Corteva Announces Breakthrough in Wheat Technology

Rhea-AI Summary

Corteva announced a breakthrough in wheat technology with a first-of-its-kind, proprietary non-GMO hybrid system. The technology is expected to increase yield potential by 10% while maintaining resource usage and show 20% higher yields in water-stressed environments compared to elite varieties. The company's proprietary system works in 100% of wheat germplasm, enabling faster genetic gains and commercial-scale seed delivery. Corteva plans to launch hybrid Hard Red Winter wheat in North America by 2027.

Positive

• Innovative proprietary hybrid wheat technology working in 100% of wheat germplasm
• Potential 10% increase in yield while maintaining same resource usage
• 20% higher yields in drought conditions compared to elite varieties
• Planned commercial launch by 2027 in North America

Negative

• None.

Insights

Agricultural Technology Analyst

This breakthrough in wheat hybridization technology represents a significant market opportunity for Corteva. The 10% yield increase potential and 20% higher drought resistance are game-changing metrics for the wheat industry, which hasn't seen major technological advances like corn has experienced. The addressable market is substantial, with 550 million acres globally and 60 million acres in North America alone.

The technology's compatibility with 100% of wheat germplasm is particularly notable, as it overcomes previous barriers to widespread commercialization. The planned 2027 launch timeline for Hard Red Winter wheat provides a clear path to revenue generation. This positions Corteva to potentially capture significant market share in the wheat seed market, similar to how Pioneer dominated the hybrid corn market following its 1920s innovation.

The drought resistance feature is especially valuable given increasing climate concerns and could command premium pricing in water-stressed regions. This could lead to higher margins compared to traditional wheat seed products.

Food Security Specialist

The implications for global food security are substantial. Wheat provides 20% of global caloric intake and this technology could significantly increase production without requiring additional farmland. This is important as agricultural land becomes increasingly scarce and climate challenges intensify.

The non-GMO nature of the technology is particularly important, as it will face fewer regulatory hurdles and better consumer acceptance globally. The potential for faster breeding cycles through improved parent seed production could accelerate the development of varieties adapted to various growing conditions and climate challenges.

Proprietary hybrid system marks crucial step-change, expected to deliver new floor for future growth in wheat yield, productivity

INDIANAPOLIS, Nov. 18, 2024 /PRNewswire/ -- In advance of its Investor Day, Corteva today announced a revolutionary breakthrough in one of the world's most important staple crops – wheat – a first-of-its kind, proprietary non-GMO hybrid technology. While other crops like corn have exponentially benefited from hybrid technology over the years, challenges with wheat production systems have presented barriers to consistently and cost-effectively leveraging such game-changing technology – ultimately limiting the ability to deliver meaningful yield improvements.  

Corteva's breakthrough hybrid wheat technology could:

• Increase yield potential by 10%¹, while using the same amount of land and resources, providing significant promise for both farmers and global food security;
• Be more resistant to drought: research trials show Corteva's hybrid wheat can yield roughly 20% higher² than elite varieties in water-stressed environments, which would help farmers better adapt to the impacts of a changing climate.
• Accelerate the speed to market of new elite germplasm by increasing the scale of parent seed production over competitors' technology.

"Pioneer introduced hybrid corn in the 1920s, and since then our technology has helped achieve more than 600% increases in average yields³," said Corteva Chief Technology and Digital Officer Sam Eathington. "With our new, one-of-a-kind proprietary technology for wheat, we're now similarly poised to bring the revolutionary benefits and yield potential of hybridization to yet another core crop."

Hybrid seeds are created by crossing two genetically different parents – to ultimately produce more resilient, higher yielding plants for farmers. Unlike other wheat hybridization systems which rely on older technology, Corteva's all-new proprietary technology has been shown in trials to work in 100% of wheat germplasm -- enabling more rapid genetic gains and delivery of seed at a commercial scale.

Cultivated for over 10,000 years, wheat is grown on about 550 million acres, providing food for hundreds of millions of people and accounting for 20% of calories consumed worldwide. Wheat is the third largest row crop In North America, grown on more than 60 million acres.

Corteva plans to launch hybrid Hard Red Winter wheat as early as 2027 in North America, adding to its portfolio over time.

About Corteva Agriscience

Corteva, Inc. (NYSE: CTVA) is a global pure-play agriculture company that combines industry-leading innovation, high-touch customer engagement and operational execution to profitably deliver solutions for the world's most pressing agriculture challenges. Corteva generates advantaged market preference through its unique distribution strategy, together with its balanced and globally diverse mix of seed and crop protection products and services. With some of the most recognized brands in agriculture and a technology pipeline well positioned to drive growth, the company is committed to maximizing productivity for farmers, while working with stakeholders throughout the food system as it fulfills its promise to enrich the lives of those who produce and those who consume, ensuring progress for generations to come. More information can be found at www.corteva.com.

Cautionary Statement on Forward-Looking Statements

This press release contains certain estimates and forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, which are intended to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and may be identified by their use of words like "could,"  "potential," "may," "plans," "expects," "will," "anticipates," "believes," "intends," or other words of similar meaning. All statements that address expectations or projections about the future, including statements about Corteva's expectations related to regulatory approvals, product development and commercialization, product offerings and product, financial or sustainability performance are forward-looking statements. Corteva disclaims and does not undertake any obligation to update or revise any forward-looking statement, except as required by applicable law. A detailed discussion of some of the significant risks and uncertainties which may cause results and events to differ materially from such forward-looking statements or other estimates is included in the "Risk Factors" section of Corteva's Annual Report on Form 10-K, and as modified by subsequent reports on Form 10-Q and Current Reports on Form 8-K.

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¹ Internal yield trial testing; 2 years of testing with 6-10 locations/year in each of the market classes. Hard Red Winter testing in NE, KS, CO, OK.

² Internal yield trial testing; 2 years of testing with 6-10 locations/year in each of the market classes. Hard Red Winter testing in NE, KS, CO, OK.

³ Assumes average corn yields in the 1920s of roughly 26 bu/A (according to the Plant & Soil Sciences eLibrary at the University of Nebraska-Lincoln) and average corn yield in 2023 of roughly 183 bu/A (according to USDA data) and yields on Pioneer corn hybrids commonly reaching 200 bu/A and more.

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SOURCE Corteva, Inc.

FAQ

What is Corteva's (CTVA) new breakthrough in wheat technology?

Corteva has developed a proprietary non-GMO hybrid wheat technology that works in 100% of wheat germplasm, promising 10% higher yields while using the same resources and 20% better performance in drought conditions.

When will Corteva (CTVA) launch its hybrid wheat technology?

Corteva plans to launch its hybrid Hard Red Winter wheat technology in North America as early as 2027.

What are the yield improvements expected from Corteva's (CTVA) hybrid wheat technology?

The technology is expected to increase yield potential by 10% while using the same resources, and achieve 20% higher yields in water-stressed environments compared to elite varieties.