Bayer and RAGT Sign Exclusive Licensing Deal to Accelerate Hybrid Wheat Development
Bayer has signed an exclusive licensing agreement with RAGT to speed up the development and commercialization of hybrid wheat varieties in Europe and North America. The deal gives Bayer access to RAGT's elite wheat germplasm, which the company says could cover more than 80% of wheat acreage in Europe and key U.S. growing regions. Bayer expects hybrid wheat seed sales to reach about €1 billion a year by the mid-2040s.
Exclusive Licensing Agreement
Bayer has signed an exclusive licensing agreement with French seed company RAGT aimed at accelerating the development and commercialization of hybrid wheat varieties in Europe and North America, the companies said in a joint announcement. Under the agreement, Bayer gains access to RAGT's elite wheat germplasm, which has been bred and adapted specifically for European growing conditions.
Bayer said it intends to combine RAGT's breeding material with its own precision breeding program, along with its experience in seed production and digital agriculture technologies. The goal, according to the company's press release, is to build a competitive wheat production system that spans both seed genetics and agronomic solutions for growers.
Regional Focus: Winter Wheat in Europe, Winter and Spring in North America
In Europe, Bayer plans to concentrate primarily on winter wheat varieties. In North America, the company will develop both winter and spring wheat varieties under its existing WestBred brand. Bayer estimates that the genetic material covered by the agreement has the potential to reach more than 80% of wheat-growing acreage in Europe and in the most important production regions of the United States.
Yield Gains and Agronomic Traits
Bayer said the main advantage of hybrid wheat over conventional population varieties will be higher yield potential. The company estimates that its first hybrid wheat varieties could deliver a yield increase of around 10% compared with conventional varieties, with additional gains expected from breeding progress in the years that follow.
According to Bayer, the hybrids are also expected to feature a stronger root system, faster early-season growth, and greater resilience to drought and heat stress, along with potentially improved tolerance to diseases, weeds and pests. The company said these traits could be particularly valuable given the increasing frequency of extreme weather events affecting wheat-growing regions.
A Bet on an Underused Technology
Bayer describes wheat as the world's most important food crop, feeding around 30% of the global population and grown on more than 220 million hectares worldwide. The company said yield growth in wheat has slowed in recent years, while hybridization technology remains underused in the crop compared with other major grains such as corn — a gap Bayer views as a significant opportunity for growth.
Bayer projects that sales of hybrid wheat seed could reach approximately €1 billion annually by the mid-2040s, positioning the segment as one of the pillars of growth for its Crop Science division and an expansion of its current seed portfolio.
"Wheat is one of the most important food crops in the world. However, its production has stagnated and is under pressure from prolonged drought and heat waves. Our agreement with RAGT will soon change that," said Peter Mueller, head of cereals, cotton, oilseed rape and biofuels crops at Bayer's Crop Science division, quoted in the company's press release.
Sébastien Chatre, R&D director at RAGT, said the partnership would accelerate the development of hybrid wheat solutions and allow the companies to better respond to the changing needs of farmers and the seed industry.
