Agrowatch #15 Bayer's Wins Key Support before AGM, Top Climate Target Watchdog SBTi in Turmoil, SAF Emissions Model to Be Soon and Much more

In today’s top stories at Agrowatch Weekly, Bayer securing key wins in both court and stock market ahead of first AGM of CEO Bill Anderson, Sustainable Aviation Fuel (SAF) to become the new darling of Biden’s energy policies, World’s top Climate Target watchdog SBTi plunging in turmoil following controversial announcements and Much more.?

Agribusiness

• Missouri judge cut Bayer's Roundup verdict from $1.56 billion to $611 million, citing reduced punitive damages. The company is appealing the decision after being found liable for negligence and failing to warn about Roundup's risks. While Bayer claims Roundup is safe, plaintiffs argue evidence supports their claims of harm. The widely used weedkiller has faced extensive litigation, with Bayer settling some cases but others still pending. The announcement came a few weeks after Bayer’s announced development of a glyphosate (key ingredient in Roundup) alternative that will be market-ready by 2028. A few days later, Bloomberg reported that Bayer had won support from two key shareholder advisory firms Glass Lewis and ISS which recommended voting the management and supervisory boards at the upcoming annual shareholder meeting. This endorsement provides a boost to CEO Bill Anderson, who has been focused on streamlining operations and addressing legal challenges, particularly related to the acquisition of Monsanto. The meeting, scheduled for later this month, will be closely watched as Bayer shares have dropped by over 70% since the Monsanto deal in 2018. Anderson's strategy includes addressing debt levels and resolving Roundup litigation, with the potential consideration of a controversial Texas Two-Step bankruptcy.??
• U.S. dairy farmers are combating bird flu with stringent measures, including visitor bans and disinfection protocols, to protect their herds. The virus, which has spread to eight states, primarily affects lactating cows, leading to reduced milk production. While the risk to humans remains low, precautions are being taken, and milk safety is a concern. Farmers are grappling with challenges in containing the virus and maintaining herd health amid uncertainty over transmission modes. Measures like disinfecting tires and isolating new animals are being adopted to minimize risks. Read more: Reuters
• Analysts predict notable reduction in Brazil's soybean harvest forecast from the USDA, reflecting ongoing concerns despite the agency's recent conservative adjustments. However, USDA's April forecasts historically align more closely with actual outcomes, potentially alleviating market uncertainties. Additionally, Brazil's agricultural agency Conab is set to release its crop estimates, with expectations that its projections will offer greater accuracy compared to USDA's. Yet, discrepancies between the two agencies' final figures have been a recurring challenge, particularly evident in corn production forecasts. Read more: Reuters

Agritech

• Reshape, the pioneering AI and robotics-powered imaging and analysis platform, secures a $20 million Series A investment to expand its US operations and further automation of R&D processes in biotech, agriculture, and food sectors. Reshape's technology, already utilized by renowned research institutions like Syngenta and the University of Oxford, saves over 500,000 hours annually by automating visual experiments and accelerating scientific discoveries. Read more: Web Wire
• Gro Intelligence faces class action over alleged violation of labour laws.? Former employees of Gro Intelligence claims in the the lawsuit that Gro abruptly terminated over 90 employees, constituing two-thirds of its staff, between February 1 and March 1, 2024. Despite assuranctes of covering back pay and health insurance through March, employees were not offered severance packages or provided advance warning of their termination. Gro had reportedly been seeking additional capital through a convertible bond, facing hacllenges until securing last-minute funding with conditions. Gro's troubles are attributed to a combination of funding challenges, misalignment between its product and the market, and leadership issues, including the absence of a CFO until recently. Read more: AFN
• Indian Agritech startup Dehaat joined the league of B2B agrifood companies launching its own consumer brand, Honest Farms. With the struggle to scale margins in the mainstay business, Dehaat ventured into modern trade and e-commerce with 200 SKUs in staples like pulses, rice, and spices. The move taps into the rising consumer demand for branded alternatives in the staple category, leveraging Dehaat's network of 2 million farmers to offer pesticide-free crops. Read more: Economic Times
• Singapore-based Peptobiotics snapped $6.2 million in a Series A as it focuses on commercializing recombinant antimicrobial peptides, which are naturally occurring proteins that inhibit bacteria and are crucial in the immune systems of various organisms. The startup's goal is to address disease challenges in the industry and reduce the use of antibiotics in the food supply chain. Their first product targets antibiotic abuse in the aquaculture sector, utilizing antimicrobial peptides as an alternative to antibiotics. Read more: Business Times
• French agritech startup Weenat recently secured 8.5 million euros in Series C funding. Founded in 2014, Weenat specializes in wireless weather stations and sensor technology. With over 25,000 sensors deployed across Europe, the company is now profitable and expanding its reach with support from investors like the European Circular Bioeconomy Fund. Read more: Breaking Latest

