In today’s top stories at Agrowatch Weekly, ?
Bayer’s CEO won first AGM Vote despite crushing 10 months?
Syngenta Q1 Profit drops by 34% while sales decline by 20% ?
Tractor manufacturers downgrade their 2024 outlook amid failing crop prices ?
G7 Countries are about to sign a deal to end Coal use by 2035 while ESG battle has moved to US Courts. ?
Stay informed, stay ahead. ?
- Bayer CEO Bill Anderson received a vote of confidence at the company's annual general meeting, with 91.69% of investors supporting him and his team. Despite criticism from mutual fund firm Deka Investment, Anderson's leadership was backed by larger investors and shareholder advisory firms. Anderson, who took over in June 2023, faces challenges like U.S. litigation over glyphosate and setbacks in drug development, leading to a 47% share price drop. He pledged to prioritize drug development, address litigation, reduce debt, and streamline corporate processes, aiming to address shareholder concerns. Read more: Reuters?
- Seeds and pesticides giant Syngenta reported a significant drop in first-quarter sales and profit, with sales plummeting by 20% to $7.4 billion and core operating profit falling by 34% to $1.2 billion. The company attributed the decline to farmers depleting their existing supplies instead of purchasing new seeds and sprays. Additionally, higher interest rates led to destocking by retailers and distributors, particularly impacting the crop protection business, which saw a 20% decrease in sales. Despite these challenges, Syngenta remains in competition with industry players such as Corteva, BASF, and Bayer. The company's plans for a $10 billion flotation were shelved in March due to unfavorable market conditions in China, where it is owned by Sinochem. Read more: Reuters?
- Corteva shares surge by 7%, the largest jump in three months, following quarterly earnings that surpassed expectations. CEO Chuck Magro expressed optimism about farmer spending, citing strong demand for farm-produced goods. Despite a 20% decline in crop protection sales in the first quarter, Magro anticipates a return to volume growth in the second half of the year. The company plans to introduce approximately 500 new products to the market in 2024, including 300 new seed hybrids and varieties, reflecting optimism for future demand. Read more: Bloomberg?
- Solar energy's push into America's Midwest is sparking concerns over the future of prime farmland. About 0.02% of all cropland in the continental U.S. intersected with large-scale ground-based solar panel sites as of 2021. By 2050, the U.S. will need up to 1,570 gigawatts of electric energy capacity from solar. Researchers forecast that 83% of new solar energy development in the U.S. will be on farm and ranchland. The $1.5 billion Mammoth Solar project in Indiana will lease farmland to generate solar energy. As solar capacity grows, questions arise over the impact on agriculture, with experts warning of potential erosion and loss of fertile soil. Despite the promise of profits, concerns linger over the long-term consequences for food production and land use. Read more: Reuters?
- Tractor manufacturers CNH Industrial NV and AGCO Corp. have revised their 2024 outlooks downwards due to weakening demand for farm machinery amid falling crop prices. CNH now expects earnings of $1.45 to $1.55 per share, down from the previous forecast of $1.50 to $1.60, citing a 15% decline in industry volumes. AGCO, maker of Massey Ferguson and Fendt tractors, anticipates sales of around $13.5 billion, slightly lower than the earlier estimate of $13.6 billion. The challenges are particularly pronounced in Brazil, where bumper crops have been offset by plummeting corn and soybean prices, leading to defaults and a 40% decline in combine sales in South America. Read more: Bloomberg?
- Cocoa futures took a nosedive in New York and London, experiencing the largest intraday drop since 1960, as fewer companies grapple with rising costs to support their trades. The most-active contract plummeted by as much as 17% to $8,800 a ton in New York, settling at $8,931 per ton, marking the lowest in over a month. Intercontinental Exchange Inc. has upped the ante by increasing the amount of money companies must put down to back their position, leading to a mass exodus of traders. In London, futures dipped after Ivory Coast's move to stave off cocoa-export defaults with a compensation plan for shippers affected by a surprise hike in farmer prices. While rains in West African growing areas offer some hope for bean supplies ahead of the region's mid-crop harvest, the underlying shortage persists due to a combination of adverse weather, aging trees, and crop disease. Read more: Bloomberg?
