This document provides the schedule and logistics for Monsanto's Whistle Stop III VIP investor event at the Monmouth Agronomy Center in Illinois. The two-day event includes presentations on Monsanto's soybean, corn, cotton and canola pipelines from executive leadership and field tours of new technologies. On day one, tours will focus on Monsanto's soybean pipeline including insect-protected, dicamba-tolerant, omega-3, higher-yielding and Roundup Ready 2 Yield varieties. Day two features Monsanto's corn pipeline including drought-tolerant, nitrogen-utilization, higher-yielding, SmartStax and disease-resistant technologies.
Business Principles, Tools, and Techniques in Participating in Various Types...
monsanto _field_guide
1. Whistle Stop III
VIP INVESTOR EVENT
MONMOUTH AGRONOMY CENTER
Monmouth, Illinois
Complete logistics
and reference guide
for your research‐
farm experience
1
3. Contents
PAGE 3 Event Schedule
PAGE 6 Background on the Event and Resources
Monmouth Agronomy Center
Understanding the Pipeline
Valuing the Pipeline
PAGE 11 The Soybean Pipeline
Roundup Ready 2 Yield Soybeans
Insect‐Protected + Roundup Ready 2 Yield Soybeans
Dicamba‐Tolerant Soybeans
Omega‐3 Enhanced Soybeans
Vistive III Soybeans
Higher‐Yielding Soybeans
2nd‐Gen Higher‐Yielding Soybeans
Soybean Disease
High‐Oil Soybeans
2nd‐Gen High‐Oil Soybeans
Soybean Nematode Resistance
PAGE 23 The Corn Pipeline
Drought‐Tolerant Corn
2nd‐Gen Drought‐Tolerant Corn
Nitrogen‐Utilization Corn
Higher‐Yielding Corn
SmartStax Corn
YieldGard VT Pro corn
YieldGard Rootworm III
Extrax™ Corn Processing System
PAGE 32 The Cotton and Canola Pipelines
Higher‐Yielding + Roundup Ready 2 Yield Canola
Dicamba‐ and Glufosinate‐Tolerant Cotton
Drought‐Tolerant Cotton
Cotton Lygus Control
Bollgard III
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2
4. Event Schedule
WHISTLE STOP III
This is the third year of Monsanto’s
in‐field summer field event for
investors and analysts. Hosted by
Monsanto's executive team, this is
an opportunity for investors and
analysts to experience one of our
largest research fields, guided by
our top agricultural experts.
TUESDAY, AUGUST 12
9:30 AM Buses arrive at Moline/Quad Cities Airport Moline/Quad Cities
Airport
11:40 AM Buses Depart to Monsanto’s Monmouth
Agronomy Center
Welcome by:
Ted Crosbie Vice President,
Global Plant Breeding
David Fischhoff Vice President,
Technology, Strategy &
Development
Steve Padgette Vice President,
Biotechnology
1:00 PM Arrive at Monmouth Agronomy Center
1:00 PM Welcome and Opening Remarks Monmouth
Hosted by Hugh Grant, Agronomy Center
Monsanto Chairman,
President and Chief
Executive Officer
1:15 PM Overview and Safety Discussion
Dan Zinck Monmouth Learning
Center Manager
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5. Event Schedule
TUESDAY, AUGUST 12 – (CONT’D)
FIELD TOURS: SOYBEAN PIPELINE
1:30 PM Board Trams for Field Tours
1:45 PM Insect‐Protected Soybeans and Dicamba‐Tolerant Site 1
Soybeans
Roy Fuchs Global Oilseeds Technology Lead
Chism Craig Scott Learning Center Manager
2:15 PM Board Tram for Second Site
2:45 PM Omega‐3 Enriched Soybeans and Vistive Soybeans Site 2
David Fischhoff Vice President, Technology Strategy
& Development
Aaron Robinson Asst. Monmouth Agronomy Center
Manager
3:15 PM Board Tram for Third Site
3:30 PM Higher‐Yielding Soybeans and Soybean Breeding Site 3
Ted Crosbie Vice President, Global Plant Breeding
Larry Ganann Tech Development Rep
4:00 PM Board Tram for Fourth Site
4:15 PM Roundup Ready 2 Yield Soybean Production Field Site 4
Robb Fraley EVP, Chief Technology Officer
Dan Zinck Monmouth Learning Center Manager
4:45 PM Board Tram for Agronomy Center
5:00 PM Panel Discussion Agronomy Center
Hugh Grant Chairman, President, CEO
Robb Fraley EVP, Chief Technology Officer
Ted Crosbie Vice President, Global Plant Breeding
David Fischhoff Vice President, Technology, Strategy &
Development
Roy Fuchs Global Oilseeds Technology Lead
Steve Padgette Vice President, Biotechnology
Dusty Post Global Corn Technology Lead
Bob Reiter Vice President, Breeding Technology
6:00 PM Cocktails
6:30 PM Dinner
7:45 PM End‐of‐Day Closing
Hugh Grant Chairman, President, CEO
8:00 PM Buses Depart Monmouth for Radisson Quad City Plaza
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4
6. Event Schedule
WEDNESDAY, AUGUST 13
6:15 AM To‐Go Coffee and Tea Service Radisson Quad City
Plaza
6:45 AM Buses Depart Radisson Quad City Plaza
8:00 AM Arrive at Monmouth Agronomy Center Monmouth
Agronomy Center
Breakfast with Area Growers
FIELD TOURS: CORN PIPELINE
9:30 AM Board Trams for Field Tours
9:45 AM Drought‐Tolerant Corn, Nitrogen‐Utilization Corn, Site 1
Higher‐Yielding Corn and BASF Collaboration
Steve Padgette Vice President, Biotechnology
John Goette Trait Licensing Lead, Global
Agreements
10:25 AM Board Tram for Second Site
10:40 AM SmatStax and YieldGard VT Triple Pro Corn Technology Site 2
Dusty Post Global Corn Technology Lead
Clint Pilcher Regional Technology Sales Director
11:20 AM Board Tram for Third Site
11:35 AM Di‐Haploid Breeding, Global Germplasm and Global Site 3
Breeding
Ted Crosbie Breeding Technology Lead
Sam Eathington N.A. Corn Line Development Breeding
Director
Mark Messmer North America Commercial Corn
Breeding Lead
12:15 PM Board Tram for Wrap‐Up
12:30 PM Closing Remarks Agronomy
Center
Robb Fraley EVP, Chief Technology Officer
1:00 PM Buses Depart Monmouth for Moline‐Quad Cities Airport
2:15 PM Arrive at Moline‐Quad Cities Airport
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7. Monmouth Agronomy Center
The Monmouth Agronomy Center near
Monmouth, Illinois, was developed to
provide answers and solutions to
current questions and issues raised in
production agriculture.
