DuPont leader Paul E. Schickler outlined growth drivers for the seed business at the Eighteenth Annual Goldman Sachs Agribusiness Conference – highlighting opportunities in key global agricultural markets and the recent launch of the Encirca services platform for U.S. growers.
"With an expected increase in population, urbanization and a rapidly emerging middle-class, we must become more productive on our existing land base," said Schickler, president of DuPont Pioneer. "That will require science-based, sustainable solutions for our farmer and food company customers."
DuPont Pioneer plays a key role in DuPont's plan to build a higher growth, higher value company, particularly the company's strategic focus on extending its leadership and leveraging linkages in the science-driven segments of the agriculture-to-food value chains.
"Over the next five years we anticipate about half of our growth in the Agriculture segment will come from outside of North America focused particularly in the key markets of Latin America, Eastern Europe, India and China," said Schickler. "These are markets where we have a compelling value proposition for farmers and a strong position today from which we will continue to grow."
The global seed pipeline reinforces an integrated approach to product development and highlights agricultural solutions through differential breeding, plant protection traits, corn agronomic traits, soybean output traits and hybridization systems. These solutions build on the recent product success of Optimum AQUAmax corn hybrids and Optimum AcreMax corn products validated by last year's gain of more than one point in North America corn market share.
Differentiated Marketplace Position with Whole-Farm Decision Services
DuPont Pioneer has been a leader in developing innovative decision services for the past decade, mapping more than 20 million grower acres and helping customers implement variable rate seeding prescriptions on more than 1.5 million acres during the 2013 growing season. With the recent launch of Encirca services, DuPont has expanded its suite of decision services offerings to help growers improve their productivity and profitability.
"Our approach to whole-farm decision services is different," said Schickler. "We are offering growers tailored services – no matter the brand – and personalized advice through trusted, local agents."
In addition to planting decisions, Encirca(SM) services will help growers make more informed management decisions about nitrogen/fertility, irrigation and grain marketing throughout the year. Encirca services have been developed through internal investment, strategic acquisitions and important public and private collaborations with some of the leading innovators in agriculture. The offerings also leverage decades of agronomy leadership, new technologies and our advantaged route-to-market approach.
"The launch of Encirca services represents an increasingly important part of the Pioneer growth strategy," said Schickler. "There is enormous potential for these services to help improve productivity for North America corn and soybean farmers and extend globally to a wide range of crops and markets. Our offerings put the customer's need for flexibility and convenience first and connect growers to one of the industry's largest teams of professional agricultural advisors."
In the next decade, Encirca estimated to deliver a peak revenue stream of more than $500 million annually for Pioneer. Additional services will be rolled out under the Encirca services brand in 2015 and beyond.
To view a full copy of the 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.
