Corteva Agriscience Updates Pipeline
Corteva Agriscience Chief Executive Officer-elect, James C. Collins, Jr. presented an update on the company’s pipeline during last week’s 2019 Bank of America Merrill Lynch Global Agriculture & Chemicals Conference.
Collins shared how through the company’s technology and its continued innovation to drive yield advantage, Corteva is well-positioned to deliver the expected above-market organic growth it has targeted in Seed.
First-half 2019 activities for the Enlist system will focus on expanding grower experiences with Enlist E3TM soybeans through demonstration plots, field technology days and other opportunities. In the second-half of 2019, the company shared that it will focus on commercial sales efforts. Robust ramp-up plans and extensive seed production helps ensure that Enlist E3TM soybeans are available to farmers in 2020. Finally, rounding out this system, the company expects more than 20 percent of its 2,4-D sales in 2019 to be in Enlist formulations, including burndown applications in the Americas.
Commenting on the Enlist system, Collins said, “I have never seen such pent-up demand for a product that we believe is going to be a game changer in the industry.”
In an update on the Crop Protection platform, Collins emphasized its focus – increasing differentiation to expand margins – striking a strong balance between patented and differentiated products and the cost- advantaged part of the portfolio.
“In Crop Protection, we expect to continue delivering above-market organic growth through not only disciplined capital allocation and a best-in-class cost structure – but also by launching innovative new products and delivering the returns we’ve committed to from these important technologies,” Collins said.
Collins shared updates on how Crop Protection launches represented a key driver in Corteva’s strategic progress in 2018. These launches drove organic growth of 17 percent and 10 percent in sales in the third quarter 2018 and fourth quarter 2018, respectively, with total sales growth of 10 percent and 6 percent, respectively.
Looking ahead to future portfolio innovation, Collins illustrated how Corteva’s global scale, coupled with its localized research and customer relationship focus, are helping to maximize the productivity of its innovation and deliver needed solutions to growers around the world.
The company provided an update on how its innovations in areas such as seed applied technology are leveraging the company’s strengths in both seed and crop protection to enable stronger relationships with its customers globally.
Collins discussed Corteva’s plans for global expansion of its Granular software solutions, beginning in 2019 with Brazil in addition to its existing footprint in Canada and Australia, and growing to additional countries in 2020.
“At Corteva, we have the expertise, capabilities and technology to work across Seed, Crop Protection and Digital – to find the right solution, a complete solution. Here, we are providing farmers with more choice and empowering them with more information to make those choices to increase productivity and profitability of the farm.”
DowDuPont invites investors to listen to the replay of the presentation through its website at www.dow-dupont.com/investors.