways where everyone has some stake in the game – people need to know their work has significance and that we trust them to get on and do their best work for our company - and more importantly -for our customers.″

Customer focus, teamwork and adaptability, paired with renewed energy will be crucial for Hawkins to lead Syngenta Crop Protection through these challenging times, but Hawkins seems perfectly poised to take it all in his stride. ″I am not concerned the industry is going to disappear in any way. We still need to protect crops using a combination of synthetic and biological crop protection, supported by digital tools. Syngenta has the most innovative crop protection pipeline in the industry. On top of that, we have the best team in the game – committed, collaborative and effective. For me, that is something to be very excited about, and what gives me confidence for a bright future.″