Bayer Secures License to Reduce Fertilizer Dependency in Cereals

October 30, 2026 · Bloomberg HT

Bayer has acquired the license for a gene-editing technology that enables cereals to directly fix atmospheric nitrogen, addressing the global fertilizer crisis.

Biotechnological Move Against Global Fertilizer Crisis

Geopolitical conflicts in the Middle East and supply disruptions along the Strait of Hormuz have rapidly driven up global fertilizer prices, highlighting alternative technologies to reduce external dependency on agricultural inputs. While reliance on a limited number of suppliers threatens global food security, German pharmaceutical and agrochemical giant Bayer has made a strategic move. According to information reported by Bloomberg, the company has acquired the commercial license for a revolutionary gene-editing technology that will allow strategic crops such as wheat, corn, and rice to be grown with significantly less chemical fertilizer.

New Cereals That Fix Atmospheric Nitrogen

The innovative technology, developed at the University of California, Davis campus, is based on editing the DNA structure of cereals. The fundamental goal is to enable plants to convert atmospheric nitrogen directly into a usable form by establishing a symbiotic relationship with free-living microorganisms in the soil. While approximately 50% of global food production is supported by synthetic fertilizers, corn, wheat, and rice, which provide half of humanity's daily caloric needs, are heavily reliant on chemical fertilizers. Matthias Berninger, Head of Public Affairs and Sustainability at Bayer, commented on the matter:

'The technology can create new possibilities in products that are normally dependent on fertilizer. This is one of the important thresholds that target agricultural research has long sought to reach.'

$85 Billion Urea Market

The widespread adoption of seed technologies capable of nitrogen fixation can reduce agricultural greenhouse gas emissions while fundamentally weakening dependence on fertilizer imports. Matthias Berninger, Head of Public Affairs and Sustainability at Bayer, explained the market objectives with the following words:

'This approach can also provide Bayer with an opportunity to gain a share of the $85 billion urea market. The European Union still imports about a quarter of its urea from Russia.'

The approval of the legal framework for the cultivation of genetically edited plants by European Union lawmakers earlier this year has also removed obstacles to such biotechnological solutions.

Field Trials Outside the Greenhouse Begin

The next step for the project, which has successfully passed the laboratory stage, will be comprehensive trials under real field and production conditions outside the greenhouse environment. The company is also pursuing another alternative project in partnership with Switch Bioweorks, a Stanford University spin-off, focusing on genetically improving microorganisms living in plant roots. While these technologies are not expected to be commercially available before the 2030s, Matthias Berninger, Head of Public Affairs and Sustainability at Bayer, issued the following caution regarding the process:

'We are aware that the technologies may not work as expected, but due to the magnitude of the opportunity, it is time to intensify efforts in this area.'

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