August 2, 2013

Dupont acquires majority ownership of South Africa's Pannar Seed Limited

 

 

 

Dupont Pioneer has acquired majority ownership of Pannar Seed Limited, a South Africa-based seed company with operations throughout Africa and in other parts of the world.

 

DuPont Pioneer and Pannar are partnering to increase the pace and scope of research and innovation in the African seed industry, bringing farmers in South Africa and throughout the continent more product choices and better products, faster and more efficiently than either company could do on its own. Pioneer will retain the strong Pannar brand and will grow both the Pioneer and the Pannar brands and businesses into the future.

 

DuPont Pioneer President Paul E. Schickler said, "The partnership between Pioneer and Pannar is beneficial on many levels. It represents growth opportunities for both businesses, for employees, and for the productivity of small-scale and commercial farmers who form the backbone of Africa's economy and who will feed the continent's rapidly growing middle class and increasing population."

 

The majority share acquisition will allow each business to access additional crop areas, reach more customers and deliver improved seed products to farmers. Pannar receives access to the Pioneer genetics library and its corn breeding and biotechnology capabilities. Pioneer will tap into Pannar's expertise and reach across Africa, and its corn genetics developed specifically for the region.

 

Brian Corbishley, chairperson of Pannar says, "This partnership will ensure long-term growth as we deliver improved products to farmers in South Africa and across the continent."

 

"One of the key outcomes of the partnership will be the establishment of a world-class technology hub for Africa through which South Africa will become a centre of innovation in seed breeding," said Schickler.

 

Pioneer committed to investing ZAR62 million (US$6.3 million) by 2017 to establish a technology hub in South Africa to serve the region, similar to the research hubs that Pioneer has established in Brazil, India and China. The Africa technology hub will comprise a network of research facilities and testing locations in South Africa and around the continent in which Delmas, South Africa, will serve as a technology centre of the network.

 

The technology hub will incorporate key Pioneer and Pannar research and testing locations, combined germplasm - or plant genetic resource collections - talent and experience to improve cultivar breeding and development for Africa. Data sharing and analysis will be elevated to a new level as the Africa technology hub is connected to the Pioneer global R&D network. Research efforts will support all crops for which Pioneer and Pannar currently maintain breeding programmes, including corn, sunflower, grain sorghum, forage sorghum, wheat, dry beans and soy.

 

"By partnering with Pannar, Pioneer will be able to better support agricultural productivity and rural economies and livelihoods through the development of higher performing products for Africa's farmers," said Schickler.

 

Pioneer currently works with six academic institutions each year - four in the US and two internationally - to host a plant breeding symposium to foster research skills development.

 

With 86 million acres (35 million hectares) available for corn production, Africa represents a significant opportunity for improved productivity. Average grain yields are less than two tonnes/hectare, about one-third of what is achieved in other developing regions and only one-fifth of yields in developed countries. In addition, corn seed demand is strong and growing. In South Africa alone, annual hybrid corn seed sales total about US$350 million.

 

This investment is part of the DuPont strategy to deliver innovative solutions for some of the world's most important challenges, including the need for increased food production.

 

Pannar Seed is a dynamic South African seed group with research and development at its core. It is one of the largest field crop seed breeders, producers and suppliers in Africa. It conducts collaborative research with academic institutions in South Africa and works closely with various public and private institutions in other countries in Africa.