From our research labs to classroom
training and plot tours, discovery is the
driving force behind everything we do.
Every day, we move forward with
advanced research in corn and soybean
production to better meet the needs of
the farmer and consumer. However,
our commitment goes beyond
discovering and exploring agronomic
solutions. We are dedicated to sharing
that knowledge with the public –
consumers, farmers, retailers, crop
consultants, legislators, and investors.
Sharing our technical information and
innovation is one way we continue to
pave the way to improved productivity
in the future. At the Monmouth
Agronomy Center, you will learn about
agronomic issues affecting farmers
today – as well as tomorrow.
Some of the more common topics
attendees are interested in include:
weeds, insects, diseases, tillage,
fertility utilization, hybrids and
varieties, intensive corn and soybean
management systems, plant
populations, plant spatial arrangement,
herbicide application, and future
technologies.
On behalf of our team and everyone at
Monsanto, welcome to Monmouth.
Dan Zinck
Monmouth Learning Center
Manager
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8. Understanding the Pipeline
Pipeline Process and Phases
The product pipeline tracks through five phases. The early phases abound with
investigative activity as our researchers systematically test concepts, models and
leads for products whose commercial introduction may still be a decade away. Tens
of thousands of candidates are screened and tested for every project that makes its
way through all five phases, eventually reaching the market.
It is generally reasonable to think about each phase as a two‐year stage, although
that can vary depending on technical milestones and external factors like regulatory
approvals. Whenever we discuss projects, we’ll do so in terms of the phase it is in –
rather than a specific launch date. This approach provides a better indicator of a
project’s actual status in the development process, and it acknowledges the
variability inherent in the specific timing of any commercial launch.
Average
Average
Probability
Duration1 2
Phase Description of Success
Discovery 24 to 48
Conduct high‐throughput screening of genetic
5 percent
months
database to identify valuable plant traits that
can be used in our breeding program and
valuable genes that can be used to improve
plants. Apply screens to broad categories of
interest, identifying multiple leads that can be
investigated. Within each project category,
there are specific research platforms that guide
discovery work. The ongoing research within
each discovery platform will generate new
project leads, which are designated with a
description and added in Phase 1.
1 12 to 24
Test gene configurations in plants to screen for
25 percent
months
desired performance. Determine which product
leads show the most promise for application to
core crop plants
2 12 to 24
Conduct lab and field testing of genes in plants
50 percent
months
to select commercial product candidates and to
meet regulatory requirements.
3 Demonstrate efficacy of traits in elite
12 to 24
75 percent
germplasm. Develop regulatory data as
months
appropriate.
4 12 to 36
Produce bulk seed for potential sale, develop
90 percent
months
plans for commercialization/launch, and
respond to regulatory processes as
appropriate.
1. Time estimates are based on our experience; they can overlap. Total development time for any
particular product may be shorter or longer than the time estimated here.
8
2. This is the estimated average probability that the traits will ultimately become commercial products,
based on our experience. These probabilities may change over time. Commercialization is dependent
7
on many factors, including successful conclusion of the regulatory process.
9. Valuing the Pipeline
This view of the pipeline is designed to
The R&D pipeline is the heart of be a comprehensive look at the value of
Monsanto’s growth opportunity over the each of the projects and families of
next decade. We have an established projects that we expect to emerge from
track record of turning good ideas into this R&D engine in the coming years.
high‐impact commercial products. The Assumptions, definitions and metrics
rate of innovation is accelerating, as used by Monsanto to develop this
we’re developing and testing more leads pipeline valuation model are also
today than at any point in history. included.
DISCOVERY PHASE 1 PHASE 2 PHASE 3 PHASE 4
YIELD & STRESS COLLABORATION
Drought-
FAMILY TRAITS► HIGH Tolerant
CORN:
Family
BROAD-ACRE Nitrogen-
HIGH
FAMILY TRAITS► Utilization
YIELD Family
Broad-Acre,
Higher-Yielding
FAMILY TRAITS► MEGA
Family
SOYBEANS: Broad-Acre,
BROAD-ACRE HIGH Higher-Yielding
FAMILY TRAITS►
YIELD Family
Roundup
2020 VALUE RANGES:
Omega-3
Bollgard III Ready 2
soybeans Yield
Roundup soybeans
MEGA HIGH Ready 2 Insect-
$300M-$500M Yield protected
>$1BM Roundup
canola YieldGard VT
Ready 2 Yield
soybeans PRO corn
High-oil
MID LOW soybeans
Improved
Dicamba-tolerant
<$150M
$150M-$300M -protein
soybeans
soybeans
Vistive III
Corn Soybeans Cotton Canola
OVERALL VALUATION METRICS
Valuations for each project or project family are represented by commercial value
ranges (noted above). The valuations are based on the following criteria:
• Valuation reflects expected annual gross sales value in the year 2020, which
provides a time horizon to see the maturation of key projects in Phase 2 and
forward, as well as the effect of multi‐project families in our Yield and Stress
pipeline.
• Gross sales are presented for the initial country of launch only. Expansion to
additional countries would represent upside to the presented valuation ranges.
• Acre opportunities are based on acres where there is a technology fit.
Additionally, acre opportunities reflect only the acres that correspond to the
shares accessed in each respective market by Monsanto’s branded and licensed
channels. These opportunities do not assume any changes to share or that
major competitors adopt Monsanto’s technology platforms. 2007 market
shares are used as the base for assumptions.
