May 30, 2011

DuPont expects higher seed market share

DuPont Co. is targeting an increase in market share for corn and soy seeds in North America for the third straight year in 2011, said the head of the company's seed division.

The gains by Pioneer Hi-Bred, the Iowa-based DuPont subsidiary, would continue the company's momentum as it battles with rival Monsanto Co., which took a big chunk of Pioneer's market share last decade. Pioneer had lost share for three straight years before its market share stabilised in 2008. It increased its corn market share by two percentage points in 2009 and three percentage points in 2010, Pioneer President Paul Schickler said.

"We'll have again this year not only the share gains, but price increases as well," Schickler said.

The company said it had 35% market share in corn last year and 31% in soy.

Schickler would not quantify the share increases for 2011. Pioneer has gained market share as Monsanto has grappled with a farmer backlash against pricing of its premium corn seed, among other issues.

Monsanto Chief Executive Hugh Grant said in April that the company was on track to meet its overall acreage targets in 2011, but said it was too soon to specify whether its market share was stabilising.

The next battleground for the seed industry is "refuge-in-a-bag" corn, which allows farmers to more easily comply with federal guidelines mandating each field of genetically modified seed also include a buffer, or "refuge" on non-biotech seed. The product includes non-biotech seeds in the bag, allowing farmers to plant buffer more efficiently. Having a buffer is intended to prevent pests from developing resistance to genetically modified traits.

Pioneer was first on the market with a refuge-in-a-bag product this year, but will be followed by Monsanto and other companies next year. Although Monsanto and some seed dealers have criticised Pioneer's offering this year as not being comprehensive, Schickler said it will be planted on more than three million acres this year, making it a big success. The company is rolling out a more comprehensive refuge-in-a-bag product next year, he added.

"We are the industry leader in this, and it has been a challenge to convince the public of this, even though we've convinced our customers," Schickler said.

It is not yet clear how many acres of corn will be planted this year, Schickler said. However, weather problems across the US will make it a "challenge" for farmers to plant the 92 million acres the USDA has projected.