DuPont's innovation solutions for oversea growth

DuPont’s long-term compound annual growth rate (CAGR) is expected to be 8-10%, with operating margins up to 22-24%, revealed by Jim Borel, executive vice president for agriculture, nutrition and health of DuPont, at the Bank of America Merrill Lynch Global Agriculture Conference in February 2014. The company will continue to grow through innovative products and service offerings and by “extending our global position in important agricultural markets”, said Mr. Borel.

Has been a “leader” at developing innovative decision service for over 10 years in agriculture, DuPont expects to launch Encirca^SM View services in March this year, a suite of whole-farm decision services to help improve productivity and profitability of grower operations. Encirca^SM View has free information site on crop observations (e.g. soil moisture), as well as a fee-based program that includes market news and analysis, grain trading capabilities and location specific weather forecasts informed by individual weather stations. In addition, Encirca^SM Yield, aiming at assessment, planning and analysis of critical inputs based on “Environmental Response Units” is expected to be available at the beginning of Q3. In collaboration with Certified Service Agents, who work directly with growers to analyze and tailor recommendations based on individual needs and priorities, Encirca^SM Yield will offer growers personalized solutions, including those for nitrogen/fertility and irrigation. Additional platforms and services under the Encirca^SM  brand are planned to rolled out in 2015 and beyond. DuPont estimates Encirca^SM will generate a peak annual revenue of over $500 million.

Mr. Borel highlighted the “integrated solutions for local needs” as DuPont Pioneer’s strategy in products development, meaning their products combine elite genetics and native traits with best biotech trait options, and protected with seed-applied technologies like fungicide and insecticide.

In DuPont’s corn seed pipeline, Optimum® Leptra™ hybrids has been successfully launched in the southern US in 2013 and is expecting to be introduced in Brazil in 2015. This product combines three traits to provide multiple modes of action and superior protection from a broad spectrum of above-ground corn pests. The estimated peak annual sales of this product is over $500 million. Additionally, Lepidopteran/Coleopteran Protection DP4114, with dual-mode, above- and below-ground insect protection traits, was approved by the US and Canada. The registration of this product in other key markets is expected in the second half of this decade. Other corn products in development include those with new mode of action against Lepidopteran and Coleopteran, and those with drought and herbicide tolerance.

In soybean seed pipeline, the Plenish® high oleic soybean is in the early stages of commercialization, with approval already obtained in markets that represent more than 94% of the US soybean exports, noted by Mr. Borel. In a longer term, DuPont is developing next-generation soybean varieties that can improve the overall feed value with increased protein content and digestibility. The company is also working on herbicide tolerance traits, including dicamba-tolerance trait Xtend and 2,4-D traits.

The seed pipeline for other crops, comprises canola with herbicide tolerance (Optimum® GLY Herbicide and LibertyLink® Herbicide), rice with Lepidopteran protection, bacterial leaf blight resistance and herbicide tolerance, and sunflower with broomrape resistance.

In terms of insect control solutions, Rynaxypyr® (chlorantraniliprole), sold in 98 countries in 2013, brought in over $1 billion sales for DuPont. Additional products building on the success of Rynaxypyr® is under development. Rynaxypyr® is the first insecticide from a new class of chemistry, the anthranilic diamides, controlling almost all economically important Lepidoptera and selected other species. Targeting high value fruit and vegetable crops and launched successfully, Cyazypyr® (common name as cyantraniliprole) was registered in over 20 countries, including the US. Cyazypyr® is anticipated for 16 approvals by the end of 2014. With excellent above and below ground insect control and plant vigor, Lumigen™ Seed Sense produts, are expected to be launched in Brazil, Argentina, US and Canada in 2014. This series of products includes chlorantraniliprole based Dermacor® and cyantraniliprole-based Lumivia™, Lumiposa™ and Lumiderm™. DuPont is launching Dermacor® seed treatment in Brazil and finds out the outstanding performance of Dermacor® in controlling a broad spectrum of Lepidopteran. Mr. Borel noted that the combined sales of chlorantraniliprole and cyantraniliprole is expected to approach $1.5 billion in peak annual sales.     

In addition to its leading insect control solutions, a strong and unique portfolio of disease control solutions has been creating by DuPont. Sold in 40 countries in 2013, picoxystrobin enhances in-season protection and improves harvestable yield in many crops including soybeans, corn, canola and cereals. This product is still expected to be expanded in Latin America, Europe and Asia, and brings in over $400 million in peak annual sales. Furthermore, penthiopyrad, with broad-spectrum preventive and curative manner, has been launched in many countries, including UK, Canada, Argentina and Mexico. The company is expanding its usage on fruits, vegetables and cereals in north America and Europe. This product can also be applied under LumigenTM Seed sense as seed treatment, as pointed by Mr. Borel. With novel mode of action, Zorvec™ fungicide is also expected to be part of LumigenTM seed sense treatment in corn, soybeans and sunflower. Protecting newly emerged leaves and fruit when used as foliar spray, Zorvec™ is expected to be launched in 2015.

Mr. Borel noted that 50% of DuPont’s growth over the next 5 Years will be outside of north America.