DuPont Pioneer President Paul E. Schickler discussed strategies for long-term, sustainable growth in agriculture at the Morgan Stanley Global Chemicals & Agriculture Conference – emphasizing DuPont’s global reach, advantaged route-to-market, innovative product options and value-added services delivered through DuPont Pioneer.
“With growers increasingly focused on managing tightening margins, we are providing the products and services that help them to maximize their seed investment and whole-farm profitability,” said Schickler. “Our history as a trusted advisor to growers enables us to execute on growth opportunities driven by an increasing global population, rising incomes and a desire for improved diets.”
Pioneer plays a key role in DuPont’s plan to build a higher growth, higher value company. One of DuPont’s three strategic priorities is to extend its leadership in the science-driven segments of the agriculture-to-food value chains, and to leverage the linkages across DuPont.
During his presentation, Schickler shared 2014 North American harvest results that demonstrate the strength of the business’s products and services which feature industry-leading genetics with the right traits and services.
Delivering Bin-Busting Corn Yields
Many North American customers reported record corn harvests this year with several growers experiencing 300 or more bushels per acre on average with Pioneer brand products.
“New genetic platforms coupled with insect protection traits from our Optimum AcreMax family of corn products are helping Pioneer customers to achieve top-end yields,” said Schickler. “We continue to see good demand for our newest genetics as growers seek to deliver the best yields possible.”
Additional top performers included Optimum AQUAmax corn products and Pioneer silage hybrids. Optimum AQUAmax corn products offer improved drought tolerance and were planted on about 10 million acres in 2014. Demand is expected to remain strong as the products continue to yield rain or shine. Pioneer brand silage hybrids exhibited exceptional performance in the United States, including a lineup of Brown MidRib (BMR) hybrids that delivered up to 30 to 40 tons of silage per acre for dairy farmers.
Expanding Pioneer Brand Soybean Offerings
Pioneer continues to build on the strong performance of Pioneer brand T Series soybeans that were launched in 2013 with the expansion of its technology offerings, including varieties with the Genuity Roundup Ready 2 Yield trait.
“Farmers saw stronger yield results in 2014 with Pioneer soybean products,” said Schickler. “We strive to offer growers reliable and more productive soybean seeds with our new T Series varieties out-performing older varieties that were previously yield leaders.”
Building on this performance, the 2015 T Series varieties are expected to more than double in volume from 2014 – representing nearly two-thirds of Pioneer soybean sales.
Capturing Value from Services
In addition to delivering superior seed products, Pioneer is creating value with Encirca services in North America and the launch of several new seed treatment products in the DuPont Lumigen seed sense portfolio for soybeans, corn and canola in select global markets.
“Expanding our scope of offerings to customers generates value for growers and the business alike,” said Schickler. “With farming operations becoming more complex, Pioneer differentiates itself as a trusted partner by providing innovative products and services beyond the bag of seed.”
In February, Pioneer launched Encirca services – an advantaged approach to decision services. These whole-farm solutions are brand neutral and tailored to a grower’s operation through a trusted local advisor. With growers facing a challenging economic environment, there is demand for more intensive and differential management on an acre-by-acre and an input-by-input basis. Through Encirca services, Pioneer expects to create or liberate as much as $100 of value per acre through real-time insights.
By leveraging Pioneer expertise with that of other industry, government and academic institutions, we are able to provide Encirca services customers with access to the largest and most accurate Ag Weather Network1, advanced soils and topography mapping, and seamless data transfer that is compatible with various equipment manufacturers,” said Schickler.
More than 13,000 users have joined Encirca View, the mobile information hub and an important component of the Encirca services whole-farm offering, in the first six months and many also opted into Encirca View Premium, which provides enhanced market and news services and field-by-field weather supported by DTN Ag Weather Network. Our Encirca Yield Nitrogen Management Service commercially launched in July has invoiced more than 300,000 acres with demand growing.
This year, DuPont formed the Seed Treatment Enterprise, an integrated business that utilizes the strengths of DuPont science to develop a pipeline of products to meet the demands of our customers around the world. As part of the new venture, DuPont launched several new products in the seed treatment portfolio, including DuPont Dermacor insecticide for soybeans in Brazil and DuPont Lumiderm insecticide seed treatment for canola in Canada. DuPont is launching DuPont Lumivia insecticide seed treatment for select Pioneer brand corn products in the United States. It will be made available in the Pioneer Premium Seed Treatment (PPST) lineup as PPST 250 plus DuPont Lumivia.
“By leveraging DuPont innovation, we can offer new technologies to growers to help them be more productive and more profitable on every acre,” said Schickler.
To view a full copy of Wednesday’s presentation, visit the “Events & Presentations” page on the DuPont Investor Center.
Use of Non-GAAP Measures
Management believes that certain non-GAAP measurements are meaningful to investors because they provide insight with respect to ongoing operating results of the company. Such measurements are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance. Reconciliations of segment operating earnings to the most directly comparable GAAP measures are available on the Investor center of www.dupont.com under Key Financials & Filings.