Monsanto Defines New Growth Layers For R&D Pipeline

Monsanto’s pipeline offers rich growth layers beyond breeding and biotechnology that add incremental growth opportunities going forward, Chief Technology Officer Robb Fraley, Ph.D., told investors Wednesday at the Goldman Sachs Basic Materials Conference 2012. Fraley discussed new technologies with the potential to create real commercial value in Monsanto’s pipeline, including the expansion of the Integrated Farming Systems portfolio and the announcement of a new agricultural biologicals platform featuring BioDirect technology, which represents Monsanto’s first step into biological products. He also touched on emerging global opportunities, highlighting the company’s capital investment in Central and Eastern Europe as well as the continued ascension of agriculture in Brazil and Argentina, all of which are expected to drive Monsanto’s growth over the next several years.

“Our pipeline has evolved significantly from where it was just a few years ago and today it is more exciting and robust than ever,” Fraley said. “Not since we developed the first Roundup Ready trait have we seen such promising categories of value emerging from our pipeline. We’re exploring new areas of technology and new areas of the world, and all roads lead to opportunity for both Monsanto and our farmer customers as we work together to improve yields.”

Monsanto Introduces Ag Biologicals Platform, BioDirect Technology

Fraley introduced the latest addition to the company’s R&D pipeline, early development of ag biological products through Monsanto’s new BioDirect technology. BioDirect brings Monsanto’s expertise in plant genomics to chemistry for the first time, enabling products that could provide new options for sustainable pest or virus control.

Agricultural biologicals are typically topical or seed treatment products that are produced from natural materials and used to complement or replace agricultural chemical products, Fraley said. These products make up a growing market segment, Fraley noted, and today represent roughly $1.7 billion in sales each year.

Fraley said BioDirect is a natural extension of Monsanto’s work in advanced breeding and biotechnology, as it draws on an extensive knowledge of genomics. The BioDirect technology utilizes the application of molecules that are in nature, like RNA, to diminish the production of specific proteins in the target organism.

BioDirect technologies eventually could be used to identify new opportunities for current herbicides, create better insect control options, and offer new virus-control tools. Fraley also cited recent transactions that have complemented and helped accelerate Monsanto’s existing work in this space.

“BioDirect technology has the potential to be one of the most exciting advancements for agriculture that I’ve seen in my career,” Fraley said. “By working with a plant’s own naturally-occurring processes, we have the potential to create products that are very precise and specific in how they work and may require smaller and fewer applications than current agricultural products. That’s better for farmers, more sustainable and consistent with our vision to create products that enable farmers to produce more and conserve more.”

Precision Planting Strengthens Monsanto’s Vision For Integrated Farming Systems

Fraley also cited the company’s progress as it builds out its Integrated Farming Systems portfolio, noting today’s announced plan to acquire precision agricultural engineering and planting technology leader Precision Planting Inc. Monsanto’s planned Integrated Farming Systems offering would provide science-based agronomic seed prescriptions with next-generation precision equipment, helping farmers increase yield potential and reduce risk.

“I’ve been in farming my whole life, and welcoming the Precision Planting team to Monsanto is a real highlight,” Fraley said. “By bringing together Precision’s planting technology with our data and breeding expertise, we expect to set ourselves apart with our ability to deliver specific on-farm prescriptions with the tools to use them for our farmer customers and I believe we will greatly improve crop yields.”

Growth, Continued Investment In Latin America, Eastern Europe

Fraley noted the company’s technology investment reaches beyond the United States to growing agricultural powerhouses like Brazil and Argentina and emerging leaders like Eastern Europe.

In Brazil, Monsanto is readying for the commercial launch of its INTACTA RR2 PRO soybeans, the first product the company has developed specifically for an international market. INTACTA RR2 PRO brings insect protection to the Roundup Ready 2 Yield product that has delivered yield increases to U.S. farmers along with glyphosate tolerance. The product has been well-received in on-farm trials and has already been tested by 500 farmers in Brazil with successful results. It is expected to be commercialized pending the deregulation process for Brazil’s main soybean importers.

