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Origin Agritech Limited (NASDAQ: SEED) is sharply higher (+49%) in early trading. The company disclosed this morning that it and DuPont Pioneer, the advanced seed and genetics business of DuPont (NYSE: DD), today announced a commercial licensing agreement to develop new seed technologies for Chinese farmers. This combined effort will contribute to the modernization of China’s agriculture system and improved food security, which the government has set as priorities.
With support from the Ministry of Agriculture (MOA), and in partnership with the Chinese Academy of Agricultural Sciences, Origin has successfully developed corn seeds with insect control and herbicide tolerance traits. Origin’s expertise in genetic improvements, together with DuPont Pioneer’s 90-year history of plant breeding and local customer relationships, will deliver much needed new seed options for China’s farmers.
“Once approved by the Chinese government, these products will help our country’s farmers fight the insects and weeds that prevent their crops from reaching their yield potential,” said Gengchen Han, chairman and CEO, Origin Agritech. “We have cooperated with DuPont Pioneer for several years, and we are pleased to be working with them on this project.”
China’s agriculture landscape is evolving. Farmers are increasingly adopting technologies, such as high-quality hybrid seed, mechanization and data-based decision making. The biotech traits Origin Agritech has submitted to the rigorous China government approval process are another important tool for improved domestic grain production.
“DuPont Pioneer is proud to be collaborating with Origin Agritech to help increase crop yields and food security in China,” said Paul Schickler, president, DuPont Pioneer. “When we entered the Chinese market nearly 20 years ago, it was to collaborate with government, academics and local companies such as Origin Agritech to provide products and services that offer the best choices for farmers.”
DuPont Pioneer is the largest multinational seed corn company in China and will continue to develop its high-performing popular hybrids for the China market in accordance with current MOA regulations.
Origin Agritech has applied for patents and regulatory approval in other countries, including the United States, to advance its global strategy to not only serve Chinese farmers, but also meet the needs of farmers around the world.
Source: Street Insider
Released April 5, 2016
Broad Street Alerts has not been compensated for the mention of _SEED, DD__ and we do not hold any positions.