- Biotech collaboration focuses on agricultural challenges
- Nearly 175 locations of yield and stress field trials in progress
- First-generation drought-tolerant corn technology to be launched in first
half of next decade, targets 6 to 10 percent yield increase for farmers
GHENT, Belgium, Sept. 17 /PRNewswire-FirstCall/ -- While the worldwide
demand for food, feed and fuel is booming, farmers around the world face
losses due to extreme environmental conditions, such as drought. Given this
dilemma, increasing and securing yield is the most important challenge in
agriculture and also its primary value driver. BASF Plant Science and
Monsanto started to jointly address this challenge 18 months ago as the
companies announced a research and development collaboration in
biotechnology aimed at delivering higher-yielding seed products to farmers.
"With our unique approaches to gene discovery and with nearly 175
locations of field trials in progress in 2008, BASF and Monsanto are the
agriculture industry's frontrunners in developing higher-yielding crops
that are more tolerant to environmental stress," said Steve Padgette, Vice
President of Biotechnology at Monsanto, during a journalist event in Ghent
today.
"Of the total market for plant biotechnology, which we estimate will be
$50 billion (USD) in 2025, increasing and securing yield definitely has the
most business potential and impact. We will pioneer this segment with our
first drought tolerant corn product to be launched after 2012 targeting
yield advantages of 6 to 10 percent," said Dr. Hans Kast, President and CEO
of BASF Plant Science. The second generation of this product is projected
to generate further yield advantages in the same range.
Within the collaboration, which focuses on the four main crops corn,
soybeans, cotton and canola, Monsanto and BASF Plant Science have already
exchanged hundreds of gene constructs resulting in an enlarged gene pool
with less than 10 percent overlap. Both the great volume and diversity of
genes provide for a high success rate in finding the right lead genes and
the companies' joint development pipeline accelerates the products' path to
market.
"As the world faces continued and growing demands for agricultural
goods, Monsanto has committed to double crop yields in corn, soybeans and
cotton by 2030," said Padgette. "Our biotech collaboration with BASF is
expected to enable us to both discover and develop higher-yielding products
for farmers, at a faster rate."
Strong Product Pipeline
According to both companies, the first results of the collaboration
have exceeded their expectations. In January, drought tolerant corn, the
most advanced project, was lifted into the Development Phase III, where
data for the regulatory process is collected.
Apart from drought tolerance, Monsanto and BASF Plant Science focus on
developing plants that use nitrogen more efficiently and plants with
improved intrinsic yield, meaning a plant's capacity to produce more yield
under normal conditions. For the most advanced projects, the companies
anticipate the following market values in the US in 2020:
-- Higher yield in corn (broad acre): more than $1 billion (USD)
-- Higher yield in soybeans (broad acre): $300-500 million (USD)
-- Improved nitrogen utilization in corn: $300-500 million (USD)
-- Drought tolerant corn family: $300-500 million (USD)
In field trials, all four projects have so far shown significant yield
improvements over control groups. This year's South American trial for
higher yielding soybeans, for instance, showed a yield advantage of 6 to 10
percent, confirming earlier results. Last year's US trials also showed
enormous improvements, including drought tolerant cotton delivering an
advantage of up to 19 percent under drought conditions.
Additional Information
The BASF Plant Science Monsanto collaboration was also the subject of
an investor's event on September 16. A webcast and presentation slides of
the conference may be accessed by visiting
http://www.basf.de/share/fieldtrip.
About BASF Plant Science
BASF SE consolidated its plant biotechnology activities in BASF Plant
Science GmbH in 1998. Today, about 700 employees are working to optimize
crops for more efficient agriculture, renewable raw materials and healthier
nutrition. Projects include yield increase in staple crops, higher content
of Omega-3s in oil crops for preventing cardiovascular diseases, and
potatoes with optimized starch composition for industrial use. To find out
more about BASF Plant Science, please visit
http://www.basf.com/plantscience.
About Monsanto Company
Monsanto Company is a leading global provider of technology-based
solutions and agricultural products that improve farm productivity and food
quality. Monsanto remains focused on enabling both small-holder and
large-scale farmers to produce more from their land while conserving more
of our world's natural resources such as water and energy. To learn more
about our business and our commitments, please visit:
http://www.monsanto.com/.
Forward-Looking Statements:
As it pertains to BASF:
This press release contains forward-looking statements under the U.S.
Private Securities Litigation Reform Act of 1995. These statements are
based on current expectations, estimates and projections of BASF management
and currently available information. They are not guarantees of future
performance, involve certain risks and uncertainties that are difficult to
predict and are based upon assumptions as to future events that may not
prove to be accurate. Many factors could cause the actual results,
performance or achievements of BASF to be materially different from those
that may be expressed or implied by such statements. Such factors include
those discussed in BASF's Form 20-F filed with the Securities and Exchange
Commission. We do not assume any obligation to update the forward-looking
statements contained in this presentation.
As it pertains to Monsanto:
Certain statements contained in this release are "forward-looking
statements," such as statements concerning Monsanto's anticipated financial
results, current and future product performance, regulatory approvals,
business and financial plans and other non-historical facts. These
statements are based on current expectations and currently available
information. However, since these statements are based on factors that
involve risks and uncertainties, the company's actual performance and
results may differ materially from those described or implied by such
forward-looking statements. Factors that could cause or contribute to such
differences include, among others: continued competition in seeds, traits
and agricultural chemicals; the company's exposure to various
contingencies, including those related to intellectual property protection,
regulatory compliance and the speed with which approvals are received, and
public acceptance of biotechnology products; the success of the company's
research and development activities; the outcomes of major lawsuits;
developments related to foreign currencies and economies; successful
operation of recent acquisitions; fluctuations in commodity prices;
compliance with regulations affecting our manufacturing; the accuracy of
the company's estimates related to distribution inventory levels; the
company's ability to fund its short-term financing needs and to obtain
payment for the products that it sells; the effect of weather conditions,
natural disasters and accidents on the agriculture business or the
company's facilities; and other risks and factors detailed in the company's
most recent report on Forms 10-Q and 10-K. Undue reliance should not be
placed on these forward-looking statements, which are current only as of
the date of this release. The company disclaims any current intention or
obligation to update any forward-looking statements or any of the factors
that may affect actual results.
SOURCE Monsanto Company
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Related links:
http://www.monsanto.com
http://www.basf.com/plantscience
http://www.prnewswire.com/comp/114341.html/
CONTACT:
Media, Kari Matalone, (EU), 32-2-776-7656, or
Lee Quarles, (US), +1-314-694-2330, both of Monsanto Company; or
Susanne Benner of BASF, (EU), 49-621-60-2857; or Investors, Laura
Meyer of Monsanto Company, +1-314-694-5003; or Magdalena Moll of
BASF, 49-621-60-48230
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