Growth potential for D&PL involves efficiency & technology

Special to the DBJ

The recent months have been hard on the US economy. Numerous companies have eliminated positions, letting go of employees. One area business, Delta and Pine Land Company, also announced organizational changes recently. But Murray Robinson, D&PL CEO, president and vice chairman, says these changes were not a reaction to the current economic climate as much as they were focused on increasing efficiency while positioning the company for growth.
“Over the last several months, we have looked at our business from the standpoint of what we could do better and ways in which we could increase efficiency,” Robinson says. “Our business remains strong and we are even better positioned for growth than before. Most important for farmers, we will continue developing, testing and supplying the market with high quality varieties and technology.”
In analyzing the company’s future and areas in which growth can be achieved, three components rose to the top–the domestic business, technology and international business.
“We are viewed as a growth company in financial circles and in many respects, with our customers. We continue to look for ways to become more efficient while insuring we are well positioned for growth. That growth will come in the US market, technology and international opportunities,” Robinson says.
“Many farmers find the potential with technology the most exciting because of the impacts it can have on their farm. By technology, we refer to a very wide range of options including genetics, biotechnology, molecular breeding, and seed coatings,” he continues. “In the Delta, customers have embraced technology in overwhelming numbers as transgenic varieties offer farmers new efficiencies on the farm. In some cases, the efficiencies have translated into growth by making it feasible to take on more acres. We must also look for efficiencies while positioning ourselves for future growth.”
Robinson acknowledges that gaining efficiency was a tough process to go through. “We looked at where we could gain efficiencies and control expenses without impacting the quality and depth of products and services we offer farmers. In that process, it became clear that organizational realignment was needed. In many cases, this meant the elimination of positions filled by good employees.”
In the Delta, approximately two dozen office workers at the Scott and Hollandale facilities lost their jobs. One D&PL location, a delinting facility in Chandler, Arizona, was closed as a result of the changes. Randy Dismuke, senior vice president, explains the trend in seed production that led to this move. “In the past, western grown seed was in high demand due to its quality. However, in the last several years, we have found that seed produced in other areas of the Cotton Belt were as high in quality. We have been moving production acres east for several years because production practices and interest in growing seed needed in other regions has changed so much in the last few years. Our Eloy, Arizona facility will handle increased seed this year, as will our other locations across the Belt.”
In addition to his other duties, Robinson resumed the position as president and chief operating officer vacated as Steve M. Hawkins resigned to pursue other business interests.
Delta and Pine Land Company is a commercial breeder, producer and marketer of cotton planting seed, as well as soybean seed in the Cotton Belt. For more than 80 years, the Mississippi-based company has used its extensive plant breeding programs drawing from a diverse germplasm base to develop superior varieties. Delta and Pine Land (NYSE: DLP) has offices in eight states and facilities in several foreign countries. DBJ

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