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Showing posts with label Dow Chemical. Show all posts
Showing posts with label Dow Chemical. Show all posts

Monday, April 30, 2012

Herbicide Resistant Crops a Huge Concern

Story first appeared in The New York Times.

To a local farmer, it was a telltale sign that one of his tomato fields had been poisoned by 2,4-D, the powerful herbicide that was an ingredient in Agent Orange, the Vietnam War defoliant. Oklahoma City Agriculture Lawyers are concerned about the health and crop risks from extensive spraying of these hericides.

The leaves had curled and the plants were kind of twisting rather than growing straight. The local farmer in Lowell, Ind. is convinced the chemical, as well as another herbicide called dicamba, had wafted through the air from farms nearly two miles away. These distant farms in Kasbeer, Ill. were using Monsanto’s Roundup, a popular herbicide that some say has been used too often to control weeds.

Many farmers are concerned that the Dow Chemical company is on the verge of winning regulatory approval for corn that is genetically engineered to be immune to 2,4-D, allowing farmers to spray the chemical to kill weeds without harming the corn stalks.

That would be a welcome development for some corn farmers, who are coping with runaway weeds that can no longer be controlled by Roundup, the herbicide of choice for the last decade.

But some consumer and environmental groups oppose approval of Dow’s corn, saying it will lead to a huge increase in the use of 2,4-D, which they say may cause cancer, hormone disruption and other health problems. They are being joined by a coalition of fruit and vegetable farmers and canners like Red Gold and Seneca Foods, which filed petitions with the government last week seeking a delay in the corn’s approval.

The Save Our Crops Coalition, as it calls itself, says it is not opposed to biotechnology. But it fears that fruits and vegetables, which will not be immune to 2,4-D, will become unintended casualties of herbicide drift as the chemical is sprayed on tens of millions of acres of corn.

The dispute is the latest iteration in the intense and often bitter battle over genetically modified crops, made even more emotional in this case because of the connection between 2,4-D and Agent Orange, the notorious defoliant that has been linked to birth defects, cancer and other health problems in Vietnamese civilians and American veterans.

Some opponents of Dow’s product call it “Agent Orange corn.” Dow and its allies call that a misleading scare tactic.

Most experts agree that the harm from Agent Orange was caused primarily by its other ingredient, 2,4,5-T, which was taken off the market long ago. By contrast, 2,4-D, first approved in the late 1940s, is considered safe enough for use in many home lawn care products.

The Environmental Protection Agency, after repeated reviews, continues to say that there is not enough evidence to call 2,4-D a human carcinogen. This month, the agency rejected a petition from the Natural Resources Defense Council seeking the removal of 2,4-D from the market on health and safety grounds.

The Agriculture Department is leaning toward approval of the 2,4-D-resistant corn, according to its draft environmental assessment. But it is accepting public comments until Friday, and has already received more than 5,000. Opponents say that 267,500 people have signed a petition asking the government to deny Dow’s request. Dow hopes the approval will come in time for planting next year.

For some farmers, the approval couldn’t come too soon. He said that without new chemical approaches, farmers would have to plow more, increasing soil erosion.

The corn is just the first of a new wave of herbicide-tolerant crops. Dow is also developing soybeans and cotton immune to 2,4-D. Close behind, Monsanto is developing soybeans, cotton and corn that can tolerate dicamba, another old herbicide in the same family as 2,4-D. Bayer, Syngenta and DuPont are developing crops resistant to other herbicides. too.

Of the 20 genetically engineered crops awaiting approval, 13 are intended to be resistant to one or more herbicides.

The activity stems from the huge success, at least initially, of Monsanto’s Roundup Ready crops, which are genetically engineered to tolerate its herbicide Roundup, also sold generically as glyphosate.

Those crops made it so easy for farmers to control weeds by spraying glyphosate that Roundup Ready crops now account for about 90 percent of soybeans and around 70 percent of the corn and cotton grown in the United States. And use of glyphosate skyrocketed, at the expense of rival herbicides.

But farmers relied too much on glyphosate, allowing weeds to develop resistance to the chemical. The problem has been worst in the South, where a particularly strong and prolific plant called Palmer amaranth, or pigweed, has overrun cotton fields, forcing many farmers to hire crews to remove weeds by hand.

Dow says its crops will provide a way to control the glyphosate-resistant weeds using 2,4-D.

Dow’s crops contain a gene from a soil bacterium that causes them to make a protein that breaks down 2,4-D into other chemicals that are not harmful to plants.