9
Continued
8
10. Valuing the Pipeline
• Valuation estimates are specific to the traits, regardless of the stacked
combination in which it is sold. These valuations do not reflect value
attributed to other traits or germplasm.
• Second‐ and third‐generation traits reflect combined values – including the
replacement value for the previous generation and incremental value
associated with increased functionality of the second‐ or third‐generation.
• Assumed launch dates coordinate with phase placement in the R&D pipeline
and normal progression timelines.
YIELD & STRESS VALUATION METRICS
In 2007, Monsanto announced a Yield and Stress collaboration with BASF. For
projects in this segment of the pipeline, there are additional key criteria that factor
into valuation:
• Projects are valued as families because individual projects never reach peak
penetration before successive generation projects are commercialized.
• The profit in Yield and Stress will be shared with BASF, as the collaboration
structure was established with a commercial‐value ratio of 60% Monsanto –
40% BASF.
Footnotes on Project Pages:
1. 2020 value reflects gross sales opportunity in launch country in year 2020
2. Acre opportunity reflects areas where technology fits at Monsanto’s current 2007‐
2008 market share in respective crops
10
9
11. Valuing the Pipeline
SUMMARY VALUATION TABLE
Acreage
Country Additional
2020 Potential
Phase1
Project of Geographic
Value – Country
Launch Opportunity
of Launch
SOYBEAN PIPELINE
Roundup Ready 2 Yield Soybeans 4 HIGH US 45M Brazil, Argentina
Insect‐Protected + Roundup
3 MID Brazil 50‐60M Argentina
Ready 2 Yield Soybeans
Dicamba‐Tolerant Soybeans 3 LOW US 45M Brazil, Argentina
Omega‐3 Enhanced Soybeans 3 HIGH US <1M N/A
Vistive III Soybeans 3 LOW US 10‐20M N/A
Broad‐Acre Higher‐Yielding
2 HIGH US 45M Brazil, Argentina
Soybeans Family2
Soybean Disease 1 To be decided when project enters Phase II
High‐Oil Soybeans 3 LOW US 15‐40M Brazil, Argentina
2nd‐Gen High‐Oil Soybeans 1 To be decided when project enters Phase II
Soybean Nematode Resistance 1 To be decided when project enters Phase II
High‐Stearate Soybeans 1 To be decided when project enters Phase II
CORN PIPELINE
Brazil, Argentina,
Drought‐Tolerant Corn Family2 3 HIGH US 55M
EU27
Brazil, Argentina,
Nitrogen‐Utilization Corn Family2 1 HIGH US 55M
EU27
Broad‐Acre Higher‐Yielding Corn Brazil, Argentina,
2 MEGA US 55M
Family2 EU27
Brazil, Argentina,
SmartStax Corn 3 HIGH US 60‐65M
EU27
YieldGard Rootworm III 1 To be decided when project enters Phase II
Extrax™3 Corn Processing System 4 N/A US 5‐10M N/A
COTTON AND CANOLA PIPELINE
Higher‐Yielding + Roundup Ready
2 LOW Canada 12M US, EU27
2 Yield Canola2
Dicamba‐ and Glufosinate‐
1 To be decided when project enters Phase II
Tolerant Cotton
Drought‐Tolerant Cotton Family2 1 N/A US 10‐15M India, Australia, Brazil
Cotton Lygus Control 1 To be decided when project enters Phase II
Bollgard III 2 MID US 10‐15M India, Australia, Brazil
1. For projects noted as “families,” phase designation represents status of first product in family
11
2. Part of the Monsanto‐BASF Yield and Stress R&D Collaboration
10
3. This project is part of the Renessen LLC joint venture between Cargill and Monsanto
All other metrics listed reflect the conventions described on pages 8‐9 for pipeline valuation
13. Roundup Ready 2 Yield Soybeans
DISCOVERY PHASE I PHASE II PHASE III PHASE IV
PRODUCT CONCEPT
The second‐generation
Roundup Ready soybean
product will provide farmers
with soybeans that are
tolerant to the Roundup
family of agricultural
herbicides and have
enhanced yields, with a target
of a 7 to 11 percent yield
increase compared with
FARM PROGRESS SHOW – 2007
Roundup Ready soybeans.
NEED FULFILLED VALUE CONSIDERATIONS
2020 Value1:
This breakthrough in soybean $300‐$500M
production is designed to enable
Launch Country: U.S.
farmers to increase their productivity
and profitability. Higher‐yielding Launch‐
45‐55M
soybeans create additional harvestable Country Acres2:
yield for farmers, increasing their
productivity while providing effective Additional Geographic Brazil
and proven weed control. Opportunity: Argentina
Additionally, Roundup Ready 2 Yield
will become the preferred platform for By increasing soybean yield by 7‐11
a host of new soybean traits that are percent, this offers farmers the
designed to change the landscape of opportunity to produce more yield per
soybean production in terms of yield, acre.
quality, ease of farming and
profitability.
CURRENT STATUS
This project is in Phase IV. This phase
includes producing bulk seed for
potential sale, developing plans for
commercialization/launch, and
response to regulatory processes as
appropriate. Roundup Ready 2 Yield
soybeans have completed the
regulatory process in the United States,
Canada, Japan and a number of other
countries around the world.
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Monsanto Company does not sell and has not authorized the commercial sale or use of this product. Roundup
Ready 2 Yield soybean seed and any product of a Roundup Ready 2 Yield soybean seed or crop can only be exported
to, or used, processed or sold in countries where all necessary regulatory approvals have been granted.
14. Insect‐Protected +
Roundup Ready 2 Yield Soybeans
DISCOVERY PHASE I PHASE II PHASE III PHASE IV
MONMOUTH, IL SCREENHOUSE – 2007
PRODUCT CONCEPT
Insect‐protected soybeans use
the same Bt technology widely
adopted in corn and cotton to
control lepidopteran insect
pests that are economically
important for South American
farmers. Insect‐protected
soybeans are targeted to be
stacked together with Roundup
Control Insect‐protected
Ready 2 Yield soybeans for
(no trait) soybean
effective control of both
insects and weeds.
