Transcript Translating Strategy into Operational Reality - The 10 Year View Dr. William S.

Translating Strategy into Operational
Reality - The 10 Year View
Dr. William S. Niebur
Pioneer Hi-Bred International, Inc.
April 26, 2005
Pioneer Hi-Bred International and Global Grain Production
Oil
Prices
DuPont Ag & Nutrition
Platform / 2005
Customer
Demographics
&
Segmentation
Grower
World
Population
Soil
Salinity
Oil
Prices
Breeding &
Genetics
In-Field
Crop
Production
&
Crop
Performance
Arable
Land
Urbanization
Irrigation
• Soil Prep
• Planting
• Treatment
• Harvesting
Pioneer
Nitrogen Fertilizer
Soil Fertility
Conservation
Tillage
Soil
Temperatures
Budgets
Government
Policies
WTO
Decisions
Livestock
Demand
Food
Demand
Crop
Subsidies
Yield
Product
Quality
Traits
Environment
Abiotic Factors
Water/Drought
• World Population
• Developing Economies
• Population Demographics
Global
Grain
Produced
Grain
Prices
Grain for
Specialty
Food, Feed &
Industrial Uses
Grain
Uses
Industrial
Uses, incl.
Ethanol
Oil
Prices
Biotic Factors
Pioneer
Weeds
Breeding &
Genetics
Insects
Nematodes
Diseases
Gov’t
Policies
DuPont Crop
Protection
Chemicals
External Realities – Increasing Demand and Shrinking Natural Resources
Population Projections (2050)
Land Available for Agriculture 3%
Cities
Towns
Rock
Ice
Desert
Oceans
Seas
A world of salt
Growing Demand for Freshwater
Developed Developing
3250
Billion cubic meters
3500
3000
2500
2500
2000
1500
1250
1500
1000
Increasing Affluence (Billions)
7.9
2.0
6.1
Affluent
1.2
Middle Market
2.2
Subsistence
2.7
3.9
500
0
1995
Domestic
2020
1995
Industrial
2020
Agricultural
Only 50100MM ha
of additional
Ag land
possible
2000
2.0
2025
Pioneer Hi-Bred International and DuPont
Pioneer’s Long Look
Pioneer, founded in Iowa in 1926 by Henry Wallace, was the first company
to develop, produce, and market hybrid seed corn and is now a subsidiary
of DuPont.
Our business philosophy and policy continues to be:
•
•
•
•
Strive to produce the best products on the market.
Deal honestly and fairly.
Advertise and sell our products vigorously without misrepresentation.
Provide crop production assistance so customers profit from our products.
DuPont’s Core Values
•
•
•
•
Safety
Ethics
Environmental Stewardship
Respect for People
Growth in Total
Grain Production
• Crop yields will need to continue to
increase to keep pace with
increasing incomes, population and
demand for meat
• If yields don’t keep pace, more
area will be pulled into production
World Grain Consumption: 1960-2008
Million Metric Tons
2,400
2,100
1,800
1,500
1,200
• Global corn area increased 4.8%
since 1980; production increased
45.0% in that same time
• More than 130 million “virtual
acres” have been created since
1980
900
600
300
0
1960-69
Area
Source Information: USDA & GlobalInsight
1970-79
1980-89
1990-99
2000-08
Genetics, Technology & Management
Pioneer Today
World leader in crop genetics
– Sales in over 70 countries
– 5,000 employees
R&D Goal: Rapidly create seed products
with ever-greater “total economic value”
– Increase yield potential
– Reduce losses and costs
– Increase product value
Key: Integration of valuable “traits” into
superior, proprietary germplasm
Pioneer®
Brand
Seed
Products

Corn, Sorghum, and Sunflower Hybrids

Soybean, Alfalfa, Canola, and Wheat Varieties

Microbial Inoculants for Forage and Grain
Translating Strategy into Operational Reality
Vision
Strategy
Planning
Execution
Performance Metrics
Critical Factors for Success
• Clear & commonly-held vision and strategies
• Continuity of leadership, funding and staffing
• Agreement on problem definition and likely root causes
• Commitment to plan and execute
• Metrics to measure and track progress