This entry on the Brazilian corn seed market is part of the Group's international development strategy. This agreement will extend the genetic heritage of the two parties to create more efficient varieties for the benefit of farmers.

 

Sementes Guerra, based in Pato Branco (State of Parana) in the center-south of Brazil was founded by Fernando Guerra in 1979. This family company covers seed research and production (corn, wheat and soy) and distribution to farmers in Brazil and neighbouring countries. Sales for this activity in 2010 reached a little less than EUR10 million (US$13.54 million). This strategic alliance exclusively concerns corn activities which are combined in a new company "Limagrain Guerra do Brasil".

 

Joel Arnaud, Farmer and Vice-Chairman of the Cooperative Limagrain, stated, at the time this agreement was announced publicly in Brazil, "We are delighted with this alliance which is being built up in a co-operative spirit. With Guerra, a successful and dynamic family company, we share the same sense of challenge demonstrated by our local anchorage and international scope. Our ambition is to contribute to the major food challenges facing the world. This will require higher agronomic performances in Brazil, Europe and the rest of the world. By broadening our genetic resources this alliance will also enable us to reinforce our corn business in the Group."

 

Daniel Cheron, the CEO for Limagrain, presented this partnership to the Brazilian press, "Brazil is a world agricultural power. Brazil, the "world's farm" is the 3rd largest country for corn acreage with13 million hectares, behind the US (33 million hectares) and China (31 million hectares). The market for seeds in Brazil represented US$1.5 billion in 2009, half of which was for corn. In 2020, this market should be close to US$3.4 billion with more than half for corn."

 

And he added, "Limagrain, the fourth largest seeds company in the world through its subsidiary Vilmorin & Cie, definitely has a role to play on this highly dynamic market with strong potential for growth. Our investment in research, combined with Guerra's knowledge of the Brazilian market and its commercial network, will extend the range of varieties proposed to farmers."

 

And he concluded this public meeting with Guerra in Brazil: "Limagrain remains convinced of the interest of GMOs, and this market is favourable to them. The rate of adoption of transgenic corn varieties has reached 50% in just three years. The development perspectives for this alliance are thus very strong, and we are confident about our collective future in Brazil."