NEED FULFILLED VALUE CONSIDERATIONS
2020 Value1:
Insect protection is an important tool $150 ‐ $300M
to increase farmers’ yields, helping
Launch Country: Brazil
them meet the growing demands for
food, feed, and fuel. Insect‐protected Launch‐
50M
soybeans with Roundup Ready 2 Yield Country Acres2:
have demonstrated improved control
over commonly applied insecticide Additional Geographic
Argentina
treatments, thereby providing Opportunity:
potential input cost savings and
This product would offer insecticide
enhanced performance. Insect‐
substitution, based on two current sprays
protected soybeans are the first
reducing input costs by approximately
Monsanto trait product to be
$12.00 per acre. Additional yield benefits
developed exclusively for a non‐U.S.
are expected from improved insect
market, notably Brazil, where insect
control and Roundup Ready 2 Yield
pressure is a significant issue in
technology.
soybean production.
CURRENT STATUS
The project is in the advanced
development stage, Phase III. This
phase involves demonstrated efficacy
of traits in elite germplasm, early trait
integration activities and the
generation of data to support
regulatory submission.
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15. Dicamba‐Tolerant Soybeans
DISCOVERY PHASE I PHASE II PHASE III PHASE IV
PRODUCT CONCEPT
Dicamba‐tolerant soybeans
would provide a new, unique
mode of action for weed
control, designed to provide
soybean growers with the
most effective and highest
yielding weed management
system available when
stacked with Monsanto’s
Roundup Ready 2 Yield trait.
FARM PROGRESS SHOW – 2007
NEED FULFILLED VALUE CONSIDERATIONS
2020 Value1:
Effective weed control is critical to <$150M
increase crop yields to meet the
Launch Country: U.S.
growing global demand for food, feed,
and fuel. Dicamba‐tolerant soybeans Launch‐
45M
are expected to be Monsanto’s third‐ Country Acres2:
generation of herbicide tolerant
soybean product. Combining a second Additional Geographic Brazil
mode of action for herbicide tolerance Opportunity: Argentina
with Roundup Ready 2 Yield technology
would offer growers an additional tool Dicamba, which is economical and doesn’t
for weed control through the use of persist in soil, is effective against most
glyphosate, dicamba, or combinations broadleaf weeds, including weeds that
of both herbicides, and increased yield are hard to control with the Roundup
provided by the Roundup Ready 2 Yield family of agricultural herbicides.
trait.
Farmers have used dicamba to control
CURRENT STATUS broadleaf weeds in grassy‐type crops such
as corn and wheat. A biotechnology
The project is in the advanced
solution to provide dicamba tolerance to
development stage, Phase III. This
soybeans adds considerable value and a
phase involves demonstrated efficacy
new market to this well‐established and
of traits in elite germplasm, trait
effective herbicide.
integration activities, the generation of
data to support regulatory submission
and obtaining global regulatory
approvals.
15
14
16. Omega‐3 Enhanced Soybeans
DISCOVERY PHASE I PHASE II PHASE III PHASE IV
PRODUCT CONCEPT
Omega‐3 enhanced soybeans
represent a land‐based
source of essential omega‐3
fatty acids. This product is
targeted to produce 20
percent stearidonic acid
(SDA) omega‐3 fatty acid with
the taste, shelf life and oil
stability of soybean oil.
NEED FULFILLED VALUE CONSIDERATIONS
2020 Value1:
Consumer demand for omega‐3 fatty $300‐$500M
acids is growing as research continues
Launch Country: U.S.
to demonstrate that diets rich in
omega‐3 fatty acids play an important Launch‐
<1M
role in maintaining health, including Country Acres2:
heart health. This omega‐3 containing
product is designed to help meet this Additional Geographic
N/A
growing demand, because it can be Opportunity:
used in a broad range of food products
since it has a similar taste, shelf‐life As a renewable, land‐based source of
and oil stability profile as conventional omega‐3 oil, this product also could offer
soybean oil. SDA soybean oil has a one potential alternative to fish‐based
superior nutritional and taste profile to omega‐3 oil.
fish oil and thereby provides significant
benefits to consumers and food
processors.
CURRENT STATUS
The project is in the advanced
development stage, Phase III. This
phase involves demonstrated efficacy
of traits in elite germplasm,
development of regulatory data and
obtaining global regulatory approval. In
March 2007, Monsanto and The Solae
Company announced a collaboration to
develop and market omega‐3 products.
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17. Vistive III Soybeans
DISCOVERY PHASE I PHASE II PHASE III PHASE IV
PRODUCT CONCEPT
The Vistive III trait is
designed, by combining
breeding and biotechnology,
to lower linolenic and
saturate content of soybean
oil while boosting oleic
content to produce oil with
the monounsaturated fat
content of olive oil and the
low saturated fat content of
canola oil.
NEED FULFILLED VALUE CONSIDERATIONS
2020 Value1:
As the population expands and <$150M
consumer demands for healthier foods
Launch Country: U.S.
grow, the food industry is searching for
cost effective solutions to eliminate Launch‐
35M
trans‐fat from our diets. Vistive I low Country Acres2:
linolenic soybean was the first step
toward generating trans‐fat free Additional Geographic
N/A
soybean oil with improved Opportunity:
functionality, by making it more stable
in applications that require high This product would provide high stability
oxidative stability, such as frying or frying oil/spray coating, reduce
spray coating. Vistive III technology operational costs (less frequent oil
significantly improves the stability of changeovers), help eliminate trans fatty
the oil while reducing saturates for a acids, and decrease saturated fat content.
healthier nutritional profile with the
economics of soybean oil.
CURRENT STATUS
The project is in the advanced
development stage, Phase III. This
phase involves demonstration of trait’s
efficacy in elite germplasm and
development of regulatory data and
obtaining regulatory approvals. The
third season of field trials was
successfully completed in 2007.
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18. Higher‐Yielding Soybeans
Part of the Broad‐Acre, Higher‐Yielding Soybean Family
DISCOVERY PHASE I PHASE II PHASE III PHASE IV
JERSEYVILLE, IL – 2007
PRODUCT CONCEPT
Higher‐yielding soybeans are
aimed at boosting the
intrinsic yield potential of the
soybean through insertion of
key genes. This project aims
to increase soybean yields by
WITH YIELD TRAIT
10 percent.
