DuPont sign supply agreement for dicamba herbicide
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[July 08, 2016]
By Karl Plume
CHICAGO (Reuters) - U.S. seed and
agrochemicals companies Monsanto Co and DuPont 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
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
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.
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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 agreed to a $130 billion merger last year
and Syngenta agreed in February to be bought by ChemChina for $43
billion. In May, Monsanto turned down a $62-billion takeover offer
from Bayer but said it remained open to a deal.
(Editing by Tom Brown)
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