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Pioneer forms joint venture with Chinese seed company

Agriculture.com Staff 12/12/2006 @ 7:39am

DuPont Tuesday announced that its subsidiary Pioneer Hi-Bred International, Inc., has formed a joint venture with one of China's largest seed production companies, Dunhuang Seed Co. Ltd., to provide corn hybrids to Chinese farmers in the spring market.

With 62.5 million acres, China is second only to the United States in the amount of land producing corn. Additionally, a rapidly growing population with rising incomes has resulted in an increased demand for agricultural products. More meat is consumed in China than in any other country, and 50 percent of the world's hogs are in China, leading to a high grain demand for livestock feed.

Pioneer established a business representative office in Beijing in 1997. A year later, it began breeding and testing corn hybrids for commercialization in China for the summer and spring corn areas. The first Pioneer corn hybrids were approved for commercialization in 2002. Pioneer established a summer corn joint venture in China -- Shandong Denghai Pioneer Seeds Co., Ltd. -- in late 2002. The first commercial sales were in 2004 and the business has achieved solid growth since then.

The new joint venture, Dunhuang Seed Pioneer Hi-Bred Company Ltd., will develop and distribute corn hybrids for the spring corn market in China. The joint venture plans to produce seed in 2007 for sale in 2008. This is a key long-term investment in a significant agricultural market. Dunhuang Seed Pioneer Hi-Bred Company Ltd., in accordance with Chinese law, is 49% owned by Pioneer and 51% owned by Dunhuang Seed.

DuPont Tuesday announced that its subsidiary Pioneer Hi-Bred International, Inc., has formed a joint venture with one of China's largest seed production companies, Dunhuang Seed Co. Ltd., to provide corn hybrids to Chinese farmers in the spring market.

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