CONTROL
NEED FULFILLED VALUE CONSIDERATIONS
2020 Value1:
Higher‐yielding soybeans create $300‐$500M
additional harvestable yield for
Launch Country: U.S.
farmers, increasing their productivity.
Higher yields are becoming important Launch‐
45M
as population expands and as soybean Country Acres2:
growers look to meet growing demand
for oil in areas like biodiesel and Additional Geographic Brazil
cooking. Additionally, as protein Opportunity: Argentina
demand increases in key importing
markets like China, higher yields offer By increasing yield 10 percent, this
farmers a way to better help meet that product would offer farmers the option to
need. get more yields per acre and additional
flexibility in crops planted and market
CURRENT STATUS opportunities.
This project is in Phase II, early product
development. This includes conducting
lab and field testing of genes in plants
to select commercial product
candidates and to advance the best
performing events for regulatory
testing. In 2007 testing, we took 68
events into the field for testing at 18
locations, with lead events showing
strong yield advantages over
conventional controls.
18
PART OF THE MONSANTO‐BASF YIELD 17
AND STRESS R&D COLLABORATION
19. 2nd‐Gen Higher‐Yielding Soybeans
Part of the Broad‐Acre, Higher‐Yielding Soybean Family
DISCOVERY PHASE I PHASE II PHASE III PHASE IV
PRODUCT CONCEPT
This is a second‐generation product
that would provide an upgrade to
higher‐yielding soybeans. This
product is aimed at boosting the
intrinsic yield potential of the
soybean through insertion of key
yield genes and providing
incremental yield over first‐
generation products for a total
Control Gene B
increase of 17‐20 percent in yield.
NEED FULFILLED VALUE CONSIDERATIONS
2020 Value1:
Higher‐yielding soybeans create $300‐$500M
additional harvestable yield for
Launch Country: U.S.
farmers, increasing their productivity.
Higher yields are becoming important Launch‐
45M
as population expands and as soybean Country Acres2:
growers look to meet growing demand
for oil in areas like biodiesel and Additional Geographic Brazil
cooking. Additionally, as protein Opportunity: Argentina
demand increases in key importing
markets like China, higher yields offer When stacked with first‐generation yield
farmers a way to better help meet that products and the superior weed control
need. provided by Roundup Ready 2 Yield, this
product will deliver an incremental yield
CURRENT STATUS increase over first‐generation soybean
yields.
This project is in Phase I, proof of
concept, which includes test gene
configurations in plants to screen for
desired performance and determining
which product leads show the most
promise for application to core crop
plants
19
PART OF THE MONSANTO‐BASF YIELD 18
AND STRESS R&D COLLABORATION
20. Soybean Disease
DISCOVERY PHASE I PHASE II PHASE III PHASE IV
PRODUCT CONCEPT
The soybean disease program is
focused on developing a
biotechnology solution to reduce the
impact of Asian Soybean Rust on
soybean production and thereby
reduce the number of fungicide
applications to maintain yields.
NEED FULFILLED VALUE CONSIDERATIONS
Effective disease control is critical to To be decided when project enters Phase II
increase soybean yields to meet the
Asian Soybean Rust control has potential
growing global demand for food, feed,
to reduce input costs for growers who are
and fuel. The use of a biotechnology
faced with Asian Soybean Rust
solution is targeted to provide greater
infestations by reducing the number of
durability to control this disease, which
fungicide applications required to protect
has overcome some of the current
the crop. This could translate into grower
breeding solutions in soybean
savings of between $10‐20/acre.
germplasm.
CURRENT STATUS
This project is in Phase I, proof of
concept, which includes testing genes
and gene combinations in plants to
screen for resistance to Asian Soybean
Rust to determine which genes or
combination of genes show the most
promise for further advancement to
commercial transformation.
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21. Higher‐Oil Soybeans
Part of the High‐Oil Soybean Family
DISCOVERY PHASE I PHASE II PHASE III PHASE IV
PRODUCT CONCEPT
High‐oil soybeans are
targeted to increase oil
content in soybeans to
improve oil‐crushing yield to
help processors meet the
growing demand for
vegetable oil for food and
biofuels.
FARM PROGRESS SHOW – 2007
NEED FULFILLED VALUE CONSIDERATIONS
2020 Value1:
As the population expands and <$150M
consumer demands grow, this
Launch Country: U.S.
technology would offer farmers a way
to produce more oil per acre of Launch‐
35M
soybeans. High‐oil soybeans have the Country Acres2:
potential to boost oil for food
production, with a potential use for Additional Geographic Brazil
biodiesel. Opportunity: Argentina
This product enables farmers to produce
CURRENT STATUS
more oil per acre. This increased oil
content creates significant additional
The project is in the advanced
value given the cost and amount of
development stage, Phase III. This
soybean oil in food products.
phase involves demonstrated efficacy
of traits in elite germplasm,
development of regulatory data and
obtaining global regulatory approvals.
Four years of field testing has
demonstrated consistent, significant oil
advantage, advancing to Phase III for
further commercial development.
21
20
22. 2nd‐Gen High‐Oil Soybeans
Part of the High‐Oil Soybean Family
DISCOVERY PHASE I PHASE II PHASE III PHASE IV
PRODUCT CONCEPT
Second‐generation high‐oil soybeans
are targeted to improve oil crushing
yield to help farmers meet the
growing demand for vegetable oil
and biodiesel.
NEED FULFILLED VALUE CONSIDERATIONS
As the population expands and To be decided when project enters Phase II
consumer demands grow, this
Increasing oil yield offers farmers the
technology could offer farmers a way
ability to get more oil per acre providing
to do more with each acre. High‐oil
the option for additional flexibility in
soybeans have the potential to boost
crops planted and market opportunities.
oil for food production, with a
potential use for biodiesel.
