“We want to create the right conditions for competitive plant breeding and development, particularly for our Nordic domestic market, which has special conditions that we need to take into account. This partnership will ensure the long-term development of Lantmännen’s plant breeding operations. Lantmännen will also gain access to Syngenta’s knowledge and wheat network. All of this work will ensure that conditions remain as good as possible for our Swedish farmers,” says Johan Andersson, Head of Sector at Lantmännen Lantbruk.
This transaction will give Lantmännen the right to market and sell cereals and winter oilseed rape varieties from Syngenta in its domestic market. An R&D partnership will also be set up for wheat. Lantmännen will continue the breeding activities in Sweden and Holland in winter and spring wheat, spring barley, oats, triticale, spring oilseed rape, forage crops, willow and potatoes. Lantmännen will also continue to market seeds of these crops in Sweden as well as the international markets.
“Collaborating on joint projects will provide each other with technologies and allow us to develop different R&D projects, for example, winter hardiness and disease resistance. This is important if we are going to develop sustainable crop production that can meet the future needs for greater efficiency and are adapted to the climate changes that are expected,” continues Johan Andersson.
The plant breeding sector needs to increase its investments in development. The investments involved are extensive and long-term, which is placing greater demands on individual companies. This is therefore resulting in more alliances and partnerships. It has also led to a major structural change and consolidation in the industry.
“Strategic partnerships are something we are looking for to help us increase our flexibility and successfully develop our product portfolio for the market. It is important to work with companies in this area if we want to strengthen Swedish breeding, as competition is really tough at the moment,” says Johan Andersson.
Employees who work for Lantmännen Lantbruk in Poland and Germany will now become employees of Syngenta. This change will affect approximately 70 employees.
The transaction is subject to obtaining approval by the German competition authority (Bundeskartellamt), and is expected to close in July 2014.
For more information, please contact:
Johan Andersson, Head of Sector at Lantmännen Lantbruk, +46 (0)706 294 020