Pioneer sets new seed distribution strategy
By Carey Gillam
CHICAGO, Dec 11 (Reuters) - DuPont's Pioneer Hi-Bred agriculture seed company on Thursday said it was embarking on a new product and distribution strategy to increase its market share for corn acres in the United States and abroad.
The Johnston, Iowa-based Pioneer, one of DuPont (DD.N) Inc.'s best-performing businesses, said it was rolling out and expanding a series of deals with independent seed companies around the world to develop and deliver new brands with more diverse seed selections.
The company projects the move will help it gain access to an additional 5 percent of U.S. corn acres and take Pioneer from a market presence on one quarter of the world's corn acres to one-third by 2012.
"It is about market access. We know not one solution fits every grower's needs," said Pioneer president Paul Schickler, speaking at a seed industry conference in Chicago.
Schickler said the strategy already was underway in many markets. A new department, Pioneer's PROaccess, is developing co-branding and second brands with seed dealers in Brazil, Mexico, South Africa and in the United States.
So far in the United States alone, 2009 seed orders were up more "more than tenfold," Schickler said.
The strategy initially will focus on expanding sales of corn, soybeans and sorghum.
Separately, Pioneer also said Brazil's biosafety regulator CTNBio approved commercial planting of a genetically modified corn jointly developed by Pioneer and Dow Chemical Co. (DOW.N), the sixth such genetically modified corn to receive approval in that country. [ID:nN112799]
The Herculex corn variety, insect resistant and tolerant to glufosinate ammonium, must be approved by Brazil's Agriculture Ministry before it can be planted. (Reporting by Carey Gillam; Editing by David Gregorio)
