Emerging trends/challenges in the agrochemicals industry in 2024?

In 2024, the agrochemicals industry, especially in India, is on the move as the fourth-largest producer globally and has an unrealized potential to grow further. We've already seen some significant shift in the Indian market, and it's gearing up for more changes ahead that'll shape the trends and throw challenges our way. 

In terms of challenges, regulatory changes continue to drive the industry, with increased scrutiny on pesticide residues, environmental impact, and product safety necessitating adaptation and innovation. 

Even the global supply chain disruptions, increased by factors such as trade tensions, geopolitical uncertainties, continue to impact the availability and pricing of raw materials and finished products.  

Now, with the emergence of pesticide-resistant weeds, pests, and diseases, it poses a significant challenge for both farmers and agrochemical companies. To address this issue, there is a growing attention on integrated pest management (IPM) strategies, and the development of novel chemistries with different modes of action, including the development of bio-based pesticides and precision application technologies.

Moreover, through the integration of AI, IoT, and data analytics, is reshaping the agri sector with precision agriculture initiatives. Addressing these trends and challenges requires agility, innovation, and collaboration to ensure sustainable and productive agriculture while meeting the needs of farmers, consumers, and the environment. 

What strategies should India adopt to become a global manufacturing hub for agrochemicals? What role does Corteva India see for itself in making India a global manufacturing hub? 

According to the World Trade Organisation (WTO) data, India’s agrochemical exports, valued at $5.5 billion, have surpassed the USA, which stands at $5.4 billion. The growth in India’s agrochemical industry has resulted in a worthwhile trade surplus of Rs 28,908 crore in FY 2022-23.

India's potential as a global manufacturing hub looks promising due to growth factors supported by government policies, demand, and innovation, focusing on research and development and capacity building under initiatives like Make in India or Atmanirbhar Abhiyan.

The industry has developed advanced manufacturing facilities to meet both domestic and global demands, reducing the need for agrochemical imports in the long run. However, to sustain exponential growth, supportive policies and regulatory reforms are crucial. These include streamlining approval processes, offering investment incentives, and ensuring compliance with international quality and safety standards.

At Corteva, we believe India plays a vital role in a robust global supply chain, leveraging its strong growth, scientific knowledge base, and skilled workforce. We're ramping up our R&D investment to maintain leadership in plant breeding and crop protection, focusing on proprietary and unique products for future growth. Corteva operates three production facilities and eight R&D centers, with the Multi-Crop Research Centre (MCRC) in Telangana as our flagship plant breeding facility and technology hub for Asia-Pacific. We're expanding our R&D presence, developing global supply chains, digital capabilities, manufacturing, and skill partnerships to support India's growth aspirations, contributing to the country's socio-economic progress.

Strategies adopted by the company for developing and characterizing hybrid seeds for farmers in India? How does it help them to select the right product to maximize productivity and profitability?

At Corteva, we employ extensive R&D efforts to identify and develop high-yielding and resilient crop varieties suited to the diverse agro-climatic conditions across different regions of India. This involves leveraging advanced breeding techniques, such as marker-assisted selection and genomic analysis, to accelerate the development of desirable traits like disease resistance, drought tolerance, and enhanced yield potential. 

Secondly, we conduct rigorous field trials and performance evaluations to assess the agronomic performance and adaptability of hybrid seeds under real-world farming conditions which helps us validate the performance of new hybrids across various soil types, climates, and cropping systems, ensuring that they meet the needs and preferences of local farmers. Furthermore, we actively engage with farmers and agricultural extension services to gather feedback on the performance in different farming contexts

This feedback loop enables our teams to continuously refine its breeding programs and seed development processes, incorporating farmer preferences and addressing specific agronomic challenges.

We at Corteva currently work closely with more than 5 million farmers, 19,000 retailers and 2,500 distributors across 15 million acres of cultivable land, train 75,000 Farmers Spokesperson and conduct field trials at over 1,000 location – to get the right product on the right acre to maximize their productivity and profitability. 

How is the company's Pioneer brand helping the Indian farmers to grow corn, rice, millet, and mustard sustainably? What are the key product offerings?

For the last 50 years, Corteva Pioneer seeds have been benefiting millions of farmers to maximize their productivity and profitability and are supporting Indian farmers across various crops like corn, rice, millet, and mustard.

