Dow Ag seems to be at the center of the Ag world now with partnerships with both Monsanto (MON) and now DuPont (DD).
DuPont and Dow AgroSciences, a wholly owned subsidiary of The Dow Chemical Company, have entered into a commercial cross-licensing agreement that will enable the two companies to deliver expanded herbicide-tolerant soybean options to farmers in the next decade.
Under the agreement, Dow AgroSciences is licensing non-exclusively its proprietary herbicide tolerant trait technology for soybeans to DuPont business Pioneer Hi-Bred. In addition, Pioneer is licensing non-exclusively its proprietary Optimum® GAT® trait for soybeans to Dow AgroSciences. Both companies have given the other rights to stack additional traits with their respective technology. Financial details of the agreement were not disclosed.Dow AgroSciences expects to submit herbicide-tolerant trait technology data to U.S. regulatory agencies this year. Dow AgroSciences anticipates commercialization early in the next decade pending regulatory authorizations.
The new herbicide-tolerant trait technology allows growers to continue farming the way they want, but with improved weed control capabilities and performance. The system is designed to provide excellent control of glyphosate-resistant and other hard-to-control broadleaf weeds like morning glory, pigweeds including palmer amaranth, lambsquarters, marestail, waterhemp, giant and common ragweed, and velvetleaf. In anticipation of regulatory approvals for its herbicide-tolerant trait technology, Dow AgroSciences is developing new and improved herbicide solutions based on the proven, trusted 2,4-dichlorophenoxy acetic acid technology growers have used successfully for more than 60 years.
When stacked together, the Optimum® GAT® trait from Pioneer and the new herbicide-tolerant trait technology being developed by Dow AgroSciences would produce soybeans that are tolerant to 2,4-D, glyphosate and ALS herbicides. The Optimum® GAT® trait from Pioneer provides tolerance to glyphosate and the ALS class of herbicides. Optimum® GAT® soybeans have received U.S. regulatory approvals and a 2011 introduction is anticipated upon regulatory approvals in key importing countries.
The investing public is only now beginning to realize to impact Dow Ag is going to have on the company. SmartStax, the JV product with Monsanto is seeing sales ahead of expectations and looks to be a mega hit. This partnership with DuPont involves its top selling soybean product, assuring sales when completed.
When we combine this with recent acquisitions from Dow Ag, the future in this area is getting brighter by the day for the company…..