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Illinois | Pioneer buys NuTech, two other seed companies
Blog post by Dan Piller • [email protected] • June 2, 2010
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Pioneer Hi-Bred said today it has purchased NuTech Seed of Ames and two other seed companies, AgVenture of Kentland, Ind. and Hoegemeyer Hybrids of Hooper, Neb.
The three companies have been part of Pioneer’s Proaccess marketing system since Proaccess was organized in 2008. Proaccess continues to include five other seed companies located in Indiana, Illinois, Pennsylvania, Ohio and Louisiana.
The Proaccess members already have the right to sell Pioneer-licensed products. Pioneer president Paul Schickler said Wednesday the acquisitions of NuTech and the two other companies will solidify the arrangement.
““We have unique agreements with each of our Proaccess distributors,” said Schickler. “For these three seed companies, solidifying our relationship through acquisition will improve their ability to serve their customers’ needs.”
Terms were not disclosed.
Pioneer in 2009 reversed a decade of lost market shares to Monsanto and its DeKalb, Asgrow, Kruger subsidiaries. The Proaccess agreement has been credited in part for the turnaround.
NuTech general manager Tim Elliott said the sale “will allow our customers to continue to gain access to new genetics and traits.”
He added “this action creates permanency with one of our key suppliers of innovative technology.”
Pioneer and Monsanto are in a bitter battle over not only sales of corn and soybean seeds but also the licensing of genetic traits, where Monsanto jumped to a clear lead after the introduction of biotech seeds and Roundup Ready technology in particular.
The matter has generated lawsuits from both sides and a federal investigation into possible antitrust violations, largely based on complaints by Pioneer against Monsanto.
Monsanto meanwhile on Wednesday announced the licensing of its Roundup Ready 2 Yield soybean technology to Dow Agrosciences, which sells primarily through the Mycogen brand.
Roundup Ready 2 Yield is touted by Monsanto as the successor to Roundup Ready genetic technology, which goes off patent in 2014.
Most notably, the Monsanto/Dow agreement allows Dow to “stack,” or combine Roundup Ready 2 Yield traits with Dow-developed traits. Controversy over similar stacking by Pioneer with Roundup Ready traits led to a Monsanto patent infringement lawsuit filed last year against Pioneer.
Monsanto vice president Brett Begemann said “more farmers will be able to experience the higher yield opportunity of Roundup Ready 2 Yield in new trait combinations and soybean brands they prefer.”
Monsanto began selling Roundup Ready 2 Yield last year and said it now is on about 6 million acres of U.S. farms.
“Our experience in working with the trait gives us the confidence to expand this licensing agreement,” said Antonio Galindez, president and chief executive officer of Dow AgroSciences.
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Nu Tech & Agventure bought??
