Bayer to invest 3.4B Euros in agriculture R&D

(Reuters) MONHEIM, Germany, Sept 4 - Germany's Bayer CropScience <BAYG.DE> plans to invest 3.4 billion euros ($5 billion) in research and development through 2012 to strengthen its grip on the near 50 billion euros agrochemicals and seeds industry.
 
"We want to secure an above-average share of this market growth," Bayer CropScience Chief Executive Friedrich Berschauer said in a statement on Thursday.

The company, the world's biggest supplier of insect killers, said it has also set a new goal to bring 10 new compounds with combined peak sales potential in excess of 1 billion euros to the market between 2008-2012.

Bayer CropScience tops industry spending for research and development. New compounds often bring more lucrative margins than older products.

In addition, Bayer CropScience said its initial sales target of 2 billion euros from new compounds -- set in 2000 -- could now be reached in 2009 instead of 2011.

Bayer CropScience, like its top agrochemicals rivals, is thriving on strong commodity prices that have led farmers to use more crop-protection chemicals to boost output.

Bayer CropScience, which is also a top player in fungicides and herbicides, also said it plans to raise its prices again in the second half due to rising energy and raw material costs.