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Agrimarketing : May 2008
62 AgriMarketing ¦ May 2008 AM: What are your goals for Pioneer over the next three years? PS: One of our goals is to regain our corn market share in North America. This year, we are on track to stabilize it at 30%. Next year, through a series of very deliberate steps, we plan to gain back shares. In North America, we also plan to grow our share of the soybean seed market. Pioneer is the market leader and we expect to finish the 2008 sea- son at 23% to 25%. We also plan to grow our interna- tional business. Currently, 40% of the company’s revenues are from mar- kets outside North America, which is double what it was in 2000 and is increasing 20% annually. In all cases, we’ll accomplish that by retaining our current customers, turning prospects into customers and increasing our business with existing customers. AM: What precipitated Pioneer’s loss of corn share in North America and how do you plan on regaining it? PS: Beginning in 2000, we began expe- riencing some agronomic issues with some of our hybrids. In addition, we were a little behind the market incor- porating traits into our products. Our first step in regaining market share was the introduction of the Herculex corn rootworm trait which has shown a significant competitive advantage for our customers. We have also significantly increased our research budget now totaling about $600 million within DuPont Ag & Nutrition to continue bringing outstanding genetics and new traits to the market. We are now very aggressively incorporating traits into our products. In fact, this past year, a triple stack which includes Roundup Ready and Herculex XTRA (Herculex I and Her- culex RW) were in 30% of the hybrids we sold in 2008 which was double the amount in 2007. Over 90% of our seed products will have at least one trait in them in the 2009 crop. We also strengthened our distrib- ution. Last year we introduced the new “promoter rep” program. A pro- moter calls on targeted prospects in an established sales agent’s territory. All orders go through and are ser- viced by the sales agent. We estimate that program increased our footprint by 3%. And, we added 15 new agrono- mists in North America, bringing our total to 55. We plan to continue and grow these programs in the 2009 season. AM: What is new for 2009? PS: We have a number of new prod- ucts we will be introducing. For 2009 in North America, we will be introducing Optimum GAT for expanded demonstration plots in soybeans. In 2010, we will be launch- ing Optimum GAT in corn. It’s a trait making the intended crops resistant to glyphosate and ALS herbicides, providing the user with additional weed control options. Our research has shown Optimum GAT soybean varieties are out-yielding others. We‘re also launching Optimum AcreMax which is the first “in-the- bag” refuge system. It is a combina- tion of a base hybrid with the Her- culex XTRA trait and that same base hybrid with the Herculex I trait, all in the same bag. This approach reduces the need to plant a separate root- worm refuge and increases the num- ber of acres planted to the industry’s best below-ground pest protection. DuPont also recently announced an agreement with Syngenta allowing us access to a unique trait (MIR162) that Pioneer will be commercializing. It will provide a second, and in some cases, a third mode of action for above-ground pests. And, new testing results confirm our high oleic soybean oil trait deliv- ers increased nutritional benefits bet- ter than other soybean oil products currently on the market. Marketed as TREUS oil, the trait is on track for commercial introduction in the U.S. in 2009. AM: What changes have you seen in the seed business in the past few years? PS: Well, certainly, there have been new partnerships formed that we could scarcely have imagined just a few short years ago. One example is our JV with Syngenta which we formed Greenleaf Genetics to license each of our organizations’ genetics and traits. Although JVs can be difficult to man- age, we have been very pleased with Greenleaf. Also, the seed business used to be all about having the best products and distribution system. Those, of course, are still important, but it also now includes rapidly changing tech- nology and proper marketing to make sure customers are utilizing it properly. In the past decade, there were a total of six traits introduced by the entire ag industry. Pioneer, alone, will be introducing six more new ones in the next ten years. AM Name: Paul Schickler Title: President, Pioneer Hi-Bred; VP/Gen’l Mgr DuPont Career: Began his career with Pioneer in 1974 as an accountant. Prior to his promotion as the 11th President of Pioneer last November, he was VP, International Operations. Education: B.S. and Master of Arts degrees in Business Administration from Drake University. SETTING A NEW COURSE FOR THE FUTURE : Pioneer Hi-Bred
May 2008 Supplement
Canadian Agribusiness Employer Guide 08