April 2000 / ISB News Report
Genetically modified organisms (GMOs) and their place in the world's
agricultural arena has recently been a hot topic of public debate. And
although corporations have been taking a variety of positions to quell
public concerns in the short run, many continue to invest in agricultural
biotechnology as a growth strategy for the long run. German chemical
giant BASF is a case in point.
In mid-March, right in the throes of the GMO debate, BASF announced
that it intends to make a major long-term commitment to plant
biotechnology(1). Among the plans announced, BASF revealed three
major strategies related to its expanding efforts in agbiotech, including:
- The allocation of more than 700 million euros (>$US 680 million) over the
next ten years for research in plant biotechnology
- The allocation of additional funds for acquisitions, including seed
companies and other appropriate companies
- The formation of a holding company, BASF Plant Science GmbH, to oversee
the company's plant biotechnology efforts.
In spite of the current discussion over GMOs, BASF sees the
application of biotechnology to agriculture as providing the company
new growth opportunities in a "new agromarket." In its efforts to play
catch-up in the agbiotech area, BASF has already founded two
biotech-related companies: Metanomics and SunGene. BASF has also
acquired a 40 percent ownership stake in Swedish seed company
Sval-f Weibull, which formed the basis of the BASF Plant Science
GmbH biotechnology research effort(1).
Target areas of research will include the improvement of plant growing
characteristics (e.g., to better withstand harsh climates) and plants with
higher nutritional value. BASF's goal is to leverage its traditionally
strong competencies in crop protection, in human and animal health,
and basic research to provide a platform to bring second and third
generation plant biotechnology products to market(1).
All told, about 300 new research jobs are being created by BASF to
focus on its ag-biotech effort.
Source
1. BASF banks on plant biotechnology. March 14, 2000
(http://www.basf-ag.basf.de/en/news/presse/)
(posted without permission)
