Pioneer Buys Majority Share Of South African Seed Rival

Pioneer Hi-Bred is moving to boost its market clout in Africa by buying a majority share of South Africa-based competitor Pannar Seed Ltd.

Pioneer, a Johnston, IA-based unit of DuPont, and biotech rival Monsanto already each has a major presence in South Africa, the continent’s largest producer of corn. The deal with privately held Pannar will give Pioneer access to more germplasm, the genetic pool it uses for breeding. Pannar will get the use of Pioneer’s advanced breeding technologies and biotech research, officials with the companies said.

Terms of the deal were not disclosed.

“You end up with a large combined germplasm pool that’s suitable not only for South Africa but further afield,” says Deon Van Rooyen, managing director of Pannar.

The deal would double Pioneer’s African seed business, which accounts for less than 5 percent of the company’s sales, Pioneer president Paul Schickler says.

“We really look at this as a great opportunity to leverage the uniqueness of their (Pannar’s) genetic background, combined with Pioneer’s global genetic library,” Schickler says.

Pannar has about one-third of the corn seed market in South Africa, says Van Rooyen, while Pioneer claims about 30 percent.

Pannar has operations in several other southern and eastern African countries, including Kenya, Tanzania, and Zimbabwe, where maize is a staple food crop, and in Argentina. Pannar also has a small presence in the U.S., focused on the Dakotas and Minnesota, having purchased a South Dakota-based seed company about 10 years ago.

The deal is expected to be finalized early next year, pending regulatory approval in South Africa and other countries where the firms do business. Pannar’s management, employees, facilities and brands will be retained, Pioneer says.

Biotech corn seed varieties produced by Pioneer and Monsanto are popular with farmers in South Africa, which is the only sub-Saharan country that has commercialized a genetically engineered food crop.

A few other countries, including Kenya, have been developing regulations necessary to commercialize biotech corn varieties, but it’s not clear when those products will be approved.

Schickler sees “strong movement” toward commercialization of biotech products but says Pioneer can still do well selling only conventional varieties. “We can not only contribute to productivity but also make a very good business with conventional products,” he says.

Van Rooyen says Africans’ interest in biotechnology will increase when traits such as drought tolerance and nitrogen efficiency are available. “A lot of the countries have to get their regulatory side in order,” he said.

Corn acreage in South Africa has been shrinking, but yields and production have risen sharply in recent years, in part because of the biotech seeds that make the plants toxic to a costly insect pest, according to USDA analysts. Yields are up 50 percent from the 1990s.

(Source: DesMoinesRegister.com)