Climate

• The Science Based Targets initiative is facing internal unrest as staff demand the CEO's resignation and policy reversal as permitting companies to offset Scope 3 emissions with carbon credits has triggered a backlash, with concerns about its scientific validity and potential to undermine emission reduction efforts. Staff has accused SBTi leadership of acting without scientific basis, urging immediate action to address reputational damage. The move has also drawn criticism from members of the technical advisory group, leading to resignations and calls for policy withdrawal. While proponents argue that offsetting can incentivize ambitious climate action, critics fear it may weaken emissions reduction targets and hinder progress toward climate goals. The decision aligns SBTi with other initiatives promoting carbon offset markets, amid growing demand for high-quality credits. Read more: Reuters
• European human rights court ruled against Swiss government, finding it violated human rights by not doing enough to combat climate change, following a lawsuit by over 2,000 elderly women. This landmark decision could impact pending cases, including challenges against Norway's oil industry and climate policies in Germany and Italy. While plaintiffs feel emboldened, some cases may face new hurdles after the court dismissed a similar case brought by Portuguese youth for not exhausting domestic legal avenues. Read more: Reuters
• The U.S. weather forecaster predicts a 60% chance of La Nina, bringing colder Pacific Ocean temperatures, in the latter half of 2024. Transitioning from El Nino to ENSO-neutral is expected by April-June, with implications for Atlantic storm activity. India anticipates a normal monsoon, a relief after forecasts of increased summer heat waves. In the U.S., Midwest, Delta, and Plains regions may see favorable rain levels, boosting corn and soybean production. Southern Africa grapples with severe drought due to El Nino and climate change. Japan's weather bureau sees an 8% chance of El Nino ending in the spring. Read more: Reuters
• “Only Two Years to Save the Planet”, the head of the UN climate agency issued a dire warning. With upcoming global meetings and elections, urgent action is needed to curb carbon emissions and secure climate financing. Crop failures and extreme weather underscore the urgency, but some experts caution that such warnings may not be effective without concrete actions. The warning came as the world hit the 10th consecutive month of record temperature in March. Read more: Reuters
• March marked the Earth's 10th consecutive month of record-breaking heat, according to the European Union’s Copernicus Climate Change Service. Global temperatures soared 1.68C above historical averages, surpassing the 1.5C climate target. This alarming trend underscores the urgent need for rapid reductions in greenhouse gas emissions to curb further warming and mitigate the threats posed by climate change. Read more: Bloomberg

Sustainability/ESG

• Emissions model for Sustainable Aviation Fuel feedstocks will be ready "in the very near future,” EPA Administrator Michael Regan announced last week. The model is crucial for determining ethanol emissions and eligibility for a sustainable aviation fuel tax credit of $1.25 per gallon under Biden’s 2022 Inflation Reduction Act, sparking debates between biofuel and farm groups and environmental organisations.?

Commercial transportation (trucks, ships, planes) is the hardest part of the energy transition and on top of it is aviation where electrification is virtually impossible. While aviation contributes only 2.5% to global emissions, the share is expected to rise in the coming years as rapid growth in EVs, solar and other renewable energy sources cut the share of other industries in global warming. According to Google, The SAF market stands at $460 million as of 2022 but is expected to grow to $20 billion by a whopping CAGR of 61%.

On the other hand, Ethanol producers are unlikely to qualify as a feedstock for SAF subsidies unless the corn used is sourced from farmers employing specific sustainable agriculture techniques, such as efficient tilling, cover crops, and efficient fertilizer application. This debate over criteria is happening in the midst of US election such products enjoy popularity in Midwestern swing states, and environmentalists are concerned about the conversion of farmland from food production to fuel generation.

• EU unlikely to delay implementation of Deforestation law, EU Environment Commissioner Virginijus Sinkevicius affirmed during a visit to Ivory Coast. Despite requests from some member countries to delay the law, Sinkevicius emphasized that the legislation is set to be operational from the beginning of 2025. The policy requires companies to prove that their goods were not grown on deforested land. While acknowledging concerns from member countries, Sinkevicius highlighted that the policy was agreed upon in late 2022, allowing producers and governments nearly two years to prepare for its implementation. Read more: Reuters