Frontrunners in Securing and Increasing Yield in Crops
September 17 2008 - 8:00AM
PR Newswire (US)
- Biotech collaboration focuses on agricultural challenges 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. DATASOURCE: Monsanto
Company 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 Web site: http://www.monsanto.com/
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