CURRENT STATUS
This project is in Phase I, which
includes testing gene configurations in
plants to screen for desired
performance, and determining which
product leads show the most promise
for application to core crop plants
22
21
23. Soybean Nematode Resistance
DISCOVERY PHASE I PHASE II PHASE III PHASE IV
PRODUCT CONCEPT
Soybean nematode resistance is a
biotechnology approach to provide
superior control of Soybean Cyst
Nematode (SCN) compared with
current genetic sources of control
that are available in commercial
germplasm.
The soy plants seen above in Monmouth, Illinois, have
been severely damaged by soybean cyst nematode.
NEED FULFILLED VALUE CONSIDERATIONS
Protection from yield loses caused by To be decided when project enters Phase II
weeds, diseases and pests is required
This product would provide superior
to maximize soybean yields and help
control of SCN when compared with
address the growing demands for food,
current sources of germplasm control and
feed and fuel. SCN resistance, when
increase soybean yields for growers.
combined with Roundup Ready 2 Yield,
would provide growers with improved
control of the SCN pest, which cause
millions of dollars in yield lost each
year, and lead to superior yields.
CURRENT STATUS
This project is in Phase I, which
includes testing genes and gene
combinations in soybeans to screen for
SCN control and determining which
gene(s) show the most promise for
commercial transformation.
23
22
24. Corn Pipeline
PROJECTS FEATURED AT MONMOUTH
PAGE 24 Drought‐Tolerant Corn
2nd‐Gen Drought‐Tolerant Corn
PAGE 25
PAGE 26 Nitrogen‐Utilization Corn
PAGE 27 Higher‐Yielding Corn
PAGE 28 SmartStax Corn
PAGE 29 YieldGard VT PRO Corn
OTHER PROJECTS IN THE PIPELINE
PAGE 30 YieldGard Rootworm III
24
23
25. Drought‐Tolerant Corn
Part of the Drought‐Tolerant Corn Family
DISCOVERY PHASE I PHASE II PHASE III PHASE IV
SUPERIOR, NE FIELD TRIALS – 2007
PRODUCT CONCEPT
First‐generation drought
tolerance is targeted to
minimize uncertainty in
farming by buffering against
the effects of water
limitation, primarily in areas
of annual water stress. In the
U.S., this area has historically
Control Hybrid With Gene
been the dryland farms of the
(76 bu/ac) (94 bu/ac)
Western Great Plains.
NEED FULFILLED VALUE CONSIDERATIONS
2020 Value1:
Agriculture uses over 70 percent of the $300‐$500M
world’s fresh water resources. Drought
Launch Country: U.S.
tolerant corn could offer farmers one
way to reduce agriculture’s impact on Launch‐
55M
the environment. Water is the biggest Country Acres2:
limiting factor in agriculture
production. Every acre of corn faces Additional Geographic Brazil
some degree of water stress at some Opportunity: Argentina
point in the growing season. This EU27
product could allow farmers to achieve
Farmers value water‐use in “acre‐inches
more consistent yields even during
of water” needed to support yield
times of water stress. Increased yield
potential. Farmers need 18‐to‐20 inches
improves farmers’ productivity helping
of moisture from natural or irrigated
them meet growing demands for feed,
sources during the growing season to
food and fuel.
achieve normal Corn Belt yields.
CURRENT STATUS
The project is in the advanced
development stage, Phase III. This
phase involves demonstrated efficacy
of traits in elite germplasm and
development of regulatory data as
appropriate. It completed the fifth year
of field trials in 2007.
25
PART OF THE MONSANTO‐BASF YIELD 24
AND STRESS R&D COLLABORATION
26. 2nd‐Gen Drought‐Tolerant Corn
Part of the Drought‐Tolerant Corn Family
DISCOVERY PHASE I PHASE II PHASE III PHASE IV
PRODUCT CONCEPT
The second‐generation of
drought tolerant corn is
aimed at boosting yield
stability for broad‐acre
applications and reducing
water input required in
water‐limited environments
Control Hybrid With Gene
NEED FULFILLED VALUE CONSIDERATIONS
2020 Value1:
Agriculture uses over 70 percent of the $300‐$500M
world’s fresh water resources. Drought
Launch Country: U.S.
tolerant corn could offer farmers one
way to reduce agriculture’s impact on Launch‐
55M
the environment. Water is the biggest Country Acres2:
limiting factor in agriculture
production. Every acre of corn faces Additional Geographic Brazil
some degree of water stress at some Opportunity: Argentina
point in the growing season. This EU27
product would allow farmers to
Farmers value water‐use in “acre‐inches
achieve more consistent yields even
of water” needed to support yield
during times of water stress. Increased
potential. Farmers need 18‐to‐20 inches
yield improves farmers’ productivity
of moisture from natural or irrigated
helping them meet growing demands
sources during the growing season. This
for feed, food and fuel.
product is targeting 8‐10% yield
improvement in water‐stress
CURRENT STATUS
environments, and could offer water
substitution savings in pumped irrigation.
This project is in Phase II, early product
Pumped irrigation has a variable cost of
development. This phase includes
>$100/ acre.
conducting lab and field testing of
genes in plants to select commercial
product candidates and for
advancement of selected events into
regulatory testing.
26
PART OF THE MONSANTO‐BASF YIELD 25
AND STRESS R&D COLLABORATION
27. Nitrogen‐Utilization Corn
Part of the Nitrogen‐Utilization Corn Family
DISCOVERY PHASE I PHASE II PHASE III PHASE IV
FARM PROGRESS SHOW – 2007
PRODUCT CONCEPT
Nitrogen utilization targets
ways that corn plants can use
nitrogen more efficiently,
exploring the potential to
boost yield under normal
nitrogen conditions or to
stabilize yield in low nitrogen
environments.
NEED FULFILLED VALUE CONSIDERATIONS
2020 Value1:
Nitrogen is one of the most important $300‐$500M
farm inputs and is the most price
Launch Country: U.S.
sensitive to petroleum‐input costs.
Nitrogen prices have risen sharply in Launch‐
55M
recent years and are one of the most Country Acres2:
significant crop inputs for farmers.