But some critics say the new crops will lead to a manyfold increase in use of 2,4-D and dicamba. Neither is used that much now on corn and soybeans — the two leading crops by acreage — out of fear of harming the crops.

Critics say that weeds will eventually develop resistance to those chemicals as well and that more sustainable methods are needed to control weeds, like planting cover crops and rotating crops.

The new crops ratchet up dependence on the use of herbicides, which is very much a treadmill. Scientists in Nebraska have already discovered a small amount of waterhemp — perhaps the most troublesome weed in the Corn Belt — that is resistant to 2,4-D.

But some other scientists say there is little choice but to turn to the new crops and their matching chemicals. Without them, we’re going to get to a situation where we have no tools at all.

Dow and its supporters say resistance is not that likely to develop because various herbicide-tolerant crops will be competing, meaning no herbicide will be as dominant as Roundup has been.

Then there is the issue of drift. Droplets of any pesticide can drift onto adjacent farms as the chemical is sprayed. But 2,4-D and dicamba can also vaporize — known as volatilization — days after they are sprayed and then travel in the air for miles.

To the extent they now use 2,4-D and dicamba, corn and soybean farmers usually apply the chemicals before the crops are growing, he said. But with resistant crops, the chemicals will be sprayed later in the growing season, when the hotter weather increases the chance of volatilization.

Dow said it had already addressed the concerns by developing a new formulation of 2,4-D that is far less prone to vaporize or drift. BASF, the German chemical company, is working with Monsanto on a new versions of dicamba to limit drift and volatility.

Older formulations will remain on the market, so farmers may use them, especially if they are cheaper. But Dow says it will require buyers of its genetically engineered seeds to use the new formulation. It also says that older formulations will not have been approved for spraying on corn during certain parts of the growing season.

In a statement last week, Dow criticized the coalition’s attempt to delay approval, that there is a better way to address concerns than for one group of ag stakeholders to attempt to deny access to tools that are urgently needed by their neighbors.


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Thursday, April 29, 2010

Business Briefs

The Detroit News



Midland -- Dow Chemical Co., the largest U.S. chemical maker, reported Wednesday that its first-quarter profit surged more than fivefold to $718 million from a year earlier.

First-quarter net income rose to $551 million, or 41 cents a share, from $24 million, or 3 cents, compared with a year ago, Dow said.

"This quarter was indeed a pivotal point in giving the world a glimpse of our earnings' power," Dow CEO Andrew Liveris said in a conference call.

Federal-Mogul sales surge 20 percent

Auto parts supplier Federal-Mogul Corp. posted a $17 million first-quarter profit as sales surged 20 percent.

Net income was 15 cents a share, compared with a loss of $101 million, or $1.02, a year earlier, the Southfield-based company said Wednesday. The per-share results, excluding a charge for a Venezuelan currency devaluation of 35 cents, beat the 22-cent average of three analyst estimates compiled by Bloomberg.

Sales rose to $1.49 billion, benefiting from improved demand worldwide.

Mitsubishi, Peugeot reach SUV deal

Mitsubishi Motors Corp. and PSA Peugeot Citroën announced Wednesday that they have come to an agreement to collaborate on a compact SUV.

These new compact SUVs will have specific designs for Peugeot and Citroën while sharing many components with the Mitsubishi vehicle, named RVR in Japan and ASX in Europe.

Obama to appoint Yellen to Fed board


President Barack Obama today will name Janet Yellen as vice chairwoman of the Fed board of governors, according to two people familiar with the decision.

Obama also will name Sarah Bloom Raskin, Maryland's commissioner of financial regulation, and Peter Diamond, an economics professor at the Massachusetts Institute of Technology, for the two remaining open seats on the seven-person board, according to the people, who spoke on condition of anonymity before the announcement.

The nominations are subject to Senate confirmation.

Fed vows to hold line on rates for 'extended' period

Washington -- The Federal Reserve in a 9-1 decision Wednesday retained its pledge to hold rates at historic lows for an "extended period." Doing so will help energize the recovery.

GE glimpses light after conglomerate's cloudy year

Houston -- General Electric says the broader economy and its own business have stabilized, and that the "clouds are breaking" after one of the worst years ever for the conglomerate. The company, at its annual meeting in Houston, is telling investors that key economic indicators like housing and unemployment have stabilized, and that capital markets are improving. General Electric Co . says losses have peaked in its GE Capital lending unit and that the division should return to profit growth soon. GE Capital was the source of many of the company's problems last year, hit by the downturn in areas like credit cards, mortgages and commercial real estate.

