Brevant distributors caught in uncompetitive position

Corteva Agriscience marketed Brevant brand seeds this season at a much higher price than Pioneer seeds, Kurkul.com reports with reference to the market sources.

Brevant hybrid brand sold by distributors cost UAH 5 thou., and at the same time Pioneer hybrid of the same FAO and stronger selection cost UAH 3.5 thou. from Corteva sales representative.

It is noted that Corteva Agriscience sold this very brand at UAH 4.8 thou. to distributors. That is, such price difference is not a consequence of the distributors' markup.

As reported, the Brevant brand sales campaign has failed, the seeds worth tens of millions of hryvnias are stored in the distributors' warehouses.

"Distributors simply can't sell these seeds in a situation when Corteva sales representatives come to customers the distributors also try to sell Brevant seeds, and offer the best Pioneer selection much cheaper. Accordingly, some distributors had to sell products at a loss," Kurkul.com source stated.

In their view, this policy may lead to serious financial problems for distributors.

"Knowing that Corteva was planning to start direct sales, some distributors thought of making money on a product that most major distributors refused to sell. But Corteva's policy led not to the profit, but to the weakening of its partners' positions," says the source.

Most Ukrainian distributors refuse from selling Brevant brand seeds by the company Corteva Agriscience. According to experts, this brand includes old and weak Pioneer or Dow Seeds hybrids.