Vilmorin & Cie - Annual report 2017-2018

ANNUAL REPORT Vilmorin & Cie 105 2017-2018 4 795 million (1) people today suffer from hunger in the world, and more than two billion (1) frommalnutrition. At the same time nearly two billion (1) adults (over 18 years of age) are overweight, in particular because of an unbalanced and excessively abundant diet. 600 million (1) of them are classified as obese (BMI > 30). It will also be necessary to feed an ever-growing world population: nearly 10 billion people in 2050 (8.3 billion by 2030 (1) ) and support the nutritional transition while respecting culinary traditions and food balances. To meet this challenge, agricultural production must increase 70% by 2050 (2) , not only in quantity – but also in quality and diversity, which means increasing yields, optimizing land use and enhancing agricultural value chains. For Vilmorin & Cie, whose primary vocation is to contribute to meeting these global food challenges, innovation is the foundation of performance and competitiveness. Innovation must also make it possible to promote the coexistence of all forms of agriculture in a balanced and diversified combination. Thus, in 2017-2018, Vilmorin & Cie devoted 16.2% (3) of its professional sales to research, which mobilizes 29% of the group’s workforce. For Vilmorin & Cie, innovation is primarily concerned with the creation of efficient varieties in more than 60 vegetable and field seed species. Scientific progress, particularly in genetics, has enabled rapid and useful advances to be made in plant breeding. Breeding* teams work every day to create varieties that meet the expectations of farmers and growers, regardless of their farming system, their problems and their geographical region. They thus select more productive varieties, better adapted to the climates and specificities of the different regions, more resistant to diseases and insects, while having optimal nutritional qualities. These new varieties provide solutions for producers and contribute to improving the economic performance of farms. Vilmorin & Cie also includes in its research new agronomic practices, linked to new technologies, especially those resulting from digital technology. Precision farming, which makes it possible to complete the farmer’s perception and experience in order to model them in the form of data, is an important area of work. Research is also being carried out on the knowledge and protection of soil and the use of biological control techniques. By helping agriculture to become both more productive and more environmentally friendly, Vilmorin & Cie will be able to contribute to the development of a sustainable and competitive model, and play a role in meeting food challenges. The specific features of Vilmorin & Cie’s development model and a detailed presentation of research are described in Part 1 from pages 33 and 38. 4.2.1. Developing high value-added plant and crop solutions In the coming years, agriculture will have to face up to a convergence of major global challenges: a rising population, increased competition for access to constantly diminishing water and energy resources, and climate change, etc. Vilmorin & Cie’s major contribution as a seed company is to improve its responsiveness and capacity to develop adaptable crops. Thus, within the group, the breeders’* work allows cultivated varieties to adjust with great reactivity to agricultural ecosystems and their constraints (climate, soil quality, etc.). They create tomorrow’s varieties, varieties that meet the performance needs of farmers, develop biodiversity within each of the species being worked on and preserve the environments in which they will be grown. In 2017-2018, Vilmorin & Cie launched 331 new varieties on the market, including 227 varieties of vegetable seeds and 104 varieties of field seeds. In total, more than 5,000 varieties, covering more than 60 plant species, are marketed by Vilmorin & Cie worldwide. 4.2.1.1. Vilmorin & Cie’s contribution to vegetable seeds With ADORA, the Business Unit HM.CLAUSE is launching more than just a new tomato. In October 2017, HM.CLAUSE launched the tomato ADORA. A descendant of the “Noire de Crimée” and the “Marmande” , the tomato ADORA has the shape of a traditional marmande, a dark color on the outside and red on the inside, a tangy taste and a soft texture in the mouth. ADORA is a response to consumer trends for “authentic” and tasty varieties, which consumers value, while allowing tomato producers to diversify their production. 4.2. Proposing innovative and responsible agri-food solutions (1) Source: FAO. (2) Source: FAO and IFPRI Impacts. (3) Data calculated from the sale of seeds for activities intended for professional markets and integrating 50% of AgReliant’s activities (North America. Field Seeds). Key figures Vilmorin & Cie devotes more than 20 million euros every year to the preservation of the genetic diversity of the species it works on. For corn in Europe, this represents 30,000 varieties (lines and populations) kept in the group’s collections. 331 varieties of vegetable and field seeds were launched on the market in 2017-2018. 4.2. Proposing innovative and responsible agri-food solutions Social, environmental and societal INFORMATION

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