Pioneer HiBred Intl' Inc'

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The Private Sector Role in Agricultural
Development - The Pioneer Approach Lloyd Le
Page Sustainable Agriculture and
Development Pioneer Hi-Bred International,
Inc. Association For International Agriculture
and Rural Development AGM, June 6
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DuPont
Enhance
Protect
Connect
DuPont Electronic Communication Technologies
DuPont Coatings Color Technologies
DuPont Safety Protection
3.6B
2.7B
4.9B
DuPont Performance Materials
DuPont Agriculture Nutrition
4.7B
4.2B
Nourish
Fortify
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Positioned to Capture Value
Pioneer 2.6B Revenue
Solae 1.1B Revenue
Market Insight
End User Mfg.
Grain Processors
Input Providers
Consumers
Growers
Value Capture
DuPont Revenue in Corn and SoyValue Chain 4B
Crop Protection 2.2B Revenue
Data 2004 Actual
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Mid-West, USA circa 1900

• Family Farms
• Hand and Animal Power

• Local Markets
• Land Races and OPV

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Our Beginning

• Founded the Hi-Bred Corn Company in 1926, the
  first company to develop, produce, and market
  hybrid seed corn in the United States
• Committed to improving farmer productivity and
  profitability
• Understood agricultural, political and business
  issues

Henry A. Wallace
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U.S. Corn YieldCivil War to Present
Single Cross hybrids
Bushels per Acre
Double Cross hybrids
Open pollinated varieties
Year
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Pioneer Today

• World leader in genetics
• Sales in more than 70 countries
• 2.3 billion in sales 2003
• Production and Research Locations around the
  World
• Delivering Value is key to future success and
  ability to meet stakeholder expectations

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The Long Look

• We strive to produce the best products on the
  market.
• We deal honestly and fairly with our customers,
  seed growers, employees, sales force, business
  associates, and stockholders.
• We advertise and sell our products vigorously,
  but without misrepresentation.
• We give helpful management suggestions to our
  customers to assist them in making the greatest
  possible profit from our products.

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Private Sector Approaches
Sustainable Development
Source Mark Milstein, PhD, Cornell University
WRI, 2005
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A Global Challenge

• Global Population
• In 2000 6 Billion.. by 2050 9 Billion
  (98 Growth in Developing Countries)
• Malnutrition / Poverty
• 840 million in chronic malnutrition
• many more have hidden hunger
• 1.3 billion afflicted by poverty
• Cultivable Land per Capita.
• 0.45 ha. 1966
• 0.25 ha. 1998
• 0.15 ha 2050
• World Grain Yield and Demand
• Grew at 2.1 in 1980s, but less than 1.0 per
  annum in 1990s
• Meat consumption tripled in last 40 years with
  mass urbanization and economic growth.

Must double food production sustainably on same
land area, (1.5 billion ha.) by 2050
Data from World Resources Institute
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Global Grain Production Growth
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A Global Strategy for Food, Feed and Fiber

• Productivity must be improved sustainably on
  existing arable land, including that in
  developing countries.
• Technology and system innovation is essential to
  achieve this, but so is sharing existing
  knowledge and best practice.
• To show value of new technology the lowest holes
  in the yield and value barrel need to be
  filled
• No single approach will provide the solution to
  food, feed and fiber security.

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Approach to Sustainable Agriculture

• Agriculture as a livelihood that meets the
  economic and food security needs of farmers and
  their communities today, without compromising
  the needs of future generations.
• Create stable and sustained productivity
  improvement over time, regardless of farm scale
• Holistic approach
• Combination of modern agricultural practices and
  technologies
• Incorporate local knowledge, participation,
  resources and approaches to complex problems
• Philanthropy as a element, not total solution
• Build partnerships - Public, Private, Non Profit,
  Academic.

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Our Focus Improvements in Production Agriculture
impact rural enterprise/ livelihoods

• Improve Markets
• Access Information
• Storage Grain Banks
• Value Adding / End Use
• Livestock, Dairy, Poultry
• Consumer Linkage
• SME Development

• Input Availability
• Product Movement
• Regulatory Environment
• Support Systems
• Access to Credit
• Supply Chain Support
• SME Development

• Increased Saleable Yield
• Inputs Irrigation
• Genetics Agronomy
• Post Harvest Storage
• Increased Efficiency
• Reduced Cost and Risk
• Business of Farming

Input Supply ChainImprovement
Producer Market Value Chain Improvements
Farmer Productivity Value Improvement
Sustainable Enterprise Livelihoods
Source LD Le Page, 2005
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Examples

• There are many positive ways for business to
  make a difference in the lives of the poor
  ,..not through philanthropy, though that is
  also very important, .....but through
  initiatives that over time, will help to build
  new markets. Kofi Annan, Feb. 2002

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ThailandCorn for Student Lunch Program

• Rural schools received only 25 of needed funding
  for school lunches
• Pioneer provided seed, inputs and agronomic
  advice to communities
• Community planted and harvested crop sold grain
  to local traders
• Proceeds pay for school lunch programs
• In 2004, program reached 40 schools and 7,700
  children

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KenyaChura Community TC Banana Project

• Partnership with Africa Harvest
• Introducing Tissue Culture (TC) banana
  technology to community near Nairobi, Kenya
• Project goal to reach 6,000 farming families
• Hybrid maize demonstration plots include focus on
  improved agronomic practices

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North America Service Distribution

• USA lt 1 million farmers
• 330,000 corn farmers
• Highly sophisticated Pioneer service levels and
  support from well educated support We dont
  just sell seed we sell a package !
• Rep / Agent involved with trials, demos, service
  delivery, trouble shooting, etc.
• Farmer has easy access to government and
  university extension, sophisticated market
  channels, CBOT, contract harvesting, machinery,
  GIS, Web, etc.

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BOP Service Distribution Challenges

• India Land Holdings gt110 Million !!
• Marginal Farmers lt1 ha. 65 million (59 )
• Small Farmers (1-2 ha) 21 million (19 )
• Small-Medium (2-4ha) 14 million (13 )
• Medium (4-10ha) 8 million (7 )
• Large (gt10ha) 1.6 million (1.5 )
• If you make a cutoff at gt1 ha Nearly 45
  Million Farmers to Service !

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Nairobi Urban Fresh Corn Market
Source Ministry of Agriculture Participant
Interviews TechnoServe Analysis
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Nairobi Urban Corn Project Structure
Technoserve Coordinate Project, Studies,
Analysis and Mobilization
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Thank You Questions?
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Appendix

• Bioethics Guiding Principles
• Porter Model

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DuPont Bioethics Guiding Principles

• Commitment to Food/Feed Safety
• Environmental Focus
• Conserving Biodiversity
• Transparency of Information
• Engaging Stakeholders
• Advocating Independent Research
• Contributing to Developing Economies
• Formalizing Access to Genetic Resources

http//www.dupont.com/biotech
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Social and Economic Benefits