Argentina also is expected to have more agricultural technology choices in the future, Fraley said, given good progress has been made on a new payment system between the company and Argentina farmers that encourages Monsanto’s continued investment in that market. With continuing progress, Fraley said he would expect the company to introduce Ground Breakers trials for INTACTA RR2 PRO in Argentina for fiscal year 2014. The company also has invested capital in corn production for Argentina.

Fraley discussed oversea growth prospects as well, noting the company’s planned capital investment in an expansion of its corn seed production facilities in Central and Eastern Europe.

“We have a real yield opportunity in Eastern Europe, which has rich, black soil and large tracts of uncultivated, arable land,” Fraley said. “Today, corn yields are about half of what they are in comparable areas of Western Europe. The area is well-positioned geographically as an exporter to the rest of Europe, North Africa and the Middle East and has great potential to really boost productivity with better genetics in corn and canola.”

Fraley said if yields in Eastern Europe can be improved to the level of Western Europe, farmers in the East could produce enough food for 500 million people – and two key components of increased yield are better seed and agronomic practices. 

Topics:

Leave a Reply

One comment on “Monsanto Defines New Growth Layers For R&D Pipeline

Crop Inputs Stories

Crop InputsBayer Contests EPA’s Decision On Valuable Insecticide For Farmers
February 5, 2016
Crop Science, a division of Bayer, has announced it has refused a request by the Environmental Protection Agency (EPA) to Read More
Wheat Field North Dakota
Seed/BiotechSyngenta Wins Seed Fraud Suit Against South Dakota Growers
February 5, 2016
Syngenta has obtained a $25,000 settlement from Paul and John Mayclin, Mayclin Farms, Plankinton, SD, in response to their Plant Read More
Crop InputsBayer To Contest EPA Flubendiamide Decision
February 5, 2016
Crop Science, a division of Bayer, announced today it has refused a request by EPA to voluntarily cancel the uses Read More
Syngenta
Seed/BiotechNot So Fast: ChemChina Syngenta Takeover Could Draw National Security Scrutiny
February 5, 2016
State-owned China National Chemical Corp. (ChemChina), which plans to buy Swiss seeds and pesticide maker Syngenta, will promptly start preparations Read More
Top 100 Articles
Elburn Cooperative
CropLife 100Elburn Cooperative Members Vote To Join CHS
December 28, 2015
With 81% of eligible producers voting, 94% cast an affirmative ballot for Elburn Cooperative, a diversified agricultural retailer based out Read More
West Central Cooperative, Jefferson, IA
CropLife 100Farmers Cooperative-West Central Merger Approved
December 21, 2015
The members of Farmers Cooperative Co. (FC), Ames, IA, and West Central Cooperative, Ralston, IA, have both approved the merger Read More
Wheat Growers Innovation Center, Bath, SD
CropLife 100Wheat Growers Opens Innovation Center
December 21, 2015
Wheat Growers’ commitment in providing its farmer-owners with the latest in technological advancements now has a one-of-a-kind focal point, as Read More
CropLife 100ARA Selects The Andersons As 2015 Retailer Of The Year
December 9, 2015
The Agricultural Retailers Association today named Maumee, OH-based The Andersons as its Retailer of the Year for 2015. The award Read More
CPS Washington Court House John Deere Sprayer
CropLife 100Application Equipment Report: It Is Easy Being Green For Top 100 Ag Retailers
December 5, 2015
On The Muppets television show, Kermit the Frog is famous for singing a song about the troubles he encounters in Read More
Fertilizer Bin
CropLife 100Fertilizer Sales: Another Down Year For Top 100 Ag Retailers
December 4, 2015
In pure number terms, the fertilizer category still dominates all crop inputs/services among CropLife 100 ag retailers. In 2015, for Read More
Latest News
Crop InputsBayer Contests EPA’s Decision On Valuable Insecticide F…
February 5, 2016
