Ana Mano

SAO PAULO (Reuters). – U.S. insecticide and seed manufacturer Corteva The company stated that it will take Inc three times as long to enter Brazil’s market for genetically modified soybeans than in the United States. Corteva’s recent sales have grown rapidly in these countries.

Corteva launches new GMO-free soy seed varieties in Brazil. Brazil is the top soybean farmer. Bayer AG Since 2000 when GMOs were first introduced, the DE: has held a virtual monopoly. Bayer (OTC 🙂 has an extensive network of sales personnel and established relationships with seed developers, farmers and Brazilian manufacturers. These relationships Corteva is only now starting to build.

Brazil became the biggest exporter of soybeans used in livestock feeds after it adopted GMO crops. The chemicals that these crops are able to withstand have made it more difficult for pests and weeds.

Bayer and Corteva both want Brazilian growers to adopt their new-generation GMO seeds that are resistant to more herbicides. The stakes are huge annual sales of seed and herbicides in Brazil worth billions of dollars.

Brazil’s seeds, which play a part in the harvest size, can have an impact on the world supply of commodities. Many countries depend on these commodities to provide food for their livestock and people. The supply of soybeans is already limited and the prices have risen seven year in a row.  

Brazil is not the home of Bayer or Corteva, which do not make seeds. Local genetic improvement companies create new varieties to meet local conditions and local soil. It can take many years. Next, the seedmakers produce large quantities of seeds that they can sell to farmers.

Corteva told Reuters in an email that the adoption of Brazil’s Enlist system will take a bit longer than it did in the United States, due to the limited seed supply in Brazil.

Enlist E3 was a GMO technology that quickly gained popularity in America. The seeds were readily available to U.S. farmers when Enlist received U.S regulatory approvals.

Corteva was created in 2019, following a merger between Dow Chemical and Dupont. It captured 35% U.S. soybean-planted land with Enlist within three years.

Corteva in Brazil estimated that it would take between five and ten years to achieve this level.

Corteva will also launch a higher-priced soybean seed in Brazil, Conkesta E3. However Enlist remains the primary focus of its campaign to capture market share from Bayer.

BAYER EDGE

Bayer has a long history of dominance on Brazil’s seeds market. Bayer introduces a product to Brazil while Enlist and Conkesta enter the market. Bayer bought seedmaker Monsanto (NYSE: ) In 2016 Monsanto’s chemical, and seed business was inherited by him.

Seven years ago, Monsanto introduced the Intacta RR2 Pro soybean technology to Brazil. Intacta was used to grow 80% of Brazilian soybeans in the 2020/2021 cycle.

Bayer’s Intacta2Xtend seed product in Brazil will be launched this year. The Intacta2Xtend line is resistant to the herbicide Dicamba, which Bayer believes is important as many crops have grown resistant to the earlier herbicide Glyphosate.

Bayer stated in an email that more than 30 varieties of seed had been created using Intacta2Xtend technology to meet Brazilian requirements. This gives Bayer an edge over Corteva’s Enlist which is not yet adapted for Brazilian markets by local genetic seed corporations.

Corteva could still win despite this. Dicamba, due to its ability to drift from the area where it was sprayed onto neighboring crops and cause damage, is currently under U.S. scrutiny.

Bayer paid up to $400 Million to settle U.S. Landowners’ lawsuits alleging that their crops were destroyed by neighbors who sprayed dicamba.

U.S. farmers were encouraged to use Corteva Enlist products because of their problems with diclofama. Brazilian farmers followed closely the U.S.’s experience with it.

Eduardo Godoi from Mato Grosso, Brazil said “I won’t purchase the herbicide” and will instead try Intacta2Xtend.