New York, New York
June 5, 2008
2008 accomplishments provide
continuing springboard for growth in 2009 and beyond
Monsanto's international seed brands serve as an ideal
launching pad that positions the company for new launches of
biotechnology traits with significant scale and ramp-up speed,
Brett Begemann, Monsanto's executive vice president of global
commercial, will tell investors today at the Merrill Lynch
Agricultural Chemicals Conference in New York.
Begemann will cite the examples of Argentina and Brazil, where
the company recently received separate regulatory approvals for
corn biotechnology traits. In Argentina, Monsanto received the
first-ever approval for a double-stack trait combination,
YieldGard Corn Borer with Roundup Ready Corn 2, and plans to
offer the combination on more than 1 million acres in its year
of introduction. Likewise, Monsanto received planting approval
for the YieldGard Corn Borer trait in Brazil and is planning for
a 1 million to 2 million acre launch for the upcoming 2008-2009
season.
"If you combine the scale of our seed businesses in Argentina
and Brazil with our proven ability to deliver traits, we're in
the best competitive position to enter new trait markets quickly
and with an immediate financial benefit,"
said Begemann. "These two approvals came a year ahead of our
original plan, accelerating this opportunity and giving us what
we believe is a significant first-mover advantage that
translates to an enduring advantage in these new markets."
Begemann's comments will be part of a broader update on the
company's five-year growth plan, which targets doubling the
company's 2007 gross profit by 2012. With the company's third
quarter just completed, Begemann will indicate that the
company's 2008 progress on its six identified growth drivers
continues to set the stage for further growth in 2009 and
beyond.
Monsanto will report its third-quarter earnings on June 25, and
will provide further strategic updates at that point.
At today's conference, Begemann will highlight developments in
key areas of the company's growth drivers. These include:
- U.S. corn business:
With U.S. planting nearing completion, Monsanto remains on
track with its 2-3 share point gains in its DEKALB corn seed
business and complementary 1-2 share point gains in its
American Seeds, Inc. businesses. Paired with increased trait
penetration, especially for triple stacks, Monsanto is
setting the stage for the introduction of its new SmartStax
trait platform for corn expected in 2010, Begemann said.
- International corn:
In addition to the new biotech trait launches in Latin
America, Monsanto has strengthened its corn seed position in
its key international markets. Notably, in Argentina,
Monsanto brands have gained 5 shares points, ahead of the
original expectation of 1-2 share point gain. In Brazil,
where Monsanto targeted holding share in 2008, its seed
brands met the objective and are poised for growth in 2009.
In expanding markets in the European Union and India,
Monsanto brands fell short of the original 1-2 share-point
gain target, but retain strong positions and good momentum
for renewed growth in 2009.
- Soybeans: Monsanto
remains on target for its planned 1 million to 2 million
acre pre-commercial launch of its Roundup Ready 2 Yield
platform in 2009 in the United States, with significant seed
bulk up and final commercial testing underway in 2008 to
support the roll out next year.
- Cotton: In the
United States, Monsanto's cotton business continues to be a
turnaround story, with the Deltapine seed brand expected to
lose share in 2008 and stabilize at a level of approximately
33-36 percent. With new seed varieties in testing and a more
aggressive trait ramp-up program, Monsanto is
re-establishing the base for renewed growth in the Deltapine
brand.
Begemann will emphasize that
Monsanto's growth will continue to come from innovation, with a
focus on developing new products and technology that create
value for farmers and the value chain by improving the
productivity of acres that are being farmed.
"What I believe we do better than anyone else is to apply our
technology to increase on-farm yields," said Begemann. "As a
leading technology provider in agriculture, our products work to
create more grain at a lower cost with less risk to serve the
collective needs for feed, food and fuel across crops."
Webcast Information
Begemann's presentation slides and simultaneous audio webcast of
the presentation may be accessed by visiting the company's web
site at
http://www.monsanto.com/investors. Following today's live
broadcast set for 2 p.m. ET, a replay of the webcast will be
available for two weeks through this same link.
Monsanto Company is a leading global provider of
technology-based solutions and agricultural products that
improve farm productivity and food quality.
DEKALB, Deltapine, SmartStax, Roundup Ready, and Roundup Ready 2
Yield are trademarks of Monsanto Company and its wholly owned
subsidiaries. |
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