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Press Releases • November 7, 2016

Bayer, Braskem and Pacifil Brasil announce partnership for Brazilian agribusiness

The silo bag - a solution for grain storage - is now offered as a benefit for rural producers in a loyalty program

Brazilian agribusiness now has another alternative to address the well-known problem of grain storage. The partnership signed between Braskem, the largest producer of thermoplastic resins in the Americas, and Bayer, a manufacturer of agricultural inputs, makes the bag silo service, manufactured by Pacifil, available to producers through the Bayer Points Program.

With the high yield in the field, Brazilian agribusiness is negatively affected by the lack of infrastructure to store grain, since conventional silos - made of metal and bricks - have high installation costs and require significant investments. That has given rise to the idea of including the bag silo - a flexible plastic tube - in Bayer's relationship program. "In this scenario, this tool appears as a viable solution from both a technical and economical standpoint, as it is easy to install and reduces operating costs, speeding up harvest logistics and improving storage capacity. Furthermore, it allows the sorting of grains according to their characteristics and quality, which facilitates marketing," said Gustavo Borrat Bazzano, Commercial Director of Pacifil.

According to Ivan Moreno, Director of Market Access at Bayer, the partnership emphasizes, in particular, the importance of integrating agribusiness links and the idea of joining them to the network to build a stronger sector. "Given that grain storage logistics is one of the main difficulties for farmers, this type of service provides a mechanism for escaping the volatility of the market, as producers are able to store the produce and market it at a time when the sector is more profitable. The executive also adds that the silo bags reduce the cost of outsourced storage and help farmers perform a better management of the harvest business.
In 2016, Bayer's Points Program celebrated one year of activities and reached the milestone of over one billion points redeemed by more than 70,000 registered Brazilian producers. Its operation is simple: farmers who buy agricultural inputs from distributors add one point to each R$1 invested in products, being able to exchange them for agricultural products and services.

For seven years, Pacifil and Braskem have been working on developing solutions for agribusiness, one of the main petrochemical business sectors. "By ensuring grain storage, the silo bag silo allows farmers to choose the best time to market the produce and maximize financial results. The Loyalty Program is yet another channel that facilitates producer access to this excellent storage solution," said Ana Paiva, from Braskem's Agribusiness Market Development area.

The silo bag is a flexible polyethylene tunnel, measuring 2.75 meters in diameter and up to 100 meters in length, which creates an oxygen-free atmosphere that prevents the development of pests and insects, maintaining the quality of the product stored. Each bag holds up to 200 metric tons and can be installed on the farm itself. The solution has been used for decades in countries such as the United States, Uruguay and Argentina, where it is responsible for the storage of 45-50% of the country's grain production.

Bayer: Science for a Better Life

Bayer is a global company focusing on Life Sciences in the areas of human, animal and agricultural healthcare. Its products and services are developed to benefit people and improve their well-being. In addition, the Company aims to create value through innovation. Bayer is committed to the principles of sustainable development and its social and ethical responsibilities as a citizen company. As of 2015, the Group employed roughly 117,000 people and achieved ?46.3 billion in sales. Investments totaled ?2.6 billion and R&D expenses were ?4.3 billion. These figures include the high-tech polymer business, which were launched on the stock market as an independent company named Covestro, on October 6, 2015.
For more information on the Crop Science division, please visit our website (www.bayer.com.br) and our channels on social media: Facebook (www.facebook.com/BayerCropScience.BR); Twitter (Bayer4CropsBR); and YouTube (www.youtube.com/BayerCropScienceBR).

About Braskem

Braskem is the largest manufacturer of thermoplastic resins in the Americas, with an annual output of over 20 million metric tons, including other basic chemical and petrochemical products, with an annual revenue of R$54 billion. With the aim of improving the lives of people, creating sustainable solutions in chemistry and plastics, Braskem is present in over 70 countries, with 8,000 members, and operates 40 industrial units located in Brazil, the United States, Germany, and Mexico - the latter in partnership with the Mexico-based company Idesa.

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