Additional Geographic Brazil
Opportunity: Argentina
CURRENT STATUS
EU27
The project is in Phase I, the proof of
According to the USDA, nitrogen fertilizer
concept phase, including discovering
represents one of the largest input costs
new genes and evaluating these genes
in agriculture, accounting for
in our technology programs.
approximately one‐fifth of the operating
costs for a corn producer. Improving
nitrogen‐use efficiency in corn provides
an opportunity for increased farmer
profitability, while also offering a new
way to reduce agriculture’s overall impact
on the environment.
27
PART OF THE MONSANTO‐BASF YIELD 26
AND STRESS R&D COLLABORATION
28. Higher‐Yielding Corn
Part of the Broad‐Acre, Higher‐Yielding Corn Family
DISCOVERY PHASE I PHASE II PHASE III PHASE IV
PRODUCT CONCEPT
Higher‐yielding corn is aimed
at boosting the intrinsic yield
potential of corn hybrids by a
targeted 10 percent through
insertion of key genes.
NEED FULFILLED VALUE CONSIDERATIONS
2020 Value1:
Higher yields are becoming ever more >$1B
important. As population expands, as
Launch Country: U.S.
protein demand increases in key
importing markets like China, and as Launch‐
55M
renewable fuel becomes more Country Acres2:
important, higher yields offer farmers a
way to better help meet these needs. Additional Geographic Brazil
Higher‐yielding corn improves the Opportunity: Argentina
productivity of farming by increasing EU27
average yield per acre.
Increasing yield on existing acres helps to
make farming more profitable. Producing
CURRENT STATUS
more on the same acre also improves
This project is in Phase II, early product land stewardship by not bringing
development. Lab and field testing of additional acres into production to meet
genes in plants are being conducted to demand.
select commercial product candidates
and to advance the best performing
events to regulatory trials. With three
years of field data proving efficacy,
higher‐yielding corn emerged from
proof‐of‐concept testing to Phase II
development.
28
PART OF THE MONSANTO‐BASF YIELD 27
AND STRESS R&D COLLABORATION
29. SmartStax Corn
DISCOVERY PHASE I PHASE II PHASE III PHASE IV
PRODUCT CONCEPT
Smartstax combines eight different
herbicide‐tolerance and insect‐
protection genes into top‐performing
hybrids for the most complete control
ever available. The product will include
above‐ and below‐ground insect
protection systems, including Dow
AgroSciences’ Herculex® I and Herculex®
RW technologies; Monsanto’s YieldGard
VT Rootworm/RR2 and YieldGard VT
PRO technologies; and the two
established weed control systems,
Roundup Ready and Liberty Link®.
NEED FULFILLED VALUE CONSIDERATIONS
2020 Value1:
This project is designed to offer both $300‐$500M
durability and performance. Combined
Launch Country: U.S.
genes for insect protection guard
against the development of insect Launch‐
60‐65M
resistance and combined herbicide‐ Country Acres2:
tolerant traits offer multiple modes of
action for weed control. The Additional Geographic Brazil
complementary nature of the trait Opportunity: Argentina
platforms are designed to converge to EU27
offer superior, season‐long
This product will allow the farmer
performance, notably enhanced
durability; the flexibility to move to one
control of a broader spectrum of
technology platform on‐farm; flexibility to
above‐ and below‐ground insects, and
increase planting populations; a platform
the most comprehensive protection
for future traits; and access to superior
against established and emerging
seed.
secondary pests.
CURRENT STATUS
This project is in Phase III. This phase
includes demonstrated efficacy of
traits in elite germplasm and
development of regulatory data as
appropriate. We anticipate a potential
launch by 2010.
29
28
30. YieldGard VT Pro Corn
DISCOVERY PHASE I PHASE II PHASE III PHASE IV
PRODUCT CONCEPT
YieldGard VT PRO, one of the primary
components of SmartStax technology, is
the second‐generation of YieldGard
Corn Borer technology. This technology
broadens the spectrum of insect control
and increases the durability of the trait
with the use of two proteins for dual
mode of actions for resistance.
FARM PROGRESS SHOW – 2007
NEED FULFILLED VALUE CONSIDERATIONS
YieldGard VT PRO is designed to offer Part of SmartStax Platform
an unparalleled combination of insect
control and resistance management. This product would offer higher per‐acre
Excellent control of target pests has yield from improved spectrum and
been proven with increased control of consistency of control and higher on‐farm
corn earworm and fall armyworm. yield from the potential for reduced
refuge acre requirements.
CURRENT STATUS
This project is in Phase IV. This phase
includes producing bulk seed for
potential sale, developing plans for
commercialization/launch, and
response to regulatory processes as
appropriate.
U.S. regulatory approvals are
complete, including approval from the
U.S. Environmental Protection Agency
for a reduced refuge requirement in
southern states – dropping the refuge
requirements from 50 to 20 percent.
Earlier this year, Canada approved
Monsanto’s application for cultivation
of YieldGard VT PRO with a 5 percent
30
refuge.
29
31. YieldGard Rootworm III
DISCOVERY PHASE I PHASE II PHASE III PHASE IV
PRODUCT CONCEPT
YieldGard Rootworm III is designed to
offer increased control and durability
against the corn rootworm. This next
generation product aims to use two
distinct modes‐of‐action providing
two different approaches to insect
control. Having two modes‐of‐action
provides the potential to request
reduced refuge, thereby making
every acre planted more productive.
Broader spectrum control would also
allow control of secondary insects
that feed on roots.
NEED FULFILLED VALUE CONSIDERATIONS
The two independent technologies To be decided when project enters Phase II
would offer increased insect protection
This product would provide superior
and durability for the farmer. The corn
control of corn rootworm when compared
rootworm has been dubbed the
to current sources of germplasm control
“billion dollar bug” because of the
and increase corn yields for growers.
extreme damage that it can do to corn
crops and because of the input costs
associated with it. The corn rootworm
feeds on the roots of the corn plant
under the soil, therefore limiting the
plant’s ability to take up nutrients and
water increasing the potential for
lodging. The first generation of in‐plant
corn rootworm technologies have
provided significant yield benefits,
reduced input cost from insecticides,
and increased protection from
environmental stress, such a drought.
CURRENT STATUS
This project is in Phase I, which
includes testing gene configurations in
plants to screen for desired
performance and determining which
product leads show the most promise
for application to core crop plants.
