Looking Beyond the Headline
August 14,
2009
Source:
http://blog.monsantoblog.com/2009/08/14/monsanto-raising-seed-prices/
Some misinterpreted the headline to read we were raising prices over the existing product line price. The reality is that the article compared 2010 pricing on an acre of Asgrow Roundup Ready soybeans to an acre of Asgrow Genuity Roundup Ready 2 Yield soybeans with Acceleron. This 42% reflects the wide range of product options we offer that will meet the needs of our farmer customers. For example, if farmers are interested in our most advanced technology, Genuity Roundup Ready 2 Yield is for them. If they are satisfied with our original Roundup Ready soybean, that is available as well.
There’s a big difference in first-generation and second-generation technologies. Something that makes our business unlike most others is that we have to earn our sale year after year. The only way to do that is by offering farmers a wide range of products that deliver results.
Can’t we expect that the fifth generation Apple iPod will cost more than the fourth generation Apple iPod? Even though it’s the same manufacturer, the newer version is a much more technologically-advanced product with years’ worth of improvements in production and other modernized options. Understandably, the fourth-generation product will cost less than its fifth-generation sibling. But you wouldn’t mix-match basic product features and claim that Apple is raising the prices with the newest product launch by 42%.
Despite what some may have taken away from this week’s news, prices for Asgrow soybeans with the Genuity Roundup Ready 2 Yield and Acceleron are increasing marginally for the 2010 growing season. Increases may vary depending on channel, but the average price increase is 0-7%.
• Roundup Ready 2 Yield goes from a weighted avg. of $69-72 per acre in 2009 to $74 per acre (a 3 to 7 percent increase)
• Roundup Ready goes from a weighted avg. of $49-52 per acre in 2009 to $52 per acre (flat to a 6 percent increase)
For more information on our pricing philosophy, you can check out the For the Record section of Monsanto.com.