Crop Science, a division of Bayer, has announced it has refused a request by the Environmental Protection Agency (EPA) to Read More
Wheat Field North Dakota
Seed/BiotechSyngenta Wins Seed Fraud Suit Against South Dakota Grow…
February 5, 2016
Syngenta has obtained a $25,000 settlement from Paul and John Mayclin, Mayclin Farms, Plankinton, SD, in response to their Plant Read More
ManagementOABA Annual Conference Wraps Up In Columbus
February 5, 2016
More than 300 Ohio AgriBusiness Association (OABA) members and industry professionals were on hand to engage in collaborative learning and Read More
Crop InputsBayer To Contest EPA Flubendiamide Decision
February 5, 2016
Crop Science, a division of Bayer, announced today it has refused a request by EPA to voluntarily cancel the uses Read More
Syngenta
Seed/BiotechNot So Fast: ChemChina Syngenta Takeover Could Draw Nat…
February 5, 2016
State-owned China National Chemical Corp. (ChemChina), which plans to buy Swiss seeds and pesticide maker Syngenta, will promptly start preparations Read More
Rendering of Syngenta Seedcare Institute expansion
Seed/BiotechExpansion Of Syngenta’s North America Seedcare In…
February 4, 2016
As demand for seed treatment knowledge and products grows among farmers, retailers and others in the seed industry, Syngenta is Read More
Soybean Field
Industry NewsArysta LifeScience Strengthens Sales Team
February 4, 2016
Arysta LifeScience North America recently announced three new personnel additions: Jake Cook and Peter White are Territory Sales Managers for Read More
Davor Pisk Syngenta COO
Crop InputsSyngenta COO: Why ChemChina Offer Beat Monsanto’s
February 4, 2016
Syngenta Chief Operating Officer Davor Pisk says he is confident the proposed acquisition by ChemChina will ultimately help preserve choice Read More
Young corn plants in soil
Crop InputsKoch Biological Solutions Invests In Pathway Biologic
February 4, 2016
An affiliate of Koch Biological Solutions, LLC has acquired a minority equity position in, and entered into collaboration with, Pathway Read More
Crop InputsABG: China Signs Off On Monsanto’s Roundup Ready …
February 3, 2016
Monsanto Co. on Wednesday announced it plans to launch its Roundup Ready 2 Xtend soybeans in time for the 2016 Read More
Syngenta headquarters in Basel, Switzerland
Crop Inputs6 Things To Know About The ChemChina-Syngenta Deal
February 3, 2016
After months of rumors and speculation, Syngenta has announced that ChemChina has offered to acquire the Swiss-based company. “In making Read More
FertilizerPhosphorus: Is Band Or Broadcast Application The Better…
February 3, 2016
Is band or broadcast application the better method when it comes to phosphorus? The answer to this question depends mostly Read More
Syngenta Sign
Crop InputsChemChina Nearing Deal To Buy Syngenta For Record $43 B…
February 3, 2016
China National Chemical Corp. is nearing an agreement to buy Swiss pesticide-and-seeds-maker Syngenta AG for about 43.7 billion francs ($42.8 Read More
Herbicides2015 ASA Trials Demonstrate Valent Fierce XLT Herbicide…
February 2, 2016
Valent U.S.A. today announced that new Fierce XLT Soybean Herbicide ranks in the top tier among growers for length of Read More
Crop Protection Products in storage
Paul SchrimpfCrop Input Selling: Return Of The Price List
February 2, 2016
It was a good 15 years ago, shortly after I first started writing for this esteemed publication, that it all Read More
Potash storage at Growmark
FertilizerThe Phosphate And Potash Outlook For 2016
February 2, 2016
Like other commodities, prices of the leading plant nutrient products dropped sharply in 2015. At this writing, the price of Read More
Chesapeake Bay
StewardshipKeeping A Watch On Water Issues
February 2, 2016
During a down cycle in the market, it’s difficult to think about investing for the long term. For retail businesses, Read More
Young Corn Plants
FertilizerNutrient Considerations For Low Corn Prices
February 2, 2016
Corn prices are low and many producers are asking tough questions about their nutrient management programs. Here are some suggestions Read More