Multinational company seeks to challenge Bayer's dominance in biotechnology.
Agricultural biotechnology and crop protection multinational Corteva is looking to establish itself as a leader in Brazil’s multibillion-dollar soybean seed market. The task is no small feat—gaining market share means taking on German giant Bayer, which has dominated the segment in Brazil for nearly two decades. That dominance began in 2005 when Brazil passed its law regulating the cultivation of genetically modified crops.
The challenge is significant, but Corteva has a precedent for success. The company followed a similar strategy in the United States, its most important market, where it not only challenged but ultimately surpassed Bayer in soybean seeds over the past six years. Brazil, Corteva’s second-largest market, is now the next frontier.
“If we can deliver value to Brazilian farmers, I see no reason why we can’t reach at least a 30% market share,” said Chuck Magro, Corteva’s CEO, in an interview with Valor. “This will give producers more choices.”
Brazil’s soybean seed market generated R$33.6 billion in revenue during the 2022/23 harvest, according to a study by Blink Inteligência Aplicada presented to the Brazilian Association of Soybean Seed Producers (ABRASS) last year. The figure includes royalties paid by farmers for biotech use and industrial seed treatment.
Corteva does not have a firm deadline for reaching the 30% target, but the figure serves as a strategic benchmark.
“I’d say we can get there by the early 2030s, but we might hit that mark even sooner,”
Mr. Magro said. While outlining Corteva’s growth plans, he refrained from mentioning competitors by name.
In the U.S., Corteva’s Enlist technology was key to overtaking Bayer. The company now claims a 65% market share there. In Brazil, Corteva has been in the soybean seed business since 2021 but currently holds only a small share of the market. Enlist will also be the company’s flagship technology in Brazil, marketed under the Cordius brand.
A critical part of Corteva’s strategy to expand in the genetically modified soybean seed market involves working with so-called multipliers—companies that license the technology, multiply the seeds, and sell them to farmers.
Brazil is central to Corteva’s global expansion strategy. In a presentation to investors last November, the company announced plans to boost earnings before interest, taxes, depreciation, and amortization (EBITDA) by $1 billion over the next three years. The plan hinges on three pillars: seed licensing—now advancing with the company’s soybean expansion in Brazil—biological inputs, and new crop protection product launches.
Corteva’s push for higher seed revenue extends beyond soybeans. The company plans to launch its first hybrid wheat variety in 2027, initially in the U.S., but with future availability in Brazil. Mr. Magro noted that Brazil’s network of seed multipliers would be “perfect” for distributing the new technology in the country.
Founded six years ago through the merger of Dow and DuPont, Corteva is already a global leader in corn seeds. The company operates in that segment through its Pioneer brand.
Source: Valor International
