by PressCorteva and Bayer compete for U.S. soybean market
How Corteva plans to conquer the soybean seed market
In the U.S. market for agricultural chemicals and fertilizers, there is intense competition between the two giants, Corteva and Bayer. Recently the competition between them has intensified, which is caused by new varieties. The fact is that in the segment of seeds the leader for a long time was Corteva, but Bayer did not want to agree with the position of the second player. He released a new variety of GMO soybeans on the market.
It should be noted that this crop is the main export product of the U.S. agricultural segment. And amid growing global demand and prices for soybeans, farmers continue to increase the area under its production. This in turn leads to increased demand for seed, and preference is given to varieties that are resistant to disease, pests and weather conditions.
According to a survey of a large number of American farmers, the most preferred seeds are Bayer’s XtendFlex variety, and Enlist E3, which is produced by Corteva. Both are resistant to three chemical herbicides, allowing farmers to control weeds without the risk of crop damage.
Bayer’s position in the market strengthened considerably after the corporation acquired Monsanto for $63 billion in 2018. The latter held the leadership in the U.S. for 20 years and developed glyphosate, which was a breakthrough for the industry. Corteva, in turn, decided to change the division of power in the segment and launched Enlist in limited quantities. This turnaround was welcomed by the farmers who previously had no alternative to the product from Monsanto. And from that moment the companies began to compete fiercely in the segment of genetically modified soybean seeds.
Corteva became independent after merging with Dow Chemical and Dupont in 2019. Experts estimate that the Enlist variety will account for 30% of the crop’s total U.S. acreage in the near term, and will occupy 26 million acres. By comparison, that figure was at 20% in 2020.
Another seed player, BASF, has launched its Xitavo soybean variety, which is based on Enlist technology. Since the product has just appeared, it will take up about 200,000 acres, no more.
Enlist is the first GMO soybean variety that is not harmed by spraying two chemicals used to control weeds.
Corteva’s goal is to reach 50 percent of the country’s crop. To that end, the company is actively working to sell seeds to farmers.