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When Bayer Met Microsoft

When Bayer Met Microsoft

December 16, 2021 2 min read Materials
When Bayer Met Microsoft

Few weeks ago, Bayer announced their strategic partnership with Microsoft to “optimize and advance digital capabilities” across food, feed, fuel, fiber value chains.

This partnership isn’t the stuff of destined-to-happen romcom kinds we see in movies like Harry Met Sally. As I had poetically argued in greater depth earlier, drawing parallels of corporate partnerships with rom-com movies, you could say that this is indeed the case, if you are talking of Bayer’s Partnership with Agrostar, which recently raised $70 Million.

In the case of Microsoft, we are talking of a partnership that is more of the well-established “Let’s see where this goes” Brangelina kind. I mean, before they went on their own ways.

Although I am half-serious, I am not being flippant here to simply jazz up and add "colour” (as one reader quipped in a long, heartwarming anonymous feedback) to mundane agritech partnership developments.

We are living in the era of Studio Agriculture where full stackers inside agriculture and outside agriculture (Hello Farmbeats!) are building digital infrastructure to mobilize large numbers of participants in agriculture value chains to change the prevailing dynamics and structures of the agricultural markets.

To use a boxing metaphor: Now is the perfect time for agritech players, big or small, to punch above their weight category.

When I look at the ascent of Pinduoduo in China, the audacious vision execution of IDEA ecosystem in India, and strategic partnerships like this, I am reminded of Hollywood in its golden age during the 1920s and 30s.

Bayer has realized over time that farmer-driven subscription models are not working well for them, and therefore, they have been focusing on three value streams:

  1. "Sell More of their Portfolio" through disintermediation and transparency in data through platforms like Climate Field View.
  2. Catalyze New Business Models (Carbon Marketplaces, Sustainability) through Digital Ag Platforms.
  3. Partnership Model

 

Article link: https://agribusinessmatters.substack.com/p/12-when-bayer-met-microsoft


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