03/30 18:56 DuPont plans plunge into Brazil transgenic market
By Phil Stewart
SAO PAULO, March 30 (Reuters) - U.S chemical group DuPont Co
<DD.N> plans to begin field testing genetically modified soybeans
and corn in Brazil by next year, an official at DuPont's local unit said
on Tuesday.
The move should pave the way for sales as early as 2004 to the
world's second-largest soybean producer while giving DuPont a
pole-position in the burgeoning Brazilian market for transgenic crops,
said Joao Sereno Lammel, DuPont's South America sales manager.
"This year we should request official tests for corn and soybeans,"
Lammel said, adding field testing should begin in 2000. "We think
that within four to five years we will begin sales."
Lammel said that DuPont's plunge into genetically modified crops in
Brazil would be greatly enhanced by its coupling with leading seed
producer Pioneer Hi-Bred International <PHB.N>, which agreed to be
acquired by DuPont two weeks ago.
Beyond opening Pioneer's vast seed bank, the merger would allow
the two companies to pool the massive amounts of cash needed stay
at the forefront of rapid innovations in biotechnology and seed
development.
"It's a very large cost that few businesses, even big ones, have the
money to pay for on their own," Lammel said.
Lammel said DuPont and Pioneer were prepared to make further
acquisitions and strategic partnerships in Brazil to guarantee a
competitive edge after a string of local buyouts by U.S. biotechnology
giant Monsanto Co. <MTC.N>.
"Pioneer made an important acquisition last week... and we are
looking around for partners," Lammel said.
Last week, Pioneer bought out a small Brazilian soybean germ plasm
developer 2Marcos for unspecified sum, Lammel said, estimating the
company held 2 percent to 4 percent market share. He added
DuPont already possessed the needed corn germ plasm to integrate
with transgenic technology.
Brazil, Latin America's agricultural titan, broke its ban on transgenic
crops last year by approving the safety of Monsanto's
herbicide-resistant Roundup Ready soybeans, which are expected to
move off test plots and onto farms nationwide this year.
AgrEvo, the German joint venture between Hoechst AG <HOEG.F>
and Schering AG <SCHG.F>, is awaiting a possible June safety
approval for its herbicide-resistant LibertyLink corn, a crop to which
Brazilian farmers dedicate 12 million hectares annually.
Swiss group Novartis AG <NOVZn.S> and U.S. grain heavyweight
Cargill also have applications for safety approval slowly working their
way through the government pipeline.
Lammel acknowledged that DuPont would face stiff competition when
it makes its late entry into the Brazilian market. But he stressed that
unlike DuPont's rivals, the multinational would also target its
transgenic crops at food processors and consumers.
He said unlike herbicide, pest and weather resistant transgenics,
which cut costs to farmers, DuPont would focus mainly on enhancing
the nutritional makeup of crops.
"We will offer, for example, soybeans with a higher volume of oil... or it
could have more protein, for example" Lammel said. He added the
company would favor special labeling of transgenic soybeans and all
derivative products, an issue that has grown in controversy among
transgenic-weary European consumers.
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