Syngenta Annual Review 2010 - CEO Water Mandate

Syngenta
Annual Review 2010
Chairman’s letter
02
Meeting
the
challenge
“The central facts are these: every year the planet
has 80 million more mouths to feed; population
growth is overwhelmingly in the emerging markets;
and by 2050 over 70 percent of the world’s
population will live in urban areas.”
As the dust settled after the financial crisis of 2009,
it became clear that the economic center of gravity
had shifted markedly to the so-called developing
countries of Latin America and Asia. The acceleration
of this long-term, structural change was particularly
notable in agriculture where growth in emerging
markets significantly outpaced the advanced markets
of North America and Western Europe. Syngenta
was extremely well placed to capture these growth
opportunities and capitalized on the investments
made in these regions over the past few years.
The inexorable growth in productivity, population
and prosperity in these countries led, in part, to
the upward pressure on global commodity prices,
including staple food crops. In addition, drought in
Russia led to an export ban on wheat which propelled
the price significantly higher in the second half of
the year. Supply concerns in corn and soybean
compounded the problem such that grain prices
ended the year some 50 percent higher than they were
at the end of 2009. This, once again, caused concern
amongst policy makers and other stakeholders and
reignited the debate about global food security.
The central facts are these: every year the planet has
80 million more mouths to feed; population growth
is overwhelmingly in the emerging markets; and by
2050 over 70 percent of the world’s population will
live in urban areas. The one variable that will not grow,
however, is the planet’s natural resources – these are
finite and in some cases actually shrinking. The key
question, therefore, is how to address this apparently
insoluble problem?
The answer lies in innovation and collaboration.
Innovation in bringing new technologies and business
models to life, and collaboration between each
member of the food value chain to bring their skills,
resources and capabilities to tackle the problem. At
Syngenta, we believe our unique contribution lies in
innovation through integrating our technologies. By
doing so we believe we can discover products that
have the attributes of enhancing calories produced
per acre; protecting and maximizing the earth’s natural
resources and ensuring that rural communities remain
vibrant and economically viable.
1. 2.
1
Speaking at the UNCTAD
World Investment Forum
in Xiamen, China, on
September 7, 2010,
involving global leaders
from many countries
around the world.
2
Touring field trials carried
out by the Pathumthani Rice
Research Center. The
Syngenta team in Thailand
cooperates closely with
the Department of Rice on
rice productivity.