Growing together

Our North American joint venture AgReliant Genetics celebrates its 20^th birthday. Having more than doubled the market share of corn seed over the years is one result of the company’s development, explain Alexander Drotschmann (KWS) and Craig Anderson (AgReliant).

What was the reason for founding AgReliant 20 years ago?

Alexander Drotschmann, Head of Business Unit Corn & Oilcrops Americas: Both parent companies – Limagrain and KWS – had individual seeds businesses in the US before but with very close company cultures and business strategies; both parent companies decided that for the North American market pooling their resources would be beneficial for their position on this continent ultimately bringing independent high performing products to the North American farmer. This has held true over the years and built the platform for our partnership, success and growth in the US and Canada.

How has the cooperation between the competitors KWS and Limagrain proven itself?

Craig Anderson, COO of AgReliant: During the first 20 years of this joint venture, AgReliant has benefited from the seed expertise and strong R&D investments of both companies. Regarding the cooperation between the two companies, AgReliant has also enjoyed the benefit of their mutual commitment towards the North American field seed business, both in research investment as well as market share development.

What were the milestones in the 20-year history of AgReliant?

Craig Anderson: I would say that the development of AgReliant’s corn market share from less than three percent of the North American market to over six percent was a major accomplishment. We also took over the position of the third largest seed corn company in both the US and Canada and are planning to build this position out.

What are the challenges of the corn and soybean market in North America?

Craig Anderson: The current agriculture economy and commodity prices in North America are challenging to farmers and all companies who support and supply them. This has been the case for AgReliant as well. The current Covid-19 situation has presented additional significant challenges to corn demand today and likely into the future, which has a negative impact on the seed business and seed companies.

What role does AgReliant play at KWS?

Alexander Drotschmann: AgReliant is KWS’ representation in one of the three most important corn markets in the world. Since a corn seed strategy is a core strategy to KWS and corn seed is one of its biggest crop segments, the AgReliant joint venture is a very important regional seeds business of KWS.

Which strategic objectives does AgReliant pursue in the coming years?

Craig Anderson: We really have a clear path for the future with the increased utilization of our corn germplasm being a primary goal and the use of Syngenta biotech traits that were pre-paid in 2015. In addition, we have a simplified brand strategy in the US of a direct to farmer brand AgriGold and a dealer distribution brand LG Seeds that gives us the position of two large seed brands in the US and our PRIDE brand in Canada.

Genective is also a joint venture between Limagrain and KWS. To what extent is there a link to AgReliant?

Alexander Drotschmann: Genective will become a key provider of genetically modified organism technology to AgReliant in the future. We intend to give preference of our own technology developments to AgReliant for the North American markets. |