DuPont Wades Into Drought-Tolerant Corn, Announces New Seed
djones
DuPont Co. (DD) unveiled its first drought-tolerant corn seed on Wednesday, an
opening step onto what is expected to be a key battleground for seed makers in
coming years.
The offering, from DuPont subsidiary Pioneer Hi-Bred, includes five
conventionally bred hybrid seeds that the company has been testing in areas of
the western U.S. corn belt since 2008. It offers, on average, a 5% yield
advantage over existing products, Pioneer officials said in a conference call.
Drought tolerance is seen as the next frontier for seed genetics, which in
recent years have largely focused on pest-control. The product announced
Wednesday, released under the Optimum AQUAmax brand name, will be available
throughout the U.S., but marketing will be focused on western states that
typically have drier weather, including Kansas, Colorado, Texas and Oklahoma.
Those states produce a fraction of the corn grown in key corn belt states such
as Iowa, Illinois and Indiana, which usually get more rain.
Senior marketing manager Monica Patterson didn't disclose pricing but said it
would be "competitive" with other products. Availability will be limited this
year, with higher volumes in 2012, she said.
DuPont, along with other companies such as rival Monsanto Co. (MON), is also
developing genetically modified drought-tolerant corn, but Jeff Schussler, a
Pioneer research manager for corn, said it will be mid- to late-decade before it
offers a biotech, drought-tolerant seed.
Pioneer, based in Des Moines, Iowa, scheduled its announcement a day before
Monsanto reports quarterly earnings along with its own update of products in
research and development.
The new drought-tolerant seed directs water "more efficiently" toward growth
of grain on the plant, Schussler said, but the plants' size and appearance will
look the same as with other seeds, he said.
"They are quite normal looking," he said.
-By Ian Berry, Dow Jones Newswires; 312-750-4072; ian.berry@dowjones.com
