Indianapolis, Indiana, USA and Mexico City, Mexico
April 16, 2010
Dow AgroSciences LLC, a wholly owned subsidiary of The Dow Chemical Company (NYSE: DOW), and Grupo Papalotla announced today that Dow AgroSciences has secured an exclusive license from Papalotla for Brachiaria grass seed hybrids and cultivars sourced from Centro Internacional de Agricultura Tropical (CIAT) between 2001 and 2010 to serve the range and pasture marketplace in multiple Latin American countries. This agreement brings together market experience and technologies that will expand product lines and provide comprehensive, integrated solutions to improve livestock productivity.
Under the terms of the agreement, Dow AgroSciences will receive exclusive license to sell the CIAT Brachiaria hybrids and cultivars in Brazil, Argentina, Bolivia, Paraguay and Uruguay. Brachiaria tropical grasses originated in Africa and have been adapted to other geographies and are today the leading pasture species in the tropics. The hybrids combine the best traits of several Brachiaria species into single cultivars. Papalotla, the first company to register and sell a hybrid Brachiaria, has collaborated with the CIAT hybrid program for more than 10 years and holds the exclusive rights to commercialize the hybrids. The hybrids will now be sold by Dow AgroSciences' experienced range and pasture sales team.
"Papalotla brings innovative Brachiaria grass seed hybrids that can benefit ranchers looking to maximize their livestock production," said Kay Kuenker, vice president, New Business, Dow AgroSciences. "By combining their knowledge with our 50 years of experience in the range and pasture marketplace, we have an opportunity to bring differentiated solutions and value to ranchers in Latin America. This agreement is another example of how Dow AgroSciences is delivering on its growth strategy through technological innovation and collaboration."
"This agreement with Dow AgroSciences takes us one large step closer to realizing our dream of bringing improved tropical pasture genetics to producers around the world," said Andrei Nicolayevsky, CEO and director, Semillas Papalotla. "Dow AgroSciences has dedicated commercial and technical resources focused on livestock productivity and we believe that their infrastructure provides the most efficient and effective manner to introduce the CIAT hybrids to these key markets."
Dow AgroSciences is a leading provider of chemical solutions for the range and pasture market, and wants to continue moving forward with comprehensive solutions for ranchers. When Dow AgroSciences introduces the tropical Brachiaria hybrids during the 2010 planting season, ranchers across Latin America will have access to the most productive genetics as part of their total range and pasture program. These hybrids have superior forage quality, yield and adaptation which translate into improved productivity and profitability for the milk and meat producer.
Financial terms of the agreement were not disclosed.
About Papalotla
Papalotla is a privately-held company, with principal offices in Mexico City (Semillas Papalotla S.A. de C.V.), and has affiliates in the U.S. and Brazil. The company is dedicated to supplying improved pasture grass cultivars to increase the productivity of dairy and cattle producers around the world. Papalotla has another major licensee in Asia and supports its Latin American and U.S. distributors with seed produced in Mexico. Learn more at www.grupopapalotla.com.
Business Development Advisors (www.bizadvisors.net) acted as advisor to Papalotla.
About Dow AgroSciences
Dow AgroSciences LLC, based in Indianapolis, Indiana, USA, is a top-tier agricultural company providing innovative agrochemical and biotechnology solutions globally. The company, a wholly owned subsidiary of The Dow Chemical Company, has sales of $4.5 billion. Learn more at www.dowagro.com.
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