For corn cultivation, Pioneer offers a range of hybrid seeds characterized by traits such as drought tolerance, pest resistance, and high yield potential. For millet cultivation, we provide seeds specifically developed to enhance yield, nutritional quality, and resilience to biotic and abiotic stresses. 

Last year, Corteva with ICRISAT and ICAR collaborated on research and have achieved a significant milestone by resequencing pearl millet genomes leading to the development of new molecular markers, opening the door to creating millet cultivars with exceptional yield performance and improved nutritional quality. In the mustard segment, the seeds are characterized by traits such as high oil content, uniformity, and disease resistance. These hybrid mustard varieties enable farmers to maximize their oilseed production, enhance oil quality, and improve their profitability while reducing dependency on imports and promoting self-sufficiency in edible oil production.

In the case of rice, seeds give superior yield potential, disease resistance, and adaptability to different soil and water conditions. These hybrid rice varieties help farmers increase their productivity while reducing input costs and minimizing the environmental footprint of rice cultivation, such as water usage and pesticide application.

For easier adoption of such sustainable innovations like Direct Seeded Rice (DSR), Corteva is at the forefront by providing technical grooming of agriculture entrepreneurship and leadership training to build confidence, financial literacy, and negotiation tactics for agri entrepreneurs through shared value projects.

Company has recently launched Salibro Nematicide in India. What are its unique features and expected outcomes? 

Salibro focuses specifically on controlling harmful root-knot nematodes while preserving beneficial insects and soil health, minimizing its environmental impact. Its targeted and environmentally friendly nature sets it apart from broad-spectrum alternatives. Also, the product boasts a novel mode of action, making it effective against nematodes that may have developed resistance to older products

Moreover, Salibro plays a crucial role in protecting plant root systems, promoting the development of healthy roots that enhance water and nutrient uptake. This results in improved crop yields and quality, directly benefiting farmers.

For Indian farmers, Salibro promises reduced crop losses by effectively controlling nematodes, thereby safeguarding crop health and minimizing yield losses caused by these pests. Additionally, Salibro aligns well with sustainable farming practices, emphasizing targeted control and minimal environmental impact. 

Company's approach with respect to R&D for new technologies and products. How will it shape the future roadmap of the company keeping sustainability and net carbon zero in picture?

Corteva is strategically advancing its R&D efforts to drive innovation and sustainability within the agricultural sector while keeping sustainability and net carbon zero goals at the forefront. With an increasing R&D investment, we maintain leadership in core areas of plant breeding and crop protection, leveraging proprietary and differentiated products while investing for future growth.

With our 2 manufacturing production facilities, and 8 R&D centers in India, we are expanding R&D footprint to build world-class research bases, supply chains, digital capabilities, and manufacturing and supply chain capabilities. 

As part of its 3D Reform Agenda, Corteva supports crop protection registration regulatory reforms, advocating for a predictable, science-based regime to expedite the introduction of new age molecules to farmers. Corteva's leadership in CRISPR gene editing for agricultural products, particularly in row crops like corn, soybeans, sorghum, and canola, underscores its commitment to sustainable innovation with 100% of Corteva's current seeds pipeline meets sustainability criteria, with a commitment that all newly developed solutions will meet sustainability criteria tied to UN Sustainable Development Goals by 2025.

With sustainability at the core of our business, we recognize making it central to every aspect of its operations, from Discovery to Launch. Through climate-positive solutions like Direct Seeded Rice practices, Corteva is not only enhancing farmer profitability but also contributing to water conservation, soil health improvement, and reduced greenhouse gas emissions.  

How has the company adapted to changing market conditions and evolving consumer preferences?

As market dynamics shift and consumer preferences evolve, Corteva has consistently innovated its product portfolio to meet emerging needs. Corteva has invested in digital agriculture tools, precision farming technologies, and biological solutions that align with consumer demands. By incorporating these innovations into our product offerings, we ensure that farmers have access to cutting-edge solutions that enhance productivity while minimizing environmental impact.  

