) has divulged its growth strategies for its seed business. At
the Eighteenth Annual Goldman Sachs Agribusiness Conference, Paul
E. Schickler - president of DuPont Pioneer - highlighted
opportunities in major global agricultural markets and the roll
out of the Encirca services platform for farmers in the U.S.
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Schickler, at the meet, emphasized the need for science-based,
sustainable solutions for U.S. growers as an expected rise in
population, urbanization and a fast emerging middle-class will
require increased productivity.
Schickler added that, over the next five years, around half of
the company's growth in the Agriculture segment is expected to
come from outside of North America, mostly in major markets such
as Latin America, Eastern Europe, India and China where DuPont
has a strong foothold and looking for continued growth.
DuPont Pioneer, the seed business of DuPont, plays a major role
in the company's focus on expanding its leadership in the
science-driven segments of the agriculture-to-food value chains.
It has been a leader in developing innovative decision services
over the past ten years. DuPont Pioneer, over the past decade,
has mapped over 20 million grower acres and helped customers
implement variable rate seeding prescriptions on more than 1.5
million acres during the 2013 growing season.
The recent launch of the Encirca services platform, which
represents a key part of DuPont Pioneers' growth strategy, marks
an expansion to DuPont's whole-farm decision services offerings
geared to help farmers boost their productivity and
profitability. The company retains a differentiated approach to
its whole-farm decision services as it offers farmers tailor-made
services and personalized advice.
Encirca services will assist farmers in making planting decisions
as well as more informed management decisions regarding
nitrogen/fertility, irrigation and grain marketing throughout the
year. These services have been developed through internal
investment, strategic acquisitions and collaborations with
leading innovators in agriculture.
Encirca services have been projected to deliver peak revenues of
more than $500 million annually for DuPont Pioneer over the next
decade. The company expects to launch additional services under
the Encirca services moniker in 2015 and beyond. DuPont sees
significant potential for these services in helping corn and
soybean farmers in North America beef up productivity and further
extend to a vast spectrum of crops and markets globally.
DuPont is witnessing strong momentum in its agriculture business,
reflected by higher corn seeds and crop protection sales. Despite
unfavorable currency impact, the Agriculture segment saw
double-digit rise in sales in the fourth quarter of 2013 boosted
by healthy insecticide sales in Latin America and earlier seed
shipments, aided by the company's acquisition of a majority stake
in Pannar Seed (Pty) Limited.
DuPont is seeing healthy demand for its corn hybrids and expects
continued strong growth in crop protection driven by new
products. The company has numerous new products in its pipeline
that are expected to create value for its customers.
DuPont launched 1,753 new products in 2013 and its key products
including Optimum AQUAmax corn products and Optimum AcreMax
insect control products are gaining significant market traction.
The company gained more than a point in the North American corn
market share last year driven by strong performance in its
Pioneer seed business.
DuPont is a Zacks Rank #3 (Hold) stock.
Other companies in the chemical industry with a favorable Zacks
The Dow Chemical Company
LyondellBasell Industries NV
PPG Industries Inc.
), all with a Zacks Rank #2 (Buy).