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 Sval­f 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

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