Dow Chemical Company (The) Comm(NYSE: DOW)
E.I. du Pont de Nemours and Com(NYSE: DD)
finance.yahoo.com
Greater China
Oct 8, 2011
China ploughs a new corn furrow
atimes.com
From the article:"...China's Ministry of Agriculture has floated the idea that its moratorium on commercial use of genetically modified (GM) seed would continue - with the exception of corn. ...".
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"...It is no coincidence that the biggest players in genetically modified seed are also the world's biggest producers of herbicides: Monsanto, DuPont (which purchased the venerable hybrid corn outfit Pioneer), and Dow...." ...A milestone of sorts was reached with the release of "Genuity Smartstax", a Monsanto/Dow joint effort that piled on six varieties of Bt expression with two additional herbicide tolerance traits on top for good measure. ..."
<snip>
"...Pioneer, a subsidiary of DuPont, has achieved some remarkable results in yield with its Xianyu 335 hybrid corn variety.
Development of the variety began in China in 2000, the seed - produced by two local partners of Pioneer inside China - came on the market in 2005, and sales exploded in 2008-2009.
XY335 is now the second-most popular hybrid corn seed in China, with over 40 million hectares under cultivation...."
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This would be a big deal if China allows GM corn. I am not sure that DOW's "Genuity Smartstax" herbicide is the best approach for efficient "sustainable" production but their GM corn seed and herbicide (w/ Bt expression) significantly increases production.
With both companies priced at a PE of 12, they make my initial value screen. I would prefer a more sustainable "technology" solution but I think w/ all the recent concerns, the industry is taking a more conservative approach in developing integrated farming solutions. The herbicides now used are so much more environmentally friendly than those used 20 years ago. The issues now are due to genetic resistance leading to applications not as effective on weeds. However, the herbicides now breakdown in days (not years like DDT) and become inert in soils.
EKS |
