Cheminova First Half 2007 Results

Over the first six months of this year, Cheminova’s sales decreased modestly by 0.9% to reach DKK 2,089 million. The company’s sales were negatively affected by a difficult market situation in Brazil, the USA and India, as well as industrial action at the company. This was slightly offset by stronger sales in several European markets, particularly Spain, the UK and Russia.
Operating profit was DKK 74 million, a 54.6% decrease on the first half 2006 figure of DKK 163 million.

Sales of Cheminova’s cotton insecticides did not meet sales expectations as growers shifted from cotton to maize in the southern states of the USA, resulting in a significantly reduced cotton planted area. Low levels of insect infestation in the USA and a late start to the season also negatively affected organophosphate insecticide sales, with the result that the proportion of total sales attributable to these products declined from 24% of turnover in the first half of 2006 to under 22% in the current period. Sales of new insecticides and pyrethroids increased slightly but not by as much as the company expected.
In Europe, sales of fungicides improved due to the early, warm spring. However, sales of fungicides elsewhere were disappointing, particularly in Brazil where the company’s fungicide flutriafol experienced increased competition from several new products that have been introduced to control Asian soybean rust.
Sales of generic products and third-party products showed steady growth, however the company noted that the timetable for the introduction of new products into the marketplace was being impacted by delays in the regulatory system in the EU.
Cheminova’s parent company, Auriga Industries, announced earlier this year that it was intending to concentrate its future business activities on Cheminova and as a result was looking at opportunities to divest its other businesses, namely Skamol and Hardi. In July this year the company announced the sale of its Skamol subsidiary.

India Approves First Large Trials of GM Crops

India authorities are reported to have approved large-scale field trials for a genetically modified variety of brinjal, the first such trial to be approved on a food crop in India.
The new hybrid variety, which could improve crop yield and allow for reduced application rates of crop inputs, will be one of the latest GM trials to be held in the country.
At present the only GM crop cultivated on a commercial basis in India is B.t. cotton. In October 2006, field trials with B.t. mustard seed were approved, however this is not a food crop.

Germany Approves New Rules for GM Crops

New rules regarding the cultivation of GM crops, which have been authorised by the European Union, have been drafted by the German government.
The new rules state that there must be a 150 metre buffer zone between GM crops and conventional crops, and a 300 metre gap between GM crops and organic crops.
The German parliament hopes that the new rules, if accepted, will provide a legal framework for the cultivation of GM crops. According to the German authorities approximately 3700 hectares of GM maize were planted in the country in 2006.

Monsanto Corn Trait Approved in Brazil

The Brazilian National Biosafety Technical Committee (CTNBio) has approved Monsanto’s MON 810 insect protection event for commercial use on corn in Brazil. The product is marketed in the USA as YieldGard Corn Borer where it was first introduced in 1997.
The Brazilian regulatory process comprises many stages and, although other steps must still be completed, CTNBio’s decision means that the technology is now one step closer to gaining full approval.
In 2006 the total area planted in the US with maize varieties containing the YieldGard Corn Borer trait reached 32.3 million acres, equivalent to 41.3% of the total. Earlier this year Monsanto estimated that the overall area planted with the trait will be of the order of 41-42 million acres for this current season in the USA. In 2006/7, 32.6 million acres of maize were planted in Brazil.