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Monsanto, Pioneer Fight for Seed Market
Monsanto has been doling out cash over the last few years to blunt Pioneer's challenge. In 2004, Monsanto formed a holding company called American Seeds Inc. with the goal of buying up regional seed dealers.
On Monday, ASI announced the purchase of Landec Corp.'s direct seed marketing and sales company for $50 million. The purchase includes a customer call center and two seed brands, Fielder's Choice Direct and Heartland Hybrids.
  The entrance to the Monsanto Company headquarters is seen in a St. Louis file photo from June 28, 2005. The battle between Monsanto and Pioneer Hi-Bred for control of the U.S. corn market hits high gear this month as farmers order their seeds. (AP Photo/James A. Finley, File) (James A. Finley - AP) |
The purchase brought Monsanto neck and neck with Pioneer for the first time in the corn seed business, McCarthy said.
Just five years ago, Pioneer controlled about 40 percent of the market share in corn while Monsanto had about 10 percent with its Dekalb and Asgrow brands, McCarthy said.
After the Landec acquisition, Monsanto pulled to 29 percent of market share while Pioneer slipped to 30 percent, McCarthy said. Monsanto could match or surpass Pioneer's clout within a year or so, he said.
One of Pioneer's biggest challenges to Monsanto over the next three years will come in the form of new soybeans that are engineered to resist herbicides, McCarthy said.
Monsanto plans to release its own brand of "Roundup Ready" pesticide-resistant corn and soybean seeds by 2009. Monsanto's first crops were engineered for the same trait.
Monsanto spokeswoman Lori Fisher said the company is gaining sales by selling "triple stack" seeds that have more than one genetically engineered trait _ such as herbicide and pest resistance.
Fisher said the overall market will increase, helping both companies.
"We believe there is plenty of room for alternative trait technologies in the market," she said in an e-mail.
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On the Net:
Monsanto Co.: http:/
Pioneer Hi-Bred: http:/