31
30
32. Cotton and Canola Pipeline
OTHER PROJECTS IN THE PIPELINE
PAGE 32 Higher‐Yielding + Roundup Ready 2 Yield Canola
PAGE 33 Dicamba‐ and Glufosinate‐Tolerant Cotton
PAGE 34 Drought‐Tolerant Cotton
PAGE 35 Cotton Lygus Control
PAGE 36 Bollgard III
32
31
33. Higher‐Yielding +
Roundup Ready 2 Yield Canola
DISCOVERY PHASE I PHASE II PHASE III PHASE IV
PRODUCT CONCEPT
This is a second‐generation
weed‐control trait vector‐
stacked with a yield trait,
aimed at increasing weed
control and boosting the yield
potential of canola by 15
percent. This product would
also provide improved
nitrogen‐use efficiency, giving
Higher‐Yielding
the farmer the opportunity to Conventional
Canola
trade off fertilizer costs while
maintaining current yields.
NEED FULFILLED VALUE CONSIDERATIONS
2020 Value1:
Higher yields are becoming important <$150M
as population expands and as canola
Launch Country: Canada
growers look to meet growing demand
for oil in areas like biodiesel and Launch‐
12M
cooking. This is a new solution and an Country Acres2:
upgrade for farmers. Higher‐yielding
canola would create additional Additional Geographic U.S.
harvestable yield for farmers, Opportunity: EU27
increasing their productivity while Australia
providing increased weed control.
By increasing yield 15 percent, this offers
farmers the option to get more yields per
CURRENT STATUS
acre and additional flexibility in crops
This project is in Phase II, early planted and market opportunities.
development. This includes conducting
lab and field testing of genes in plants
to select commercial product
candidates and to identify the best
performing events to advance to
regulatory trials. More than three years
of field testing demonstrated
consistent yield benefit for the lead
gene in the United States and Canada.
33
PART OF THE MONSANTO‐BASF YIELD 32
AND STRESS R&D COLLABORATION
34. Dicamba‐ and Glufosinate‐
Tolerant Cotton
DISCOVERY PHASE I PHASE II PHASE III PHASE IV
PRODUCT CONCEPT
Dicamba‐ and glufosinate‐tolerant
cotton would represent Monsanto’s
first three‐way stack of herbicide‐
tolerant technologies including
Roundup Ready Flex, dicamba‐
tolerance and glufosinate tolerance.
This product would add two new,
unique modes‐of‐action to the
Roundup Ready Flex system, providing
cotton growers with the most
effective weed management system
available.
NEED FULFILLED VALUE CONSIDERATIONS
Protection against weeds is an To be decided when project enters Phase II
important tool to increase farmers’
Weed control is an important component
yields and maintain fiber quality.
of realizing a crop’s genetic potential in
Dicamba‐ and glufosinate‐tolerant
the field. By combining three modes‐of‐
cotton is the third‐generation of
action against weeds, the possibility of
herbicide tolerance in cotton.
encountering a weed with common
Combining dicamba tolerance and
resistance is virtually zero. This will
glufosinate tolerance with Roundup
contribute positively to long‐term viability
Ready Flex will greatly expand weed
of herbicide tolerance, as well as ease‐of‐
control options by use of glyphosate,
use.
dicamba or glufosinate, or
combinations of all three herbicides..
CURRENT STATUS
The project is in Phase I, the proof of
concept phase. The trait is being
introduced into diverse germplasm and
undergoing multi‐year testing,
characterization and quality control.
34
33
35. Drought‐Tolerant Cotton
Part of the Drought‐Tolerant Cotton Family
DISCOVERY PHASE I PHASE II PHASE III PHASE IV
PRODUCT CONCEPT
Drought‐tolerant cotton is designed to
minimize risk in cotton farming by
providing yield stability in
environments experiencing occasional
or consistent water stress and by
reducing water needs on irrigated
acres.
NEED FULFILLED VALUE CONSIDERATIONS
Agriculture uses over 70 percent of the To be decided when project enters Phase II
world’s fresh water resources, and a
Drought‐tolerant cotton is expected to
product like drought tolerant cotton
reduce crop losses on dry‐land acres and
would offer farmers one way to reduce
may reduce water costs in irrigated
agriculture’s impact on the
farming operations.
environment. Every acre of cotton
faces some degree of water stress at
some point in the growing season, and CURRENT STATUS
water is one of the biggest limiting
factors in agriculture production. This The project is in Phase I, the proof of
product would allow farmers concept phase. The trait is being
consistent yields even during times of introduced into diverse germplasm and
drought. Increased yield creates undergoing multi‐year testing,
additional harvestable yield for characterization and quality control. We
farmers, increasing their productivity are in the process of building a portfolio
to help meet growing demands for of genes that confer drought tolerance in
feed, food and fiber. cotton.
35
PART OF THE MONSANTO‐BASF YIELD 34
AND STRESS R&D COLLABORATION
36. Cotton Lygus Control
DISCOVERY PHASE I PHASE II PHASE III PHASE IV
PRODUCT CONCEPT
This product extends the spectrum
of cotton insect control to lygus
bugs, piercing‐sucking insects that
damage bolls and reduce overall
plant health and yield.
NEED FULFILLED VALUE CONSIDERATIONS
Insect protection is an important tool To be decided when project enters Phase II
for increasing farmers’ yields and
According to Mississippi State University
maintaining fiber quality. The lygus
researchers, lygus bugs infested half of
family consists of several species, all
the U.S. cotton crop in 2006. Lygus
with a piercing and sucking feeding
infestations reached historic highs in 2007
habit that causes damage to
in the mid‐South. Lygus bugs are the
reproductive tissues in cotton,
second most damaging insect to U.S.
damaging boll development in cotton.
cotton. It is expected that this technology
With the low‐spray environment
could be applicable to many of the acres
created by the use of Bt genes in
where lygus is a significant pest.
cotton, lygus pests have become a
more prominent cotton pest.
CURRENT STATUS
The project is in Phase I of our pipeline,
the proof of concept phase. The trait
will be introduced into diverse
germplasm and undergo multi‐year
testing, characterization and quality
control.
36
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