- CroBio secures a significant €1.45 million seed round to bolster agricultural drought resilience through innovative soil microbes. Led by US investors, including The Grantham Foundation for the Protection of the Environment, and backed by SOSV, Ponderosa Ventures, and Catapult Ventures Group, the funding aims to advance field trials with strategic partners and expand geographical reach. Founded in 2019, CroBio has steadily progressed, securing vital investments and leveraging partnerships to drive innovation in agricultural resilience. Read more: EU Startups?
- Caladan Bio secures a $5 million seed round led by Twelve Below to develop affordable benchtop bioreactor systems. The funding, supported by Lerer Hippeau, Collaborative Fund, Wireframe Ventures, Ritual Capital, and Factorial Capital, aims to expand the team and platform. CEO Mike Kobida emphasizes the need to optimize scale-up of bio-made products, reducing experimentation costs and enhancing data capture. Caladan Bio's Caladan 250 product offers modular bioreactors with increased sensors for generating actionable insights, enabling faster process optimization and development timelines. The vertically integrated approach integrates sensors and software into low-cost hardware, simplifying data management and facilitating AI/ML applications for biotech innovations. Read more: AFN?
- Ethanol as aviation fuel has raised new climate concerns as the US introduces a new ethanol aviation fuel tax subsidy program under the Inflation Reduction Act. However, concerns arise regarding the actual carbon benefits of ethanol and agricultural practices promoted by the program. Critics argue that ethanol's emission reductions are debatable, with studies indicating varying climate footprints. The efficacy of the agricultural practices endorsed is questioned, with uncertainties about their long-term carbon sequestration effects. Despite these criticisms, the program sets a precedent for future SAFs initiatives amid efforts to combat aviation emissions. Read more: MIT Technology Review?
- Countries participating in global plastic pollution talks in Ottawa agreed to address funding for developing countries and identify hazardous plastic chemicals and wasteful products like single-use containers. However, they failed to establish formal processes to review and limit virgin plastic production. Some nations supported assessing sustainable plastic production levels, but opposition from petrochemical-producing countries and industry groups stalled progress. Environmentalists warned that compromises could weaken the effectiveness of the eventual treaty, while some highlighted the urgency of addressing harmful chemicals in plastics amid incidents like the recent benzene release in Canada. Read more: Reuters?
- G7 countries are set to sign a deal aiming to end coal usage in power generation by 2030 to 2035, with potential flexibility for Germany and Japan, sources reveal. While pledging to close coal-fired plants in the early 2030s, countries may consider dates aligned with keeping global temperature rise under 1.5°C. This could accommodate Berlin and Tokyo, which heavily rely on coal for electricity production. The move reflects a shift towards phasing out fossil fuels as urged by last year's COP28 climate summit. The final communique, expected to be published soon, will formalize the agreement reached among ministers from Italy, the United States, Britain, France, Germany, Canada, and Japan. Additionally, the G7 is discussing potential restrictions on Russian liquefied natural gas imports to Europe. Read more: Reuters?
- US has proposed Ethanol and Corn Imports to India to meet blending targets. A US agribusiness trade mission suggests India import ethanol and corn for feedstock to achieve its 2025 ethanol blending goal after restrictions on sugar use for ethanol. India aims for 20% ethanol-blended petrol by 2025 but faces sugarcane production challenges. The proposal aims to mobilize investment for ethanol production amid declining maize production, potentially impacting supply and demand dynamics. Read more: Economic Times?
- American courts are becoming the arena for clashes over ESG policies, with lawsuits challenging SEC reporting rules and state-level carbon disclosure laws. The debate centers on fiduciary duties and whether ESG initiatives enhance or detract from investor value. As legal battles unfold, firms are advised to proactively address governance, understand disclosure rules, and ensure consistency in ESG initiatives. Despite regulatory uncertainties, global pressure for ESG disclosures persists, driving companies to invest in reporting infrastructure and governance frameworks. Read more: Private Funds CFO?