Leave a Reply

Seed/Biotech Stories

Golden Harvest Corn stalks
Crop InputsMonsanto: Syngenta Not The Only Horse In Crop Protection Acquisition Race
August 28, 2015
Monsanto Co, having ditched an audacious $46 billion (£30 billion) offer for Syngenta AG, may downshift to a humbler strategy Read More
Rendering of Syngenta Seedcare Institute expansion
Seed/BiotechSyngenta Announces Seedcare Application And Resource Center
August 19, 2015
Syngenta recently announced the Seedcare Application and Resource Center, a collaborative new website designed exclusively for Syngenta Seedcare customers to Read More
Rendering of Syngenta Seedcare Institute expansion
Seed/BiotechSyngenta Breaks Ground On $20 Million Expansion Of North America Seedcare Institute
August 11, 2015
The Syngenta North America Seedcare Institute in Stanton, MN, one of the premier seed treatment research facilities in the world, Read More
Crop InputsMonsanto Petition To Deregulate Dicamba And Glufosinate-Tolerant Corn Now Available For Comment
August 11, 2015
The USDA’s Animal and Plant Health Inspection Service (APHIS) is making available for public comment a petition from the Monsanto Read More
Top 100 Articles
Crop InputsLand ‘O Lakes, United Suppliers Finalize Merger
August 24, 2015
According to a press release on August 24, owners of United Suppliers, Inc. and members of Land O’Lakes, Inc. “have Read More
West Central Cooperative, Jefferson, IA
CropLife 100Iowa Cooperatives To Explore Unification
August 19, 2015
The boards of directors at two of Iowa’s leading farmer-owned cooperatives yesterday signed a letter of intent to study the Read More
CropLife 100Southern States Coop Hosting Drone Flight This Friday
August 3, 2015
Southern States Cooperative — No. 9 on the CropLife 100 — is hosting an FAA-approved drone demonstration at Grandview Farms Read More
CropLife 100Aligned Ag Distributors Adds Four New Owners
July 30, 2015
Aligned Ag Distributors LLC has announced the addition of four new customer/owners to Franklin Holding Co. LLC. They are: The Read More
CropLife 100Pinnacle Purchases California-Based Specialty Crops Retailer
July 20, 2015
Pinnacle Agriculture Holdings has successfully acquired California-based NH3 Service Co.  Operating as part of Pinnacle’s Performance Agriculture brand, the new locations Read More
Asmus Farm Supply liquid fertilizer facility features 20,000 square feet
CropLife 100Slideshow: Asmus Farm Supply Shows Off Its New Liquid Fertilizer Facility
July 15, 2015
Asmus Farm Supply, Rake, IA, recently added a new liquid fertilizer facility to its company operations. The new liquid fertilizer Read More
Latest News
EquipmentDeere Announces Soucy Track Distribution Alliance
August 28, 2015
John Deere announces an alliance with Soucy Track to sell and distribute products through the John Deere dealer channel. “This Read More
FertilizerFall-Applied Phosphorus: A Rooted Investment
August 28, 2015
As commodity prices decrease and input prices continue to rise, farmers are seeking more efficient strategies for meeting a high Read More
Monsanto Sign
Crop InputsWhat’s Next For Monsanto, Syngenta?
August 28, 2015
After dropping its $47 billion bid to take over Swiss agribusiness firm Syngenta, Monsanto may be turning its focus to Read More
Golden Harvest Corn stalks
Crop InputsMonsanto: Syngenta Not The Only Horse In Crop Protectio…
August 28, 2015
Monsanto Co, having ditched an audacious $46 billion (£30 billion) offer for Syngenta AG, may downshift to a humbler strategy Read More
ManagementConsolidation hits and a miss; And a look at China’s ch…
August 28, 2015
As Monsanto suspends its pursuit of Syngenta, consolidation news at the retail and distribution level heats up. CropLife magazine’s Executive Read More
Corn Field
MicronutrientsHuma Gro Introduces New Boron Liquid Nutrient Formulati…
August 28, 2015
BORO-MAX, a new boron (B) 10% liquid nutrient formulation, has been added to the Huma Gro product line. This new Read More
Crop InputsNFU: Monsanto Decision To Withdraw Syngenta Bid ‘…
August 26, 2015
National Farmers Union (NFU) President Roger Johnson said the organization was very pleased by the news that Monsanto has withdrawn Read More
Crop InputsMonsanto Withdraws Bid For Syngenta
August 26, 2015
Monsanto Co. abandoned its latest effort to acquire Syngenta AG, the world’s top maker of pesticides, after a sweetened bid Read More
Syngenta Sign
Crop InputsSyngenta Comments On Monsanto Announcement
August 26, 2015
The Board of Syngenta confirms that it received a verbal proposal from Monsanto to acquire the company at a price Read More
Case IH Patriot 2250 Sprayer
EquipmentHigh-powered Case IH Patriot 2250 Sprayer Pushes Throug…
August 26, 2015
Engineered with more muscle, the new 660-gallon-capacity Patriot 2250 sprayer features best-in-class horsepower, along with the fuel efficiency that comes Read More
Crop InputsLand ‘O Lakes, United Suppliers Finalize Merger
August 24, 2015
According to a press release on August 24, owners of United Suppliers, Inc. and members of Land O’Lakes, Inc. “have Read More
TMX-2050 In-Cab Display Launch Run Screen
Eric SfiligojPrecision Ag Could Shine In Increased Spotlight On Agri…
August 24, 2015
By any measure, 2015 is turning into one of the most challenging years agriculture has ever experienced. All throughout good Read More
ManagementCrop Conditions In Minnesota and Traveling Time
August 21, 2015
Editors Paul Schrimpf and Eric Sfiilgoj discuss the crop outlook from a field trip to Minnesota and upcoming travel plans. Read More
HerbicidesREUTERS: Anti-GMO ‘Scientist’ Calls For New…
August 20, 2015
EDITORS NOTE: We feel that it is important to note that there are those that believe one of the lead Read More
Rendering of Syngenta Seedcare Institute expansion
Seed/BiotechSyngenta Announces Seedcare Application And Resource Ce…
August 19, 2015
Syngenta recently announced the Seedcare Application and Resource Center, a collaborative new website designed exclusively for Syngenta Seedcare customers to Read More
Winter Wheat
Industry NewsArysta LifeScience Announces Two New Regional Sales Man…
August 19, 2015
Arysta LifeScience North America recently announced Steve Vining and Phil Reding have each accepted new positions as Regional Sales Managers. Read More
West Central Cooperative, Jefferson, IA
CropLife 100Iowa Cooperatives To Explore Unification
August 19, 2015
The boards of directors at two of Iowa’s leading farmer-owned cooperatives yesterday signed a letter of intent to study the Read More
Golden Harvest Corn healthy leaves
Industry NewsAligned Ag Distributors Names Vice President, Crop Prot…
August 18, 2015
Aligned Ag Distributors LLC have appointed Warren Hragyil to VP Crop Protection. Hragyil comes to Aligned Ag Distributors LLC with Read More