Bayer signs MOU with Asian drone service provider XAG

March 04, 2020
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Bayer and XAG aim to target smallholder farmers in Southeast Asia and Pakistan by developing country-specific service models. XAG is already established in China (20 million hectares serviced) and has its own RTK network in place. This partnership will compete with that of Syngenta and DJI, but XAG is likely looking at many partners. While it remains unclear if these services will be priced compatibly for smallholder farmers, the growth of XAG throughout China supports the possibility. The pair plan to innovate formulations to reduce drift, decrease volumes, and expand active ingredient compatibility. Clients, this is a strong move into drones by Bayer and is quickly commercializable given XAG's resources; cost and model remain issues.

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