Interview with KWS Executive Board member Peter Hofmann

1) Mr. Hofmann, agriculture is undergoing constant change. What contribution can plant breeding make?

Plant breeding plays a key role in solving the challenges global food systems are facing. KWS is aware of this responsibility, and we see it as our goal to develop high-performance varieties that further increase agricultural yields under difficult conditions while simultaneously conserving resources. The basis for this is our forward-thinking research and breeding work, in which we invest a significant proportion of our turnover every year – around 326 million euros in the last financial year.

5) It takes an average of ten years for a new variety to find its way onto the market: plant breeding is a lengthy process. At the same time, external conditions are changing rapidly. How do we deal with this contrast as a company?

As plant breeders, we look far into the future, making strategic investments today that aim to deliver success in 10 to 20 years. Current innovations such as CONVISO® SMART and CR+, whose development we initiated in the early 2000s, are a good example. There’s a good reason why foresight is our daily business and a core value at KWS. In order to sharpen our focus on future requirements for our seeds, we seek closeness to farmers from all markets and incorporate their individual experiences.

7) Let’s take a look at the economic development in fiscal year 2023/24, in which KWS generated net sales of 1.68 billion euros. How do you view the result?

We can look back on a very successful financial year in a challenging market environment. In the sugarbeet segment, we achieved record sales of over 860 million euros. As expected, cereals and oilseed rape also performed very well, leading to an increase in segment sales of almost 12% from 247 to 276 million euros. In corn, we fell short of our plans, mainly due to weak business in North America. The sale of our corn business in South America and China represents an important milestone. The latter took place against the backdrop of changed regulatory conditions in China and contributed approx. 28 million euros to the segment result of 39 million euros. In the new vegetables business division, whose sales are currently being driven by our strong spinach and bean portfolio, we have continued to expand our breeding activities for tomatoes, cucumbers, peppers, watermelons and melons. In a few years, we will launch our first own varieties, but there is still a long way to go before we become a significant market player in this segment (further information on the segment results).

9) Not only agriculture, but also plant breeding is subject to political regulation. What do the EU’s plans to deregulate “new breeding methods” mean for KWS?

New breeding methods such as genome editing are significant because they can be used to accelerate the integration of specific new traits – such as resistances – into high-performance varieties. They are an important tool in the breeder’s toolbox, especially since chemical solutions for pesticides are being discontinued. And finally, deregulation would strengthen the competitiveness of European plant breeding.

11) One of the future fields mentioned is the market for vegetable seed, in which KWS has been active since 2019. What goals have we set ourselves here?

While our entry into vegetable breeding is bold, it is the right step which we are able to take thanks to our family-oriented shareholder structure. It enables us to diversify our portfolio and build our business on additional pillars. The long-term goal is to become a significant player in the market, which, given the trend towards sustainable and healthy nutrition, offers good growth prospects. Our approach is based on three pillars: Organic growth through the development of our own breeding activities, the sale of licensed-in varieties, and targeted acquisitions.

13) What other goals has KWS set itself for the future?

Our portfolio has grown continuously in recent years, which increases the importance of a clear focus on our strategic targets. In addition to expanding the vegetable segment, we are also focusing on further strengthening sugarbeet cultivation through innovations, establishing hybrid crops for barley and wheat, and driving forward the development of high-quality hybrid potato seed. The basis for KWS’s current and future success is the high quality of our products. This is why we will continue to invest in research and development in the long term and thus in our ability to innovate. This is what “Seeding the future for generations” means for us.