March 22, 2007

BASF, Monsanto team up for plant biotechnology
 

BASF AG, the world's largest chemical maker, and GM crop producer Monsanto said Wednesday (March 21) they will form a joint venture for long-term plant biotechnology agreement to produce high-yielding and drought-resistant crops.

A combined budget of US$1.5 billion will be allocated for a development pipeline of yield and stress tolerant corn, soybeans, cotton and canola.

The venture, which expects to have its first product commercialised in the first half of the decade, will bring together the companies' existing and planned yield as well as projects generated by independent plant biotechnology discovery and research.

Monsanto will commercialise all products and receive 60 percent of the profit while BASF gets 40.

The companies also signed a separate collaboration agreement to research methods to control the soybean cyst nematode, a parasitic pest that can reduce or destroy crop yields.