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Pioneer To Construct Logistics Facility in Ukraine

09 September 2011

UKRAINE - Pioneer Hi-Bred, a DuPont business, announced yesterday at a press conference in Kiev, a $10 MM (US) investment in a logistics facility at Stasi, Dykanka region, Poltava oblast, Ukraine.

Construction is underway at the facility which will be operational in time for the 2012 sales season supporting the increased customer demand for Pioneer® brand maize, sunflower and oilseed rape hybrids in Ukraine.

Upon completion, the facility will employ fifteen fulltime employees to support the warehousing and timely distribution to farmers in the region of approximately 200,000 units of Pioneer brand maize, sunflower and oilseed rape hybrids. The 4000 m2 warehouse will be insulated and one half of this space is air conditioned meaning that all Pioneer brand seed stored in Stasi will be preserved in an ideal climatic environment to maintain optimum seed quality. The facility also comprises offices and a workshop.

"Globally, Pioneer is witnessing unprecedented growth as the demand for our products and services increase. This investment is a reflection of that customer demand right here in Ukraine, one of the most rapidly developing and expanding agricultural economies in the world with huge potential," said Paul E. Schickler, president, Pioneer Hi-Bred, announcing this investment at a press conference in Kiev.

Pioneer started trials of maize hybrids in Ukraine in 1986 and in 1988 the Agriculture Ministry purchased hybrid maize seed from Pioneer. In 1998, Pioneer opened its representative office in Kiev and in 2001 registered ‘Pioneer Hi-Bred Ukraine' as a legal entity. In September 2009, Pioneer opened its first fully dedicated research centre in Ukraine for testing and developing maize, sunflower and oilseed rape hybrids specifically for the Ukrainian market.

"Pioneer continues to see significant growth throughout Europe and we are responding to increased demand by investing where the growth is," said Jeff Rowe, Regional Director, Europe, Pioneer Hi-Bred.

Pioneer sales revenue in Ukraine has risen by 30 per cent compounded annually between 2006 and 2011 and maize and sunflower unit volume sales have doubled in the same period. "In response to the strong growth in demand for Pioneer brand maize, sunflower and oilseed rape hybrids, Pioneer has bolstered sales and marketing efforts in the last two years, hiring and training more employees," said Mr Rowe. "In addition, Pioneer built a dedicated research centre and is now adding a logistics facility in Ukraine."

Pioneer is the market leader in Ukraine for maize hybrids and one of the market leaders for both sunflower and oilseed rape hybrids. In addition to the jobs created by this announcement, Pioneer currently employs 43 full-time, regular employees in Ukraine and relies on an additional 42 field sales agronomists acting as consultants and supporting Pioneer farmer customers throughout Ukraine.

"The construction of the Stasi logistics facility is further example of the increased investment by Pioneer in Ukraine and just as this investment was dependent on the right regulatory, political and agricultural production factors, so too are all future investment decisions by Pioneer in Ukraine as we strive to provide Ukrainian farmers with the right product for their specific growing areas and needs," concluded Mr Rowe.

From farm to fork, DuPont has the opportunity to use science and technology to increase food productivity in a sustainable way, enabling positive gains for health, nutrition, the environment and economies across the world. "Since the beginning of this year we are observing more than 70 per cent growth of our Crop Protection business in Ukraine, driven both by global trends and successful new product launches. With scheduled new product introductions in 2012, we are confident on continuing to strengthen our position in the Ukrainian Agriculture market," said Igor Teslenko, Director DuPont Crop Protection Eastern Europe and Central Asia.

"DuPont is constantly growing in Ukraine, this is one of the focus countries for us in Eastern Europe", said Jean-Luc Duramy, Vice President DuPont Eastern Europe. "Over the past several years, DuPont has invested over $1 billion in emerging markets around the world, leveraged our technology and strengthened our market leadership position as we have in Ukraine. Opening of the new logistics facility in north eastern Ukraine is a reflection of the right economic environment and customer demand for our offerings in the country", added Mr Duramy.

TheCropSite News Desk

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