Agro Perspectiva

Early In-Season Crop Indicators and Monsanto's Unique Product Portfolio Reinforce Near-Term Opportunity, Monsanto Executives to Tell Investors at Whistle Stop Event

12.08.2010 09:19 "Agro Perspectiva" (Kyiv) — Gathering today with investors at a virtual oasis for drought tolerance in America, Monsanto Company (NYSE: MON) executives will highlight promising early indicators for its Genuity® SmartStax™ corn and Genuity® Roundup Ready 2 Yield® soybeans. The company’s fifth summer field event for investors starts today at Monsanto’s Water Utilization Learning Center in Gothenburg, Neb., with executives reviewing both a dashboard of seasonal indicators and customer research that shows farmers are inclined to purchase greater volumes of Genuity SmartStax corn and Genuity Roundup Ready 2 Yield soybeans at lower price points consistent with Monsanto’s 2011 strategy. The new seasonal indicator dashboard, which encompasses environmental conditions and performance gauges, suggests Genuity Roundup Ready 2 Yield soybeans and Genuity SmartStax corn appear to be on track to demonstrate differentiated benefits with the 2010 harvest. The corn dashboard, covering Genuity SmartStax, Genuity® VT Triple PRO™ and Genuity® VT Double PRO™ products, indicates anticipated strong performance as 2010 growing conditions reflect more normal levels of insect pressure and stress following two very mild years. In particular, Monsanto is tracking an increase in corn earworm pressure, one of the insect pests the company’s trait products offer unique protection against. The soybean dashboard indicates favorable conditions at the current growth stage, as root digs show increased root mass for Genuity Roundup Ready 2 Yield treated with Acceleron® seed treatment products over competitive products and no major disease issues have emerged to date. «We believe in our products, and we’re confident that come this harvest, Genuity SmartStax corn and Roundup Ready 2 Yield soybeans will deliver the results we expect,» Chairman, President and CEO Hugh Grant will tell investors. «I expect by this time next year, I’ll be able to tell you that the strategic actions we’ve taken have complemented a successful harvest, leading farmers to choose our technologies over other options.» Executives also will discuss new market survey results that suggest farmers are interested in trying or increasing their purchases of Genuity SmartStax corn and Genuity Roundup Ready 2 Yield soybeans if prices are lower, which trends well with the product choice and pricing actions the company previously outlined. Monsanto has said it plans to offer more products across geographies at more price points for farmers next year to make on-farm trial more affordable. The survey, conducted in late July among approximately 190 corn farmers and 400 soybean farmers, show more than half of those surveyed said they would purchase increased volumes of Genuity SmartStax corn and Genuity Roundup Ready 2 Yield soybeans at lower prices. «We’ve made some significant moves as it relates to our pricing approach, but they’re simple moves to understand,» Grant will tell investors. «With Genuity SmartStax, we’ve priced so that even with only mild insect pressure, SmartStax returns value to the farmer because of the value of the reduced refuge. With Genuity Roundup Ready 2 Yield, our pricing means that even a one bushel per acre advantage creates additional value for the farmer.» Grant also indicated that the significant drivers of the company’s fourth-quarter fiscal-year 2010 operating plan continue to track well with management’s expectations. In particular, the beginning of the Latin American corn-sales season is making good progress as planting in key countries approaches. In May, the company announced the strategic repositioning of the Roundup business. Since the announcement, Grant said implementation has gone well, with successful product positioning into the U.S. market in the quarter. As it has previously indicated, the company continues to evaluate ways to streamline the cost-structure of the Roundup business, and also is identifying additional opportunities to better align company resources to achieve operational efficiencies to be in place for fiscal year 2011. Monsanto will conclude its 2010 fiscal year on Aug. 31, and will provide a complete report on fourth-quarter and fiscal-year earnings on Oct. 6.