Google's brand value of $114B tops global list

Google Inc . topped the 2010 BrandZ ranking of the 100 most valuable global brands by Millward Brown Optimor, with an estimated brand value of $114 billion. International Business Machines Corp . and Apple Inc . advanced to second and third place from fourth and sixth last year. Research In Motion Ltd .'s BlackBerry moved two spots to 14th place. Technology companies accounted for 6 of the top 10 brands. Apple, Hewlett-Packard Co ., Amazon .com Inc ., Verizon Communications Inc . and Baidu Inc . all gained more than 25 percent in brand value.

Monday, August 18, 2008

Dow CEO Must Foster Spirit of Innovation

Absorbing High-Tech Rohm & Haas to Require Changes in Company's More Stolid Culture

Dow Chemical Co.'s chief executive, Andrew Liveris, Thursday was exactly where he likes to be: in the limelight, announcing a multibillion-dollar deal and talking up his grand plan to turn his staid company into a hot-shot high-tech innovation machine.

How realistic this is remains to be seen. Today, Dow Chemical still makes three-quarters of its revenue in commodity-like products, spinning hydrocarbons into plastics and chemicals with little glamour and long names. And the company faces a huge challenge from the soaring costs of natural gas and oil, which are the building blocks of many of its products.

But Dow's $15.3 billion deal to acquire Rohm & Haas Co., which produces higher-margin specialty chemicals, is a step down the path Mr. Liveris has been promising since he became chief executive officer in late 2004.

A self-described "chemistry nerd," Mr. Liveris sees a day when Dow scientists will create must-have products craved by customers around the world, just as it did back in the 1960s, he says. Those products included Handi-Wrap and Ziploc bags. "You'll buy them because they have value to you and you'll pay the price," he says.

There have already been some bumps along the way for Mr. Liveris, 54 years old, a voluble Australian with a hard-charging style. He has spent his whole career at Dow, mostly in Asia.

Last year, after he had spent weeks denying rumors out of London that Dow was on the block, he discovered that two Dow executives were trying to sell the company out from under him. Their plan was to break up Dow, splitting the commodity and specialty businesses.

He fired them; they sued. Although Mr. Liveris ultimately prevailed, both at the company and in the courts, the incident raised questions about his strategy.

Dow is one of the few companies that covers the chemical waterfront, moving into specialized products while staying in the basics business, where it faces accelerating competition from the energy-rich Middle East.

Dow's response has been to try to unload some of those basic businesses into joint ventures. Before the end of the year, the company hopes to close on a deal to sell a 50% stake in several plants to Kuwait Petroleum Corp. for $9.5 billion. (Mr. Liveris describes the day he announced that deal, on live television, as his best at Dow -- until Thursday, when he says he got a standing ovation from Dow employees.)

That Kuwaiti cash has been burning a figurative hole in Mr. Liveris's pockets, and Wall Street has been speculating for months that Dow would buy a rival and complaining when it didn't.

Thursday's deal takes care of that issue, though it raises other concerns. Dow's last major acquisition, of Union Carbide in 2001, proved hard to digest and ended up pushing the company more heavily into the commodities business it is now trying to play down.

This time around, Dow will have to absorb its new holdings while at the same time trying to foster a new spirit of innovation in what has been, in recent years, a more stolid corporate culture.

Coaxing a high-tech butterfly from a commodity-chemical cocoon is far from easy, experts and competitors say. "It's going to be death-defying, may be enormously frustrating -- and may fail," says Howard M. Anderson, a professor at the Sloan School of Management at Massachusetts Institute of Technology.

Dow also has had its share of pollution problems, and the Union Carbide deal linked it with the deadly 1984 chemical leak in Bhopal, India -- which remains an environmental, political and humanitarian issue to this day.

Mr. Liveris complains that, in general, Dow has been judged unfairly, and he has gone on the offensive. Since becoming CEO, he has been unusually outspoken, pressuring Washington about the need for new energy and industrial policies, announcing sweeping price increases, and generally trying to revamp Dow's public image.

"I admire Andrew's willingness to step up and talk about issues that are important," says Barbara Hackman Franklin, a longtime Dow director.

Despite his best efforts, Mr. Liveris is little-known to Americans. Back in Australia, however, he has a higher profile, and in early 2007 he was rumored to be angling to head that nation's biggest company, BHP Billiton.

Was that true? "Capital N, capital O, exclamation point, exclamation point," Mr. Liveris says. "I really am very committed to changing this company to relive its glory years."

By: Leslie Eaton and Ana Campoy
Wall Street Journal; July 11, 2008