EPA OKs Dow’s Seed Product – Analyst Blog (DD) (DOW) (MON)

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Dow AgroSciences, a wholly owned subsidiary of The Dow Chemical Company (DOW) announced that it has received the U.S. federal regulatory approval for Refuge Advanced, a corn seed product. The product, which is built on Dow’s popular SmartStax technology, has received approval of the Environmental Protection Agency (EPA). The product is designed to fight herbicide and pest resistance.

The Refuge Advanced product is a mix of 95% SmartStax corn seed and 5 percent refuge (non-Bt) seed that farmers can plant across their entire field. This is a very simple-to-use product and is the only single bag refuge solution. It is a very convenient to use solution as once the farmers plant it across their field they do not require any other separate structured refuge for above- or below-ground insects.

The product provides an effective refuge management strategy, thus preventing the development of insect resistance. It also complies with the Insect Resistance Management (IRM) guidelines and helps the farmers increase their farm yields.

Dow AgroSciences, along with Monsanto Co. (MON), has come out with Refuge Advanced by using their respective expertise in the corn seed field. This registration of Dow AgroSciences Refuge Advanced powered by SmartStax provides farmers with the opportunity to plant a single-bag refuge solution for corn, thus saving time.

The commercialization of the product is expected in 2012 once it receives pending approvals from key states.

Du Pont E I De Nemours & Co’s (DD) Pioneer unit has a competing product, although DuPont also includes a drought-resistant trait.

Headquartered in Michigan, The Dow Chemical Company is the second largest chemical manufacturer in the world, offering a range of chemical, plastic and agricultural products and services. Its wholly owned subsidiary Dow AgroSciences, is a top-tier agricultural company providing innovative agrochemical and biotechnology solutions globally.

Last month, Dow AgroSciences also received the approval of the Brazilian National Biosafety Technical Commission for a technology, known as POWERCORE for corn insect control. This new trait controls major Brazilian corn insects and pests, offers tolerance to glyphosate and glufosinate herbicides and is expected to be available to Brazilian corn growers some time in 2012.

POWERCORE is also the outcome of a cross-licensing agreement and research and development collaboration between Monsanto Company and Dow AgroSciences.

Currently, Dow has a short-term (1 to 3 months) Zacks #3 Rank (Hold) and a long-term Neutral recommendation.

 
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