Address by Dr. Jochen Wulff, Chairman of the Board of Management, Bayer CropScience AG

September 3, 2003

continued from page 3

The Crop Science industry has been undergoing a massive, worldwide consolidation process in the last 15 years. In 1990, 13 firms with global research and development activities were still operating in this field - among them well known players such as Shell, American Cyanamid, Sandoz, Ciba, Hoechst, Schering, ICI and Rhone Poulenc. Today, just six companies represent a combined market share of over 80 %.

The major drivers of this global consolidation process have been a very competitive market with limited growth perspectives, constantly growing regulatory requirements and the substantial R&D investment necessary to maintain a competitive platform for innovation.

Bayer, in the past, did not participate in this consolidation and consequently fell behind in the ranking of global companies. By acquiring Aventis CropScience, we regained our position among the leaders of our industry, fulfilling one of Bayer's key strategic objectives.

The demands of a growing world population for food, feed and fiber require world agriculture to produce higher yields from less cultivated land. Improving the productivity of existing agricultural systems without compromising long-term ecosystem health presents a key global challenge, which must be met if we want to ensure long term food security for all.

Sustainable Development requires a major contribution from agriculture, as stipulated in the Rio Conference in 1992 and reinvigorated at the World Summit in Johannesburg exactly a year ago.

Responsibility for implementing Sustainable Agriculture must be shared between different stakeholders. We are therefore convinced that public-private partnerships as a framework for multi-stakeholder approaches are the way forward to enhance further progress, as no one has all the necessary information or carries out all the labor.

At the same time, we need locally adapted approaches to Sustainable Agriculture, as no single, ready made solutions for all exist. The approaches must offer consumers the choice and farmers the flexibility to employ the most suitable combination of available tools and strategies to meet their needs within the conditions in which they operate. Where appropriate, integrating proven traditional methods with the use of innovative technologies will lead to optimized agricultural productivity.

We at Bayer CropScience are firmly committed to promoting Sustainable Agriculture that ensures an appropriate balance between economic viability, environmental responsibility and social acceptability. Our technology solutions help farmers improve productivity to meet the food, feed and fiber needs of a growing world population.

The implementation of Sustainable Agriculture is highly dependent on a supportive socio-economic and political framework that ensures access to the markets that value the quality of agricultural produce.

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