Bayer, Monheim, Germany, has entered an exclusive licensing agreement with RAGT, a leading company in the European wheat seed market, advancing plans to commercialize hybrid wheat seed in Europe and North America by the early 2030s.
Hybrid wheat represents a large, untapped opportunity among the world’s most widely grown food crops, and Bayer targets annual revenue of up to 1 billion euros just over a decade after launch. The move is part of Bayer’s growth strategy to expand its portfolio through hybrid wheat.
The new agreement with RAGT strengthens Bayer’s position in Europe by providing broad licensing of elite wheat germplasm tailored for European environments. This gives Bayer a foundation to expand its breeding program based on its longstanding hybrid wheat research and development efforts to develop products intended to improve productivity and sustainability for farmers facing challenging weather and growing conditions.
“Wheat is one of the most important staple food crops in the world. But wheat production has stagnated and is coming under pressure from prolonged drought and heat waves, such as the one we just experienced in Europe. At the same time, hybrid wheat varieties are still not widely available,” said Peter Mueller, cereals, cotton, canola/OSR and biofuels lead at Bayer’s Crop Science division.
“Our deal with RAGT is about to change that. Combining RAGT’s top-performing germplasm and know-how with our breeding capabilities will significantly boost and expand our pipeline of hybrid wheat varieties, allowing us to compete in a rapidly evolving market. With the North American program in full gear, we will deliver higher value to growers on both sides of the Atlantic.”
Sébastien Chatre, head of research and development at RAGT, added, “We’re very excited about the potential of this broad licensing agreement with Bayer, as it represents a significant step in RAGT’s commitment to innovation in wheat breeding. By sharing our expertise, we can accelerate the development of hybrid wheat solutions that will benefit the entire market and meet the evolving needs of farmers and the seed industry.”
For the European market, Bayer will focus on winter wheat. In North America, the company will introduce both spring and winter wheat, building on its WestBred wheat franchise. In both Europe and the United States, the genetic material Bayer uses for breeding has the potential to fit in more than 80% of wheat acreage, spanning countries across Europe and multiple wheat classes in the United States. Bayer’s position in wheat crop protection, customer relationships, access to elite germplasm for Europe and North America, precision breeding capabilities, seed production know-how, and digital and agronomic expertise are intended to help the company build a competitive wheat production system for farmers.
Hybrid wheat to deliver higher yields
Hybrid wheat seed can increase yields by 10% compared with conventional open-pollinated wheat from the early stages of adoption, with additional yield gains expected over time.
Additional benefits for farmers include greater reliability and robustness because hybridization can enhance root systems and promote faster crop establishment, potentially leading to improved disease, weed and pest tolerance, along with greater resilience to drought and heat.
Because wheat hybridization remains largely untapped, investing in hybrid wheat presents an opportunity for growth and enhanced food security, Bayer said in the release. As the world’s No. 1 food crop, wheat covers more than 220 million hectares globally and feeds about 30% of the world’s population, making it an essential source of calories and a staple crop in efforts to combat hunger.
With climates in wheat-growing regions becoming hotter and drier, demand continues to increase for resilient hybrid seed that offers higher and more stable yields, the company said.
For more information, visit www.bayer.com.
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