Looking ahead, Corteva's future product roadmap is likely to focus on continued emphasis on sustainability and environmental stewardship, with an increased focus on developing products that support regenerative agriculture practices, enhance soil health, and reduce greenhouse gas emissions. Additionally, we are looking at investing further in digital agriculture solutions, leveraging data analytics, AI, and IoT technologies to optimize farm management practices. Furthermore, we may expand our portfolio of biological solutions, biopesticides, and bio-based inputs. Advancements in gene editing technologies, such as CRISPR, will enable us to develop crops with improved traits and characteristics, further enhancing productivity and resilience in the face of changing climatic conditions.

How are you planning to leverage digital technologies to optimize your processes and better your overall operational capacities?     

Over the years, the Corteva Global Services Center (CGSC) has evolved into a vital support hub, playing a pivotal role in our organization's transformation journey. CGSC serves as an extension of our line organization, supporting critical processes with a significant business impact. Many employees within the GCC hold significant roles such as Country Controller and Global Process Owners, responsible not only for service delivery but also for defining processes and policies within their respective areas. Technology plays a pivotal role in maximizing efficiency and driving value for our finance and tax functions. 

CGSC is deeply involved in Corteva's digital adoption and transformation journey. We have already automated transactional and repetitive processes, as well as certain client interaction processes, using technologies like workflows and chatbots. Looking ahead, we aim to further digitize and automate standardized processes to deliver greater business value. Our success is measured not just in terms of cost and speed, but also in terms of the business impact we make, end-to-end ownership of our work, and the level of partnership we have with global functional and business teams.

Overview of the company's sustainability initiatives and how do you plan to reduce your environmental impact while still delivering value to customers and shareholders?

Corteva’s sustainability efforts are guided by four key goals: Sustainable Innovation, Biodiversity, Greenhouse Gas Emissions, and Inclusion, Diversity & Equity (ID&E). By 2025, every new product we develop will meet or surpass sustainability criteria tied to UN Sustainable Development Goals. We aim to ensure that each product not only meets baseline sustainability requirements but also delivers notable sustainability advantages across its lifecycle, compared to existing products. 

We recognize that sustainability is not just a moral imperative but also a business imperative. By proactively addressing environmental challenges, we mitigate risks, enhance operational efficiency, and unlock new growth opportunities. Ultimately, our sustainability initiatives are not only about reducing our environmental impact but also about creating shared value for all stakeholders, including customers, shareholders, and society at large.

New areas which are opening up for seed & crop protection companies and what's the role that you foresee for your company?  

Seed and crop protection companies are venturing into new areas to address evolving challenges. These include sustainable agriculture, where there's a growing emphasis on environmentally responsible practices and products. Additionally, digital agriculture is transforming industry, biologicals and biotechnology are also gaining traction, offering safer and more sustainable alternatives to traditional pesticides and fertilizers. Companies are focusing on developing crops and solutions that can withstand changing environmental conditions. 

With this in mind, Corteva is leveraging its extensive R&D capabilities, global presence, and strong partnerships. By delivering solutions that address these emerging areas, Corteva will continue to provide value to farmers, consumers, and the environment while fostering sustainable growth and innovation in the agricultural industry.

Major CSR initiatives planned by the company in 2024? 

Corteva’s multi stakeholder partnership with Water Resource Group is implemented in Uttar Pradesh to convert 40,000-acres of rice farmland towards DSR in 3 years. This will result in a 30% reduction in water utilization, GHG emissions and labor requirement making rice farming sustainable and higher ROI for rice farmers. 

Our flagship initiative – AcreNext makes rice farming sustainable without exerting pressure on climate & resources. We work with primarily smallholder farmers growing rice in Punjab, Haryana, MP, Bihar & Jharkhand with focus on reducing water, fuel suage, GHG emissions, manual drudgery while improving soil health, resulting in ~10% increase in income.

 Corteva Agriscience Scholarship Program is an initiative of Corteva Agriscience India Pvt. Ltd. that aims to provide financial assistance to meritorious students to pursue post-graduation or doctoral courses in the area of Agriculture. Under this scholarship program, female students pursuing studies in any year of post-graduation or PhD programs in streams such as Home Science, Biotechnology, Entomology, Breeding, etc. will be awarded with a scholarship amount of Rs. 50,000 to cover their academic expenses.160 meritorious female students awarded scholarship. Out of the 80% were from farming families and 78% had family income less than Rs. 1 lakh per annum.