1. Contributions to African agricultural growth by transnational corporations Brussels, June 26 th 2012 Dr. Martin Märkl

2. Performance of cereal production in Sub-Sahara 0 500 World 1961196719731979198519912003 South Asia Sub-Sahara Africa Source: FAO, 2006 1997 All Developing 1,000 1,500 2,000 2,500 3,000 3,500 Africa is far from being sufficient to match the demand of a growing population (1961–2003) Page 2 Dr. Martin Märkl Brussels June 26th, 2012

3. Investments in agriculture to leverage rural development and food security Increased investment in agriculture in Africa Investment in agriculture will be most efficient when it promotes income-generating opportunities for farmers: evolution of ‘agripreneur’ Page 3 Donor spending on agriculture and rural development has increased in recent years A large and increasing share is still devoted to short-term food aid interventions Eight (out of 45) countries reached target of 10 % of total public expenditure on agriculture in 2009 Dr. Martin Märkl Brussels June 26th, 2012

4. Sustainable intensification of agriculture requires an holistic approach Key elements for a sustainable intensification of agriculture Rise in agricultural productivity on arable land already in production in sub-Saharan Africa only 22 percent of potentially arable land is under cultivation* Resource efficiency: water, soil, agricultural inputs Reduction of pre- and post-harvest losses; need for innovation to address logistics as well as resistance issues Page 4 * FAO, 2012, 100 days to Rio +20, 100 facts Dr. Martin Märkl Brussels June 26th, 2012

5. Sustainable intensification of agriculture requires an holistic approach Key elements for a sustainable intensification of agriculture Investment into the seed sector, promotion of hybrid seed dissemination Increase in mechanization to address labor shortage Enhanced education in science to ensure talented employees of the future Higher investments in agriculture in emerging markets, despite higher volatility of commodity markets Better coordination of public and private investments in agriculture Page 5 Dr. Martin Märkl Brussels June 26th, 2012

6. Data from FAO 2007 Yield (t/ha) China India Others Indonesia Egypt USA Japan Vietnam Bangladesh Thailand Myanmar Philippines Brazil Pakistan Production (in million tonnes) 20406080100120160140180200 Investment into the seed market is a key driver for agricultural productivity 55% of acreage in hybrid rice 3% of acreage in hybrid rice The potential of seed technology towards a sustainable intensification of agriculture: hybrid rice Production (in million tonnes) Page 6 Rice Average Yield (4.2 t/ha) Dr. Martin Märkl Brussels June 26th, 2012

7. Sustainable Economic OpportunitiesIbrahim Index for Sustainable Economic Opportunities Basic Market CharacteristicsAgricultural GDP Growth Maturity of IP Laws and enforcement Level of domestic agricultural spending Geopolitical factorslevel of trade barriers Infrastructure, irrigation & soil management km of rail road tracks per area in use irrigated land per area in use Productivity on the farmfertilizer use intensity Criteria driving the market attractiveness for private sector investments in agriculture Page 7 Metrics (selection) Market driver Dr. Martin Märkl Brussels June 26th, 2012

8. West Central Africa expansion in Ivory Coast, Senegal, Mali and Burkina Faso mainly in cotton, rice and corn East Africa expansion into Ethiopia and Tanzania, e.g. with cereals and rice, later with sugarcane & cotton Southern African push of innovation also in Malawi and Zambia; further growth potential in Angola, Mozambique and Zimbabwe Cooperation with GIZ, BMGF, IFC (still in exploration phase) Bayer has a well established market position to be expanded further into selected markets MA ALG TUN Mali SN TGTG GH Nigeria BE CI BF CM Sierra Leone Egypt Ethiopia Kenya Tansania Mozambique Malawi Zimbabwe Zambia Angola Liberia South Africa Opportunity Exploration Minor Markets Core Business Page 8 Dr. Martin Märkl Brussels June 26th, 2012

9. Page 9 Metrics (selection) Market driver Dr. Martin Märkl Brussels June 26th, 2012

10. Grow Africa is a partnership platform that seeks to accelerate investments and transformative change in African agriculture based on national agricultural priorities and in support of the Comprehensive African Agricultural Development Programme (CAADP) Grow Africa has a catalytic role: Increases private-sector investments Enables multi-stakeholder partnerships Expands knowledge and awareness of best practices and existing initiatives Participating countries: Burkina Faso, Ethiopia, Ghana, Kenya, Mozambique, Rwanda, Tanzania Page 10 Dr. Martin Märkl Brussels June 26th, 2012

11. Small scale farmers are the back-bone of African Agriculture The public and private sector need to jointly generate business opportunities for small scale farmers and to facilitate a fair distribution of risks and benefits along the value chain Moving from a government controlled system financed by donors towards a system which encourages private sector investments The productivity gap of small scale farmers offers the biggest opportunity for agriculture in Africa Page 11 Dr. Martin Märkl Brussels June 26th, 2012

12. Thank you very much for your kind attention