Research and development
Research and development expenses at CropScience rose by 4.2% (Fx adj.) in the first half of 2015 to €509 million (h1 2014: €452 million), including €269 million (Fx adj. +4.2%) in the second quarter of 2015 (q2 2014: €238 million).
Capital expenditures, acquisitions and cooperations
In May 2015, CropScience entered into a strategic innovation partnership with Flagship Ventures that also includes an investment in Flagship Ventures Fund V. CropScience will contribute its strengths in science, innovation and regulatory affairs to help in the identification, funding and development of promising startup companies.
In June 2015, CropScience announced the acquisition of SeedWorks India Pvt. Ltd., headquartered in Hyderabad, India, a company specialized in the breeding, production and marketing of hybrid seeds for tomatoes, hot peppers, okra and gourds. Existing and forthcoming varieties will be marketed under CropScience’s NunhemsTM brand.
Also in June 2015, CropScience and the Grains Research & Development Corporation (grdc) based in Australia entered into a five-year innovation partnership aimed partly at the joint development of new technologies to manage resistant weeds. grdc will support the expansion of capacities at the Bayer CropScience herbicide research center in Frankfurt, Germany.
CropScience raised sales in the Emerging Markets by 7.7% (Fx adj.) in the first half of 2015 to €2,097 million (h1 2014: €1,871 million), including €1,059 million in the second quarter (Fx adj. +0.8%; q2 2014: €973 million). Strong gains were recorded in Africa/Middle East and Eastern Europe. Asia likewise developed favorably. Sales in Latin America declined substantially against the strong prior-year quarter. The Emerging Markets’ share of total CropScience sales was 36.1% in the first half of 2015 (h1 2014: 34.8%) and 38.9% in the second quarter of 2015 (q2 2014: 39.4%).