Pioneer celebrates 50 years in New Zealand

In 1975, Pioneer Hi-Bred International Incorporated signed a seed production and distribution agreement with Philip Yates, who at the time was the managing director of Arthur Yates & Co Ltd and subsequently the founder of Genetic Technologies Ltd.

The signing marked the first step in the launch of Pioneer brand maize and the start of an enduring business relationship between Pioneer and the Yates family, both of whom have had a long history in the global seed business.

Henry A. Wallace founded Pioneer Hi-Bred International – one of a handful of people in the world who initially recognised the immense opportunities that could be gained by growing hybrid maize. After graduating from college in 1910, Henry started breeding hybrid maize and by 1923 had produced a high-yielding hybrid he called Copper Cross. In 1924, it became the first hybrid to win the gold medal in the Iowa State Corn Yield Contest. In 1926, Wallace incorporated the Hi-Bred Corn Company, which later became Pioneer Hi-Bred International. The Yates family’s involvement in the seed industry started in England in the late 1700s. James Yates, a cotton importer, purchased a small quantity of Egyptian cottonseed and sold it to colonist farmers in the southern part of the present-day United States. This proved an inspired move as the demand for cottonseed grew and James relinquished his cotton importing business and became a seed merchant.

Almost a century later, James’ great-grandson Arthur who was an asthmatic, took a sea voyage away from the smoky cold air of the industrialising British Midlands to New Zealand. Arthur worked as a shepherd and scythed grass seed from roadsides to supplement his income. The seed revenue quickly outstripped his shepherd’s wages, and in 1882 Arthur moved to Auckland, rented a rickety wooden shop in Victoria St West and opened a specialised seed business.

Arthur’s younger brother Ernest Yates travelled from England to join him in business in 1886. Ernest was followed in the trade by his son Norman and in 1973 his grandson Philip became chief executive and managing director.

Philip was always looking for superior seed products. A magazine article about hybrid wheat caught his interest and ultimately led to a phone call to Pioneer Hi-Bred’s Overseas Division based in Des Moines, Iowa.

The timing of the relationship between the two companies could not have been better. In the 1970s, Pioneer’s new maize hybrids were breaking US yield records and sales were on a rapid upward trajectory increasing five-fold from 1972 to 1980.

While Pioneer had a range of exciting new products, New Zealand’s tight biosecurity requirements meant that only 48 individual maize seeds could be imported at a time. On arrival, seed had to be treated with a toxic combination of fungicides which meant only half would remain viable. Getting to the point of commercial release of a Pioneer hybrid was a slow and labour-intensive process.

“We started with a handful of Pioneer parent seed which we had to multiply before we could get enough to produce even trial quantities of seed,” says Philip. “It took a very long time to multiply the quantity of inbred seed to produce commercial volumes.”

The first Pioneer maize hybrid to be commercialised in New Zealand was 3709. The next hybrid was 3591 and a couple of seasons later 3901 was released as a shorter maturity option for lower North Island growers.

The seed revenue quickly outstripped his shepherd’s wages, and in 1882 Arthur moved to Auckland, rented a rickety wooden shop in Victoria St West and opened a specialised seed business.

Early days of seed processing

The initial Pioneer seed crops were hand-picked and sun-dried, but as sales grew a seed production plant was built at Waharoa. Cobs were sorted and dried and seed was sent to the Manawatū for conditioning. Neville Westbury, who started with Yates in 1978, can remember the challenges of drying seed maize in the damp Waikato climate.

“Maize was planted a lot later and the seed harvest didn’t take place until June or July,” says Neville. “When it was foggy you could stoke the furnace all night and you were lucky if the seed hadn’t gained moisture by the morning.”

In 1985, Equiticorp, a recently established investment bank, took control of the company via a share market raid and at the age of 53, Philip was dismissed and given two days to vacate his office.

Pioneer executives in the US were unimpressed by the turn of events which did not sit well with their business ethics. They cancelled their distribution agreement with the now Equiticorp-controlled Yates company and offered Philip the Pioneer representation in New Zealand. Genetic Technologies Ltd was formed.

Over the next few years, Genetic Technologies invested significantly in hybrid and agronomic research as well as continuing to promote the adoption of maize silage into the dairy industry.

Vision for the future

Philip’s son Will joined the company in 1990 and became the seventh generation of the family to be involved in the seed trade. Will “did his time” working alongside the field team, including in the South Island market. Today he leads the management team for Genetic Technologies Ltd in New Zealand.

“Our company vision is to enhance the future of New Zealand agriculture, and we are investing in a range of hybrid, agronomic, farm systems and environmental research which will help local growers and users of Pioneer brand products build profitable and sustainable businesses,” says Will.

“It is a real privilege for the Yates family to have represented Pioneer in the New Zealand market for the past 50 years and I want to personally thank all the farmers who have planted Pioneer as well as the many merchants, contractors and Pioneer team who have supported them over all those years.”

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