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Monsanto, DuPont sign supply agreement for dicamba herbicide

Published 2016-07-07, 01:57 p/m
© Reuters.  Monsanto, DuPont sign supply agreement for dicamba herbicide
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By Karl Plume
CHICAGO, July 7 (Reuters) - U.S. seed and agrochemicals
companies Monsanto (NYSE:MON) Co MON.N and DuPont (NYSE:DD) DD.N said on Thursday
they have signed a multi-year supply agreement for the weed
killer dicamba in the United States and Canada.
Under the deal, whose terms were not disclosed, Monsanto
will supply its farm seeds and chemicals rival with the
herbicide, which will be sold as DuPont FeXapan herbicide plus
VaporGrip Technology, the companies said.
The chemical is meant for use with Monsanto's Roundup Ready
2 Xtend soybeans, a genetically modified variety designed to
tolerate applications of dicamba and glyphosate herbicides.
DuPont signed a licensing agreement in 2013 to incorporate
Monsanto's Xtend trait in its seeds.
Widespread planting of glyphosate-tolerant corn, soybeans
and cotton in the United States has contributed to the rise of
weeds resistant to the herbicide so farmers are seeking
alternative varieties that can withstand other weed killers.
Monsanto has invested more than $1 billion in a dicamba
production facility in Luling, Louisiana, to supply demand it
expects will blossom in the coming years. The company has said
the Xtend platform will be its largest-ever technology launch.
The Xtend soybean trait was planted on around 1 million
acres in the United States this year, less than initially
planned due to import-approval delays in the European Union.
Monsanto expects 15 million acres to be planted with Xtend
soybeans next season and 55 million acres by 2019.
DuPont's deal with Monsanto comes amid a period of
heightened consolidation in the farm seeds and chemicals
industry that has long been dominated by six large companies.
DuPont and Dow Chemical (NYSE:DOW) DOW.N agreed to a $130 billion
merger last year and Syngenta SYNN.S agreed in February to be
bought by ChemChina for $43 billion. In May, Monsanto turned
down a $62-billion takeover offer from Bayer BAYGn.DE but said
it remained open to a deal.


(Editing by Tom Brown)

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