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Singapore, February 25, 2020 – Bayer and XAG today announced a strategic partnership to bring, promote and commercialize digital farming technology in Southeast Asia & Pakistan (SEAP). The collaboration was formalized with the signing of a Memorandum of Understanding (MOU) between the two companies. Bayer was represented by Andre Kraide, Country Head for SEAP, while XAG was represented by its Co-founder, Justin Gong.
The collaboration will enable smallholder farmers in SEAP access to digital farm management know-how and technology, and help them overcome their farming challenges including labour shortage, water availability, product stewardship and safe use, and most importantly, allowing them to grow more with less.
“It is estimated that around 500 million smallholder farmers produce 80 per cent of the food consumed in the developing world,” said Andre Kraide, Country Head of Southeast Asia & Pakistan, Bayer. “We know that we need to double food production to feed 10 billion people by 2050, but we also know that we will not get more land or resources to do so. This is where digital farming comes into the picture.”
“As the leader in agriculture, Bayer is committed to enabling smallholder farmers access to digital technology and solutions. We look forward to working closely with XAG, our channel and value chain partners, as well as the governments and other key stakeholders in the countries to leapfrog the smart agricultural movement in Southeast Asia and Pakistan from farm to table,” he added.
Under the agreement, Bayer and XAG will jointly explore commercial collaboration in SEAP, including the distribution of XAG products and solutions through Bayer’s channels, as well as joint promotion and market development efforts including establishing channel service providers with local business partners in the countries.
The collaboration in SEAP follows an earlier partnership between Bayer and XAG in Japan, which was announced in Tokyo in October 2019. Under the agreement, the two companies commit to work together on optimum spraying solutions that combine unmanned aerial system (UAS) with innovative formulation technology.
Enabling smallholder farmers in SEAP through technology key to food security
Key countries in SEAP including Thailand, Vietnam and Pakistan have been the leading exporters of rice in the region, while on the other end of the spectrum, others such as Indonesia, Philippines and Singapore have been striving towards self-sufficiency.
Robust demand for corn as both food and feed has also seen an increase in corn imports to supplement domestic production in SEAP. Vietnam and Malaysia lead the region in corn imports, driven by strong consumer demand for pork and poultry, respectively.
Despite the diversity in the region, they all boast a unifying trait – which is that almost all the agricultural production in these countries are undertaken by smallholder farmers.
“XAG has grown from a drone manufacturer based in Guangzhou, China, to the world’s leading agriculture technology company with a 20 million-hectare crop protection service record. Our product portfolio includes survey and spray drones, agricultural utility vehicles, and IoT equipment such as weather stations and farm cameras,” said Justin Gong, Co-founder of XAG.
“By the end of 2019, we launched our robotics and software solutions, and enriched smart agriculture ecology of XAG. We are proud and excited to collaborate with Bayer to bring integrated tailored solutions that leverage drones, artificial intelligence and IoT, to help smallholder farmers in Southeast Asia and Pakistan tackle their pressing agricultural challenges.”
Following the signing of the MOU, Bayer and XAG will work together on country-specific commercial agreements over the next few months.
Bayer is a global enterprise with core competencies in the life science fields of health care and nutrition. Its products and services are designed to benefit people by supporting efforts to overcome the major challenges presented by a growing and aging global population. At the same time, the Group aims to increase its earning power and create value through innovation and growth. Bayer is committed to the principles of sustainable development, and the Bayer brand stands for trust, reliability and quality throughout the world. In fiscal 2018, the Group employed around 117,000 people and had sales of 39.6 billion euros. Capital expenditures amounted to 2.6 billion euros, R&D expenses to 5.2 billion euros. For more information, go to www.bayer.com.
About Crop Science
In the area of agriculture, at Bayer, we firmly believe farmers need innovation not only to grow enough, but to grow better for our planet and its people. We have leading research capabilities in bio-technology, crop protection, and data science to deliver tailored solutions to farmers faster than ever before. We seek digital tools that help drive innovation, and we collaborate with external partners so we can create lasting change for people and the planet.
We believe every investment in innovation should also be an investment in sustainability. We are equally committed to helping reduce our environmental impact, as well as improving the lives of smallholder farmers. Our long-term success as a company lies not in selling more products, but in providing farmers with the best tools and solutions so they can achieve better harvests using less water, land, and energy.
To learn more about Bayer’s vision of modern agriculture, visit www.cropscience.bayer.com.
XAG was founded in 2007, committed to the development and implantation of agricultural technology. It is one of the world's leading UAS (Unmanned Aerial System) R&D manufacturers and a smart agriculture solution provider. Headquartered in Guangzhou, XAG consists of XAG MANUFACTURE, XPLANET, XGEOMATICS, and XAG ACADEMY. Meanwhile, XAG has set foot in 42 countries, set up laboratories and research stations in 20 countries, including Australia, Japan, Germany, etc., and participated in a number of frontier agri-tech projects.
Partnering with many influential international enterprises, XAG aims to provide global farmers with the best local solutions ranging from plant protection, crop monitoring and farm management. With the joint efforts of more than 1,400 employees in R&D, manufacturing and application fields, XAG has successfully blazed a trail in Smart & Sustainable agriculture.
This release may contain forward-looking statements based on current assumptions and forecasts made by Bayer management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Bayer’s public reports which are available on the Bayer website at www.bayer.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.
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