In the hands of new owners: GDM has set itself the goal of becoming a central supplier in the corn and sunflower market in South America.
Sale
A new focus in South America
At the end of March, we announced the sale of the Corn Business in South America to the company GDM. Felix Büchting and Nicolás Wielandt explain why this is the right step for KWS and what strategic goals we are pursuing with this move.
Moving forward: KWS' focus is on a diverse crop portfolio.
We have established a strong market position for corn seed in South America thanks to our dedicated teams on the ground. “The teams in Brazil and Argentina have done a fantastic job and developed the KWS brand into a first-class option on the market,” stresses Nicolás Wielandt, member of the Executive Board and responsible for the Corn Segment. In order to focus our attention and concentrate fully on achieving our strategic goals, we have nonetheless decided that this is the right time to exit the corn business in South America and vigorously pursue other strategic goals.
It was important for us to sell to a company that is well positioned on the market to take the business to the next level, and that has a corporate culture similar to our own. GDM is a family-owned company and operates in over 15 countries worldwide.
It has set itself the goal of becoming a central supplier in the corn and sunflower market in South America in the future. To succeed in this endeavor, the company will need all of our local structures and will therefore also take on all employees.
“Personally, I am firmly convinced that this is the best decision for KWS, for our teams in Argentina and Brazil, and for GDM. GDM will fully rely on the expertise of our colleagues to continue this success story,” explains Felix Büchting, Spokesperson of the Executive Board.
Why did we sell the corn business in South America?
FxB: We have set ourselves clear strategic goals for the coming years – this means that we have to decide which areas to focus on and where to invest, because we cannot pursue all activities at the same time. I believe we have built up a really strong position for genetically modified (GMO) corn in Brazil and Argentina. The sale to GDM was an opportunity for us to find a new, forward-looking home for these activities and our colleagues.
We focus strategically on a diverse portfolio of crops. We are currently stepping up our activities, particularly in relation to vegetable breeding. To do this, we must ensure that we have sufficient resources to continue our long-term investments.
Nicolás Wielandt: “In the future, the main focus will be on being the right partner for our farmers when choosing their crop rotation.”
Which areas has KWS sold and which are we continuing in South America?
NW: KWS is exiting the GMO corn business (breeding and distribution) in Brazil, Argentina, Paraguay, and Uruguay, as well as all corn production locations in Argentina and Brazil.
The local sorghum activities are also included in the agreement with GDM.
We will now focus on the vegetable activities in South America. Our contra-seasonal breeding programs for the European corn, sunflower and sugarbeet seed portfolio in Brazil, Chile, and Peru will also remain part of KWS, as will the commercial business for conventional corn and sugarbeet seed in Chile.
Why are we remaining active in Peru and Chile?
NW: Peru is focusing on the production of DH lines for corn breeding programs in Europe and is working on services for our European market. The situation is similar in Chile, where we also have a market share in corn, but unlike Brazil and Argentina, Chile is not a GMO market. We can therefore use the same varieties as in Europe, which we test in Chile. It therefore makes sense to keep these locations, as we generate many synergies here, such as contra-seasonal breeding activities.
What are the short and long-term effects of the agreement?
NW: Just looking at the figures, we will shrink a little and reduce our turnover overall. At the same time, however, we are improving other key financial indicators such as our profitability. This ensures that we will continue to have the necessary resources to achieve our targets in the future.
FxB: Of course, it also means that we are losing colleagues. KWS is getting a little smaller and at first you might get the impression that we are also losing our international dimension. But this is not the case, quite the opposite: We are not leaving South America, we will remain involved there – and of course we are already thinking about other regions that could be of interest for our portfolio in the future.
Felix Büchting: “We are not leaving South America, we will remain involved there.“
What’s next for sorghum?
NW: The sorghum breeding program in Brazil will be part of GDM in the future. There is a possibility that we will work together here in the future to drive forward projects in Europe. Brazil is of course an important market for sorghum, but we are continuing our activities in Europe.
FxB: I am personally convinced that sorghum will have a good future within KWS in view of climate change as well as changes in agriculture and agricultural crop rotations.
What is the general state of the corn business for KWS?
NW: We are still the leader in silage corn, and we have developed positively in grain corn and still see room for growth. With the sale of the corn business in South America, we are also shifting trait development and investments to Europe. This will present us with an opportunity to grow even further in this market.
In conclusion, it can be said: In the future, the main focus will be on being the right partner for our farmers when choosing their crop rotation, with corn continuing to play an important role among several crops. We are also investing in sunflowers, which complement corn well, and we always keep the entire crop rotation in mind in our strategic planning.
© KWS SAAT SE & Co. KGaA 2025
