3.5 | Joint Venture

A joint venture (JV) is a temporary alliance between two or more independent businesses to pursue a specific project, such as developing a new seed variety, building processing facilities, or entering export markets. The JV agreement outlines the project scope, partner contributions, profit sharing arrangements, management structure, and criteria for dissolution upon meeting the objectives.

Joint ventures enable sharing of research and development costs, access to partner technologies, and combined market expertise without full mergers. Clear governance, communication protocols, and exit strategies are vital to manage cultural differences and ensure a smooth transition once the project concludes.

Recommendations for Image:

• Figure 3.5.1: Logos of two agricultural technology firms presented on a collaborative project banner.
  • Alt text: Two company logos side by side under a banner reading “Joint Venture.”
  • Caption: Joint ventures allow agribusiness partners to collaborate on large‑scale projects—such as developing precision agriculture tools—while maintaining separate corporate identities.

Real‑World Example: In 2018, Corteva Agriscience and Bayer Crop Science formed a joint venture to develop climate‑resilient seed hybrids. Each company contributed R&D facilities and intellectual property, and profits were shared 50/50. The venture launched three drought‑tolerant corn varieties in 2021 and expanded into soybean research. Upon meeting research milestones, the joint venture dissolved in 2023, and each company integrated the developed seeds into their own product lines under licensing agreements.